Weekly Review

Weekly Review

The FTSE 100 finished the week up 256.31 points on the week at 7,089.77.

Equity view

Sky shares rose on Wednesday amid speculation that Vivendi could table a bid for the UK listed TV and broadband operator, though the French media giant denied the rumours.

Shares in BG Group rocketed this week after the natural gas company recommended a £47bn cash-and-shares takeover offer by Royal Dutch Shell, sparking speculation about a fresh wave of M&A activity in the sector.

Shares in chipmaker ARM Holdings rose on Wednesday after a report from a Chinese news outlet pointed to US consumer tech giant Apple being a likely suitor to snap up the UK-listed company.

Small cap oil exploration firm UK Oil & Gas Investments this week said it made a "significant" oil discovery in the South of England, said to be the largest onshore find in the country for 30 years.

Burberry shares surged on Thursday amid speculation the luxury fashion house could attract the attention of a US rival or cash-rich private equity groups.

UK Mail warned profits for the full year would be at the lower end of expectations due to above-average costs from taking on business from collapsed rival City Link.

The UK competition regulator has threatened to reject discount retailer Poundland's proposed acquisition of 99p Stores.

UK wine merchant Majestic Wine on Friday announced it will buy Naked Wines, a customer funded international online wine business, for up to £70m.

Economic news

Economic growth in the UK remained steady in the first quarter of 2015 and is expected to gather momentum in the next three months, a new survey from the CBI showed.

The Markit UK services PMI rose to 58.9 in March from 56.7 the month before, showing that activity accelerated more than expected.

Shop prices in Britain plumbed an over eight-year low in March as the rate of decline accelerated for both food and non-food products, according to the BRC.

British industrial production grew by just 0.1% in February after a 0.3% decline in January, which economists said indicated that UK economic growth slowed in the first quarter. The consensus forecast was for growth of 0.3%.

UK construction output fell 0.9% in February after a 2.5% drop in January, as uncertainty surrounding the general election weighed on sentiment. Analysts had called for a 2% increase.

UK house prices increased 0.4% in March the year-on-year growth rate eased to 8.1% from 8.3% the month before, according to new data from Halifax.

The UK trade deficit widened more than expected in February, rising to £2.86bn from £1.54bn in January.

The Bank of England's Financial Policy Committtee said it is monitoring Britain's record current account deficit as it could trigger a "deterioration in market sentiment" towards the UK if the recovery falters.

The Bank of England maintained Bank Rate at 0.5% and the size of its asset purchase facility at £375bn, as anticipated.

International events

US courier giant FedEx reached an agreement to buy Dutch delivery company TNT Express in an all-cash eight euro-a-share offer valued at €4.4bn.

US software group Informatica is to be acquired by Permira funds and Canada Pension Plan Investment Board for $5.3bn.

Twitter shares jumped on Tuesday after the US Barron's magazine reported that Google could take over the social media giant.

US pharma firm Mylan on Wednesday made a proposal to acquire Perrigo Company for about $29bn in cash and stock.

Minutes of the 17-18 March Federal Open Market Committee meeting showed quite a large disparity among members on when to tighten policy. Some suggested moving as soon as June while others preferred waiting until later in the year or even 2016.

Greece on Thursday made a €450m loan repayment to the International Monetary Fund.

Claims for unemployment benefits in the States rose by 14,000 last week, though the monthly moving average fell to its lowest level since 2000.

Business networking group LinkedIn Corporation has agreed the takeover of professional training website Lynda.com for $1.5bn.

The annual rate of Chinese inflation remained steady at 1.4% in March, surprising analysts who expected a slowdown to 1.3%.

Deutsche Bank, Germany's biggest bank, is facing a penalty of $1.5bn (£1.02bn) for rigging interest rates, according to reports.