Andy Burnham will deliver an economic-plan speech on Monday. Burnham re-entered
Parliament and won a seat this month; he is the only formal candidate for prime
minister and could take Downing Street in coming weeks. Investors will focus on
his economic-policy stance; gilt investors, more than FX markets, are watching
how he would drive growth. Markets broadly expect a tilt toward expansionary
fiscal policy, but fiscal space is limited and the government's capacity to
raise new borrowing is constrained, leaving little room for additional spending.
There are market concerns about a repeat of the Truss crisis. Analysts say
Burnham's choice for Chancellor of the Exchequer will be a key determinant of
whether UK financing costs remain stable.
