The Monday note - 19 November 2018

• The FTSE 100 ended last week 1.29% lower at 7,013.9, as markets wobbled while Theresa May defended the Brexit deal. The ten year Gilt yield stood at 1.49%.
• Global equities and bonds have lost a cumulative US$5 trillion in market capitalisation since the beginning of 2018 – the largest decline since the global financial crisis. This reflects investor concerns over interest rates and corporate profits in the year ahead. 
• UK CPI inflation remained unchanged in October at 2.4%, as higher transport costs were offset by weaker clothing and footwear prices. 
• Aston Martin is diversifying its supplier base towards overseas firms to continue driving growth. The luxury carmaker has found that some of its British suppliers are struggling to keep up with demand. 

Chief Economist comments: 

Last week it felt at times as though we had returned to the dark days of July 2016, with some politicians behaving irresponsibly. It is disappointing to hear people condemning a deal before they have read the document. We did also see a big step forward – the Prime Minister has stopped kowtowing to the Brexiteer hardliners, and is fighting her corner. With a leadership challenge imminent, we will found out soon whether May’s new approach delivers results. The latest GDP figures showed business investment contracted between Q1 and Q3. Let us hope it is a short fight ahead, and the winner is a serious politician.