Thanks for joining me. The pound dropped after Andy Burnham launched his campaign to return to Westminster and become the new prime minister.

Sterling has declined by 0.8pc against the dollar since the Mayor of Greater Manchester announced his intention to run in a by-election for the Makerfield seat on Thursday.

The pound fell to a one-month low of $1.335, having been above $1.36 on Tuesday, as Mr Burnham took the first steps on his path towards a leadership contest to replace Sir Keir Starmer.

His gambit came just hours after Wes Streeting resigned as health secretary decrying the “vacuum” and lack of “vision” of Sir Keir’s leadership and demanding the Prime Minister set a timetable for his departure.

The leadership turmoil has left the pound on track for its worst week since the aftermath of Rachel Reeves’s first budget in November 2024, declining by 1.9pc so far.

Investors will wait to see what happens to the cost of government borrowing now the Mayor of Greater Manchester has entered the leadership…