UK borrowing costs jump as uncertainty over PM's future continues
British 10-year gilt yields jumped sharply as political uncertainty grew over whether the prime minister will keep his job. Cabinet friction and the prospect of a leadership challenge also weighed on sterling.
British 10-year gilt yields rose sharply on Monday as investors began to price news flow over whether the prime minister can hold on to his post. Sterling weakened against the dollar and the euro at the same time.
Media reports said some cabinet ministers are laying ground for a possible leadership contest, while the opposition argued that the government's room to manoeuvre is narrowing. Treasury officials signalled that spending plans could be tightened in the next budget.
Long-end yields climbed and investment banks said sterling could come under further pressure if political uncertainty persists. Analysts also noted that the Bank of England's rate path is expected to operate independently of any change at the top of government.
More from Europe
Turkish and Belgian defence industry firms forge strategic cooperation deal
Turkish and Belgian defence industry representatives agreed a strategic cooperation framework that covers joint R&D and production. The deal aims to broaden Turkey's footprint in European markets and to give Belgian companies new supply-chain opportunities.
CBRT April Inflation Assessment: Annual inflation rises to 32.37 percent
The Turkish Central Bank released its April inflation assessment, showing consumer prices rose 4.18 percent month-on-month, while annual inflation climbed to 32.37 percent—up 1.50 percentage points. Energy prices surged 14.4 percent, with the underlying trend moving higher.
Airlines can cancel flights in advance over fuel shortages under new plans
Under new UK government plans, airlines can cancel flights in advance due to fuel shortages rather than wait until the last minute. This allows passengers time to rebook and make alternative arrangements.