00:01STERLING SLIPPED AND UK BORROWING COSTS EDGED UP ON MONDAY.
00:06I WILL RESIGN AS LEADER OF THE LABOUR PARTY.
00:09INVESTORS REACTED AFTER PRIME MINISTER KEIR STARMER SAID HE WOULD RESIGN, WITH A NEW LEADER DUE IN PLACE BY SEPTEMBER.
00:16IT LEFT MARKET WATCHERS WITH NO CERTAINTY ON HOW BRITAN'S NEXT LEADER MIGHT RUN THE ECONOMY.
00:21STARMER HAS BEEN IN THE JOB LESS THAN TWO YEARS AFTER HIS LABOUR PARTY WON A LANDSLIDE ELECTION VICTORY.
00:27HE SAID NOMINATIONS FOR ANYONE TO REPLACE HIM WOULD OPEN ON JULY 9TH.
00:32HIS RIVAL ANDY BURNHAM IS THE CLEAR FRONT RUNNER.
00:35DANNY STOILOVA IS EUROPE ECONOMIST AT BNP PARABAR MARKETS 360.
00:40WHAT THERE IS STILL SOME UNCERTAINTY ABOUT IS FISCAL POLICY.
00:44AND I THINK THIS IS WHERE THE ATTENTION OF INVESTORS IS GOING TO TURN TO NOW.
00:48HOWEVER, IT'S UNLIKELY THAT WE'RE GOING TO GET ANY CLEAR SIGN OF WHERE FISCAL POLICY IS GOING UNTIL WE HAVE
00:54A NEW LEADER
00:55AND UNTIL MAYBE THE PARTY CONFERENCES AT THE END OF SEPTEMBER AT THE EARLIEST.
00:59BUT THAT FUNDAMENTAL CLARITY ON FISCAL POLICY IS UNLIKELY TO COME UNTIL THE NEXT BUDGET IN THE AUTUMN.
01:06STERLING HAS LOST SOME 3 PERCENT SINCE PRESSURE ON STARMER BEGAN TO HEAT UP IN FEBRUARY.
01:11IT WAS DOWN AROUND 0.2 PERCENT ON MONDAY AND NEAR ITS LOWEST IN THREE MONTHS.
01:16BRITAIN ALREADY HAS THE HIGHEST BORROWING COSTS IN THE GROUP OF SEVEN WEALTHY NATIONS.
01:21IT'S DUE TO ITS HIGH DEBT AND INTEREST PAYMENTS AND YEARS OF WEAK ECONOMIC GROWTH AMONG OTHER FACTORS.
01:26THE OPTIONS MARKET SHOW TRADERS ARE WILLING TO PAY MORE TO HEDGE AGAINST VOLATILITY IN STERLING IN THE COMING WEEKS
01:33THAN THEY WERE ON FRIDAY.
01:35UK 10-YEAR GUILT YIELDS ARE AT AROUND 4.85%.
01:38THAT'S NOT FAR OFF THEIR HIGHEST SINCE THE 2008 FINANCIAL CRISIS.
01:43IT MEANS BRITAIN MUST PAY MORE FOR ITS MEDIUM-TERM BORROWING NEEDS THAN ANY OTHER DEVELOPED NATION.
01:49POLITICAL INSTABILITY AND CONCERN OVER BRITAIN'S STRETCHED FINANCES HAVE MADE INVESTORS WARY OF STERLING AND GUILTS.
01:56BOTH HAVE SEEN HIGHER VOLATILITY THAN OTHER MARKETS IN RECENT YEARS.
02:00BURNHAM IS VIEWED AS BEING MORE LEFT-LEANING THAN STARMER.
02:03HE HAS SAID HE WILL STICK TO CURRENT FINANCE MINISTER RACHEL REEVES'S TIGHT FISCAL RULES, BUT INVESTORS WILL NEED TO
02:10SEE PROOF.
02:11THANK YOU.
02:11THANK YOU.
02:12THANK YOU.
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