Markets Expected Starmer's Resignation as UK PM: Amundi

Summary

Monica Defend, Head of Amundi Investment Institute, discusses the market reaction to Keir Starmer's resignation as UK PM. She says the move was largely expected, limiting volatility, and sees value in UK 10-year government bonds and a medium-term recovery in sterling. The key theme is UK fiscal discipline, which will constrain any new leader.

• Starmer's resignation was anticipated, containing immediate market volatility.
• Amundi finds value in UK 10-year government bonds and is positioned accordingly.
• Medium-term outlook for sterling is a recovery despite near-term noise.
• UK fiscal discipline is the dominant macro story regardless of the next prime minister.
• Interview aired on Bloomberg Television.