CNBC Daily Open: Leadership challenge swirls around Starmer

Hello, this is Leonie Kidd writing to you from London. Welcome to another edition of CNBC's Daily Open.

It's a tough time to go to the polls. That's what U.K. Prime Minister Keir Starmer is finding out today, as his Labour Party loses control of major councils across the country.

He faces discontent across both domestic and foreign issues. But will today's results be enough to launch a full-scale leadership challenge?

The results are still coming in, but Britain's ruling Labour party is braced for heavy losses in local elections, piling the pressure on Starmer.

The party has already lost numerous key seats across the 136 councils in England, with 129 seats in Scotland and 96 in Wales also being contested. So far, Nigel Farage's right-wing Reform UK has made the biggest gains, while the Greens and Liberal Democrats have also benefited from a loss of faith in Labour.

Big voices within the party — including former Shadow Chancellor John McDonnell — say leadership change has to 'be on the agenda', while Energy Secretary Ed Miliband was forced to deny a claim he advised Starmer to map out his departure.

U.K. borrowing costs hit their highest level since 1998 in the build-up to the vote, adding market pressure to the political challenges.

Meanwhile, the European Union is back in the White House's sights. U.S. President Donald Trump took to Truth Social after a call with European Commission President Ursula von der Leyen, saying: "I agree to give her until our Country's 250th Birthday, or, unfortunately, their tariffs would immediately jump to much higher levels."

Tensions in the Middle East continue to rise. The U.S. and Iran opened fire in the Strait of Hormuz, with each side claiming the other initiated the attack.

The war in Iran threatens to delay progress on other topics, as Trump and Chinese President Xi Jinping prepare for a landmark meeting next week.

U.S. Treasury Secretary Scott Bessent has already said that Iran will be discussed when the leaders meet on May 14 and 15. And earlier this week, China hosted Iran's foreign minister for the first time since the war began in late February — raising hopes for a peace deal, sending oil prices lower and fueling stock-market gains.

— Leonie Kidd

France is a fan favorite for the FIFA World Cup — but AI is backing another nation for glory, says BofA

France has emerged as a clear fan favorite for this year's FIFA World Cup in North America, according to a Bank of America survey.

Roughly 40% of fans surveyed by BofA are betting on another World Cup win for Les Bleus this summer, with France and Real Madrid forward Kylian Mbappé expected to be the "golden boot" winner as the tournament's top scorer.

However, Microsoft's Copilot artificial intelligence tool is backing another champion, saying Spain is equally likely to lift the trophy.

— Sawdah Bhaimiya