The Monday note - 13 November 2017

• The FTSE 100 fell by 127 points last week to close on Friday at 7,433.0, as the index responded to a rise in the value of the pound. The ten year Gilt yield softened to 1.34%. 
• Deutsche Bank’s CEO, John Cryan, has told the Financial Times the number of jobs that might leave London if Euro Clearing shifts to the EU has been exaggerated. According to Mr Cryan: “The idea of 74,000 jobs being at risk is ridiculous, it’s more like 74.”
• UK manufacturing output increased by 1.1% in the three months to September, up from 0.7% in the three months to August. This is the strongest manufacturing output figure since February. 
• However, UK construction output fell by 0.9% in the three months to September, partly due to a sharp fall in repair and maintenance work. 

Chief Economist comments: 

Deutsche Bank’s CEO is the latest person to query whether vast numbers of UK financial jobs will be lost to Brexit, but will people take comfort from this? In reality, the effect will vary from person to person, according to whether or not Cryan’s comments match their own assumptions. Those who are worried about Brexit will probably need to see it happen before they regain full confidence in the outlook for the UK. Those likely to be re-assured by Mr Cryan were probably already downplaying Brexit as a threat. Time to focus on the clients who really are in the market.