00:00The UK has been thrown into political uncertainty with Prime Minister Keir Starmer finding his
00:06leadership consumed by forces beyond his control and ministers resigning. Here are some takeaways
00:13on what the markets have been doing and what to watch for. UK government bonds or gilts reflect
00:19the interest rate at which the market is prepared to lend to the government. They are therefore a
00:25measure of the confidence of investors. Those borrowing costs have been rising. Now there are
00:32some underlying factors. Bond markets everywhere have been affected by the Iran war and high oil
00:38prices. But the UK has a heavy debt load and a sluggish economy. And now comes political infighting.
00:47Any Starmer replacement is likely to be further to the left, minded perhaps to loosen Labour's
00:54fiscal rules in order to spend more. Watch too for movement on the currency markets. Any change
01:01in the value of the pound. There is a fragmentation underway in the UK. The 100 year dominance of the
01:08political landscape by two parties appears to be over. And that brings an ongoing uncertainty
01:15uncertainty that could affect sterling along with so much else.
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