Weekly review

The FTSE 100 finished the week up 22.21 points at 6,718.49.

Equity view

Bookmaker William Hill reported at 35% fall in pre-tax profit to £78.7m and flat net revenue for the six months to 1 July as it battled through a period of major regulatory and taxation disruption.

Royal Dutch Shell has agreed to sell its 75% stake in Tongyi Lubricants in China to Huo’s Group and the Carlyle Group for an undisclosed sum.

Housebuilder Bellway sold more homes at higher prices in 2015 as it continued to trade well against a backdrop of favourable market conditions and said its order book leaves it in a solid position going forward.

UK Mail has posted a profit warning despite an increase in letters and parcel volumes, as this resulted in an increased level of customer churn.

Royal Bank of Scotland has raised $3.12bn through the pricing of contingent convertible bonds, which will be used for general corporate purposes. The UK government, meanwhile, started selling its 79% stake. It sold a 5.4% holding for £2.1bn at 330p per share, compared with a bailout price of 502p.

Pharmaceutical giant AstraZeneca has signed a $500m deal to strengthen its position in the hot area of immuno-oncology with Japanese giant Sosei.

Mining giant Rio Tinto reported a 43% drop in underlying first-half profit as it took a hit from declining commodity prices, iron ore in particular, although the figures still beat expectations.

Insurer Old Mutual posted a 20% rise in first-half adjusted operating profit and lifted its dividend by 8% on the back of a strong performance in the UK and South Africa.

First half profits rocketed and the dividend was reinstated at RSA Insurance Group, with most key measures of performance surging, which may force giant suitor Zurich to make an improved takeover offer.

Budget airline easyJet saw an increase in the number of passengers it carried in July, the company said on Thursday.

Standard Chartered slashed its interim and full year dividend in half as incoming chief executive Bill Winters admitted the "very real challenges" the bank faced.

Insurer Legal & General posted a 6% rise in first-half pre-tax profit and an 18% increase in operating profit on the back of strong organic growth in the UK and US, as it raised its interim dividend despite a fall in annuities.

BBA Aviation posted a 33% drop in first-half pre-tax profit as revenue fell on the back of lower fuel prices and adverse currency moves.

Ryanair said it was the first ever airline to carry over 10m passengers in one calendar month.

Shares in engineering company Meggitt rose sharply after it posted a 6% rise in underlying first-half pre-tax profit as stronger-than-expected military revenue offset challenging conditions in the energy market, and announced two contract wins.

Building materials group Travis Perkins posted robust first-half results in the face of continued wobbles in the plumbing and heating market, with sales growth accelerating in the second quarter and the dividend lifted 20%.

Shire has acquired New York-based, privately-held Foresight Biotherapeutics for $300m.

Shares in Rolls-Royce rose sharply, extending gains that began on Friday after it emerged that US hedge fund ValueAct has built a 5.4% stake in the aerospace and defence company.

The UK government has sold more of its shares in Lloyds Banking Group, bringing its stake down to 13.99% from 14.98%.

HSBC posted a 10% rise in first-half profit, beating analysts' expectations on the back of a strong performance in Asia.

Economic news

The UK's deficit on trade in goods and services increased to £1.6bn in June compared to £0.9bn May, but with the second-quarter trade in goods deficit narrowing to £27.4bn, its smallest in two years.

Bank of England Governor Mark Carney said the timing of a first rate hike was drawing closer but that the exact time could not be predicted and will be "data dependent".

The Bank of England’s Inflation Report showed officials expect annual inflation to tick back up to the 2% target by the third quarter of 2017 if interest rates rise in line with market expectations.

The Bank of England has held interest rates at 0.5%, with minutes of the Monetary Policy Committee meeting revealing a vote of 8-1 in favour of this decision, as the bank upped its growth expectation and cut its inflation forecasts.

UK industrial production slowed down unexpectedly in June, data released by the Office for National Statistics (ONS) showed.

British new car registrations climbed 3.2% year-on-year in July to 178,420 vehicles, marking the 41st consecutive month of gains, data released on Thursday showed.

UK house prices fell 0.6% between June and July, with annual house price growth down to its lowest since December 2014, according to the latest survey from Halifax.

The UK services sector surprisingly contracted in July, according to purchasing managers' index (PMI) data released on Wednesday.

British house prices bounced back by 0.4% in July, after growth fell to a two-year low in June, building society Nationwide revealed on Tuesday.

UK manufacturing growth ticked higher in July as solid demand in the domestic market offset ongoing weakness in export orders.

International events

US non-farm payrolls rose less than expected in July, the Labor Department revealed on Friday. The data showed US employers added 215,000 jobs, missing the consensus forecast of 225,000. It also came under the monthly average gain of 246,000 over the prior 12 months. The unemployment rate was unchanged at 5.3%.

Germany's finance ministry is in favour of a bridging loan for Greece, to give Athens and its international lenders enough time to negotiate a third bailout, Sueddeutsche Zeitung reported on Friday.

Initial US unemployment claims rose for the second straight week, data released on Thursday showed.

Eurozone retail sales rose in July at their fastest rate since January, according to data released by Markit.

Germany's factory orders rose at a faster-than-expected rate in June, after falling in the previous month, data released on Thursday showed.

The US trade deficit rose beyond expectations in June, on the back of an increase in the import of automobiles and drugs from the European Union.

The US private sector added 185,000 jobs in July compared with a downwardly-revised 229,000 in June, payment processor ADP said.

Economic expansion in the Eurozone eased in July as growth in France and Italy slowed, according to data released by Markit, although the figures beat expectations.

The EU and Vietnam have reached an agreement in principle on a free trade deal that will see tariffs lifted on most goods, the European Commission said on Tuesday.

Orders for goods produced in US factories climbed 1.8% in June, the Commerce Department said Tuesday.

Athens Stock Exchange Market reopened on Monday with heavy losses, after five weeks of remaining closed.

Manufacturing activity in China has fallen to its lowest level in two years as new export orders and work continued to decline.