Weekly review

The FTSE 100 finished the week down 71.7 points, or 0.95%, at 7,463.54.

Equity view

Rolls-Royce Holdings issued a pre-close trading update on Friday, as it prepared to meet investors over the next fortnight at the Paris Airshow - and ahead of its half year results on 1 August - claiming it had started the year “well”, with all businesses performing in line with expectations.

Service company Serco has appointed David J. Dacquino - currently the head of its Americas’ defence business - as chief executive officer of the Americas division, succeeding Dan Allen who is retiring from the role.

Tesco romped off to a strong start to its new financial year, with Britain's biggest grocer delivering first quarter UK sales ahead of City expectations despite current tough conditions for the wider retail industry.

Ken MacKenzie has been elected to succeed Jac Nasser as chairman of BHP Billiton with effect from 1 September following Nasser’s retirement.

Engineer WS Atkins reported a rise in full-year profit and revenue in its last set of results before it gets taken over by Canada's SNC-Lavalin - a deal that was agreed back in April.

Convenience-led UK retail and leisure property specialist NewRiver REIT has announced a proposed firm placing and placing and open offer to raise gross proceeds of at least £200m, at between 330p and 340p per share.

Sky issued an update to the market on Thursday morning, announcing that both itself and Liberty Global’s Virgin Media were forming a strategic partnership that would enable businesses of varying sizes to benefit further from “advanced television advertising”, across both the Virgin TV and Sky platforms.

Shares in DFS Furniture tanked on Thursday as the retailer warned that its full-year earnings will be below market expectations due to a weakened trading environment.

British American Tobacco posted a pre-close trading update for its first half on Wednesday, with the board saying the business continued to perform “very well”, in line with expectations.

Temporary power provider Aggreko has acquired Indonesia-based power rental company KBT (Kerta Bumni Teknindo), for up to $32. 8 m.

Hybrid online estate agent Purplebricks has announced plans to expand into California later this year as it looks to launch its first site in the US.

Property investor CLS Holdings has continued its strategy of increasing its presence in Germany with the acquisition of a portfolio of 12 office buildings for €148m (£131m) cash.

Investors in visitor attraction operator Merlin Entertainments were set to muster for the company’s annual general meeting on Tuesday, with the board confirming group trading for the year to date had been “broadly” in line with expectations, reflecting the outlook and commentary it provided on 2 March.

FTSE 250 housebuilder Crest Nicholson reported a rise in profit and revenue for the half year and said it is on track to deliver full-year revenue growth, but cautioned that the UK election could bring about uncertainty.

Independent hospital operator Spire Healthcare Group announced on Tuesday that current executive chairman Garry Watts had been diagnosed with an unspecified medical condition, and was currently undergoing treatment which could require him to need some time out of the business in the coming months.

Fashion retailer Ted Baker reported a 14. 2% rise in revenue for the 19 weeks to 10 June as it presses ahead with its global expansion, with openings in Los Angeles, Paris, and Shanghai.

Glencore has made an offer to buy Rio Tinto's interest in Coal & Allied Industries(C&A) for $2.55bn in cash plus a coal price-linked royalty.

Weir Group announced on Monday that it had entered into an agreement to acquire KOP Surface Products, a provider of advanced surface pressure control technologies, systems and services for the oil and gas industry for $114m in cash.

Gem Diamonds has recovered two diamonds of more than 100 carats each from its Letseng mine in Lesotho.

AIM-listed stamp and coin specialist Stanley Gibbons said on Monday that it is considering a sale of some or all of the company following a comprehensive restructure.

Economic news

Chancellor of the Exchequer Philip Hammond has said the government’s priority as it enters Brexit negotiations should be on jobs and the economy.

UK tourism continues to boom thanks to the weak pound, enticing more visitors from around the world to the UK and strongly boosting spending.

UK retail sales shrank much more than expected in May, according to official data published on Thursday that shows how households are feeling the pinch from rising inflation and falling wages.

The continued drop in the rate of unemployment prompted two more rate-setters on the Monetary Policy Committee to vote for an immediate 25 basis point increase in Bank Rate.

The squeeze on UK households is tightening, as wage growth continues to slow amid a spike in inflation, meaning real wages are falling at the fastest pace in three years.

While Theresa May battles to agree a pact with her Northern Irish kingmakers in order to form a government, fellow senior Conservatives are confident of securing a new 'softer' Brexit approach in forthcoming divorce talks with the European Union.

Britain would be welcomed back into the European Union should it decide to stay, Germany's finance minister said.

Most economists believed it was more likely that Britain would stay in the single market following the surprise Election result, despite which they still expected Sterling to fall in value, according to new polls from Reuters.

British households have cut back their spending for the first time in almost four years, as consumers come under pressure from rising inflation, stalling wage growth, and political and economic uncertainty.

Business confidence has plunged in the wake of last Thursday's general election and subsequent hung parliament amid concerns about the impact of political uncertainty on the UK economy, according to a poll of nearly 700 members of the Institute of Directors.

International events

Crude-oil futures stole cautiously ahead Friday as the market awaits Baker Hughes rig data this afternoon, and despite the overall bearish sentiment surround the black liquid.

Consumer sentiment in the States soured in the wake of ex-Federal Bureau of Investigation chief James Comey's Senate testimony, the results of the most widely-followed gauge of the consumer climate revealed.

US President Donald Trump is being investigated by the FBI for a potential obstruction of justice related to the ongoing inquiry into Russian meddling in last year's election, according to media reports in the country.

Manufacturing conditions in the Philadelphia region deteriorated a little less than expected in June, according to a survey released on Thursday.

The cost of living in the euro area's largest economy fell back last month as the impact of the late Easter in 2017 reversed, revised data confirmed.

Industrial production within the single currency bloc continued slowing in April, with a slowdown in output of capital goods weighing on growth.

Strategists at Deutsche Bank reaffirmed their year-end target for the pan-European Stoxx 600 index but cautioned clients that further weakness might lie ahead over the coming months, before a recovery took place in the final stretch of 2017.

Factory gate prices in the States were unchanged last month as weaker prices for goods offset dearer services.

Italian industrial production fell unexpectedly in April, weighed down by a drop in output of motor vehicles and transport.

US tech shares were seen lower again on Monday after having dropped 2. 4% last Friday, wiping $140bn off some of Wall Street's biggest stocks.