The Monday note - 27 March 2017

• The FTSE 100 fell 79 points last week to close on Friday at 7,336.8, as investors became risk averse in the aftermath of the terror attacks in London and Antwerp. Ten year Gilt yields stood at 1.20%. 
• HSBC plans to recruit 1,000 staff in 2017 for its Chinese retail banking and wealth management businesses. Most will be employed in the Pearl River Delta region, where 11 cities are gradually merging into a super city of 65 million people. 
• The Eurozone PMI index of business activity read at 56.7 in February, up from 56.0 in January and ahead of expectations. The convention for the index is that a reading of over 50 indicates growth. 
• UK CPI inflation jumped to 2.3% in February, up from 1.8% in January, driven by price rises for fuel and food. RPI inflation increased to 3.2%. 

Chief Economist comments: 

Finally, the pulse of the global economy is strengthening again. Those who do business in China are looking to expand, while an early end to the Eurozone’s QE programme is being discussed. In 2007 we were warned of a lost decade; and ten years later many have slipped into the habit of assuming the economic outlook will always be gloomy. The pace of growth is picking up around the world, and it is time for new thinking.