David McNamara: UK markets fear for Keir Starmer successor

UK bond yields are rising while sterling and UK equities have fallen

Mon, 18 May, 2026 - 11:43

David McNamara: British economy is stuck in stagnation

David McNamara is the Group Chief Economist at AIB responsible for leading the bank's macroeconomic analysis and provide insights for both national and international stakeholders.

While the crisis in the Middle East rumbles on, political machinations in the UK have provided a further hit to UK asset prices last week. Following poor local election results, British prime minister Keir Starmer has faced several ministerial resignations, including most notably, his health secretary Wes Streeting.

It now appears Mr Streeting will be among a number of leadership challengers to Starmer, albeit each face a high bar of 81 MPs to enter a contest. Mr Starmer has insisted he will fight an eventual leadership election.