Friday 15 May 2026 6:25 am | Updated: Friday 15 May 2026 6:23 am
FTSE 100 Live: Stocks and bond market on alert after Burnham Parliament bid
By: Samuel Norman, Senior City Reporter
Good morning and welcome back to the City AM liveblog.
Andy Burnham has made his move – and it has left markets on edge. On Thursday evening, after markets had closed, a Labour MP sensationally announced their intention to stand aside to allow Burnham to make his way back into Parliament.
The backdrop of this move provides the most pivotal context as Sir Keir Starmer fights to cling onto his premiership. Health secretary Wes Streeting resigned on Thursday, stating he had lost confidence in the Prime Minister and called for a “broad” and open leadership contest. It is understood Streeting is keen for a move into Number 10 but his letter regarding a broad contest has suggested he was endorsing Burnham being a part of these options.
Neil Wilson, UK investor strategist at Saxo Markets, warned yesterday the market reaction to the leadership contest would “depend” on whether Burnham could find a path back to Westminster. The Manchester Mayor had previously rattled markets last year after stating Labour shouldn’t be “in hock” to bond traders. Gilt yields have spiked on the leadership turmoil in a major blow the government’s cost to borrow.
Rachel Reeves used Thursday’s growth figures to suggest that the government had “the right economic plan”. “Now is not the time to put our economic stability at risk,” she said in a clear message to leadership contenders. “To do so would leave families and business worse off. Instead, this government is getting on with the job of building an economy that is stronger, more resilient, and prepared for the future.”
We’ll be bringing you all the latest market reaction and the top corporate news. Here’s a few of our top headlines this morning: Championship play-off final may be postponed over spygate, EFL admits; As it happened: Markets on high alert as Streeting calls on Starmer to resign; BT bags five-year digital contract with BAE Systems; Arsenal sign Deel deal with CEO who is fan of Champions League finalists PSG; Lego bricks hit a wall: Iconic toymaker goes digital as spin-off builds profit.
The liveblog has ended. No liveblog updates yet.
