That’s all for today...
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Thank you for following our coverage on this eventful day. Chris Price will be back tomorrow with the latest.
UK stocks close higher and borrowing costs fall
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Markets have so far taken Sir Keir Starmer’s resignation in stride, with equities rising and borrowing costs falling.
The FTSE 100 has closed 0.72pc higher, as the US and Iran inched closer to negotiating a permanent peace deal to end the war.
Meanwhile, the FTSE 250 - which many analysts see as a better indicator of domestic British firms - ended the day flat.
Elsewhere, sterling is trading 0.3pc up. The government’s borrowing costs have also fallen after rising around the time of Sir Keir’s resignation, with 10-year gilt yields now down a nudge by 0.03 points to 4.817pc.
Chemical firms urge Burnham to ‘make growth a reality’
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Britain’s ailing chemicals sector has urged the next prime minister to focus on attracting investment, as firms are battling to stay afloat.
Steve Elliott, chief executive of the Chemical Industries Association, said: “As the UK gets ready for a new Prime Minister, the focus needs to move urgently to a set of policies that will attract businesses to invest in UK operations and make growth a reality not a dream.”
The plea comes as British chemicals firms have been hit by one crisis after another, with Donald Trump’s war in Iran dealing a hard blow to the energy-intensive sector.
Mr Elliott warned letting the sector struggle was undermining the country’s resilience.
He said: “You cannot keep our water, communications and transport running, provide food to our tables, deliver essential materials and medicines without chemicals.A resilient chemical industry equals a resilient country.
“Twenty-five business closures in five years show the past didn’t work. No matter who is in charge, it’s time now for a policy focus that delivers growth”.
Looming Burnham premiership threat to sterling
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Andy Burnham’s entry into Number 10 risks hitting the value of the pound, economists at Japan’s largest bank have warned.
If he wins the leadership contest triggered by Sir Keir Starmer’s resignation, it poses two risks to the pound, analysts at Nomura said.
They said: “The first is the most obvious: changes to fiscal rules, even those deemed as tweaks rather than wholesale changes.”
Even small tweaks could trigger a rise in the UK’s borrowing costs, while “the currency weakens alongside higher domestic yields”.
The analysts warned markets are not fully reflecting this possibility: “With foreign ownership of UK bonds elevated and fiscal headroom seemingly tight, this risk remains more pronounced than appears to be priced.”
Mr Burnham could also trigger a fall in the value of the pound through big tax rises hammering growth, they warned.
The analysts said: “The second fiscal risk is that significant tax increases, likely on capital rather than income, are introduced to balance the books. This could cause a decline in investment/growth sentiment and weigh on [the pound] through a more cyclical channel.”
The warnings underline the bind Mr Burnham will find himself in if he gets the top job. With empty public coffers, he will struggle to find money to push through any ambitions without raising borrowing or taxes.
Neither is risk-free, as the analysts highlight.
Burnham can borrow to invest, says CBI
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Andy Burnham would be able to borrow money to fund investments if he shows he has “a clear plan and strategy”, the head of one of Britain’s biggest business lobbying groups said.
Mr Burnham has called for “stronger public controls” of major industries and has been credited with reviving Manchester’s bus network with deals involving the private sector.
However, the former mayor of Greater Manchester has raised concerns about how he would fund any plans. Last year triggered a spike in government borrowing costs when he said Labour had become too “in hock” to the bond markets.
Rain Newton-Smith, director general of the Confederation of British Industry (CBI), said Britain needs more reservoirs, housing and big infrastructure projects, which “cannot be done by the public sector alone”.
She said: “As long as you have fiscal credibility and a clear plan and strategy, and the markets believe it, then I think you do have space to invest more in public-private partnerships.
“We know the rest of the world have been carrying on with a lot of these big infrastructure projects but we need to get better at doing that in the UK.”
Burnham ‘will probably need to raise taxes’
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Andy Burnham will “probably have to raise taxes” to fund his plans for higher spending as bond markets will not give him the capacity to increase borrowing, economists have said.
Sir Keir Starmer’s resignation “won’t change the fiscal realities” meaning any loosening of the public purse strings “will probably only be modest”, according to Capital Economics.
