Three days after resignation of Liz Truss, UK it has a new prime minister, the first of Indian origins. He is Rishi sunak, former Chancellor of the Exchequer in the Johnson government who had this summer challenged its Trussing for the leadership of the Conservative Party, losing the race after a tax scandal involving his wife, the Indian billionaire heiress Akshata Murty.
Altar will formally take office in the next few hours, after receiving commissioned by King Charles III. It will be up to him to resolve the difficult economic and financial situation in which the United Kingdom finds itself, but above all it will be his task to regain the confidence of the markets after the perfect storm created by the duo Truss-Kwarteng and their unfortunate tax plan.
Who is Rishi Sunak
Forty-two years old, Indian of origin, Altar he graduated from Oxford University, then went on to study at Stanford, in the United States. During his career he worked for Goldman Sachs. Sunak was selected as the Conservative candidate for Richmond (Yorks) in October 2014 and was elected to the House of Commons.
From February 2020 to July 2022, he held the position Chancellor of the Exchequer, the equivalent of our Finance Minister, in the Johnson II Government, finding himself managing the economic consequences of the pandemic. Ideologically he is considered a pragmatic brexiteer, belonging to the right wing of the party, but with transversal supports.
The election of Sunak
That he would be the fifth Conservative prime minister of the last six years had already been understood last night, when Boris Johnson had announced his retirement from the race for the leadership of the party. The official announcement came today, after Penny Mordaunt, the only remaining rival, also decided at the last minute to take a step back. Sunak, among other things, was the only one to have obtained the support of over 100 conservative MPs, thus exceeding the threshold necessary to participate in the party's internal primaries.
The market reaction
Already this morning, even before Sunak's premiership became official, the markets had begun to celebrate, a sign that his name is appreciated by the City. THE gilt yields, British government bonds whose rates yes they were soar after the unfortunate tax plan presented by the Truss-Kwarteng duo, they are on a downward trend: 3,9-year bonds at 3,47% and two-year bonds at XNUMX%. And instead rise la GBP, with the exchange rate against the dollar stabilizing at 1,1322 after having also touched 1,1383. Even the ftse100 of London, which was in the red this morning, is now +0,6%.
