FTSE 100 closed at 10,881.90, up 3.13% on the week per Dow…

Friday’s Bank of England headlines did not produce the FTSE 100’s week. London missed the chip trade. The cash index closed Friday 16 October 2026 at 10,881.90. Dow Jones, via Morningstar, puts the week at 329.85 points, or 3.13 percent, the largest one-week gain since the week ending 2 April 2026, and puts Friday itself at 41.55 points, or 0.38 percent. The Evening Standard prints the same close and the same 41.55 points, then rounds the day to 0.4 percent and the week to 3.1 percent. This article does not average those percents.

The miss is the clock. Take 41.55 off 329.85 and 288.30 points were already in before Friday’s close. Bailey spoke on Friday in Bangkok, so he cannot explain Monday through Thursday. Scottish Mortgage and Polar Capital Technology fell while defense rose. From 9 October to 16 October, QQQ fell 5.52 percent and the UK ETF EWU rose 3.20 percent. Neither is the cash index. The closes used here are Friday’s official prints.

What just happened, and why the obvious reading is wrong

The obvious reading is that Bailey calmed inflation and London rallied more than 3 percent. The order is wrong. The week is 329.85 points. Friday is 41.55 of them. A reader who stops at “up 3.1 percent” and “quite subdued” has joined two clocks.

The two week percents are one division. Dow Jones prints 10881.90. Take 329.85 off 10,881.90 and the implied 9 October close is 10,552.05. Divide 329.85 by 10,552.05 and the result is 3.126 percent. Dow Jones rounds to 3.13 percent. One decimal place is 3.1 percent, the Standard’s print. Averaging them would invent a third number. The title uses the Dow Jones 3.13 percent and names that source.

The day splits the same way. Take 41.55 off 10,881.90 and the implied Thursday close is 10,840.35. Divide 41.55 by 10,840.35 and the result is 0.383 percent. Dow Jones rounds to 0.38 percent. The Standard rounds the same points to 0.4 percent. Both pages agree on the points and the close.

Dow Jones also says the index is up 231.57 points, or 2.17 percent, over three sessions, the largest three-day gain since 28 July 2026, and up for two weeks running. Friday is 41.55 of those points. Wednesday and Thursday are the other 190.02.

Friday is not a record. The record close in that note is 10,910.55 on 27 February 2026. The gap is 28.65 points, or 0.263 percent, printed as off 0.26 percent. Year to date the note says up 950.52 points, or 9.57 percent. From a 52-week low of 9,354.57 on 17 October 2025 the rise is 16.33 percent. A claim that Friday was the highest close since 25 August 2026 was not in the fetched data talk and is dropped.

The Standard’s New York paragraph is a separate trap. It says the Dow was up 0.2 percent, the S&P 500 was 0.4 percent lower, and the Nasdaq Composite fell 1.2 percent, “at the time of the closing bell in London on Tuesday.” The word Tuesday is in the sentence. Those three percents are not used here as Friday’s US closes. The US comparison in a saved file is QQQ.

Who is exposed

Three cash books, not one. FTSE 100 holders mark 10,881.90. FTSE 250 holders mark 24,533.90, a smaller week at 1.3 percent. AIM holders mark 773.12 and a down week of 0.4 percent. “London was up” is a large-cap sentence.

Inside the FTSE 100 the mix is the exposure. Babcock rose 3.6 percent, up 33.4p at 961.8p. WPP rose 3.1 percent, up 12.3p at 412.7p. Weir rose 2.6 percent, up 68p at 2,682p. BAE Systems rose 50p to 1,983.5p. Kingfisher rose 9.7p to 348.8p. Those are defense, advertising, engineering, and retail, not chip foundries.

The chip spillover that does sit in the index showed up in the trusts. Scottish Mortgage fell 50p to 1,545p. The prior price is 1,595p, so the day is 3.13 percent down. That 3.13 is a one-day trust move, not the index’s 3.13 percent week. Polar Capital Technology fell 11.5p to 635p, or 1.78 percent. AstraZeneca fell 252p to 12,446p.

Banks are a tax book, not a Bailey book. NatWest fell 1.2 percent, down 8p at 666p. Lloyds fell 0.9 percent. The Standard gives no Lloyds price, so none is invented. Citing the Guardian, it says Chancellor John Healey is poised to tax banks more heavily in the 28 October budget. One option is reversing Jeremy Hunt’s cut to the bank surcharge, which the Standard says would raise upwards of £2 billion a year. The surcharge is 3 percent on top of 25 percent corporation tax, cut from 8 percent when corporation tax rose from 19 percent. Customers are not the Friday sellers. Holders marking a leak are.