Ruth Gregory, deputy chief UK economist, said Mr Burnham had “made it clear” he wants spend more but does not there is scope for a big change to the fiscal rules designed to bring down borrowing over time. That only leaves the option of raising taxes.
She said: “The two key constraints are perceptions of fiscal prudence in the markets and the political cost of exacerbating the hit to households’ real incomes by keeping inflation and interest rates higher than otherwise.
“This means that whoever is PM may need to temper their desire to significantly raise spending, and they will probably need to raise taxes.
“In other words, a change in Prime Minister won’t change the fiscal realities. And while there may be plenty of talk of big spending rises, the reality is that there will probably be only small spending commitments.
“The most likely result is that there will an increase in the size of the state, with more taxes on capital and wealth and more spending on big investment projects like social housing and social care and a bit more borrowing and higher gilt yields over the next few years than otherwise.”
Burnham sworn-in as MP
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A quick recap of where we are with the markets after Andy Burnham was sworn in as the Labour MP for Makerfield following last week’s by-election.
The pound was last up 0.1pc against the dollar to $1.325 and had gained 0.4pc versus the euro to €1.158.
Meanwhile, the yield on 10-year gilts – a benchmark for the cost of government borrowing – was down from 4.84pc to 4.79pc after Wes Streeting backed Mr Burnham.
That clears the path for the former Manchester mayor to replace Sir Keir Starmer by the middle of next month, provided there are no other last minute challengers.
Wall Street mixed despite US-Iran talks
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US stocks were mixed at the open despite negotiators from Washington and Tehran agreeing a path to end the Iran war.
The Nasdaq Composite fell 0.1pc to 26,485.84 even as the progress helped send oil prices lower.
Brent crude was down 2.3pc below $79 a barrel after it also emerged two crude tankers carrying just under two million barrels of oil passed through the Strait of Hormuz.
The sailings are still a fraction of the average daily crossings of 125 vessels before the Iran war began on February 28.
The Dow Jones Industrial Average rose 0.5pc to 51,808.49 while the S&P 500 rose 0.3pc to 7,522.18.
Market ‘nervous’ about Miliband as chancellor
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Ed Miliband would make markets “nervous” if Andy Burnham were to choose him as his chancellor should be become prime minister, Barclays has warned.
The bank thinks the new Makerfield MP, who has arrived in London to be sworn in as the new Makerfield MP, will likely enter Number 10 as early as July 16. Such an outcome could mean a budget could come by early October.
Mr Miliband has been touted as a potential successor to Rachel Reeves, who is expected to be sacked as chancellor should Mr Burnham take office. However, he is considered a more Left-wing candidate, open to increasing borrowing.
Barclays chief UK economist Jack Meaning said: “The key decision will then become who he chooses as chancellor, with Ed Milliband, Streeting, Yvette Cooper and Pat McFadden all being speculated as potential candidates.
“While the market appears to be more nervous that a Milliband chancellorship would increase the risk of extra borrowing, we view the others as equally fiscally pragmatic as each other, with the big open question being around the degree of adherence to the current fiscal rules.”
April LaRusse of Insight Investment added: “We expect the market focus will now be on who may be chosen for key cabinet positions, with the gilt market most interested in chancellor and the potential timing of the next Budget.”
Property investors back swift change of PM
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Property developers backed a swift change in the Labour leadership to clear the way for housebuilding.
Vanessa Hale, chief executive of Real Estate:UK, said: “The resignation of Sir Keir Starmer as Prime Minister and the prospect of our seventh Prime Minister in the last ten years is doing little to position the U.K. internationally as a stable location for investment, and subsequently to be able to continue to attract the global capital required to build the homes, infrastructure, and economic growth that the country desperately needs.
“Given that viability challenges have effectively stalled building activity across the country, it is vital that the governing party moves quickly to identify a successor to Sir Keir and restore a more stable, predictable policy environment, so that we can work together across the public and private sectors to support delivery of new homes, grow the economy and revitalise town centres.”
Burnham warned against nationalisations to fix public finances
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Andy Burnham has been told that only growth in the private sector can fix the public finances after his previous backing of nationalising industries.
The new Makerfield MP, who is expected to become prime minister as soon as next month, has said he wants stronger public controls on critical industries like energy and water.
