"The Peter Mandelson crisis could trigger UK bond market chaos if it forces Prime Minister Keir Starmer out of office, warns the CEO of one of the world's largest independent advisory organizations. The warning from Nigel Green of deVere Group comes as reports suggest even close allies of the Prime Minister are now questioning his judgement and authority, raising the risk that a political scandal could rapidly morph into financial volatility."
""If the Mandelson affair brings down the Prime Minister, which is something a growing number of commentators are discussing, the consequences would not stop at Downing Street," he says. "Markets would immediately focus on the UK bond - or gilt - market." He argues that Rachel Reeves is far more politically and economically tied to Starmer than many assume, making her position vulnerable in the event of a sudden leadership change. "Rachel Reeves' credibility with bond markets has been built on one core thing: continuity.""
Police confirmed a criminal investigation into Peter Mandelson over allegations of misconduct in public office linked to claims he passed market-sensitive government information to Jeffrey Epstein while serving as business secretary in 2009. The Prime Minister acknowledged that Mandelson "lied repeatedly" during vetting for an ambassadorial role. Close allies are reported to be questioning the Prime Minister's judgement and authority, increasing the risk of rapid political fallout. A leadership collapse that removes the Prime Minister would likely shift market focus onto the UK gilt market and threaten renewed gilt-market turbulence. Chancellor Rachel Reeves' market credibility is tied to continuity and fiscal discipline, making her position vulnerable in a sudden leadership change.
Read at London Business News | Londonlovesbusiness.com
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