Wes Streeting resigned from cabinet on Thursday, saying he had lost confidence in Keir Starmer’s leadership. He stopped short of formally triggering a contest, but the move has made the Labour leadership question live in a way it wasn’t 48 hours ago. Andy Burnham now has a route back to parliament after Josh Simons said he would stand down from Makerfield to create a by-election, though Burnham still has to win the seat before he can mount any challenge — and Reform UK will make that fight uncomfortable. Angela Rayner is also in the frame. Starmer has not indicated any intention to go. For anyone with UK political risk exposure, the question is no longer whether there is a succession dynamic but how fast it moves.

On the US-China summit, the headline numbers disappointed. Trump flagged expanded Chinese purchases of US agriculture and oil, but Boeing shares fell on the day as the specific deals fell short of what markets had priced in. More consequentially, Trump said the two sides “feel very similar about Iran” and the FT reports his allies are hoping Xi can help defuse a Strait of Hormuz crisis that is already triggering an oil supply shock and threatening Republican midterm prospects. If that framing is accurate, the summit’s real significance is less about trade and more about whether Beijing will act as a back-channel on Iranian oil flows. Xi called it a “new bilateral relationship” and a “milestone.” The gap between that language and the thin commercial deliverables is worth noting.

Kevin Warsh’s approach to the Fed is getting more attention ahead of his expected confirmation as chair. The FT and the Economist are both running pieces this week on his view that the Fed has over-communicated — that constant forward guidance does more harm than good. If he moves to reduce the volume of Fed signalling once in post, that has direct implications for how rates markets price uncertainty. Less guidance means wider distributions on rate paths.

SpaceX is pressing ahead with IPO preparations at a $1.75 trillion valuation. The structure being offered to investors includes weak shareholder rights and a pay package tied to Mars mission milestones. The FT reports investors are expected to accept the terms regardless. Separately, more than 50 staff have left the merged SpaceXAI entity since February, with burnout and leadership friction cited as factors — worth watching if you have any view on whether the AI talent base holds together post-merger.

UK energy regulator Ofgem has fined British Gas £20 million for breaching licence conditions protecting vulnerable customers during the prepayment meter force-fitting scandal. Not a macro mover, but relevant for anyone watching the regulatory posture toward the large suppliers.

US retail sales data for April is due today.

Sources

Al Jazeera, BBC News, FT, Guardian, Politico, TechCrunch, Ars Technica, The Economist — 2026-05-15