Pound and Gilts Under Pressure Amid Starmer Uncertainty

Summary

Bloomberg's Lizzy Burden discusses the political pressure on UK Prime Minister Keir Starmer, with potential challenger Andy Burnham emerging as a favorite. The uncertainty is weighing on the British pound, which is heading for its worst week since 2024, and pushing gilt yields higher.

• Andy Burnham is Polymarket's favorite to replace Starmer as Labour leader.
• Burnham would need to clear several hurdles, including a by-election and support from 81 MPs.
• Political uncertainty is putting pressure on the pound and gilt yields.
• The pound is heading for its worst week since 2024 against the US dollar.
• Gilt yields are rising, increasing the cost of living for Britons.
• Starmer's detractors are focusing on poor local election results and opposition gains.