Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Rishi Sunak Set to Be Next U.K. PM as Mordaunt Fails to Muster Support

World Oct 24, 2022 09:17AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
UK100
+1.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FTMC
-0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GB2YT...
-0.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GB10Y...
+0.28%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith 

Investing.com -- Rishi Sunak is set to be the next Prime Minister of the U.K., after his last remaining rival Penny Mordaunt failed to gather enough support from fellow lawmakers to proceed with her bid.

Sir Graham Brady, who chairs the 1922 Committee of backbench Conservative Members of Parliament, said in a statement that Sunak was the only candidate to cross the required threshold of 100 declared supporters. Mordaunt acknowledged the result, paving the way for Sunak to be confirmed as party leader by the nationwide party membership.

The Conservative Party's members had roundly rejected Sunak in a run-off with Liz Truss earlier this summer, preferring Truss's agenda of low taxes and deregulation. Sunak had warned that that agenda would not survive its first encounter with market realities at a time of high inflation and little slack in the economy, and was subsequently proved right by events, as markets pushed the pound to a record low and dumped U.K. government bonds in response.

U.K. financial markets reacted enthusiastically to the news, rallying in anticipation of Sunak's victory in early trading on Monday in London and then extending their gains on confirmation of the news.

By 09:30 ET (13:30 GMT), the yield on the benchmark 10-Year government bond, which had surged as high as 4.63% as markets took fright at Truss's unfunded tax cuts, was at 3.84%, down 21 basis points on the day. The two-year Gilt yield was down 28 basis points at 3.44%.

The midcap FTSE 250 index - a more U.K.-focused index than the mining- and energy-dominated FTSE 100 - rose 1.3%, as markets priced in a lower interest rate trajectory from the Bank of England.

Markets had feared that Truss's plans would drive inflation even higher, forcing the Bank of England to raise interest rates even more aggressively to bring it back down. By contrast, Sunak, in his time as Chancellor of the Exchequer under Boris Johnson, had raised taxes sharply in order to cover Johnson's expensive spending promises. Sunak's tighter fiscal policy was seen as keeping overall demand lower, reducing the need for higher interest rates. 

Sunak will be the U.K.'s first non-white Prime Minister and, at 42, the youngest in modern history. 

Rishi Sunak Set to Be Next U.K. PM as Mordaunt Fails to Muster Support
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
Murali Krishna
Murali Krishna Oct 25, 2022 5:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A whole bunch of amateurs talking shots at economy one after the other. The UK economy has become an experimental fiefdom
Oct 25, 2022 4:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
WEF Billionaire enjoy being flooded with Migrants GB
Oct 25, 2022 4:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sounds like weird tinfoil but just Google Sunak WEF.....another Sana Marin/ Trudeau/ Baerbock
Kit Ali
Kit Ali Oct 24, 2022 10:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
He wasn't white enough a few months ago, thats why Truss won.
Tre Hsi
Tre Hsi Oct 24, 2022 10:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
could he have won if he was proposing crazy policies like Truss-ocomics?
Steven ML
Steven ML Oct 24, 2022 10:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Now he is? He is not a gobstopper, is he?
Matthew Lim
SilkRdEconomist Oct 24, 2022 10:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
maharajarishi !!
Dennis Chuck
Dennis Chuck Oct 24, 2022 10:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good Rishi Sunak, need some capable people to lead these use less whites.
Maximus Maximus
Maximus Maximus Oct 24, 2022 9:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
time to call new elections before these right wing incompetents destroy what's left of the country. now the best of what's left has taken over. will he last longer than a cabbage?
Dweeptaru Das
Dweeptaru Das Oct 24, 2022 9:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
time will tell, I don't think u are at the best place to comment
Nick Le
Nick Le Oct 24, 2022 9:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not a Britain, but I am sure having a right wing as far better and the only thing sane to chose then any of the woke, racist wrong wong left wing nuts.
Jimmy McGill
Jimmy McGill Oct 24, 2022 9:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Complete Brexit or be slaves to Brussels elites.
Tre Hsi
Tre Hsi Oct 24, 2022 9:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
between the "Brussels elites" and the Boris/Truss chaos, I think we all know which one is less damaging......
Venugopal Jetty
Venugopal Jetty Oct 24, 2022 9:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Rishi Sunak good job and long way to go..
Tre Hsi
Tre Hsi Oct 24, 2022 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You mean the Conservative Party actually elected someone professional and responsible to be their PM?  say it aint so!
Vyas C Madhavarao
Vyas C Madhavarao Oct 24, 2022 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Such miracles do happen!
Vyas C Madhavarao
Vyas C Madhavarao Oct 24, 2022 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Such miracles do happen!
Vyas C Madhavarao
Vyas C Madhavarao Oct 24, 2022 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Such miracles do happen!
Maximus Maximus
Maximus Maximus Oct 24, 2022 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
unfortunately there's nothing competent about this staunch supporter of the miserable failure that is brexit
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email