Weekly review

The FTSE finished the week up 4.9 points to 6,109.01.

Equity view

Pharmaceuticals company Shire said late on Thursday that a US court of appeals has upheld the summary judgment ruling of the US District Court for the district of New Jersey that certain claims of the patents protecting its hyperactivity drug Vyvanse are valid.

The UK government had cut its stake in Lloyds Banking Group to 11.98% from 12.97% in August.

Budget airline Ryanair said on Thursday that it plans to distribute the €398m proceeds from the sale of its 29.8% stake in Aer Lingus to shareholders before December.

Poundland is raising £50m to finance the purchase of rival retail chain 99p Stores, but warned that first-half profits in the current year would be lower on the back of weaker like-for-like sales and store expansion costs.

Travel operator Tui AG said trading in summer remained robust, as it expressed confidence over its full-year performance.

Aerospace support and aftermarket services provider BBA Aviation announced the acquisition of US rival Landmark Aviation in an ambitious move to grow its footprint in the markets for fixed business operations and business general aviation.

British American Tobacco has signed a conditional agreement to buy Polish e-cigarette company CHIC Group for an undisclosed sum.

Shares in AG Barr slumped after the soft drinks company reported a drop in first-half interim profit due to poor weather and tough market conditions and said it does not expect any profit growth this year.

Trading firm IG Group posted an increase in revenue in the first three months of the year, although it warned market volatility had made it harder to predict an outcome for the full year.

Merchant banking group Close Brothers said full-year operating profit before tax rose to £219.9m from £188.8m.

New products and major campaigns have helped PZ Cussons remain on track for the last four months.

Miner BHP Billiton will undertake a global debt investor marketing effort across Europe, Asia and the US from 28 September as it considers raising new funds for general corporate purposes, including refinancing existing near-term debt maturities.

Phil Urban has been appointed chief executive of Mitchells and Butlers.

Dairy Crest said first quarter total sales of it four key brands, Cathedral City, Clover, Country Life and Frylight, were in line with the same period of last year, but added that profits in the first half would be lower before an expected second half improvement.

Card Factory posted a jump in interim pre-tax profit on the back of strong revenue growth, as it announced a special dividend.

Insurance giant RSA has confirmed that Scott Egan will step into the role of chief financial officer next month. Meanwhile Zurich Insurance said it has terminated discussions with the London-listed company regarding a possible £5.6bn offer.

Standard Chartered was under pressure on Monday on the back of a press report suggesting the bank has been involved in transactions that could put it at risk of further sanctions penalties.

Economic news

The price difference between London properties and houses in other major British cities has reached its highest level in two decades, research has found.

The best course of action to safeguard the economic recovery is to raise interest rates now, the most ‘hawkish’ member of the nine-strong Monetary Policy Committee, Ian McCafferty, believes.

Net mortgage lending in the UK hit a five-year high last month, figures released on Thursday showed.

The Bank of England deputy governor has said he did not come close to voting in favour of an interest rate hike at the September meeting amid low inflation and weakness in emerging economies.

Sterling will drop sharply versus the single currency - which is seriously undervalued - next year, according to economists at Lloyds Bank.

Manufacturing output in the UK stalled in September for the first time in two years, according to the Confederation of British Industry's industrial trends survey.

Well-managed markets can be powerful drivers of prosperity, but they can be prone to abuse and amorality if left unattended, Bank of England Governor Mark Carney argued in a speech on Monday evening at St.Saviour's, Southwark Cathedral's, Harvard club, in London.

Interest rates are likely heading higher despite turmoil in parts of the global economy, Bank of England Deputy Governor Sir John Cunliffe said during a visit to Newcastle.

The UK and China have will look into a stock exchange connect scheme between London and Shanghai.

International events

Federal Reserve Chair Janet Yellen has said she expects an increase in interest rates this year unless the global economic outlook worsens - but her remarks were seen by some analysts to give little clarity.

The American economy bounced back more strongly than had been thought to be the case in the three months to June after a weak start to the year.

Japanese consumer prices increased at a 0.2% month-on-month clip in August and by the same amount versus a year ago, according to the country’s statistics bureau.

New US homes sold at the fastest rate in five years in August, data released on Thursday showed.

The number of first time unemployment benefits claimants in the US rose by less than expected last week, figures released on Thursday showed.

Orders for US durable goods declined less than expected last month, figures released on Thursday showed.

Growth in the US manufacturing sector remained subdued in September, data released on Wednesday showed.

The Brazilian real continued to come under pressure amid a worsening political crisis and economic outlook, with some analysts holding out the possibility president Dilma Rousseff might have to face impeachment proceedings

The European Central Bank would not “hesitate to act” should the medium-term inflation outlook weaken “more fundamentally” than it was expecting, European Central Bank chief Mario Draghi said on Wednesday

Eurozone consumer confidence in September declined slightly more than analysts had expected, preliminary figures released on Tuesday showed.

The slowdown in China's manufacturing sector accelerated moderately in September, according to a widely followed survey of activity although some economists were wary of reading too much into the latest figures.