Weekly review

The FTSE 100 closed the week down 17.6 points at 6,784.92p.

Equity view

Shares in Petra Diamonds slumped 10% on Friday after the company said that full-year revenues are likely to be lower than expected due to reduced prices for diamonds.

HSBC is reportedly in talks to sell its Turkish operations to Bahrain's Arab Banking Corporation as it accelerates a restructuring that could have significant implications for the bank.

Virgin Atlantic chair Sir Richard Branson has hit out at British Airways owner International Airlines Group (IAG).

Segro has agreed to dissolve the Heathrow Big Box Industrial and Distribution Fund, the 50/50 joint venture created by its subsidiary Brixton plc in partnership with M&G Real Estate, ahead of its termination date in June 2016.

UK regulator Ofcom said on Friday that it has proposed controls on the wholesale prices BT charges for products using leased telecoms lines, which provide high-speed links for businesses and providers of superfast broadband and mobile services.

Royal Bank of Scotland rose 2% on Thursday on news that the UK government will begin the process of returning shares to private ownership in the coming months.

The chief executive of Sainsbury has been acquitted by an Egyptian court of embezzlement charges.

Budget airline Ryanair has been told to slash its 30% stake in Irish carrier Aer Lingus, to potentially facilitate IAG's takeover of the airline..

PZ Cussons, the maker of bath products Imperial Leather and Original Source, said its full-year performance was in line with expectations.

The luxury retailer Mulberry saw its full-year profits decline but remained confident with its pricing strategy, which is beginning to "bear fruit".

Design, engineering and project management consultancy WS Atkins posted a 14.6% rise in full-year underlying pre-tax profit on Thursday and said the outlook remains positive.

The UK government has raised £750m through the sale of part of its stake in postal service Royal Mail.

Bill Winters, the chief executive of Standard Chartered, said the bank's capital strength is a top priority.

Standard Chartered jumped nearly 4% on Wednesday, with traders pointing to a press report that Chancellor George Osborne may signal an end to the £3.5bn a year bank levy.

Shares in UK supermarket retailer J Sainsbury rose 1.7% after its first-quarter sales came in a little better than expected.

Ratings agency Standard & Poor's downgraded a number of UK and German banks including Barclays, Royal Bank of Scotland, Deutsche Bank and Commerzbank, saying it was uncertain whether their respective governments would bail them out if they ran into difficulties.

Advertising agency WPP posted an 8% rise in revenue to £3.78bn for the first four months of the year, although the company cautioned that it looks set to be "another demanding year" and pointed to a possible 'Brexit' and US interest-rate hike as risks.

Shares in Vedanta Resources jumped nearly 5% as the company's response to media speculation that it could merge its subsidiary Cairn India into itself suggested there may be some truth to the stories.

The Competition and Markets Authority (CMA) said on Tuesday that it has fast-tracked BT Group's deal to acquire EE to a "phase 2" investigation - a deeper probe of the deal - due to concerns about competition.

Diageo rallied 7% on Monday following media reports of bid interest over the weekend.

Economic news

US consumer sentiment beat expectations in June, according to a widely followed gauge.

Monetary Policy Committee member Ian McCafferty said in speech on Friday that economic data released over the next few months will be key in determining the timing of an interest-rate hike by the Bank of England.

Britain's economy grew more than previously estimated in 2014 and in the first six months of the year, the Office for National Statistics (ONS) said.

US retail sales rose 1.2% to $444.9bn in May compared to a month earlier, as expected by analysts, according to the Department of Commerce on Thursday.

Surveying firm RICS said UK house prices will swell and there is no real confidence measures needed to create meaningful supply will be put in place anytime soon.

The World Bank downgraded its growth forecasts for this year and said the Federal Reserve should hold off on an interest-rate hike until next year.

Ratings agency Standard & Poor's downgraded Greece's credit rating by one notch, pushing it further into junk territory.
Economic activity in Britain rebounded further in May, according to estimates from a prestigious think-tank.

The People's Bank of China downgraded its 2015 forecasts for the country's growth and consumer inflation, pointing to increased downward pressure.

Greece has presented a new set of proposals to its creditors in a bid to buy precious time to broker a medium-term agreement, but at least one leading think-tank warned that any stop-gap measures could be counter-productive.

British retail sales gained in May from the same month last year, buoyed by a stronger property market boosting furniture sales.

The UK's goods trade deficit narrowed to £8.6bn in April from £10.7bn in March, according to data from the Office for National Statistics, beating expectations for a fall to £9.9bn.

The Conservatives' continued austerity measures and plans for an EU referendum before 2017 will not jeopardise the UK's economic growth, which remains solid, steady and sustainable according to the Confederation of British Industry (CBI).

The UK is likely to post "solid economic growth" over the current fiscal year and next but the country's high debt burden would continue to remain a drag, according to Moody's.

German industrial production rose by 0.9% in April from the previous month on a seasonally-adjusted basis, according to Destatis, beating consensus forecasts for a 0.5% rise.