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UK PM Starmer faces leadership challenge as rivals prepare bids, unsettling bond markets.

Market News
14 May 2026
CNBC
View Source
Bearish
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UK Prime Minister Keir Starmer is facing a potential leadership challenge as Health Secretary Wes Streeting may resign to launch a bid, while Angela Rayner and Andy Burnham are also possible contenders. This political uncertainty has unsettled UK bond markets, with yields rising due to fears of increased borrowing and public spending under a more left-leaning leadership. Despite positive economic growth data for the first quarter, concerns remain about sustained momentum amid global and domestic challenges. The leadership contest could deepen divisions within the Labour Party and impact the UK's economic outlook.

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