The Monday note - 22 October 2018

• The FTSE 100 closed on Friday at 7,049.8, up nearly 54 points on a week earlier, following sharp falls the previous two weeks. The ten year Gilt yield stood at 1.58%. 
• Moody’s cut the credit rating for Italian government bonds to Baa3, which is one notch above ‘junk’ status. The outlook was also downgraded from stable to negative. 
• UK CPI inflation edged down to 2.4% in September, compared to 2.7% in August. The prices of transport, recreation and clothing all exerted downwards pressure on inflation. 
• Addison Lee, a private taxi company, is working with tech firm, Oxbotica, on a plan to begin operating self-driving vehicles on the streets of London by 2021. 

Chief Economist comments: 

The weekend newspapers were awash with threats of a leadership bid against Theresa May. Some of the comments had names of MPs against them, a step up from the anonymous quotes we have become accustomed to. Whichever option for Brexit the Prime Minister chooses, a section of the Conservative party will rise in anger. However, the same will be just as true for May’s successor. A change of leader will not achieve much, so does the country need this distraction at such a pivotal time?