Caroline Hepker

German yields down two basis points.

UK yields also easing a basis point this morning, 4.82%.

So that's quite interesting given the political uncertainty that the UK faces, which has been hitting the pound.

It's currently down two tenths against the dollar on cable 132.11.

Those are the markets this hour.

I'm Caroline Hepka and this is Bloomberg.

News when you want it with Bloomberg News Now.

I'm Caroline Hepker.

UK Prime Minister Keir Starmer is expected to set out a timetable to step down as soon as this morning.

Starmer's allies have told Bloomberg that the timing was not certain, but say that the leader is considering leaving power.

Business Secretary Peter Carl says the Labour leader has spent the weekend talking to his supporters.

The business secretary, Peter Carr.

Starmer, considering quitting power, is a remarkable turnaround for the landslide election victory that he secured in 2024.

After losing his health secretary, his defence secretary and the support of a quarter of his MPs, many of the Labour Party want a change of leader.

If Starmer does set out a plan to step aside, Britain would see its seventh prime minister in 10 years.

Labour MP Justin Madders says the newly elected Andy Burnham is the only person for the job.

Justin Madders was pointing to Andy Burnham's major win in a by-election last week, which has added to the pressure on Starmer.

But investors are wondering which direction the British government will take next, including who might succeed Chancellor Rachel Reeves.

Well, to the Middle East now.

The US and Iran have made encouraging progress in talks on a peace deal, according to a joint statement from mediators Qatar and Pakistan.