The Monday note - 11 February 2019

• The FTSE 100 added 51 points last week, closing at 7,071.2 on Friday. The ten year Gilt yield hardened to 1.15%. 
• The Bank of England became the latest major central bank to guide that it would raise rates at a slower pace than previously suggested. 
• Japan has agreed to rollover existing trade terms with the UK during a post-Brexit transition period, but only if there is a withdrawal agreement with the EU. 
• London is the largest renminbi trading hub outside of China, with sales volumes averaging $73 billion daily in October 2018, according to the Bank of England. 

Chief Economist comments: 

Just two weeks ago, everyone was worried about the impact of an impending global round of interest rate hikes. Now the leading central banks have poured cold water on the idea. Given the political uncertainty, this is welcome news from a UK perspective. The Q1 GDP figures will probably report sluggish growth, but if a Brexit deal can be agreed, Q2 could see very different economic conditions. Ignore now, think six weeks from now.