The Monday note - 6 August 2018

• The FTSE 100 index fell by 42 points last week to close at 7,659.1, as mining and resources shares fell on concerns over the US / China trade confrontation. The 10 year Gilt yield stood at 1.33%. 
• The US economy saw 157,000 non-farm jobs created in July, which was less than the consensus forecast of 190,000. The unemployment rate fell to 3.9%. 
• New car sales in the UK recorded a small increase in July, rising 1.2% on an annual comparison, according to the Society of Motor Manufacturers and Traders. However, year-to-date sales are down 5.5%, with the number of diesel cars purchased dropping sharply. 
• Apple became the first US company to see its stock market value exceed $1 trillion. When the company launched the iPhone in 2007, it was valued at around $100 million. 

Chief Economist comments: 

The UK base rate has risen a little, and will probably now stay unchanged for a long time. An interesting development was Governor Carney subsequently voicing concerns over the risks of a no deal Brexit.

One could argue that was a reason not to raise rates just now. However, I suspect Carney wants to send the politicians a message: the Bank of England will not be underwriting a no deal Brexit with low rates, so the government needs to keep foreign policy realistic.