The Monday note - 25 June 2018

• The FTSE 100 climbed 48 points last week to close at 7,682.3 on Friday, thanks to gains for energy sector shares. The 10-year Gilt yield dipped to 1.32%.
• The Bank of England’s Chief Economist, Andy Haldane, joined the minority in the Monetary Policy Committee (MPC) voting for a rate rise. The MPC voted six to three to leave rates at 0.5%. 
• The German Investment Funds Association has called for “unhindered access” to the City of London for its members post-Brexit. Recent days have seen Airbus, BMW and Seimens warn on the negative impact of a hard Brexit. 

Chief Economist comments: 

Last week saw worrying headlines on the impact of a hard Brexit, and this is a good thing. Had businesses stayed silent on this issue, the politicians would probably have continued prioritising party unity. Now we have had a reality check, and some Brexiteers are rumoured to be worried about a government ambush to impose a soft Brexit. Increasingly, my mind drifts back to the Parliamentary debate in the early 1990s over the EU’s Maastricht treaty, when there was much talk of Euro sceptics blocking the legislation, and leaving the UK isolated. Ultimately, the government pushed through the option that maintained the flow of trade.