The Monday note - 13 March 2016

• The FTSE 100 closed on Friday at 7,343.1, down 31 points on a week earlier, as investors turned cautious following a strong start to the year for equities. Ten year Gilt yields stood at 1.24%. 
• The US economy added 235,000 jobs in February, beating a consensus forecast figure of 190,000. Unemployment fell to 4.7%, increasing speculation that the Fed will raise rates soon. 
• China reported a trade deficit in February of $9.2 billion, compared to forecasts of a surplus of $25.8 billion. The February figures were distorted by the Lunar New Year holiday. 
• Aberdeen Asset Management and Standard Life agreed a merger, and PSA Group bought the European business of General Motors, which included Vauxhall. Bovis homes also received takeover bids. 

Chief Economist comments: 

We have a busy week ahead. There is talk of Article 50 notice to leave the EU being served as early as Tuesday; on Wednesday The Netherlands goes to the polls, with the far right Party for Freedom expected to draw a high vote. Despite the political fireworks, many firms are marching down the M&A road. Cash reserves are high, share prices are strong, and some industries are ripe for consolidation. As merged firms pull together under one roof we should expect turnover in the property market, as new and larger premises are acquired and old buildings are vacated.