Weekly review

The FTSE 100 closed the week down 179.83 points at 6,804.60.

Equity view

Deutsche Bank is reportedly conducting an internal probe into possible money laundering by Russian clients that could involve about $6bn of transactions between 2011 and early 2015.

Pub and brewing group Fuller, Smith & Turner saw its annual profit grow on the back of strong performances across its three divisions.

Car parts and bicycle retailer Halfords posted an 11.4% rise in full-year profit on Monday, as the company's drive to improve customer service and expand its cycling ranges helped to push group revenue over £1bn.

Shares in Vodafone declined on Friday as the company quashed hopes of a merger with Liberty Global.

Lloyds Banking Group has been fined £117m by the Financial Conduct Authority for mishandling compensation payouts for mis-sold payment protection insurance between March 2012 and May 2013.

Irish airline Aer Lingus reported an increase in last month's passengers, driven by a sharp increase in the number of transatlantic travellers.

An interim management statement from Bellway revealed the housebuilder expects its full year operating margin to increase by around 300 basis points to over 20%, up from 17.2% in 2014 following what it described as a strong trading performance.

HSBC has been fined £27.8m by Swiss authorities over money-laundering claims related to the bank's Swiss division.

Tesco is exploring the sale of its South Korean operations, valued at around $6bn, and has hired HSBC as a financial adviser, according to sources cited by Reuters.

The government will raise money to pay down the deficit by selling off its remaining 30% share in Royal Mail.

Platinum and palladium refiner Johnson Matthey fell 4.2% on Thursday, with analysts pointing to a sharp increase in debt due to higher working capital, as the company posted a better-than-expected 22% rise in fiscal 2015 pre-tax profit to £495.8m.

Shares in Shire fell 1.5% on Thursday following news that the company has lost its patent appeal over the Lialda drug for a second time.

Low-cost airline EasyJet said on Thursday that it carried nearly 6.5m passengers last month, up 7.2% from 6.05m in May 2014.

Ryanair's traffic rose in May after introducing lower fares and taking measures to improve its customer service.

Old Mutual has received the necessary approvals for its acquisition of an additional 37.3% of UAP, an East and Central African financial services company.

Shares in WH Smith rose 3% on Wednesday after the company said total sales in the 13 weeks to May 30 rose, as the performance of the company's shops based in stations and airports offset a disappointing performance in its high street stores.

The joint venture between engineering solution provider Costain Group and development group Skanska AB has been chosen as the preferred bidder to handle part of the A14 Cambridge to Huntingdon improvement scheme.

UK fashion retailer New Look saw its full-year revenues and profits increase despite a competitive high street market.

Shares in oil and gas exploration company Premier Oil rose 3.3% on Tuesday after the company said it will consolidate production at the Solan field, West of Shetland, after taking full ownership of the project by acquiring the 40% stake it did not already own.

Wolseley registered a sharp rise in quarterly profits boosted by favourable tailwinds form the currency market, although management expects a slight slowdown in sales.

Asos shares were knocked lower early on Monday after it was revealed an outage prevented bargain-hungry shoppers from taking advantage of a 20% discount sale.

Engineering data and design IT systems provider Aveva has reached an agreement to acquire FabTrol Systems from the Dowco Group of Companies for $6.5m (£4.26m).

Economic news

OPEC has decided to maintain its oil production quota at 30m barrels per day (bpd) in line with market expectations following the conclusion of its meeting in Vienna, Austria on Friday.

The Bundesbank has raised its forecasts for German economic growth this year and next, noting that the economy has recovered more quickly than expected from the cyclical lull in the middle of last year, with growth back on a path that is underpinned by both domestic and foreign demand.

The British public's expectations for inflation in the next 12 months rose in May, according to a survey by the Bank of England (BoE).
US non-farm payrolls increased by 280,000 in May, ahead of the 226,000 predicted by economists, official data showed on Friday. The unemployment rate was unchanged at 5.5%, as expected.

The Bank of England (BoE) on Thursday decided to keep policy unchanged, as predicted by analysts.

UK new car registrations edged higher in May, the Society of Motor Manufacturers and Traders said on Thursday.

A gauge of US services activity advanced at a slightly subdued rate last month, the Institute for Supply Management said.

US productivity in the first three months of the year fell by a downwardly revised 3.1% annual pace, figures released on Thursday showed.

UK house prices grew at their slowest pace since January last month, a leading mortgage lender said on Thursday.

European Central Bank President Mario Draghi on Wednesday said the monetary authority expects the harmonised index of consumer prices to rise 0.3% in 2015, 1.4% in 2016 in and 1.8% in 2017.

The number of homes bought for cash reached a new high in the first quarter, according to new research from Nationwide.

Growth in the UK services sector saw its biggest slowdown in nearly four years in May. The Markit/CIPS UK services Purchasing Managers’ Index fell to 56.5 in May, missing estimates and below April’s reading of 59.5.

America's shortfall in trading with the rest of the world dropped sharply in April.

Prices in UK shops continue to fall, with food prices wallowing at their record low for a third consecutive month and non-food deflation stretching to its third year, according to the BRC-Nielsen shop price index.

The European Central Bank has reportedly increased the Emergency Liquidity Assistance (ELA) provided to Greek banks by €500m to €80.7bn from €80.2bn.

The German consumer price index rose to 0.7% in May from 0.5% in April, in line with expectations, according to preliminary data released by Destatis.

Factory growth in the Eurozone in May was weaker than previously estimated, as core countries continued to struggle, according to data from Markit.

The contraction in China's manufacturing sector continued in May for a third consecutive month, on the back of weaker than expected demand from overseas, but signs of stabilisation were apparent, economists said.