Former prime minister Rishi Sunak was due to become Britain’s new prime minister on Monday after Boris Johnson withdrew from elections on Sunday night and markets breathed a sigh of relief.
The pound rose on Monday after further imminent risks of political and economic turmoil receded. Struggling to gain support, Johnson admitted that had he won, he would not have been able to govern “effectively” due to divisions among Tory MPs.
snack If House leader and his only remaining rival, Penny Mordaunt, fails to secure the 100 nominations from Tory MPs required to enter the contest, the Tory Become the leader of the party.
According to the publicly declared designated FT tracker, Mordant So far, only 25 people have received public support. Several of her colleagues urged her to drop her campaign and endorse her Sunak after Johnson withdrew from the race.
“Some of us think she should step behind Rishi as soon as possible for the sake of cohesion and stability,” said one parliamentarian who supported Mordant.
But Mordaunt has indicated she’s still fighting for all the votes. did.
If she becomes the sole candidate in the 100 nominations, she will be invited by King Charles later Monday to form a government to replace No. 10 Liz Truss.
However, if Mordaunt reaches the required threshold, lawmakers will hold an “indicator vote” later on Monday to signal party members as to which of the two candidates they want to win the contest. , the votes will be open to party members in an online ballot, and the results will be announced on Friday.
Snak remains a divisive figure within the party and has been accused by many Conservative MPs and members of facilitating the overthrow. Johnson in July.
However, he is seen by the market as committed to sound economic management, with a new debt reduction plan due to be unveiled by new Prime Minister Jeremy Hunt on October 31, and a better relationship with the EU than Johnson. More likely to oversee better relationships.
Sterling starts week on strong note after Johnson dropped out of the contest. The pound rose 0.3% against the dollar to reach $1.1336 in the morning’s London trading and rose 0.6% against the euro to 1.1525 euros.
Ulrich Leuchtmann, head of currency research at Commerzbank, said Mr Johnson’s withdrawal removed one of the political risks to the British currency. He said Johnson’s return to prime minister may have sparked renewed tensions with Europe over a post-Brexit deal.
“In addition to the monetary and fiscal policy risks of the past few weeks, there remains one of the main factors still putting pressure on the pound: Brexit and its consequences,” Leuchtmann said.
Johnson surprised the team at 9 p.m. Sunday night by announcing that he would not run for leadership despite claiming to have 100 candidates plus proposers and alternates.
Many Tory MPs were highly skeptical that Johnson would have the numbers.
Johnson claimed he could have won the election because of the appeals to his party members, but he stood aside in the interests of the Conservative Party and the nation.
“However, in the last few days, I have sadly come to the conclusion that this is not the right thing to do.
https://www.ft.com/content/09d5d9a8-347d-4633-847a-1fcb3adc8838 Rishi Sunak on track to become UK’s new prime minister