Events over the past week have resulted in investors reappraising the likelihood that the Bank of England will increase interest rates in less than two weeks’ time on 02 August. Although a rate increase remains more likely than not, the probability has fallen to around 80%, having started the week at closer to 90%.

An intriguing and captivating week in the UK started with the resignation of two senior Cabinet Ministers and concluded with a visit by President Trump.

After decades of theft of American knowhow (according to President Trump), and months of tensions between the World’s two largest economies, US tariffs on $34billion of Chinese products came into effect on Friday 06 July at 5am London time.

The trade war saga took a turn this week as President Trump, somewhat surprisingly, took heed of advice warning against enacting IEEPA (The International Emergency Economic Powers Act) law to stop foreign investment in US companies.