On the FTSE 250, THG rose a further 9.1 percent. Man Group added 1.1 percent after assets rose to $270.9 billion, with net inflows of $10.1 billion. Iofina fell 9.1 percent on a guidance cut.

EWU at $48.01 is a US-listed claim on UK equities, not a FTSE 100 future. Its week was 3.20 percent against the cash index’s 3.13 or 3.1. QQQ fell 5.52 percent on the week and 2.50 percent on Friday, from $728.00 to $709.80. In the saved EWU file the high is $49.39 on 25 August, so Friday’s $48.01 is 2.79 percent under that ETF high, not 0.26 percent under the cash record. The US chip week is in the Nasdaq week’s own note and in the session when every chip-index name fell. Those pages are not a second print of 10,881.90.

What the tape actually shows

Every row is the fetched Standard, the fetched Dow Jones data talk, or a Nasdaq file saved for this piece. Implied closes are labeled. The chart is EWU. It does not plot 10,881.90.

EWU’s Friday bar is $48.01 against Thursday’s $47.76, up $0.25, or 0.52 percent, on 747,653 shares. A 0.52 percent ETF day does not confirm a 0.38 percent or a 0.4 percent index day. From 9 October the ETF path was $46.70, $46.82, $46.91, $47.76, then $48.01. QQQ went from $751.27 to $709.80, a drop of $41.47. Friday alone was $18.20. A story that London followed a rising Wall Street on Friday needs a US tape that rose. This file does not have one.

What Bailey, Pill, Warsh, and the banks said

Bailey’s words are narrower than the rally headline. At the IMF meeting in Bangkok he said evidence of second-round effects was limited. “To the extent we have seen evidence, it’s quite subdued,” he said, adding, “It’s too early.” The Standard reports, not in quotation marks, that policy was already restrictive. On the path before the conflict the quotation is: “the market was pricing a couple of cuts, and I thought that was probably pretty reasonable.” He added that the economy was “more resilient than we expected it to be.” The cuts line describes a market from before the conflict. It is not a promise from 10,881.90.

Huw Pill, the chief economist, is earlier in the week and is not directly quoted. The Standard says he said the four hikes priced into money markets look overdone. That stays a paraphrase, and it is not Friday’s story. Four hikes looking overdone is not the same sentence as a couple of cuts having looked reasonable before the conflict. One is the market now. The other is the market then.

Kevin Warsh, the Federal Reserve chair, would not match that specificity. “I don’t prejudge meetings,” he said to IMF managing director Kristalina Georgieva. “I don’t believe in saying now what I might do at the meetings that we have in the balance of the year.” The Standard says UBS notes he has been “loath” to give explicit guidance. That word is the paper’s report of UBS, not a Warsh sentence.

The Bank’s X account, in the timeline fetched here, last posted a decision on 17 September 2026: “The Monetary Policy Committee voted 6-3 to keep the interest rate at 3.75%.” That is the level under the “already restrictive” paraphrase. No October vote is in that timeline.

Emmanuel Cau, a Barclays strategist, supplied the equity sentence, and it is about AI, not Threadneedle Street. He suggested the “best of the AI trade may be over, yet we wouldn’t throw the baby out with the bathwater. BigTech earnings will be key.” He also said “the maturing phase of the cycle means it is no longer a one-way trade, which comes with lower valuation and more dispersion.” Dispersion is the Friday tape: Babcock up 3.6 percent, Scottish Mortgage down about 3.1 percent on the day, the index up a fraction. The Standard names Meta and Tesla next week, plus IBM and Texas Instruments. Its Tesla line, down 1.0 percent, sits in the paragraph that says “on Tuesday,” so it is not used as Friday’s close. Babcock, WPP, Weir, NatWest, and Lloyds appear as prices, not as quotes. Man Group’s fetched line is the $270.9 billion asset update, not a comment on Bailey.

The rate path, the tax, and a chip week

Friday’s gain and Friday’s rate talk point different ways, and neither is the whole week. “Quite subdued” and “too early” argue against treating second-round inflation as already proved. Pill’s paraphrase argues against the hawkish end of the market. The pre-conflict cuts line is a third clock. A November hike survey is a fourth.

