<\/p>\n
Andy Burnham would likely increase public spending<\/p>\n
Andy Burnham\u2019s decision to fight a by-election push for the Labour leadership sent the pound and stock market lower and pushed up the cost of UK borrowing.<\/p>\n
Wes Streeting, who resigned as Health Secretary amid speculation he would also run, instead threw his support behind Mr Burnham\u2019s Westminster bid.<\/p>\n
Referencing election victories for Plaid Cymru, the SNP and Reform, Mr Streeting said there is now an \u201cexistential threat to the future integrity of the United Kingdom\u201d.<\/p>\n
However, the markets responded negatively because of a belief that a Burnham-led government would increase public spending.<\/p>\n
There was also a reaction to further evidence of inflationary pressures as oil prices resumed their upward march. <\/p>\n
Other European government borrowing costs also rose, though the UK movements have been greater and is directly attributed to Mr Burnham\u2019s plans.<\/p>\n
The UK\u2019s 10-year bond yield \u2013 effectively the interest rate charged to the UK government for a 10-year loan \u2013 rose to 5.11% this morning from 4.99% at the start of trade.<\/p>\n
Long-term borrowing costs also rose, with the yield on 30-year gilts climbing to 5.779%.<\/p>\n
The pound fell 0.3% against the dollar to $1.3371, having fallen sharply late on Thursday after Mr Burnham\u2019s announcement.<\/p>\n
The price of global oil benchmark Brent crude surged above $109 a barrel, from $105.72 on Thursday.<\/p>\n
\u201cWhile there\u2019s no guarantee Burnham would win a by-election or contest to be prime minister, the fact he is on record as saying Britain must stop being \u2018in hock to bond markets\u2019 has helped push UK borrowing costs higher and seen the pound slump,\u201d said Russ Mould, investment director at AJ Bell.<\/p>\n
Kathleen Brooks, research director at XTB, said: \u201cThis is a sign that Burnham is the least market-friendly of all the candidates, as Wes Streeting\u2019s resignation did not have the same negative effect on the pound,\u201d she said.<\/p>\n
Nigel Green, CEO of financial adviser DeVere, said markets are beginning to fear a long leadership vacuum at the centre of government.<\/p>\n
\u201cCurrency markets are starting to price political risk back into the UK,\u201d he said. \u201cInvestors are looking at Westminster and seeing the possibility of months of infighting, uncertainty and distraction while major economic challenges continue building.\u201d<\/p>\n
The consequences are likely to hit households quickly. British families travelling abroad this summer are already seeing their spending power squeezed as the weaker pound makes holidays in Europe and the US more expensive.<\/p>\n
Mr Burnham, the mayor of Greater Manchester, confirmed he would run for a seat in parliament after tje MP for Makerfield Josh Simons said he would stand down to make way for the leadership hopeful.<\/p>\n
\u201cWe will change Labour for the better and make it a party you can believe in again,\u201d Burnham said in a statement on Thursday evening, vowing to \u201cmake politics work properly for people\u201d.<\/p>\n
\t #Burnham #leadership #bid #puts #markets #spin #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"
Andy Burnham would likely increase public spending Andy Burnham\u2019s decision to fight a by-election push…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[7],"tags":[12102,2329,12104,272,306,1680,166,1270,12105,12103],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/6373"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6373"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/6373\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}