The Monday note - 2 October 2017

• The FTSE 100 increased by 62 points last week, closing on Friday at 7,372.8. The ten year Gilt yield was little changed at 1.37%. 
• President Trump announced plans to reform the US tax code, including a proposed reduction in corporation tax to 20%. The plan could look very different when it completes its passage through Congress. 
• Dyson, the vacuum cleaner manufacturer, is developing an electric car, with a target launch date of 2020. The company has around 400 engineers working on the project. 
• The Bank of England Governor, Mark Carney, has said that the next UK base rate rise would occur “relatively near term”. He also expressed concern over growth rates in parts of the consumer debt market. 

Chief Economist comments: 

The first UK rate rise in over a decade is drawing closer. The good news is that Governor Carney says the upwards path for rates will be “to a limited extent and gradual”. However, bear in mind that the coming rate rise is also a vote of confidence in the UK. The Bank believes the economy can take an increase in rates – not something one would have expected a year ago, and further reassurance that the likelihood of a Brexit-related recession is fading.