That survey is in a separate Friday FinanceFeeds FX note. It says 54 of 63 economists expect a 25 basis point hike in November, with sterling above $1.3350. The Standard’s pound in the equity report was $1.3339, up from $1.3254. Two prints, and this article does not pick a fix. A hike survey and a governor describing an older cut path were both on Friday’s pages. The FTSE 100’s week was mostly in the market before either paragraph.

The tax is what showed up in relative prices. NatWest and Lloyds fell while the index rose. The £2 billion figure is the Standard’s account of the Guardian, dated to 28 October, with the surcharge at 3 percent now and 8 percent before Hunt’s cut. The CAC 40 rose 0.3 percent and the DAX rose 1.0 percent.

A Wednesday US CPI figure of 3.7 percent was not in the Friday pages used here, so it is dropped. Sharecast and Reuters did not load. The numbers above are the Standard, the Dow Jones data talk, and the ETF files.

What happens next

Monday 19 October is the next London session. The Standard’s calendar has ITM Power and Tristel results, China GDP and retail sales overnight, and Canadian inflation. None of that is Bailey. If the 3.13 percent week was a defensive bid that finished with Friday’s 0.38 percent, Monday does not need another 40-point day to confirm a speech. If Scottish Mortgage and Polar Capital Technology keep falling while Babcock does not, the chip spillover is still a trust story. The causal chain is QQQ’s 2.50 percent Friday drop: a further US chip leg hits the trusts first and the FTSE 100 last.

The following week is the slate Cau named, Meta and Tesla first. If those reports extend the QQQ decline, London’s lack of that revenue is why a 3.13 percent UK week and a 5.52 percent ETF decline can share five sessions. If the reports stop the decline, the test is Cau’s dispersion line, not a new index high. The cash index is still 28.65 points under 10,910.55.

28 October is the budget date in the Standard. The chain runs through NatWest and Lloyds. A surcharge reversal on the scale described gives Friday’s bank declines a fiscal source. A budget that leaves the 3 percent surcharge alone makes Friday a leak. The index can still be up 950.52 points on the year either way. November is only a survey horizon: 54 of 63 economists in the FX note. The last Bank post in the fetched timeline remains the 17 September hold at 3.75 percent.

This is not financial advice.

Frequently asked questions

Did Bailey’s inflation line do that, or did London miss the chip trade?

London missed the chip trade. Friday was 41.55 points of a 329.85-point Dow Jones week, so Bailey’s Friday lines cannot be the 3.13 percent. Defense rose, Scottish Mortgage and Polar Capital Technology fell, and QQQ fell 5.52 percent from 9 October. The FTSE 100 closed at 10,881.90 because of what it holds.

Why does one page say 3.1 percent and another 3.13 percent?

They are one move with two roundings. Dow Jones prints 329.85 points, or 3.13 percent, to 10,881.90. Divided by the implied prior close of 10,552.05, that is 3.126 percent, which rounds to 3.13 and, to one decimal, to the Standard’s 3.1. Friday is 0.38 percent or 0.4 percent on the same 41.55 points. This piece does not average them.

What did Andrew Bailey actually say in Bangkok?

The Standard quotes him: “To the extent we have seen evidence, it’s quite subdued,” and “It’s too early.” He called policy already restrictive only as a paraphrase. Before the conflict, “the market was pricing a couple of cuts, and I thought that was probably pretty reasonable.” The economy was “more resilient than we expected it to be.” None of that is the week’s 329.85 points.

Did UK banks fall because a new tax is law?

No statute was fetched. The Standard, citing the Guardian, said John Healey may tax banks more heavily on 28 October. Reversing the surcharge cut was put at upwards of £2 billion a year. The surcharge is 3 percent, down from 8 percent, on top of 25 percent corporation tax. NatWest fell 1.2 percent and Lloyds 0.9 percent. That is a headline, not an act.

Is the chart the FTSE 100 at 10,881.90?

No. Nasdaq’s API does not return the cash index, and an official daily table did not download. The chart is EWU, the iShares MSCI United Kingdom ETF, at $48.01 on 16 October, up 3.20 percent from $46.52 on 9 October. That series is not 10,881.90, and it is not the index’s 0.26 percent gap to the February record. The index level stays in the prose.

What is the next date that can change this close?

Monday 19 October is the next London session, with China data, Canadian inflation, and results from ITM Power and Tristel. On 28 October the surcharge option enters the budget or it does not. A November hike is a 54-of-63 survey, not a vote. The last fetched Bank post is still the 17 September hold at 3.75 percent.