Prime Minister Keir Starmer, issues a statement regarding the Manchester Synagogue attack, on Downing Street on October 2, 2025 in London, England.
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Hello, this is Katie Foley writing to you from London, where Downing Street rules the agenda.
UK Prime Minister Keir Starmer faces a tough cabinet meeting this morning. His prime ministership appears to be on the knife’s edge after a day of intrigue similar to what British politics seems to have accomplished in recent years.
What you need to know today
British Cabinet ministers – reportedly including the Home Secretary, Shabana Mahmood – have told Keir Starmer to come up with a plan to leave Number 10. In addition, more than 70 of his MPs have told him to step down and several aides have resigned, as Starmer’s ‘make-or-break’ speech yesterday failed to stem the growing rebellion.
London Mayor Sadiq Khan told CNBC that he is not calling for a change of Prime Minister, but said “we have not been brave enough, we have not been brave enough. We are in danger of losing the next general election.” In Europe, Khan says Labor must commit to rejoining the EU at the next general election, calling Brexit “the biggest act of economic self-destruction any country has ever committed.”
The timing of all this is not good as the King’s speech reveals the most important things for the government at the opening of the parliament which will be held on Wednesday.
Oil prices rose after US President Donald Trump said the ceasefire with Iran was “on life support” after rejecting Tehran’s proposal to end the war, implying that the conflict in the Middle East could continue. Trump told reporters that the ceasefire is “incredibly weak,” calling Iran’s proposal to end the conflict “rubbish.”
President Trump is expected to arrive in China tomorrow evening with a number of CEOs following. Invitees include Tesla CEO Elon Musk, Apple CEO Tim Cook, BlackRock CEO Larry Fink and Boeing CEO Kelly Ortberg, according to a White House official.
In markets, Asian shares are mixed while European futures point firmly lower. But Wall Street continues its strong rise, with both the S&P 500 and the Nasdaq posting new record highs.
– Katie Foley
And finally…
‘Haters gonna hate’: Dan Ives predicts Nasdaq 30,000 as AI rally expands
The Nasdaq will rise to 30,000 points next year as the cash season continues to fuel enthusiasm for AI stocks, Dan Ives, managing director at Wedbush Securities, told CNBC’s Squawk Box Europe on Monday.
The technology’s strong earnings season saw investor confusion earlier this year replaced by bullishness over the build-out of AI infrastructure. Finally on Friday the Nasdaq Composite ended at 26,247.08, marking a 12.93% increase so far this year.
“These earnings confirmed the AI bullish thesis,” Ives said. “Demand and supply is 10-1 for chips. We’re in the early days of the AI revolution. Haters gonna hate, and we know it.”
– Kai Nicol-Schwarz
