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PoliticsFTSE 100 seen flat open as Burnham becomes UK PM; Starmer resigns
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The FTSE 100 is expected to open flat on Monday as Sir Keir Starmer formally resigns as UK Prime Minister and Andy Burnham succeeds him, delivering his first speech. Markets are focused on Burnham's cabinet appointments, with Home Secretary Shabana Mahmood tipped to become Chancellor and Chief Whip Jonathan Reynolds as Business Secretary. City leaders view Mahmood as a respectable but unknown pick, easing fears of a more radical Ed Miliband chancellorship. Meanwhile, rising US-Iran tensions, following the death of a third American service member, threaten to boost oil stocks but weigh on the broader index due to potential disruption to Strait of Hormuz shipping. The article also notes investor concerns over Burnham's economic team.
Source report
FTSE 100 Live: Burnham to Become Prime Minister (Yui Mok/PA Wire)
Welcome back to the City AM liveblog.
It’s Monday, and all eyes are on 10 Downing Street. Sir Keir Starmer will visit King Charles to formally resign as Prime Minister. Andy Burnham will then officially become his successor and deliver his first speech as Prime Minister.
The market, which has long been trying to assess what a Burnham premiership will mean for the City, will get its answers today when the new Prime Minister appoints his cabinet.
Burnham has yet to announce any positions – and was insisting as recently as this weekend that he had yet to decide himself on who will sit at his top table.
However, if briefings are to be believed, current Home Secretary Shabana Mahmood is likely to become Chancellor, and current Chief Whip Jonathan Reynolds will be named Business Secretary. His beefed-up department is expected to include the tech and science briefs.
City leaders will have spent the weekend trying to get their measure of Mahmood. Though she is an unknown to business, she is seen as a respectable pick and is a far cry from the potential Ed Miliband chancellorship, which had left many in the Square Mile hot and bothered.
Further afield, the markets will respond to the latest escalation in tensions between the US and Iran. The death of an American service member – the third in recent days to be killed in action – will spark fresh fears of further escalation in the Middle East.
Washington had already threatened to “swiftly punish” Iran for military casualties. The prospect of free-flowing traffic through the Strait of Hormuz feels as far away as it has in weeks. This is likely to boost the FTSE 100’s oil giants but could be a drag on the wider index.
We’ll be bringing you the latest market updates and analysis.
The weekend’s top stories:
- Read more: City investors raise alarm on Burnham’s Chancellor pick
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City AMWestern
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FTSE 100 Set for Flat Open as Andy Burnham Becomes UK Prime Minister; City Awaits New Chancellor