UK borrowing costs fall and pound rises after Starmer says he will stay as PM

A picture


UK government borrowing costs fell and the pound rose on Friday as Keir Starmer vowed to remain as prime minister despite the Labour party losing hundreds of council seats across England.Investors calculated that some of the intense pressure on Starmer’s leadership had eased, as Labour appeared on track for smaller losses than election experts had predicted.The yield – effectively the interest rate – had jumped earlier this week, amid fears that the prime minister could face a leadership challenge if the results from the local elections and the devolved parliaments in Scotland and Wales were particularly poor.But after Starmer insisted he would not walk away, the yield on benchmark UK 10-year gilts was down 5 basis points, or 0.05 of a percentage point, at 4.

89%, outperforming the equivalent US bonds,Thirty-year bond yields, which hit a 28-year high of 5,77% earlier this week, also fell,They were down 7 basis points at 5,56%, their lowest in more than two weeks.

The pound had gained three-quarters of a cent against the US dollar by mid-afternoon, and was also slightly higher against the euro,Matthew Ryan, the head of market strategy at the global financial services company Ebury, said the markets feared higher government spending if Starmer were replaced by a more leftwing rival, such as Angela Rayner, Ed Miliband or Andy Burnham, funded by more tax hikes and higher borrowing,Neil Wilson, an investor strategist at Saxo UK, said that “bond vigilantes are lurking”, attuned to the risk of political instability and the possibility that the chancellor, Rachel Reeves, might lose her job if Starmer departed,“Political risks associated with a Starmer/Reeves defenestration are bound up with already rising fiscal and inflationary risks for the UK economy,” Wilson said,Any replacement prime minister and chancellor would face the same challenges as the current leadership, said the City consultancy Capital Economics.

“If Starmer/Reeves were ousted in the aftermath of what appears to be a dire performance by the government in yesterday’s local elections, we suspect the result would probably be higher interest rates and higher gilt yields than otherwise,“We doubt a new leadership would be any more successful at boosting medium-term economic growth either, not least because the current fiscal constraints would remain,”
societySee all
A picture

My egg, my wife’s womb, our baby: how we found our way to lesbian motherhood

When Leah and I planned a family, we wanted to be as mutual as possible. Could reciprocal IVF – Leah carrying an embryo made from my egg – be the way forward?Late last year, it became my friend’s favourite party trick. “Rosa’s going to have a baby next week,” she’d say to a group of people who didn’t know me. I’d watch their faces as they tried to inconspicuously scan my body, detecting no sign of a bump. “Congratulations!” they’d say, smiles tight, clearly wondering what other delusions I might have up my sleeve

A picture

‘They’ve invented a spurious pseudo-disease’: why are so many men being told they have low testosterone?

A s a young man, Nick Dooley never thought about his hormones. He always considered himself “quite an outgoing, confident, chatty person”. Around the time he turned 30, however, Dooley began putting on weight and struggling with anxiety, “just slowly becoming a shell of my former self”, he says. By 38, he weighed 22st (140kg) and had a range of health issues. “I spent most of my life sat in front of a TV, doing nothing, with zero motivation, and from how I was in my 20s, that wasn’t me

A picture

‘A sobering indictment’: 14 homeless people die a year in public parks or countryside in Australia, analysis finds

Fourteen rough sleepers are dying in public parks or countryside areas each year on average in Australia, an analysis of hidden death reports reveals.The deaths of a young international student sleeping rough in Hyde Park, a young homeless mother who died of sepsis in Western Australia, and a newborn baby at a makeshift homeless camp near Wagga beach have prompted an outpouring of grief and shock in recent weeks.The deaths have triggered renewed focus on Australia’s homelessness crisis and the lack of social and emergency housing options, which are pushing vulnerable rough sleepers into precarious situations.An analysis of coronial records, most of which are not public, reveals disturbing numbers of homelessness deaths in public parks and countryside areas, including riverbanks.Between 2010 and 2020, 54 rough sleepers died in public parks, the analysis shows

A picture

The emerging cancer treatment that’s exciting scientists: ‘We’ve just scratched the surface on what’s possible’

“Game-changer.” That’s how Prof Misty Jenkins, an immunologist at the Walter and Eliza Hall Institute of Medical Research, describes CAR T-cell therapy, an emerging but still costly cancer treatment that supercharges the body’s immune system to fight disease.Late last month, Jurassic Park actor Sam Neill put the treatment in the spotlight, revealing his stage three cancer was in remission after undergoing CAR T-cell therapy as part of a clinical trial in Sydney. He stopped short of describing his remission as a miracle – the success, he said, was “science at its best”.The history of CAR (for “chimeric antigen receptor”) T-cell therapy is one of small discoveries accumulating over decades, leading to major advances in patient care

A picture

Barrister says ‘dead woman was put on trial’ after husband cleared of manslaughter

A barrister has suggested that a “dead woman was put on trial” in the case of Christopher Trybus, who was cleared of manslaughter by a jury.Charlotte Proudman’s comments came after Trybus was found not guilty by a jury of eight women and four men, who deliberated for more than 40 hours. He was acquitted of all charges: manslaughter, coercive and controlling behaviour and two counts of rape.The case had been brought after his wife, Tarryn Baird, 34, took her own life in 2017. Prior to her death, she made allegations that Trybus had been abusive to her

A picture

Ash scattering is a risky business | Brief letters

I had a similar experience to Zoe Williams (The day had come to scatter my mum’s ashes. What could possibly go wrong?, 5 May) when I scattered my dad’s ashes near the first tee at his golf club. After reaching into the urn and grabbing a large handful of his ashes, I threw them into the air only to have them all blown back at me by a sudden gust of wind. Friends always said I looked very much like him and I felt a tremendous sense of pride as parts of him went into every orifice.Bob DawsonGreenmount, Greater Manchester Glad to read about the campaign to save the mother of Bramley apples tree (Report, 5 May)