UK Political Landscape & Market Sensitivity - UK assets are vulnerable, especially given the recent historical context reminiscent of the Liz Truss era, making markets highly sensitive to political and economic developments [6] - The market reacted negatively to uncertainty surrounding the Chancellor's position, indicating a lack of confidence and stability [10] - Keir Starmer publicly expressed strong support for Rachel Reeves, seemingly to reassure the gilt market and stabilize yields [2][3] Fiscal Policy & Economic Challenges - Rachel Reeves faces challenges in implementing spending cuts to improve the country's fiscal position [8] - Constraints on borrowing and difficulties in gaining approval for welfare benefit cuts (specifically £5 billion) create a difficult political and professional situation for the Chancellor [8][9] - Economic growth is not meeting expectations, adding further pressure on fiscal policy [8]