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The Independent Online
Bank shares ended the week higher buoyed by takeover talk. Lloyds TSB gained 8.1 per cent on the week while Standard Chartered gained 8.3 per cent and National Westminster advanced 9.5 per cent. Engineering companies such as British Steel, TI Group and IMI lost more than 8 per cent in the week.

Stocks are seen as being mixed this week with hopes that subdued inflation will offset expected losses by exporters such as British Steel, which have been hobbled by a soaring pound. The FT-SE 100 index gained 3.7 per cent last week to close at 4,812.8 on Friday.

The newly independent Bank of England's monetary committee meets on 9- 10 July. Policy makers are expected to raise interest rates by a quarter point to choke off any threat of inflation.