Weekly Review

The FTSE 100 closed the week down 167.92 points at 6,585.78.

Equity view

Tool rental company HSS Hire disappointed investors on Monday after warning the market its second-quarter trading was below expectations. Sector peer Speedy Hire also said it had suffered a "slower-than-expected start" to the year as it gave its own profit warning, prompting the resignation of its chief executive officer.

Sky has called on industry regulator Ofcom to instigate a full market investigation to examine problems with competition and quality of service affecting consumers in the UK’s broadband marketplace.

Full-year pre-tax profits flew 186% higher at Carpetright as the retailer grew like-for-like sales and returned to growth in Europe thanks in part to December's new strategic plan and a handful of store closures.

Chipmaker Imagination Technologies impressed investors after the company said it expects to see an increase in profitability in 2016, despite posting a wider loss for year to April 30.

A 30% rise in new customers and 19% increase in active customers in the first half of the year helped online supermarket Ocado drive robust growth in revenue and operating profits despite the fierce grocery industry competition.

Pub group Greene King reported record retail revenue of £1bn in its full-year results, although profit fell on the back of lower like-for-like sales and the impact of the disposal of 275 pubs to Hawthorn Leisure.

Housebuilder Persimmon said interim revenues increased by 12% to £1.34bn, in line with expectations, thanks to selling prices and volumes boosted by post-election confidence and an increasingly competitive mortgage market.

Lloyds Banking Group said that the UK government has reduced its stake in the bank to 15.9% from 16.87%, as it moves towards full privatisation.

Dixons Carphone said that its Connected World Services division has entered into an agreement with Sprint Corp to open and manage a significant number of Sprint-branded stores in the US.

BP has reached agreements in principle to settle all federal and state claims arising from the 2010 Gulf of Mexico oil spill at a cost of up to $18.7bn spread over 18 years.

Royal Bank of Scotland is reportedly facing a $13bn claim in the States over mis-sold mortgage-backed securities before the 2008 crisis

Economic news

Mortgage approvals in the UK unexpectedly fell in May, according to figures from the Bank of England. Mortgage approvals for house purchases dropped to 64,434 in May from 67,580 in April, falling short of analysts’ expectations for a rise to 68,600.

The UK´s economy started the year on a slightly firmer footing and with greater momentum than initially though, according to revised figures from the government. Gross domestic product expanded at a 0.4% quarter-on-quarter clip in the first three months of 2015, one tenth of a percentage point more than initially estmated by the Office for National Statistics.

A new, third runway should be built at London's Heathrow airport, a three-year study by the Airports Commission has concluded.

According to a report by think-tank the Centre for Policy Studies, more than half of UK households received more in state benefits than they paid in tax in 2013/14.

The UK manufacturing PMI fell to a 26-month low of 51.4 in June from a revised 51.9 in May, missing the 52.5 consensus forecast.

The UK construction PMI came in at 58.1 in June, above May's 55.9 reading and the estimate of 56.5.

The UK services PMI increased to 58.5 last month, bouncing back after posting a five-month low of 56.5 in May, ahead of the 57.5 prediction.

International events

Greece missed Tuesday's 23:00 deadline to make a €1.6bn repayment to the International Monetary Fund, becoming the first European economy to default on a loan with the institution.

Greece's government imposed capital controls after it announced the decision to hold a referendum on Sunday 5 July to vote on creditors' bailout proposals. Meanwhile, EU officials said they would not discuss another bailout until after the polls. Greek finance minister Yanis Varoufakis has said he would resign if the public votes 'yes'.

General Electric has reached an agreement to sell its US, Mexico, Australia and New Zealand fleet businesses to Element Financial Corp for $6.9bn.

The seasonally-adjusted unemployment rate for the Eurozone was steady in May at 11.1%, and down from 11.6% in the same month last year, sticking at its lowest rate since March 2012, according to figures released by Eurostat.

Food distributor Sysco Corporation will pay $312.5m in break-up fees after it cancelled its merger with US Foods.

US reinsurance giant Willis announced plans to merge with professional services company Towers Watson, in a deal valued at $18bn deal.

US non-farm payrolls increased by 223,000 in June, coming in below economists´ forecasts for a rise of 233,000. As well, readings for April and may were revised lower by a combined 60,000.

Shares in Chubb Corp rocketed on Wednesday after Swiss insurer ACE Ltd said it will buy the US property insurer for $28.3bn in cash and stock.

US health insurer Aetna Inc has agreed to take over rival Humana Inc for roughly $37bn.

Brazil's antitrust agency has accused 15 banks of rigging the Brazilian currency and deterring competitors from the market between 2007 and 2013.