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Keir Starmer expected to announce departure timeline as Andy Burnham emerges as frontrunner: Here's what we know
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Kier Starmer's time as UK Prime Minister is drawing to a close, with Andy Burnham poised to take over following Starmer's struggle with low popularity. Burnham’s recent electoral win sparks hope for Labour, but concerns linger over economic challenges and his readiness to lead.Andy Burnham, Britain's MP for Makerfield.(AP Photo/Jon Super)The days as prime minister of the United Kingdom seem to be numbered for Kier Starmer as he is expected to soon announce a timetable for his departure from 10 Downing Street, which will make way for the country to get its seventh prime minister in the span of a decade.This move will also clear the way for Andy Burnham to replace Starmer as the British premiere.People familiar with the matter have said that Starmer has spent the weekend considering whether he should step aside and allow Burnham to take over.Pressure mounting on StarmerThe UK PM is under pressure after Burnham, the Greater Manchester mayor, decisively won a parliamentary election to return to Westminster, beating a candidate from Nigel Farage's Reform UK party which has led national opinion polls for more than a year.Burnham's victory gave hope to Labour leaders that the party, which has lost support under the current prime minister, will regain some of its footing if he, a career politician known for his communication skills, manages to become the PM. Notably, Starmer's popularity ratings have sunk to the lowest for any British leader.However, there is a risk to the widely expected leadership change in London. Beyond saying that the country needs fundamental change and to bring down the cost of living, Burnham has yet to make clear his approach to foreign affairs, the economy and defence. Like Starmer he could find he has little room to manoeuvre, hemmed in by bond market investors opposed to any additional borrowing, and confronted by an angry electorate who believe the country is not working properly.This transition comes at a time when the UK has the highest borrowing costs among all member nations of the G7 nations due to its high debt and interest payments, coupled with years of marginal economic growth and its struggles to cut spending as well as the need to invest in areas like defence."In our view, a Burnham premiership would inherit a precarious fiscal situation with few tools to deliver meaningful change," economists at Citibank told news agency Reuters on Friday.“Logically the best thing for both Andy and Keir would be for that to happen in September,” one cabinet minister told The Guardian, adding, . “Andy has no team ready to go into Downing Street and needs the time to prepare. It would also allow Keir to establish a flight path to his departure.”Downing Street is also likely frustrated with US President Donald Trump, who, in his usual style of disrespecting foreign leaders, said in a post on Truth Social on Sunday, “Keir Starmer will resign as Prime Minister of The United Kingdom. He failed badly on two very important subjects- IMMIGRATION AND ENERGY (OPEN NORTH SEA OIL!). I wish him well!”The UK's business secretary, Peter Kyle, who is a Starmer loyalist, was sent out to issue a statement on behalf of the government on Sunday. Even he had to admit that Starmer's days as the UK PM seem numbered.“I don’t want to come on here and be delusional that there is no process, there are no forces at work which are challenging the prime minister as leader. That is clearly the case,” Kyle told the BBC.He also said that Starmer himself was “very mindful of the interests of the country”.Regarding the Labour Party, he said, “We are a tight group of people, and we are now facing a period of political uncertainty, and we need to find a way to get through this that puts the country first. This is what we are trying to do.”Stay updated with the latest Trending, India , World and US news. HomeNewsWorldKeir Starmer expected to announce departure timeline as Andy Burnham emerges as frontrunner: Here's what we knowMore
The dollar was firm on Monday as uncertainty clouded a tentative U.S.-Iran peace deal following threats from President Donald Trump to restart the war in the Middle East and Tehran's announcement it had closed the Strait of Hormuz. Despite rising tensions, U.S.-Iran peace talks stretched into their second day in Switzerland under the terms of a memorandum of understanding reached last week to extend a ceasefire from April for at least another 60 days. Chris Weston, head of research at Pepperstone, said it was not surprising how quickly adherence to the terms of the deal had broken down. "Ultimately, what matters to markets is the flow of cargo through the Strait of Hormuz." Shipping data showed the number of ships that passed through the waterway fell sharply on Sunday after Tehran said it had closed the strait. That lifted oil prices with Brent crude futures climbing 1.30% to $81.62 a barrel. [O/R] "The physical market remains tight and that should provide some support, but flows in FX and commodities, particularly gold, will continue to be heavily influenced by developments in the energy complex," Weston said. Sterling eased in early trading as traders assessed the political tumult in Britain, where Prime Minister Keir Starmer was considering his political future after rival Andy Burnham's decisive election victory to parliament. The pound was 0.24% weaker at $1.32055, while the euro softened 0.1% to $1.1462. The Australian dollar was last down 0.19% at $0.70035, while the New Zealand dollar last bought $0.573. Markets will be focused on Burnham's views on fiscal policy and whether there will be any relaxation of the current fiscal rules, Commonwealth Bank of Australia strategists said. "A loosening in fiscal rules would likely be poorly received by the UK bond market and weigh on pound," they said in a note. The Japanese yen slipped to 161.53 per dollar, hovering near a two-year low reached last week. A break beyond 161.96 would take the yen to its weakest level since 1986. Japanese Finance Minister Satsuki Katayama said on Monday that authorities were prepared to respond appropriately to currency moves at any time, reiterating their previous stance. "The MOF may be getting sore necks watching USD/JPY surge into the 2024 high," said Matt Simpson, senior market analyst at StoneX. "Yet they may also feel powerless to do anything about it - as intervening against the tide of a hawkish Fed and strong U.S. fundamentals could prove costly and futile." The yen has erased gains made after a round of interventions from April 30, as a hawkish tilt by the Federal Reserve has led traders to ramp up bets on rate increases this year. Treasuries remained under pressure on Monday with yields on 2-year notes rising to their highest since early 2025 at 4.2276%. Traders are anticipating 43 basis points of hikes this year with a 25 bp increase fully priced in by September.
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