UK Speaker Hoyle confirms there will be a debate and then vote on whether PM Starmer should be referred to the Privileges Committee

This development signals a potential escalation in political tensions within the UK, as a debate and vote on PM Starmer's referral to the Privileges Committee could affect the government's stability. Markets may react to increased uncertainty demonstrating risk aversion, which could strengthen safe-haven assets like the USD and weaken GBP in forex trading. A politically charged environment may influence fixed income markets, particularly UK Gilts, as investors reassess their exposure amidst potential changes in leadership or policy direction.