The Monday Note - 4 September 2017

• The FTSE 100 index increased by 37 points last week to close on Friday at 7,438.5, with rallies for commodity prices buoying mining and oil company shares. The ten year Gilt yield stood at 1.06%. 
• US GDP growth in Q2 was revised upwards from 2.6% to 3.0% on an annualised basis, thanks to strong levels of consumer spending and business investment. 
• On its first day as owner of US groceries chain, Whole Foods, Amazon slashed prices. Some commentators suggested Amazon may be repositioning Wholefoods for the mass market. 
• The RAC has warned that disruption to oil production caused by Hurricane Harvey in Texas and the Gulf of Mexico could increase petrol prices in the UK. 

Chief Economist comments: 

Last week the EU’s Brexit negotiator, Michel Barnier, voiced his frustration at the progress made in the talks. One could argue from a British perspective this is good news. If Barnier were happy with how things were going it would suggest the UK was faring badly in negotiations. In particular, the lawyers have looked into the UK’s obligations in regard to the so-called ‘Brexit bill’, and that the EU is not responding “see you in court” suggests Britain’s lawyers have a point. Nevertheless, the UK needs to  avoid over playing its hand – a future UK/EU trade deal is unlikely without some financial grease.