Weekly review

London's FTSE 100 index ended Friday up 1% at 7,331.94.

Equity view

German semiconductor manufacturer Infineon agreed to acquire US firm Cypress Semiconductors in a deal worth €9bn, including debt.

Troubled construction company Kier said full year underlying operating profit would be £25m lower than previous expectations with higher net debts and flat revenue.

Smith & Nephew on Monday completed its acquisition of orthopaedic joint reconstruction outfit Brainlab, whose digital workflow technology is used by surgeons in more than 500 hospitals worldwide.

Private equity firm Greybull Capital, which owned British Steel until its collapse last month, is reportedly set to bid for the outfit's French and Dutch operations.

Neil Woodford, one of the UK’s most well-established stock pickers, has suspended trading in his largest fund, including halting all redemptions.

Royal Dutch Shell boosted its forecasts for free cash flow growth and opened the door to a hike in its dividend payout, even as it bumped-up its guidance for capital outlays by more than expected and set out the road map for the company's transition to a lower-carbon future.

888 Holdings on Tuesday reported that it remains on track to meet full year expectations after double-digit customer acquisition growth and strong revenue growth in the UK market, as well as in its sport and casino segments.

Mike Ashley's Sports Direct has made a mandatory takeover offer of 30p a share for Game Digital after upping its stake in the video games retailer.

Jaguar Land Rover and BMW Group confirmed on Wednesday that they are joining forces to develop next generation Electric Drive Units (EDUs) as part of a push in electrification technologies.

GameStop shares tumbled on Wednesday after the US video games retailer said it was ditching its dividend following a slump in first-quarter sales.

The fate of 18,000 workers at Philip Green's Arcadia retail empire hangs in the balance after a crucial vote on the group's restructure was postponed on Wednesday.

Google has agreed to buy business intelligence, data applications and embedded analytics platform Looker in a $2.6bn cash deal.

Auto Trader Group hiked its dividend on Thursday as it reported an acceleration in its annual profit and revenue growth, with the board adding that it remains confident of meeting current year expectations despite "continued market uncertainty".

US car giant Ford Motor Co is to close its factory in South Wales, with the loss of around 1,700 jobs.

Car maker Fiat Chrysler announced that it was pulling its €33bn merger proposal with Renault after French government intervention in the deal.

Aviva announced plans to cut around 1,800 jobs as it looks to reduce expenses by £300m a year over the next three years.

Having failed to gain the required support from landlords earlier this week, Philip Green's Arcadia Group said on Friday that it had improved the terms of its company voluntary arrangements.

Barnes & Noble, the largest bookseller in the US, has agreed to be bought by Elliott Management for around $683m in cash.

Invesco Asset Management has sold a 9.3% stake in investment platform AJ Bell.

Games Workshop said sales and profit growth extended to the end of its financial year as the miniature wargame maker reiterated guidance for annual results.

Economic news

US President Donald Trump has arrived in the UK on Monday amid an atmosphere of local political tensions and anger over comments made by the US ambassador who suggested the NHS should be "on the table" in future trade negotiations.

Donald Trump believes Britain should "get rid of the shackles" of European Union membership and proceed with Brexit.

The Financial Conduct Authority is tightening up the rules surrounding peer-to-peer lending as it looks to better protect investors.

The UK construction sector suffered its worst month in more than a year in May as Brexit-related uncertainty took its toll, according to figures released on Tuesday.

Retail sales fell in May at their fastest rate since 1995 as economic and political uncertainty took their toll, according to the latest figures from the British Retail Consortium, which warned of further job losses and store closures.

The UK Conservative Party agreed rules on Tuesday for the leadership race to replace Prime Minister Theresa May that will see the number of candidates reduced.

The popularity of contactless payments rose in the UK last year, while the use of cash continued to decline.

The Governor of the Bank of England has called on emerging and advanced economies to work together more closely to reduce volatility in cross-border investing.

Theresa May and Philip Hammond are at odds over the prime minister's wish to announce billions of pounds of extra spending before she leaves office, the Financial Times reported.

Average UK house prices rose 0.5% in May despite Brexit worries, according to the latest Halifax House Price Index survey.

The government has spent at least £97m on external Brexit consultants amid confusion over total consultancy spending, an official investigation has found.

International events

A merger between Chinese steelmakers Baowu and Magangset will create the world's top producer, with combined annual output exceeding that of the entire US, overtaking ArcelorMittal.

The US has accused China of playing the "blame game” by misrepresenting why trade talks between the two powers had broken down, leading Washington to go ahead and raise tariffs on Chinese exports as it had threatened to do at the end of 2018.

Chicago Fed President Charles Evans said on Tuesday that the US economy is continuing to perform well, as he expressed concern about low levels of inflation.

Donald Trump dismissed climate change as “a change in weather” just hours after holding serious talks on the issue with Prince Charles.

Trump said on Wednesday that he needs to see more progress in talks between the US and Mexico before walking back on his threat to slap tariffs on up to 25% of all Mexican imports.

The European Commission has recommended that Italy be sanctioned for failing to tackle its soaring levels of public debt.

Growth in China's services sector eased more than expected in May, according to data released on Wednesday.

US President Donald Trump threatened China with an extra $300bn tariffs on Chinese imports on Thursday and that a decision might come in the "next two weeks", but added that he believes China wants a trade deal.

The governor of the Bank of Russia has confirmed that an interest rate cut is possible when the central bank next meets.

China's central bank has "tremendous" room to provide further policy stimulus if trade tensions with Washington escalate, its Governor said at the end of the week.

A Russian destroyer nearly collided with an American guided missile cruiser in the Philippine Sea overnight.