The Starmer government is in acute crisis. Communities minister Miatta Fahnbulleh resigned yesterday, becoming the first minister to quit and explicitly calling on the Prime Minister to stand down. Cabinet ministers are reportedly pressing Starmer to consider his position, the parliamentary Labour party mood is described as “pretty ugly,” and Darren Jones, chief secretary to the Treasury, declined twice this morning to confirm whether Starmer intends to lead Labour into the next election. The FT reports Starmer is weighing whether his premiership can be saved.
Bond markets have noticed. The 30-year gilt yield has risen to its highest level this century, with the FT attributing the move directly to the leadership uncertainty. Reeves’ allies are signalling she should remain as Chancellor even if Starmer goes, with the explicit concern being that a full leadership contest would further unsettle an already jittery gilt market. Anyone with duration exposure in sterling rates needs to watch how today develops.
On the trade front, the Economist flags that the Iran crisis is pushing up petrol prices and creating supply disruption in plastics and petrochemicals. Separately, the Economist’s annual defence spending ranking shows that by at least one measure US allies now collectively outspend Washington on defence — the biggest such shift since 2001. Both data points are relevant for energy and defence positioning.
Trump’s visit to China is being described as the most significant US-China summit in years. No detailed terms have emerged yet, but the framing from multiple outlets is that the meeting could set the tone for superpower relations for an extended period. Watch for any joint statement language on tariffs or Taiwan.
On tech, GM has laid off hundreds of IT workers and is explicitly replacing them with staff carrying AI-native skills — data engineering, agent development, prompt engineering. It is one of the cleaner real-world examples of AI-driven workforce restructuring at scale inside a traditional industrial company, and it will not be the last.
The cabinet meeting today is the immediate thing to watch. If further ministerial resignations follow or Starmer announces a departure timeline, expect further pressure on gilts and sterling.
Sources
- First minister resigns and calls for Starmer’s resignation ahead of critical cabinet meeting – UK politics live — Guardian
- First government minister resigns as Starmer ‘weighs’ if premiership can be saved — FT
- BBC unmasks key people smuggler in network behind most small boat crossings — BBC News
- Minister resigns from Starmer government with call for PM to quit — Guardian
- ‘Whole morning revolves around gas’: Pakistan’s fuel crisis enters kitchens — Al Jazeera
- Green Party admits Polanski may have failed to pay council tax — BBC News
- UK borrowing costs surge as Starmer leadership crisis rattles bond markets — FT
- Trump and Xi: The history of encounters between two superpower leaders — Al Jazeera
- Gunman arrested after opening fire on busy street near Harvard University — Al Jazeera
- Starmer to face split cabinet as demands for his resignation mount — Al Jazeera
- Pakistan struck a rehab centre and killed 269 Afghans. Their families want to know why — BBC News
- Reeves’ allies say chancellor should stay in post if Starmer ousted — FT
- Last passengers leave virus-hit cruise ship as three more test positive — BBC News
- Seven-day weeks and ‘debt bondage’: China’s first electric car plant in Europe mired in allegations of worker abuse — Guardian
- Will Starmer’s old Labour tribute strategy rescue him from the abyss? Probably not, but there’s a logic to it | Gaby Hinsliff — Guardian
- Thinking Machines wants to build an AI that actually listens while it talks — TechCrunch
- Will AI turn us all into hipsters and artisans? — FT
- We are living in the age of asymmetry — FT
- Hot divorcee summer: get ready for big hats, hot sex and don’t-care energy — Guardian
- Trump loses his trade superpower — FT
- Why does everyone hate Keir Starmer? – podcast — Guardian
- Chris Mason: PM hangs on by a thread as party revolts — BBC News
- Riding an AI rally, Robinhood preps second retail venture IPO — TechCrunch
- US in closely guarded talks to open new bases in Greenland — BBC News
- How the Trump-Xi summit could set superpower relations for many years to come — BBC News
- How driving test booking is changing for learner drivers — BBC News
- GM just laid off hundreds of IT workers to hire those with stronger AI skills — TechCrunch
- Linux bitten by second severe vulnerability in as many weeks — Ars Technica
- Audi has a new Q9 flagship coming soon: Here’s its interior — Ars Technica
- Finally, texts between Android and iPhone users can be end-to-end encrypted — TechCrunch
- Children of the Blitz review – wonderful, priceless television — Guardian
- Trump nominates Kari Lake and Doug Mastriano to diplomatic posts — Politico
- What to expect when you’re expecting a budget — Politico
- After banning foreign routers, FCC says existing ones can get updates until 2029 — Ars Technica
- Data center guzzled 30 million gallons of water and nobody noticed for months — Ars Technica
- This moderate Republican senator is already eyeing the exits 16 months into his term — Politico
- Mapping the Iran war’s trade disruption — The Economist
- By one measure, America’s allies now outspend it on defence — The Economist
- A prolonged Iran crisis could irreversibly damage Gulf states — The Economist
- China knows that governing new tech can be harder than inventing it — The Economist
Guardian, FT, BBC News, Al Jazeera, TechCrunch, Ars Technica, Politico, The Economist — 2026-05-12