However, the Recruitment and Employment Confederation (REC) urged him to avoid “imposing solutions that sound good to Westminster think-tanks and more radical union leaders, but do not help ordinary workers”.
Chief executive Neil Carberry said: “More change in Whitehall could be a challenge to the stability firms need, but business are adept at getting on with it.
“Whoever is Prime Minister, one thing will remain true though: only private sector growth can address the fiscal challenges the government faces and put money in the pockets of people across the country.
“What firms really need is a government that will back them to deliver growth, rather than making trading more difficult by heaping up ever more regulatory and taxation costs.
“That means making sure that government works with business to achieve its aims, rather than imposing solutions that sound good to Westminster think-tanks and more radical union leaders, but do not help ordinary workers and companies who are trying to drive the country forward.
“Pragmatism on the unworkable approach to guaranteed hours set out by the Employment Rights Act would be a good first step in working out whether any new Prime Minister really has growth and prosperity at the heart of their plan.”
The last thing the country needs is stalemate until September
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As Sir Keir Starmer was telling the world of his decision to resign, Andy Burnham was getting ready to head to London to be sworn in as a Member of Parliament.
His fellow passengers on the 10.54am Manchester Piccadilly to Euston service might have assumed he was on his way to Downing Street, such is the apparent certainty of his status as Sir Keir’s successor.
Yet, as the Prime Minister made clear, it could be September before his successor is in place. Nominations for the new Labour leader will not even open until July 9, two and a half weeks from now.
Wes Streeting has said he will back Mr Burnham, but if other challengers get enough support from MPs to enter the leadership race, we might be waiting three months for the new prime minister to start work, which is a long time for the ship of state to be drifting without an engine or rudder.
Uncertainty, as we all know, is the enemy of economic stability, and within moments of Sir Keir announcing his resignation the cost of government borrowing rose and the value of the pound fell.
Fund managers made it clear that they would not be investing in long-term government bonds – prepared only to take risks on short-term loans until the future political direction of the country is clear.
New chancellor will seek ‘additional income’
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Andy Burnham faces the same “huge challenges” as Sir Keir Starmer and his choice of chancellor will likely have to announce new taxes, a stockbroker has warned.
Investec said the next resident in Number 11 will need to find “other sources of additional income” after Mr Burnham pledged to stay within Rachel Reeves’s fiscal rules and Labour’s manifesto commitments.
Chief economist Philip Shaw: “A key decision the new PM will need to make quickly is who will be Chancellor, with current incumbent Rachel Reeves likely to be replaced.
“We would be on the lookout for any other sources of additional income a new Chancellor might seek to fund any further spending commitments.”
He added the continual changinh of prime ministers in Britain “has not been a good advert for UK plc and has arguably been yet another added burden on the economy”.
“What is certain is that while the faces at the top will change, the huge challenges facing the UK – such as a failure to lift housebuilding, a difficult fiscal position and weak productivity growth (implying anaemic economic expansion prospects) – will stubbornly stay in place.
“Moreover as with Starmer himself, the new PM and his team will probably enjoy scarce political capital to tackle them.”
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In today’s To Business newsletter, Hans van Leeuwen examined Andy Burnham operated as an eager-to-please political chameleon during his long exile in Manchester. But his wide appeal has left markets scrambling to work out what he will actually do once her enters Number 10. For daily analysis of the business trends you should care about, sign up to receive To Business in your inbox here.
Union boss: Starmer made ‘honourable and right decision’
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Unite general secretary Sharon Graham said: “Keir Starmer’s decision to resign was the honourable and the right decision.
“It is critical now that Labour focuses on delivering for workers and communities.
“There is no time to waste, everyday people are literally on their knees.
“Labour has one last shot to learn from the errors of the last two years.
“A failure to act, will result in a doomsday scenario for Labour.”
‘Focus on growth, not more taxation’
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Markets have no confidence in any Labour government managing the economy, Telegraph readers have warned, with Andy Burnham is expected to become prime minister as soon as next month.
Here are some of the views from the comments section below and you can join the debate here.
Reeves says Starmer built ‘stronger, more secure Britain’
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Chancellor Rachel Reeves has paid tribute to Sir Keir Starmer’s leadership as she said “there is more to do”.
