Britain’s New Leader – Rishi Sunak Soon-To-Be U.K.’s Prime Minister
Just a week after Liz Truss’ resignation as the U.K.’s Prime Minister, the votes have been counted for her new successor, which is former Chancellor Rishi Sunak. Both of Rishi Sunak’s opponents, Boris Johnson and Penny Mordaunt, have dropped out of the race, thus ensuring Sunak’s spot which will be appointed by King Charles soon. Sunak’s election will not only make the 42-year-old the youngest prime minister since 1812, but the first British prime minister of color and the first Hindu to lead the U.K. After losing to Truss only a couple of months ago, Rishi Sunak will now have to battle against her package of measures which he previously claimed to be a “fairy tale”.
Sunak will not have an easy task ahead of him, as he will plan to amend the mistakes of his predecessor by carrying the weight of the world’s sixth-biggest economy through deep financial trouble. With the energy crisis, high inflation, and looming recession risks, the former hedge-fund manager will have to set pragmatic economic policies while also stabilizing the Conservative Party. Investors hope that Sunak’s experience as a Treasury official will work to support Britain’s finances by potentially overseeing cuts to public spending. Nevertheless, investors felt positive about Sunak’s success as broad markets stayed positive continuing last week’s trends.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.