Weekly review

London's FTSE 100 index ended the week 13.84 points higher at 7,345.78.

Equity view

Salesforce entered an agreement to acquire Tableau Software in an all-stock transaction worth approximately $15.7bn.

Drug maker Merck has agreed to buy privately-held biopharmaceutical group Tilos Therapeutics for up to $773m.

Ferguson on Monday reported that it had missed third quarter revenues estimates following a slowdown in US growth, though the business still achieved revenue and trading profit growth.

Shares in debt-stricken leisure travel group Thomas Cook soared as the company confirmed a takeover approach by China's Fosun Tourism Group for its tour operator business.

Infrastructure and support services group Stobart said former chief executive Andrew Tinkler has lost his appeal against the High Court defeat over his dismissal.

Safety, health and environment technology company Halma posted record full-year results on Tuesday thanks to strong growth across all four of its sectors.

Ted Baker issued a profit warning on Tuesday as the iconic retailer said it faced "extremely difficult trading conditions".

Smith & Nephew on Tuesday said it was buying Switzerland's Atracsys, a provider of optical tracking technology used in computer-assisted surgery, for an undisclosed sum.

Philip Green's Arcadia Group managed to avoid administration after the group's creditors approved a complex restructure plan in a key vote on Wednesday that will see 1,000 job losses and 50 stores shut.

German discounter Lidl has unveiled a £500m investment plan for London, as it looks to ramp up its foothold in the capital and heap further pressure on larger rivals.

Spain’s Inditex, the world’s largest clothing retailer, has reiterated its focus on global and digital expansion after reporting a jump in first-quarter profits, despite adverse weather tempering sales growth.

Transport operator Go-Ahead confirmed an extension of its Southeastern rail franchise.

There was clear evidence a controversial Royal Bank of Scotland unit mistreated customers, the Financial Conduct Authority said on Tuesday – but reiterated it was unable to sanction the bank.

Tesco said first quarter like-for-like sales rose 0.2% to £13.9bn, with UK sales up 0.4% to £9bn and growth at the newly acquired Booker over the period.

Amazon is extending its alliance with UK retailer Morrisons to offer ‘same-day online grocery delivery’ service to more cities across Britain.

Kier Group is preparing to sell its housebuilding business to ease pressure on the contractor's finances, The Times reported on Friday.

Exhibitions company Ascential said trading was in line with full year expectations with its product design, marketing and sales divisions all reporting organic first half revenue growth.

Economic news

The UK and South Korea have reached a preliminary post-Brexit trade agreement, marking the first major deal struck with an Asia nation since the 2016 referendum.

The UK economy shrank more than expected in April as car production tumbled, according to data released on Monday by the Office for National Statistics.

UK phone firms have urged the government to clarify its position over Huawei, warning that Britain's world leading position in mobile connectivity could be at stake.

The UK employment rate remains at a record high, official data showed on Tuesday, while wages continued to rise.

Boris Johnson started his Conservative leadership campaign on Wednesday with a warning that delaying Brexit beyond October 31 would result in the defeat of the government.

The UK has committed to reach net zero carbon emissions by 2050 and will become the first G7 country to legislate the proposal.

Boris Johnson was victorious in the Conservative Party's first round of voting to decide upon the next Prime Minister.

International events

The PSOE party in Spain agreed on Tuesday to cooperate on forming a government with far-left party Podemos in its latest move to secure a majority in parliament.

Investor sentiment towards nearly all regions soured last month, after US-China trade tensions escalated, and could drag Germany into recession, according to the results of a widely-followed survey.

Consumer level inflation in China picked up last month as pork prices increased at their fastest pace for 35-months, but underlying price pressures in fact slowed, pointing to still lacklustre demand, according to analysts.

President Donald Trump said that China must adhere to the terms of the trade deal that it had agreed to earlier in 2019 or risk a no-deal and higher tariffs.

Crude oil futures jumped on the back of reports that two oil tankers off the coast of Fujairah, in the Sea of Oman, were on fire.

Rome has ruled out passing another budget, despite facing formal sanction by Brussels for breaking European Union fiscal rules.

US President Donald Trump on Wednesday declined to set a deadline for the latest tariffs he is planning to impose on Chinese goods.

The Organization of Petroleum Exporting Countries warned on Thursday that the increasingly bitter trade war between America and China is undermining the global economy, as it revised down its estimates for oil demand in 2019.

Americans' outlook on the economy didn't worsen by as much as had been expected in June, according to the results of a closely-followed survey, but their expectations for inflation dropped to a four-decade low.

Russia's central bank took back its late 2018 pre-emptive interest rate hike as it revised its near-term forecasts for inflation and economic growth lower, leaving the door open to a another rate cut at one its next board meetings and a possible shift to a "neutral" policy before mid-2020.

Chinese industrial production fell to its worst level in 17 years in May, according to figures released by the country's National Bureau of Statistics on Friday.

The US military released video footage it claimed showed an Iranian military patrol boat approach one of two tankers attacked in the Gulf of Oman on Thursday as tensions increased in the region over the incident and oil prices rose.