With Keir Starmer premiership on the brink, British government debt, currency and stocks fall

MorningStar
2026.05.12 09:50
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British government debt, currency, and stocks have fallen amid speculation over Prime Minister Keir Starmer's leadership. The yield on the 10-year U.K. government bond rose to 5.10%, while the British pound dropped 0.5% to $1.3543. The FTSE 100 index fell 0.6%. Starmer faces pressure after local election losses, with 78 Labour MPs calling for his resignation. Analysts warn that a new prime minister could lead to aggressive spending policies, increasing government borrowing costs and interest rates. Starmer insists he will remain in office despite the challenges.