She posted on social media: “From taking our party from the worst defeat in modern history, Keir Starmer turned it around and delivered a landslide majority just four years later.
“That was thanks to the public trusting us on the economy and on security, and thanks to our commitment to investing in every part of our country, in our public services and rebalancing the economy so it works for working people.
“Our economy is now better protected from global instability. We were the fastest growing G7 economy at the start of the year, we’ve had six interest rate cuts and inflation has held steady.
“We have achieved a lot together to be proud of, and there is more to do. I am grateful for Keir’s leadership and the work he has done to build a stronger, more secure Britain.”
From taking our party from the worst defeat in modern history, @Keir_Starmer turned it around and delivered a landslide majority just four years later.
— Rachel Reeves (@RachelReevesMP) June 22, 2026
That was thanks to the public trusting us on the economy and on security, and thanks to our commitment to investing in every part of our country, in our public services and rebalancing the economy so it works for working people.
— Rachel Reeves (@RachelReevesMP) June 22, 2026
Our economy is now better protected from global instability. We were the fastest growing G7 economy at the start of the year, we've had six interest rate cuts and inflation has held steady.
— Rachel Reeves (@RachelReevesMP) June 22, 2026
We have achieved a lot together to be proud of, and there is more to do. I am grateful for Keir's leadership and the work he has done to build a stronger, more secure Britain.
— Rachel Reeves (@RachelReevesMP) June 22, 2026
Pound rises as path to No 10 clears for Burnham
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The pound has swung higher as the path cleared for Andy Burnham to take over as Labour leader from Sir Keir Starmer.
Sterling was up as much as 0.3pc against the dollar to $1.325, having earlier been around 0.3pc lower shortly before the Prime Minister announced his resignation.
It climbed after Wes Streeting gave his backing to Mr Burnham, removing the perceived main challenger to the new Makerfield MP in a leadership contest.
The pound rose 0.2pc against the euro to €1.156 after the former health secretary said he had spoken with Mr Burnham “at length” and concluded he could “win the fight of our lives against the forces of nationalism”.
He added: “We could spend the summer exaggerating small differences, or we can roll up our sleeves and help him to deliver the change our party and our country needs.”
The pound has already lost around 3pc since February as Sir Keir’s leadership has come under increasing threat from Labour party challengers.
Borrowing costs fall as Streeting backs Burnham
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The cost of government borrowing has fallen at the sharpest pace in Europe after Wes Streeting back Andy Burnham to be Labour leader, reducing the likelihood of a protracted leadership contest.
The yield on 10-year gilts, a benchmark for what the Treasury pays to borrow money, was down from 4.84pc to 4.81pc. It had risen after Sir Keir Starmer announced his resignation.
Johnson: Burnham ‘doesn’t deserve the job’
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Boris Johnson has been speaking at a green energy conference this morning — but the former prime minister couldn’t help but make a few observations about his Labour successors.
As he offered up some policy suggestions, Johnson quipped: “There you go, [Andy] Burnham. You don’t deserve it.
“He doesn’t deserve the job at all, as far as I can see, but he’s going to get it.
“He hasn’t being elected — isn’t going to be elected.”
Speaking at the Octopus Energy Tech Summit, he also offered some advice for the next prime minister, following Sir Keir Starmer’s resignation this morning.
“My advice would be that you don’t have much time,” Mr Johnson said. “You know, the clock is ticking — your honeymoon will not last long, tragically. I mean, I can tell you.”
Mr Johnson said he still supported net zero but called on the Government to stop “demented” spending on wasted wind power by introducing local electricity pricing.
Britain currently has a national electricity price but a nodal system, a used across large parts of the US, would set prices by supply and demand in each postcode area. A similar reform was last year rejected by Ed Miliband, the Energy Secretary.
Streeting backs Burnham for Labour leadership
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Former health secretary Wes Streeting said he would back Andy Burnham for the Labour leadership, saying “he can win the fight of our lives against the forces of nationalism”.
Burnham confirms he will run to replace Starmer
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Sir Keir Starmer’s resignation “marks the beginning of a transition”, Andy Burnham has said, adding he will “put myself forward as part of this process”.
In a post on X, the new Makerfield MP said he wanted to “make sure this transition is a positive process of renewal for our party and our country”.
