The Monday note - 8 April 2019

• The FTSE 100 climbed 168 points last week to close at 7,446.9 on Friday, as the US reported better-than-expected jobs figures for March. Ten year Gilt yields stood at 1.12%. 
• Theresa May is expected to meet with EU leaders on Wednesday to seek a short Brexit extension to 30th June. However, the European Council President Donald Tusk is pushing for a flexible delay of up to a year. 
• Britain’s services PMI index dropped to a weaker-than-expected 48.9 in March from 51.3 in February. A reading beneath 50 suggests a contraction. 
• The UK government plans to impose a legal “duty of care” on tech firms to prevent the distribution of illegal or harmful material on their sites and apps. 

Chief Economist comments: 

Last week saw modest progress towards a Brexit deal. The Prime Minister finally accepted that getting the Withdrawal Agreement approved will involve opposition MPs. Also, remaining in the EU’s customs union is emerging as a rally point for the future trade deal. However, such is the depth of division in the Westminster Parliament – where one stressed MP admits to hiding in a cupboard – that a quick announcement is unlikely. This is why the EU want a long extension to Article 50, and they are probably right.