Labour Party leadership race: Reeves backs Burnham

What happened: In the Labour Party leadership race, Rachel Reeves, the current Chancellor, has backed Andy Burnham to be the next Prime Minister. Notably, Lucy Powell, a close ally of Ed Miliband, has also endorsed Burnham, suggesting Miliband could serve as Burnham's Chancellor. Meanwhile, Burnham is being urged to adopt radical economic policies to combat the cost of living crisis.

Market impact: This narrative could impact financial sectors and related industries. If Burnham wins and implements populist economic policies, it may lead to increased government spending, potentially driving up bond yields and affecting financial institutions' profitability. It could also influence the valuation of companies in these sectors.

What to watch next: The outcome of the Labour Party leadership race (to be announced on 25th April) will be a key catalyst. Additionally, any policy announcements from Burnham or other candidates regarding the economy and financial sectors will provide further clarity on potential market impacts.