— Andy Burnham (@AndyBurnhamGM) June 22, 2026Keir has given huge service to our country and I want to thank him for his leadership and dedication during such a challenging period.
His decision marks the beginning of a transition and it is important that this process is conducted in an orderly and responsible way. I will…
UK stocks slump after Starmer quits
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UK stocks fell as Sir Keir Starmer’s resignation plunged Britain into fresh political turmoil.
The FTSE 250, which is focused on the domestic economy, was down 0.6pc after the Prime Minister said a new Labour leader would be in place by September. The FTSE 100 was little changed.
Meanwhile, UK government bonds performed worse than most of their European counterparts, keeping yields – the cost of borrowing – elevated.
Michael Field, an analyst at Morningstar, suggested Andy Burnham replacing the Prime Minister would “likely improve market perception of the UK”.
He said: “Investors crave stability and visibility on government policy.
“For that reason, when Labour returned to power two years ago, with a strong backing from the electorate, markets celebrated and gilt yields fell, primarily on the premise that the UK would have a stable government for a decent period of time.
“Recent weakening of Labour’s hold over the electorate has negatively affected the perception of the UK as a place to invest, with Keir Starmer’s worsening ratings a key cause of this.
“For this reason, the potential election of a popular candidate like Andy Burnham would likely improve market perception of the UK from an investment perspective.”
Burnham must tackle triple-lock, says ex-Goldman economist
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Andy Burnham must tackle the state pension triple lock, control welfare spending, stop runaway growth in the NHS budget, according to Jim O’Neill.
The former Goldman Sachs chief economist, who sits as a crossbench peer in the House of Lords, is advising the MP for Makerfield.
He called on the former mayor of Greater Manchester to “get real” on the economy and mount a campaign of radical reform to Britain’s ever-more expensive welfare state.
“Andy has got the same challenge that everybody else seems to avoid, and that is doing something about welfare, stop this never-ending spectacular rise in spending on the NHS, dare I say it – emphasising I’m a cross-bench independent peer – do something about the triple lock,” said Lord O’Neill.
The result would be a major shift in Britain’s economic fortunes, and a financial reward from investors in financial markets who would stop treating the UK as an unreliable basket case.
“The reward for doing that is a significant drop in the UK long-dated interest rate premium, and importantly, in my view, probably a significant revaluation of our equity market which is very cheap relative to others,” the peer told BBC Radio 4’s Today Programme.
Investors currently charge the UK a higher rate of interest on its debt than any other G7 nation, despite having lower debts, as a share of GDP, than most of those similar economies.
Regaining investors’ confidence and slashing borrowing costs could deliver a multi-billion pound windfall to the public finances by reducing the rate of interest paid on the near-£3 trillion national debt.
Lord O’Neill said it would also deliver a boost to the wider economy by raising business confidence.
“I am trying to persuade Andy that if we have a leader that actually makes it clear in a credible way that we are going to deal with these sacred cows, there would be a reward, in my opinion - a modern version of the same thing that happened to Blair and Brown when they unexpectedly announced the Bank of England being made independent on the first day they came into office,” he said.
“That transformed the whole image among business people and investors. Andy has the opportunity to do that now.”
Borrowing costs to rise as market ‘questions credibility of Burnham’
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Borrowing costs will rise in the coming months as markets “question the credibility” of Andy Burnham should he succeed Sir Keir Starmer as prime minister.
Mike Bell, head of market strategy at RBC Bluebay, said: “We think it wouldn’t be surprising at all if we saw 10-year gilt yields trade back up to 5pc with the market starting to question the credibility of Burnham and the fiscal trajectory for the UK under a government that shifts to the Left.”
Mr Bell added that markets had yet to fully wake up to what a change in prime minister would mean.
He said: “I think there’s more potential downside. If you’re reading the press over in the US, this is probably only kind of really starting to come onto your radar in a meaningful way over the weekend.
“Press there’s been much more dominated by what’s going on in Iran and some local by-election in Makerfield doesn’t seem particularly relevant unless you’ve been following it very closely.
“Burnham is going to be the next prime minister and in order to differentiate himself from what’s come before, he’s going to have to do something different. What’s the point of replacing Starmer and just continuing with the same policy that Reeves has followed?
