"“Open season has begun inside Labour, it seems. Election losses on this scale destroy authority, sharpen rivalries and encourage ambitious figures to move as we're seeing already, with some making not-so-subtle signals towards Number 10. Markets will see this as a danger sign.”"
"“Investors are now asking a different question. Attention has shifted away from whether Starmer is weakened and onto whether he survives. Bond markets hate uncertainty around fiscal policy and leadership succession. Britain now faces both at the same time.”"
"“Markets remain pretty orderly for the moment because traders are still waiting to see how brutal the final results become and how openly Labour MPs turn on the Prime Minister once counting concludes. Calm conditions can change very quickly in Britain's bond market.”"
"“Britain already carries some of the highest borrowing costs in the G7. Political upheaval layered on top of weak growth, stretched public finances and p”"
Labour election losses across England’s local elections are driving senior figures and Labour MPs to question Keir Starmer’s leadership. Early results show Labour losing multiple councils, including Westminster, Wandsworth, Hartlepool, and Redditch, while Reform UK gains hundreds of seats in former Labour strongholds. Reports indicate some Labour MPs have called for Starmer’s resignation. Nigel Green of deVere Group warns that internal party turmoil could intensify pressure on gilts and sterling. He says markets will shift focus from whether Starmer is weakened to whether he survives, because bond markets dislike uncertainty around fiscal policy and leadership succession. He notes borrowing costs are already high and political upheaval could worsen conditions amid weak growth and stretched public finances.
Read at London Business News | Londonlovesbusiness.com
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