Streeting drops out of leadership race and backs Burnham to succeed Starmer as UK PM

Pound falls as Burnham’s rise sparks investor concern over UK fiscal rules

Andy Burnham's by-election victory fuels speculation of Keir Starmer's imminent departure; sterling fell 3% since February as investors doubt fiscal policy direction under more left-leaning leadership. With gilt yields at 4.85% (G7's highest), investor concern over Burnham's fiscal discipline is driving portfolio hedges and reduced long-end exposure.