Weekly Review

The FTSE 100 closed the week up 41.68 points at 6,915.20.

Equity view

Online gambling group 888 Holdings was "unable" to agree on the terms of a possible takeover by William Hill and talks have been called off.

Retail giant Hammerson recorded a 11.3% increase in full-year net asset value as rising demand gave rental growth a boost.

IHG managed to narrowly beat analysts' forecasts with a smaller-than-expected decline in annual profits, as it predicted a "continued strong performance" in 2015.

Wood Group grew sales and profits by double-digit rates last year and said its focus on operational expenditure should allow it to remain resilient and deliver growth despite the lower oil price environment.

Less than a year after returning to the stock market, insurer Brit has accepted a £1.22bn cash takeover offer from Canadian rival Fairfax Financial.

Supermarket giant Tesco has appointed John Allan as its new chairman to replace Richard Broadbent who resigned following an accounting scandal last October.

Coca-Cola HBC, the Greece-based drinks bottler, enjoyed improved volumes and lower sugar and oil costs in the final few months of the year but earnings were hit by worsening currency movements.

High street sportswear retailer Sports Direct said it is confident of increasing profits this year despite a significant slowdown in sales growth in its third quarter.

With oil and gas prices plummeting, Centrica has taken dramatic action by slashing its 2014 dividend, future payout policy and capital expenditure plans, as well as warning that earnings for next year will be lower than expected.

SABMiller's chief financial officer Jamie Wilson has resigned with immediate effect from the company for personal reasons.

The board of drinks packaging group Rexam has agreed a £5.4bn takeover by US rival Ball Corporation, a much larger higher valuation than had been expected by the market.

Sales and underlying profits at BAE Systems fell in 2014 though the defence contractor met guidance and said its larger order backlog of £40.5bn continues to provide good visibility for the future.

Insurance giant Standard Life said the recent acquisition of Ignis helped it to increase assets under administration by 38% in 2014, while profit growth and the final dividend came in ahead of City forecasts.

Economic news

The Confederation of British Industry (CBI) has upgraded its UK growth prediction for 2015, citing the drop in oil price and lower inflation as the main reasons behind its decision. It now expects the year to see growth of 2.7%, up from previous forecasts of 2.5%.

UK consumer price inflation slowed to a record-low level of 0.3% in January and is forecast to fall further before the UK enters deflation later in the year.

The Bank of England's Monetary Policy Committee voted to keep its policy unchanged at its 5-6 February meeting, minutes revealed on Wednesday, though the report showed differences of opinion surrounding the timing of the first rate hike.

UK house prices continued rising at a brisk pace in December according to government statisticians even as those in London continued to slow down. The Office for National Statistics’s House Price Index (HPI) advanced 9.8% year-on-year last December, off by a only a tenth of a percentage point from the prior month.

UK unemployment, as measured by the International Labour Organisation, dipped to 5.7% over the three months to the end of December, from 5.8%, as expected.

UK retail sales grew 5.4% year-on-year in January, but fell 0.3% from December's high, worse than the 0.2% monthly fall expected.

International events

Greece confirmed that it will request a six-month extension "loan agreement" with its European creditors on Thursday, but is not willing to continue on the same terms as its existing bailout agreement. Germany swiftly rejected the proposal, though Eurozone finance ministers met again on Friday in Brussels to discuss the matter.

The number of Federal Reserve officials leaning toward keeping rates at zero "for a longer time" was higher than that of those who wanted to raise interest rates. Minutes from the Fed January meeting were released on Wednesday and showed that "many" on the Fed committee said a premature rate increase could be detrimental for the recovery, while "several" believed a later move could lead to high inflation.

Japanese conglomerate Sony announced on Tuesday that it would be spinning off its video and sound business into a separate wholly-owned subsidiary as it attempts to return to profit.

Food giant Nestle said its net profit for 2014 soared after it sold its stake in French cosmetic group L'Oreal.

Some members of the European Central Bank voted against the quantitative easing programme in January, according to first minutes published by the monetary authority.

Business activity in the Eurozone grew at the fastest pace in seven months in February, the Markit composite PMI showed on Friday. The index rose from 52.6 in January to 53.5.