POLITICO, citing UK Officials, says May 8 looks set to be a moment of real danger for the PM; says a long-time critic promised to go public with a call for PM Starmer to step down if results are as bad as expected

The report suggests a significant political risk for PM Starmer, with potentially damaging implications if local election results align with expectations of a poor performance. This could increase instability in the UK government, potentially impacting market sentiment across UK assets, particularly in equities and GBP. Traders should watch for market reactions as the date approaches, especially in sectors sensitive to government policy and stability.