Seven days in the Square Mile

UK inflation hit its highest level since 2013, jumping to 2.3% on the consumer price index and prompting speculation that the Bank of England could raise interest rates sooner than previously thought. The Bank kept rates unchanged at 0.25% following last week’s Monetary Policy Committee meeting, but for the first time since July, the vote wasn’t unanimous. As expected, the US Fed raised rates to 0.75-1%, and suggested there may be two more rises this year. Stock markets took that in their stride – the FTSE 100 rose to new highs last week. But fears that the Trump administration may fail to deliver on growth promises saw indices on both sides of the Atlantic tumble. The imminent triggering of Article 50 prompted Goldman Sachs to reveal its Brexit “contingency plan”. The bank, which employs 6,000 people in London, is to take extra office space in Frankfurt and Paris. Toyota announced a £240m investment in its main UK plant, but called on the Government to protect the car industry from tariffs. Karen Bradley, the Culture Secretary, referred 21st Century Fox’s £11.7bn bid for full control of Sky to the watchdog Ofcom, which will consider whether the deal damages media plurality. Shares in Canada Goose, maker of goose down-lined winter coats, soared by 40% on their debut in New York. Jones Bootmaker is to appoint an administrator, but there are still hopes of a buyer. Annual profits at the upmarket drinks company, Fever-tree, which was last year’s best-performing stock on Aim, more than doubled to £34.3m.