Finance — UK FACES WORSENING ECONOMY AS NEW PM TAKES OFFICE; GILTS, OIL PRICES RISE

The UK's economic outlook is deteriorating as incoming Prime Minister Andy Burnham prepares to take office, with rising oil prices and government borrowing costs signaling fresh headwinds. The 10-year gilt yield has climbed back over 5%, near an 18-year high, while Brent crude has surged 20% in July to over $85 a barrel amid renewed conflict in the Middle East. The developments undermine hopes for falling inflation and interest rate cuts, compounding weak economic growth of just 0.1% in May.