Weekly Review

The FTSE 100 closed down 34.86 points on the week at 6,911.80.

Equity view

Product testing and certification group Intertek said results were dampened by currency movements and headwinds in the natural resources sectors in 2014, though it was still able to lift its dividend.

Pharmaceutical giant Glaxosmithkline finally completed its multibillion-dollar three-part asset-swap deal with Swiss peer Novartis, clearing the way for a $4bn cash return for shareholders.

Commodities trader and mining group Glencore managed to meet City expectations with a smaller-than-forecast decline in operating profits in 2014 despite lower commodity prices, as it slashed its investment budget for this year.

Housebuilder Taylor Wimpey doubled its dividend payment after unveiling 54% profits growth in 2014 and enjoying better than expected trading in the new year.

After a strong third quarter of growth in both the UK and US produced a record profit, Ashtead said it expected full year results to be ahead of its previous expectations.

Insurance group Direct Line reported a 12% increase in full-year pre-tax profit from continuing operations but struck a cautious tone on the outlook for UK motor and home insurance markets.

Barclays reported a pre-tax loss of £532m for the fourth quarter and set aside a total of £1.25bn for provisions to cover litigation costs related to ongoing probes into mis-selling PPI and rigging foreign exchange rates.

Mexican precious metals producer Fresnillo said it delivered a "reasonable performance" in 2014 in the face of lower silver and gold prices as profits plunged 40%.

Emerging markets-focused lender Standard Chartered reported a 25% drop in full-year pre-tax profit to $5.2bn, though capital buffers held up better than analysts had expected.

After its strongest advertising performance in five years helped ITV beat full-year forecasts, the broadcaster and producer lifted the annual dividend 34% and proposed a special dividend.

The London Stock Exchange saw revenues rise by 32% to £1.28bn in the last financial year, with organic revenues higher by 12% on an organic and constant currency basis.

British fund manager Schroders bumped up its assets under management by 14% in 2014, driven by net inflows of £24.3bn.

Insurers Aviva and Friends Life Group both smashed expectations with their 2014 results ahead of their proposed merger, which is expected to complete some time in the second quarter. Aviva's operating profits rose 6% while FLG's jumped 38%.

Economic news

Data from the UK housing market indicates home prices fell in February for the first time in five months, confirming a cool-down in the housing market. According to data from mortgage lender Nationwide, house prices fell by 0.1% in February compared to economist expectations for a 0.3% rise.

Markit’s purchasing managers' index for UK manufacturing activity jumped to a seven-month high of 54.1 in February, up from 53.1 in January.

UK mortgage approvals were slightly higher in January than a month ago, according to the latest Bank of England data. January saw 60,789 mortgage approvals, up from December's 60,300 and a four-month high.

The Markit/CIPS UK construction purchasing managers’ index rose to 60.1 in February from 59.1 in January, as it continues to rebound from the 17-month low reached in December. The UK services PMI dropped to 56.7 in February from 57.2 in January, missing estimates by economists who were looking for an improvement to 57.5.

Shop prices dropped for a 22nd consecutive month running in February, as deflation in the non-food sector accelerated, according to an industry survey. The British Retail Consortium’s monthly shop price index declined by 1.7% in year-on-year terms.

International events

The People's Bank of China cut its benchmark interest rate by a quarter point for the second time in three months, to 5.35%, and lowered its one-year benchmark deposit rate by the same amount to 2.5%.

Eurozone consumer prices fell 0.3% in February, beating analysts' estimates for a 0.5% decline, and recovering from the previous month's 0.6% drop.

Eurozone retail sales steamed ahead in January, exceeding forecasts by registering the fastest surge in 10 years. Data on Wednesday showed that sales rose 3.7% in the year to January, much higher than the 1.9% expected.

The European Central Bank has raised emergency liquidity assistance for Greece by €500m and announced that it has removed the waiver on purchases of the nation's debt. President Mario Draghi also revealed that the ECB's €1.1trn quantitative easing programme would begin on 9 March and carry through at €60bn a month through September 2016 and thereafter if needed.

US pharmaceuticals outfit Abbvie launched a $21bn takeover of rival Pharmacyclics to expand its footprint in the fast growing market for blood cancer treatments.

US non-farm payrolls rose by 295,000 in February, despite the severe winter weather, although total average hourly earnings rose by less than expected.