Après Starmer, le rain-shower…?

“The king is dead. Long live the King.”Poor old Sir Keir Starmer. Wrong man in the wrong job. So much hope now squandered. But its important not to over-think or over-worry what comes next. In Gilts there is truth and the 10-year yield is still south of 5%. Andy Burnham needs to prove himself a leader and demonstrate ideas and action. Is that too much to ask? There is little surprise that Sir Keir Starmer is now expected to resign - setting in motion a transfer of the UK premiership to Andy Burnham, the former Manchester mayor who won his way back into the Houses of Parliament last week. Starmer’s exit is being painted as proof that political instability is now built into the current UK political system - triggering a wall of worry among the commentariat about the Gilts Market and Sterling – what will the markets think of the seventh Premier in 16 years? Will the threat of increased borrowing and spending plans trigger market wobbles? And, how sustainable will the new government be?You can read the Morning Porridge by subscribing on ⁠www.morningporridge.com⁠, and have it delivered fresh to your inbox every morning!