“I think that’s going to almost going to have to involve some shift from what we’ve seen.”
The timetable for the next prime minister
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Andy Burnham is likely to be Britain’s prime minister within 10 weeks following the resignation of Sir Keir Starmer.
Our chief political commentator Ben Riley-Smith has a rundown of what to expect:
The timings for switching PM
— Ben Riley-Smith (@benrileysmith) June 22, 2026
- Starmer has announced his resignation
- Nominations to replace him open July 9
- Completed by summer recess July 16
- Starmer says new leader by September
- Qu is when between July 16 and Sep 1
- Open qu of whether members get a say
- Open qu…
Next PM to be ‘tested’ by bond markets
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The next prime minister will be tested by the UK bond market as their policies become clear, a fund manager has said.
Jason Borbora-Sheen, a portfolio manager at Ninety One, said: “Given the exceptionally high likelihood of Prime Minister Keir Starmer’s resignation being priced into online polling markets over past few weeks, today’s news is not a surprise.
“The question now turns to whether there will be a leadership contest or if Andy Burnham will take the leadership uncontested.
“Beyond this, it is whether the fiscal credentials of a likely new chancellor and the PM are believed by the gilt market, which will be tested as their policy preferences become clear.
“Currently we prefer short-dated UK government bonds to longer-dated ones given the uncertainty and greater fiscal sensitivity of later maturities.”
Starmer announces resignation
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The cost of government borrowing edged higher as Sir Keir Starmer announced his resignation as prime minister.
The yield on 10-year gilts, a benchmark for what the Treasury pays to borrow money, rose from 4.84pc to 4.85pc as Sir Keir said he would step aside after pressure from within the Labour party for fresh leadership.
The pound also resumed its decline, dropping back below $1.32.
Starmer: Appears at Downing Street
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The Prime Minister is addressing the nation from the lectern outside Number 10. He is surrounded by his Labour cabinet colleagues.
Investment bank shuns UK bonds over Labour turmoil
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An investment bank said it was avoiding buying long-term UK bonds as Sir Keir Starmer remains on the brink of resignation.
Jefferies said it is also reducing its exposure to the pound as it expects “further volatility” over the coming days.
Economist Mohit Kumar said markets “would be watching for Burnham’s pick of the chancellor”.
He said: “Fear is that Burnham policies are Left-leaning and if the new chancellor is not credible, it would raise concerns over deficits and borrowing.
“Burnham has said that he would respect fiscal rules. However, it is not obvious where the money for any additional spending will come from.
“Taxes have reached a stage where further rise in taxes would be counterproductive. Efficiency savings look good on paper, but never realistically work.”
Oil prices fall as US and Iran agree path to peace
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Oil prices have fallen after the US and Iran agreed on a path to end the Middle East war.
Officials from Qatar and Pakistan released a statement saying the first session of talks had concluded and progress was made on a roadmap to reach a final deal in 60 days.
Brent crude was down 1.7pc to around $79 a barrel, while US-produced West Texas Intermediate fell 0.5pc to $75 despite mixed messages over the weekend on the talks.
Donald Trump had threatened fresh attacks on Iran as Vice President JD Vance met Iranian officials for the first talks under an interim peace deal.
The talks had also been overshadowed by Tehran’s announcement it had again closed the Strait of Hormuz.
The fall in the price of oil has helped to lower the cost of government borrowing around the world as it eases concerns about inflation.
Borrowing costs edge lower over US-Iran peace hopes
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The cost of government borrowing has edged lower at the start of the week as Iranian negotiators said progress had been made in peace talks with the United States.
The yield on 10-year gilts, a benchmark for what the Treasury pays to borrow money, fell from 4.84pc to 4.82pc as trading began on bond markets.
However, it remains well above its level of 4.76pc before Andy Burnham’s victory was announced in the Makerfield by-election.
The decline in the cost of government borrowing on Monday was also smaller than falls seen in major European economies such as France, Germany, Italy and Spain.
FTSE 100 flat at the open
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The FTSE 100 was little changed at the start of trading amid the renewed negotiations between the US and Iran.
The UK’s flagship stock index was flat at 10,367.22 as hopes for peace in the Middle East outweighed the political uncertainty hanging over Britain.
