Rolling coverage of the latest economic and financial news
This morning’s jump in UK borrowing costs comes after Darren Jones, the chief secretary to the PM, told broadcasters that Keir Starmer is ‘listening to colleagues’.
Jones told Sky News:
I spoke to the prime minister last night, as you would expect, and he is talking to colleagues who have raised issues yesterday.
But he was also very clear, as I’m sure all of my colleagues are, that coming into the office this morning, as we all are doing, we’re absolutely focussed on our jobs, on delivering the things that we’ve promised to deliver for the public.
So far the market moves have been relatively modest but are beginning to reflect building unease over the future of Prime Minister Keir Starmer who is facing growing pressure from within the Labour party to step down.
Pressure intensified yesterday on Starmer after four ministerial aides quit the government saying they no longer believed he could tun things around.
The latest developments increasingly look like the end of the road for Keir Stamer as prime minister. A leadership contest whether immediate or more drawn out will add to political uncertainty in the near-term which is negative for the pound and gilts. The risk of a bigger sell-off will increase if Labour shift towards the left.
Darren Jones saying Starmer is ‘listening’ isn’t exactly a vote of confidence. If the chief secretary can’t even say the PM will stay on, it’s no wonder borrowing costs are jumping.
Four ministerial aides quitting in one day is a disaster. They clearly don’t believe Starmer can turn things around, and the markets are reacting to that chaos.
The pound falling and borrowing costs rising shows investors are spooked. Starmer needs to step down before he does more damage to the UK’s economic credibility.
I’m tired of all this internal party drama. The public just wants them to focus on delivering promises, not on who’s leading the party. This infighting is hurting everyone.
Small businesses are bearing the brunt of regulatory changes once again. (4de1ed)
The semiconductor shortage exposed just how concentrated critical supply chains are. (524f14)
If the cabinet meeting today ends with Starmer staying, we’ll see even more market turmoil. The uncertainty is worse than the decision itself.
The airline industry is enjoying a strong recovery but fuel costs remain a concern. (44e65d)
Commodity price volatility is making long-term planning nearly impossible. (27934a)
Consumer spending patterns have shifted dramatically since the pandemic. (5f635c)
Real wage growth has been stagnant for years and that’s a political ticking time bomb. (0b94ce)