Bad news for Dear Larry @Number10cat Larry this morning has been dived bombed by a pair of Jays that hang about over the No10 door as Larry appears they attack forcing him back inside.
Interesting line in the Mandelson files that Lord Mandelson warned Starmer not to recognise Palestine before a key meting with Trump.
More here 👇
https://t.co/nBMRPCHPSl
In the Mandelson files ...
Peter Mandelson told the science minister Lord Vallance that Pat McFadden (now the work and pensions secretary) was "not a power house"...
Business minister Chris Bryant has described it as "understandable" given the Royal Family's prior involvement in trade affairs.
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https://t.co/0Lmokma01b
New: Labour MP Sarah Owen, who chairs the Commons Women & Equalities Ctte, hits out at the last Labour gov's decision not to vet Prince Andrew before he became a trade envoy.
She tells me: “Everyone should be subjected to the same due diligence, with no exceptions.”
NEW: Josh Simons is no longer the MP for Makerfield.
"The Chancellor of the Exchequer has this day appointed Joshua Cameron Simons to be Steward and Bailiff of the Three Hundreds of Chiltern."
https://t.co/TvI2NvdXiH
Asked about Wes Streeting on Sky, Lisa Nandy accuses him of 're-opening the Brexit wars'.
She also dubs his rejoin call ‘odd’ after Reform's local elections showing last week.
Support for Starmer from Lord O'Neill (ex-Tory Treasury minister who advised Reeves).
He tells me that Labour MPs trying to oust him now "when the fiscal position is so risky seems mad.”
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BREAKING: Top investors warn Britain faces a Liz Truss-style bond market revolt if Labour ousts Keir Starmer
Michael Pfister, FX strategist at Commerzbank: “The goal of a balanced budget is likely to falter should a less fiscally conservative candidate take over. And in recent years, we have repeatedly seen situations where the British government bond markets came under pressure and the pound followed suit. This time, the situation is unlikely to be any different.”
Cathal Kennedy, senior UK economist at RBC Capital Markets: “I think this morning there is a 2022 feel toward this, with the Prime Minister carrying on as normal while all indications show he has lost his authority in the party.”
Craig Inches, head of rates and cash at Royal London Asset Management Ltd: “The market is now pricing almost four rate hikes for the UK which it can’t withstand. Whoever replaces Starmer will not be able to borrow more money via gilts regardless of what they say.”
Mohit Kumar, chief economist and strategist for Europe at Jefferies: “Any replacement would likely be left-leaning and be negative for the long end of the curve and the currency. We maintain our steepeners and short position in sterling.”
Jordan Rochester and Evelyne Gomez at Mizuho: “We’ve been looking for 10 year UK gilts to sell off towards 5.15% by year end for quite some time, but this political drama accelerates the timeline, and we could see a move toward 5.20% until the political situation is settled and/or 5.35% in extreme stress.”
Laura Cooper, global investment strategist and head of macro credit at Nuveen: “Gilts are increasingly behaving like a real-time referendum on fiscal and political credibility, aggravated by the recent move higher in oil prices.”
Roger Lee, head of equity strategy at Cavendish: “Even if Starmer resigns the political uncertainty is unlikely to end as internal rivalry within the Labour Party ramps up. To stabilize the gilt market the government may have to commit to the fiscal rules and the only candidate seemingly prepared to do that is Wes Streeting.”
James Athey, fund manager at Marlborough Investment Management Ltd: “The last thing that Gilts needed was weakness in the US treasury market. Now we’ve got potential for the ceasefire to collapse, the US doing some fiscal expansion all on top of the utter domestic shambles that is UK politics.”
Catherine West tells MPs: “*I am hereby giving notice to No10 that I am collecting names of Labour MPs to call on the Prime Minister to set a timetable for the election of a new leader in September.*