The mid-cap FTSE 250 was also flat at 23,197.64.
Starmer ‘thinking carefully about future of the country’
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The Prime Minister will “make his own decisions” about whether to resign, a minister has said.
Education minister Baroness Jacqui Smith told Times Radio: “My understanding from those I’ve spoken to who are close to the Prime Minister yesterday is that the Prime Minister has spent the weekend thinking really carefully about the future of the country, about what’s the best thing to do for the British people.
“He’s also, by the way, been of course engaged in government, responding to the terrible train crash, talking to the chief executive of the East Midlands Ambulance Service, responding to the attack in Edinburgh.
“But he always thinks carefully about the future of this country and the interests of the British people – he puts them, by the way, ahead of the interests of the party – and he will make his own decisions in the light of what obviously everybody can see is a considerable amount of pressure and turbulence.”
PM ‘conveyor belt’ will continue, warns Deutsche Bank
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Andy Burnham will face the same “financial realities” as Sir Keir Starmer should he become the next prime minister, Deutsche Bank has warned.
With Sir Keir Starmer expected to resign, analyst Jim Reid said: “If true it’s notable it’s happening on the eve of the 10th anniversary of the Brexit vote tomorrow, something the UK still hasn’t come to terms with.
“Since then, the UK has revolved through six Prime Ministers which alongside Brexit, underlines the immense difficulties many incumbents have in the Western World today.
“Everyone arrives in the post with great hopes but then the lack of growth and the financial realities hit.
“Until you have stronger economic growth and are less constrained by debt it’s highly likely the conveyor belt of PMs will continue.”
Good morning
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Thanks for joining me. The pound dipped to a two-month low as Sir Keir Starmer is on the brink of resigning as prime minister. Here is what you need to know.
5 things to start your day
1) Chancellor Yvette Cooper? City traders seek reassurance in leadership turmoil | Foreign Secretary could alleviate fears of lurch to the Left if Andy Burnham becomes prime minister
2) Water boss receives £270,000 bonus despite parasite outbreak | Former chief executive, who claimed to suffer from ‘sleepless nights’ during scandal, accepts payout
3) The 27-year-old building Britain’s Trump-proof AI | The US blocked access to Anthropic’s powerful models – but a UK start-up may have the answer
4) The hidden reality behind Britain’s homegrown nuclear age | Rolls-Royce’s contract to build small modular reactors may not always mean manufacturing jobs in the UK
5) AI risks triggering ‘catastrophic’ phone network blackouts | Ofcom raises alarm over risks linked to use of automation technology for monitoring networks
What happened overnight
Donald Trump said in a Truth Social post that Keir Starmer “will resign as Prime Minister of The United Kingdom”.
The US President said: “He failed badly on two very important subjects- IMMIGRATION AND ENERGY (OPEN NORTH SEA OIL!). I wish him well!”
The US and Iran held high stakes talks on the war in the Middle East in Switzerland. Iran’s foreign ministry spokesperson said the discussions were focused on ending the conflict and providing sanctions relief to Iran.
Asian stocks were mixed, while oil prices edged lower on fresh optimism over the progress in the negotiations between Washington and Tehran.
Tokyo’s Nikkei 225 jumped 1.6pc to 72,364.82, after reaching a new all-time record of 72,831.73 during intraday trading, helped by technology stocks that were fueled by excitement over the global artificial intelligence boom.
Japan’s SoftBank, the multinational investment holding company with a strong AI focus, rose 2.4pc. Chip equipment maker Tokyo Electron was up 2.3pc.
South Korea’s Kospi gained 0.4pc to 9,084.37 and was trading near its record high levels, led by AI-related shares. Memory chip maker SK Hynix surged 4.7pc.
Hong Kong’s Hang Seng lost 1pc to 23,690.86, while the Shanghai Composite index was 0.2pc higher at 4,098.01.
Australia’s S&P/ASX 200 was down 0.1pc to 8,822.80.
Taiwan’s Taiex rose 2.8pc. India’s Sensex was up 0.6pc.
Oil prices fell as talks progressed over a permanent end to the Iran war. Brent crude, the international standard, was trading 1.4% lower to $79.42 per barrel. It was at roughly $70 a barrel before the start of the war in late February.