Starmer is out. He announced his resignation this morning, saying a new leader will be in place before parliament returns in September. Less than two years after Labour’s landslide, he becomes the shortest-serving prime minister of the modern era — the seventh in a decade. The FT’s read is that caution and the absence of a clear economic plan were the proximate causes, though the briefing against him from within the party clearly accelerated the end.

Wes Streeting has ruled himself out and backed Andy Burnham, who won the Makerfield by-election last week and will be sworn in as an MP today. Burnham is now the overwhelming favourite. The FT is reporting speculation that Streeting’s backing came with an expectation of the chancellorship, which would mean Rachel Reeves’s position is also in play. Gilt yields dipped on the news — markets appear to be reading a Burnham premiership as marginally less fiscally hawkish than what came before, though that’s a thin read at this stage.

The practical question for anyone with UK exposure is what a Burnham government means for fiscal headroom. Reeves had already used up most of her buffer and was resisting further borrowing. If she goes, and if Burnham moves toward a more expansionary posture, the OBR’s next assessment becomes the one to watch. The leadership process is expected to conclude by late July.

Elsewhere, the first round of US-Iran nuclear talks concluded in Switzerland with mediators describing encouraging progress. The framework includes a commitment to reach a final deal within 60 days. There is bipartisan pushback in Washington — the Economist flags a Republican and Democrat coalition uneasy with the terms — but the talks are continuing. For energy markets, any credible path to sanctions relief on Iranian oil supply is worth tracking.

On the geopolitical side, Russian forces are building up around Kostyantynivka in eastern Ukraine. If it falls, the BBC’s assessment is that Russian forces would be positioned to push toward Ukraine’s last remaining strongholds in the Donbas. No immediate market implication, but it shifts the backdrop for any ceasefire negotiation timeline.

Andy Burnham is expected to formally declare his leadership candidacy today, which will set the clock on the Labour process. That is the event to watch in the next 48 hours.

Sources

Guardian, FT, Al Jazeera, BBC News, The Economist, Politico, TechCrunch, Ars Technica — 2026-06-22