Labour's internal struggle for leadership and ideas

What happened: The Labour Party's leadership contest intensified on Thursday, with candidates finally revealing their stances. Wes Streeting's team claimed he held strong cards, while Andy Burnham struggled to present a clear position. Meanwhile, Labour MPs remain divided between fear of keeping Keir Starmer as PM and the risk of replacing him. The gilt market, however, is more focused on global geopolitical events like the Iran conflict resolution.

Market impact: The Labour leadership saga has not significantly impacted UK gilt markets, contrary to popular belief. Bond vigilantes are more concerned with global events. However, a clear leadership outcome in Labour could influence Sterling and UK equities, particularly those sensitive to political risk and policy changes.

What to watch next: The next key catalysts are the Labour leadership results, expected in late February, and the Spring Statement on March 15. The leadership result will clarify Labour's direction, while the Spring Statement could provide market insights into the government's fiscal plans.