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A turbulent week in London's equity market ended with the FTSE 100 recouping much of the ground lost in midweek and all the other indices in positive territory on Friday as the prospect of interest rate cuts on both sides of the Atlantic proved a compelling draw to investors. It was Psion's lucky day on Friday, with a double dose of good news. The boards of Bank of Scotland and Halifax met to give the final seal of approval to their 28bn merger. Advisers were putting the finishing touches to the merger announcement with the aim of making the deal public before the weekend. Executives of the two banks are understood to have agreed on the difficult issues of who will head the combined operation and where it will be based.