UK Markets Steady After Starmer Quits as 10-Year Gilt Yields Slip and Burnham Nears No. 10
Updated
Updated · The New York Times · Jun 22
UK Markets Steady After Starmer Quits as 10-Year Gilt Yields Slip and Burnham Nears No. 10
3 articles · Updated · The New York Times · Jun 22
Summary
The pound recovered from earlier losses and 10-year gilt yields edged lower after Keir Starmer said he would leave Downing Street by the end of summer, easing immediate political uncertainty.
Andy Burnham is widely expected to succeed him, and Monday's muted reaction suggested investors were reassured by his pledge to keep Rachel Reeves's fiscal rules despite earlier fears of heavier borrowing.
Rachel Reeves is still widely expected to be replaced as chancellor, leaving markets focused on who will control fiscal policy next and whether that person keeps her debt-reduction discipline.
Britain's slow growth, high debt and elevated interest rates are likely to constrain any Burnham agenda, even as he signals a more interventionist "Manchesterism" model and a less Brexit-friendly stance.