The Papers: 'PM isolated' and 'Job concerns deepen'

UK front pages focus on political turmoil around Prime Minister Keir Starmer after the Lord Mandelson vetting row and calls for a sleaze inquiry, heightening political uncertainty that could weigh on UK assets. The Financial Times warns of deepening job concerns after a large rise in wage taxation, a negative backdrop for consumer-facing stocks. Geopolitical risk has also risen after Iran seized two merchant ships and struck a third in the Strait of Hormuz, feeding fears of higher energy costs and market volatility. Together, domestic political instability, fiscal/headline tax worries and Middle East tensions increase downside risk for the UK 100 and broader UK equity market in the near term, likely boosting risk premia and investor caution.