The Tuesday note - 18 April 2017

• The FTSE 100 closed on Friday at 7,327.6, which was down nearly 22 points on a week earlier, reflecting concerns over geo-political risks. Ten year Gilt yields hardened to 1.05%. 
• A poll for Le Monde placed far-left candidate, Jean-Luc Melenchon, in third place in the French presidential election, with 20% of the vote. The joint leaders, Marine Le Pen and Emmanuel Macron, are both polling around 22%. 
• Unemployment in the UK fell to 4.7% in February, which marks its lowest level since 1975. The number of job vacancies is at its highest level since 2001. 
• The audience for radio in the UK has hit a record high, thanks to the popularity of new digital stations. In Q4 2016, radio attracted 48.7 million listeners per week, according to audience statistics firm, RAJAR. 

Chief Economist comments: 

Forget the economy, it is all about the politics at the moment. France might be facing a run-off in the second round of the presidential election between two candidates from outside the political mainstream. Mr Melenchon favours a top rate of income tax of 100%, which will dampen the talk of bankers moving from London to Paris. Meanwhile on the Korean peninsula the sabres are rattling; plus there is South Africa’s political crisis, and the new presidential powers in Turkey. Inevitably, global investment will migrate towards the safe havens: London, Manhattan, Singapore, Sydney, Geneva, etc. It pays to have boring politics.