The Monday note - 31 July 2017

• The FTSE 100 fell by 85 points last week to close on Friday at 7,368.4, as investors took profits after a strong July for equities. The ten year Gilt yield stood at 1.21% on Friday. 
• Foxconn, a Taiwanese electronics manufacturer which produces goods for Apple, announced plans to build a US plant in Wisconsin. The first phase will employ 3,000 workers.
• Amazon said it would double the number of R&D workers it employs in London from 450 to 900. They will further develop its video streaming service, Amazon Prime. 
• UK GDP expanded by 0.3% in Q2 2017, quarter-on-quarter. This was up on the 0.2% recorded in Q1, but well below the growth figures reported in the second half of 2016. 

Chief Economist comments: 

The government must be grateful to Amazon and BMW (who announced plans to build a new electric car in the UK) for providing some good news to offset the sluggish GDP figures. The UK is in a slowdown, however disappointing economic news will up the pressure on Downing Street to come up with a realistic Brexit deal, which I suspect is now taking shape behind the scenes. It would be surprising for firms like Amazon and BMW to be investing in Britain if they were not receiving government re-assurances that a business-friendly Brexit is in the pipeline.