The Monday note - 11 March 2019

• The FTSE 100 closed on Friday just 2.4 points lower at 7,104.3 compared to a week earlier, as investors sat tight and awaited events on Brexit. The ten year Gilt yield hardened to 1.18%. 
• China’s central bank has pledged to lower borrowing costs and encourage lending in order to boost the domestic economy. 
• KPMG’s UK recruiters survey pointed to a flat market for permanent jobs in February. This was attributed to Brexit having a “chilling effect” on the economy. 
• Alibaba, the e-commerce giant, has bought a 15% stake in STO Express, a Chinese delivery company. Alibaba now owns stakes in four logistics firms. 

Chief Economist comments: 

The Times is reporting speculation that tomorrow’s Brexit vote will not happen, while the Financial Times says talks with the EU are now “deadlocked”. I do not see a House of Commons where most MPs campaigned against Brexit in 2016 allowing no deal to happen. So, the question is: will MPs now be bold and take control of the negotiations? Unless the May government can achieve a surprise breakthrough in the coming days, MPs might have no choice other than to grab the steering wheel. Then we are looking at a long delay, or staying in the customs union and single market. We could even see both happen.