Why Britain’s potential next PM is putting investors on edge

LONDON, ENGLAND - JULY 9: British Prime Minister Sir Keir Starmer hosts the first roundtable of regional English mayors with Andy Burnham (R) Mayor of Greater Manchester, at Downing Street on July 9, 2024 in London, England. Sir Keir Starmer hosted the first roundtable with metro mayors from 11 regions across England. (Photo by Ian Vogler - WPA Pool/) Wpa Pool | News | LONDON — U.K. gilts and sterling have come under increasing pressure, amid fears a new left-leaning prime minister will challenge the country's fiscal discipline and take up a confrontational stance towards bond markets. Investors on Friday were reacting as hurdles were cleared for a challenge to Keir Starmer's premiership from Labour Party rival Andy Burnham, with selling pressure intensifying. It came as U.S. President Donald Trump told reporters it will be "tough" for Starmer to survive politically without dealing with the key issues of immigration and energy policy. Burnham — who is currently the Mayor of Greater Manchester, but not a sitting lawmaker in the U.K. parliament — was offered a fresh pathway to the House of Commons on Friday, which could turbo-charge his route towards 10 Downing Street. He is set to run in the forthcoming by-election in Makerfield, north-west England, after its MP Josh Simons agreed to step aside and allow Burnham — dubbed Labour's "King in the North" — to contest the election. …