Weekly Review

The FTSE 100 closed the week up 87.6 points at 6,673.78.

Equity view

Intercontinental Hotels sold its five-star Hong Kong hotel for US$938m cash to a consortium of investors, but will retain a 37-year management contract on the building, with three 10-year extension rights.

Shares in Sirius Minerals fell by more than a tenth after the firm detailed its plan for York potash mine.

Shares in oil and gas services provider Petrofac rallied after the company said it has been awarded a $780m contract from Kuwait Oil Company for its manifold group trunkline in the north of the country.

Medical technology company Smith & Nephew announced the acquisition of the trauma and orthopaedics business of Deost LLC and DC LLC, a manufacturing company that has distributed S&N’s products in Russia since 2009.

Hammerson has agreed to sell its interest in the Grand Maine shopping centre situated to the south west of Angers in France to a French institutional investor for €632m.

Online music company 7digital’s shares snapped higher after saying its transition towards a business model based on licensing and away from downloads was progressing in line with expectations.

Barclays is reportedly in talks with potential buyers of its retail operations in Italy and Portugal as part of an asset disposal programme which the bank’s next chief executive will be under pressure to accelerate after Antony Jenkins was ousted on Wednesday.

Hedge funds have been cutting back on their risk due to the situation in Greece, according to a Man Group manager.
nline gaming and betting group Bwinparty confirmed that it has received an improved takeover offer from smaller rival GVC Holdings priced at 11p per share in new shares and cash that would value it at roughly £900m.

Centamin exceeded its own production guidance this quarter, reporting a 33% lift in gold production at its Sukari mine.
Recruitment firm Hays reported a strong second quarter as group net fee growth improved by 9% and said currency movements remained a challenge for the company.

Drax expects the removal of the Climate Change Levy exemption for renewable electricity generated after 1 August 2015, announced in Wednesday’s Budget, to lead to a reduction in earnings before interest, tax, depreciation and amortisation of around £30m in 2015 and £60m in 2016.

Emerging markets asset manager Ashmore Group shed more assets in the latest three month period and said it remains cautious of US rate hikes.

Shares in housebuilder Barratt Developments got a boost after the company said it expects to see a 45% increase in full-year pre-tax profit to £565m, from £3906m last year amid continued strong demand in the housing market.
Revenues were flat at Primark owner Associated British Foods in the 40 weeks to 20 June, but up 2% against the same period last year if currency moves are ignored.

Shares in Independent Oil & Gas rose more than 20% after the energy company detailed its long term funding strategy.
Barclays was on the front foot after the bank announced the departure of its chief executive, Antony Jenkins, saying that “a change in leadership is required” and the search for his successor is underway.

Stagecoach failed to extend the contract to run the South West Trains franchise beyond February 2017, despite management's confidence about being able to do so until at least April 2019.

Economic news

Measures proposed by the Competition & Markets Authority (CMA) to increase competition in the UK energy market may reinforce pressure on supply margins in the medium-term, according to Fitch Ratings.

Food prices in June fell at their slowest rate for several months and non-food retail price deflation eased off as overall shop prices fell 13% in June, up from -19% in May.

The first increase in the US central bank’s main policy rate is likely to come later in 2015, the chair of the Federal Reserve said.

With or without a third bailout, Greek banks will require recapitalisation, credit agency Moody's has said, with the European Central Bank expected to continue playing a critical role as creditor and liquidity provider.

Eurogroup head Jeroen Dijsselbloem said that a decision on Greece’s new reform proposals will be made “probably today”, according to Bloomberg.

Greece has submitted a new and eagerly-awaited proposal for economic reforms in a last-minute bid to clinch a bailout deal with its international creditors, but analysts remained cautious.

Chinese shares stormed to their largest ever two-day gain after a torrid month amid Beijing's aggressive attempts to apply some control.

Whatsapp, iMessage and Snapchat could be baned from the UK under a new law.

UK house prices in June rose at their fastest rate in almost a year, The Royal Institution of Chartered Surveyors (RICS) said on Thursday.

International events

Software giant Microsoft announced plans to cut up to 7,800 job in its phone hardware business, as it said it will record an impairment charge of around $76bn related to Nokia.

Berlin stock exchange boss Artur Fischer has labelled the Greek government the ‘financial Taliban’ and questioned credibility of fresh proposals.

British tourists were urged to return home from Tunisia, following warnings that another terrorist attack in the country was “highly likely”.

Apple is preparing for the largest initial production run ever for its next iPhones.

Iranian president Hassan Rouhani was optimistic an agreement on his country's atomic programme could soon be reached even after US President Barack Obama earlier in week put the chances of a deal "below 50-50".

US Treasury secretary Jack Lew and International Monetary Fund (IMF) head Christine Lagarde on Wednesday urged European countries to grant debt relief to Greece and help the country avoid a Grexit.