As it happened: UK borrowing costs rattled by Burnham’s Parliament bid
Welcome back to the CityAM liveblog.
Andy Burnham has made his move – and it has left markets on edge.
On Thursday evening, after markets had closed, a Labour MP sensationally announced their intention to stand aside to allow Burnham to make his way back into Parliament. And this morning it’s left gilt yields rattled.
Chris Beauchamp, chief market analyst at IG, said: “Andy Burnham’s long quest to find someone to make space for him in Parliament has finally succeeded, but the prospect of the ‘King in the North’s return has not been good for UK borrowing costs.
“Worries about higher spending commitments have seen investors take flight from UK bonds. For a UK economy already facing a potential energy crisis, sapping growth, the rise in yields is particularly grim news.”
Health secretary Wes Streeting also resigned on Thursday, stating he had lost confidence in the Prime Minister and called for a “broad” and open leadership contest.
It is understood Streeting is keen for a move into Number 10 but his letter regarding a broad contest has suggested he was endorsing Burnham being a part of these options.
Neil Wilson, UK investor strategist at Saxo Markets, warned yesterday the market reaction to the leadership contest would “depend” on whether Burnham could find a path back to Westminster.
The Manchester Mayor had previously rattled markets last year after stating Labour shouldn’t be “in hock” to bond traders.
We’ll be bringing you all the latest market reaction and the top corporate news.
Here’s a few of our top headlines this morning
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- BT bags five-year digital contract with BAE Systems
- Arsenal sign Deel deal with CEO who is fan of Champions League finalists PSG
- Lego bricks hit a wall: Iconic toymaker goes digital as spin-off builds profit