Sunak on his way to be PM. GBP/USD pushed up.

Today (October 24) at 2:00 pm, with only one eligible candidate for Prime Minister remaining in the Conservative Party (requires nominations from 100 MPs), former Chancellor of the Exchequer Rishi Sunak (Rishi Sunak) ) was elected Prime Minister of the United Kingdom.
Sunak is the first minority (Indian) prime minister in British history, and the youngest prime minister since Lord Liverpool took office in 1812. He is only 42 years old. At the same time, he is also the fastest Conservative party member to become prime minister after entering politics. , the full count is 7 years.

Source: Daily Mail
His opponent Penny Mordaunt tweeted 2 minutes (13:58) before the end of the nomination, saying that he was withdrawing from the race; another popular candidate – former British Prime Minister Boris Johnson (Boris Johnson) voluntarily withdrew from the race yesterday (October 23), so Sunak is the only eligible candidate in the Conservative Party.
It seems that Sunak has become the Prime Minister of the United Kingdom by “laying on the win”, but he is not “deserving of his name”. As of 13:20 this afternoon, Sunak has won the support of 193 MPs in the party (a total of 357 MPs in the Conservative Party), that is to say, more than 54% of Conservative MPs have chosen to support Sunak.

Source: BBC
In this regard, the chaos of the leaders of No. 10 Downing Street has come to an end, and Sunak, who has rich business resources and political background, will lead the United Kingdom.

Who is Rishi Sunak?
Sunak was born in Southampton, England in 1980. His parents were Indian immigrants who immigrated to the United Kingdom from East Africa in the 1960s. His father was a general practitioner and his mother was a pharmacist who ran his own pharmacy. Sunak is the eldest son in the family with three siblings.
It can be said that Sunak’s background does not have the shadow of the British political elite family in the stereotyped impression. He is an ordinary middle-class family, but his parents attach great importance to his education. Sunak studied at the top four boarding schools in the UK. Winchester College, and was the student representative at the time.
Then, Sunak was admitted to Lincoln College, Oxford University, to study philosophy, political science and economics (PPE major), which is one of the ace majors of Oxford University, and many British and world politicians have studied in this major. Sunak graduated from Oxford University in 2001 with a first class degree.
Between 2001 and 2004, Sunak, an Oxford graduate, worked as an analyst at Goldman Sachs investment bank. He then worked at TCI, the hedge’s own management company, and became a partner of the company in September 2006. At this time, Sunak had already made great achievements in business.
After becoming a partner of the company, Sunak did not stop his pace, but came to Stanford University Business School to study for an MBA. During this time, he met his wife, Akshata Murthy, whose father-in-law was an Indian IT billionaire, the founder of Infosys, known as “Father of Indian IT Industry”.

Sunak and his wife Source: BBC

In 2009, he resigned from TCI to join Theleme Partners, a new hedge fund firm started by an old colleague with $700 million in capital. Not only that, Sunak also works in Catamaran Ventures, a venture capital firm owned by his father-in-law.
In October 2014, Sunak started his political career as a candidate for the Conservative Party in the Richmond area of ​​Yorkshire. Then Sunak “opened up”: in 2015, he became a member of the House of Commons in Richmond, Yorkshire; he was re-elected in the 2017 general election; in 2018, he became the deputy minister of state for local government affairs; in 2019, he was re-elected locally. MP.
The then British Prime Minister Boris Johnson appointed Sunak as Chief Secretary to the Treasury on July 24, 2019; on February 13, 2020, when Boris underwent a cabinet reshuffle, Sunak was promoted to Chancellor of the Exchequer (the Chancellor of the Exchequer). ).
From a candidate in the local parliamentary constituency to becoming the Chancellor of the Exchequer second only to the Prime Minister of the United Kingdom, Sunak has been promoted at the speed of light in less than 6 years, which is related to his personal talent, professional background and strong network Resources don’t matter.
He is also considered one of the richest MPs in the UK House of Commons, although he has not disclosed his worth.
Subsequently, the new crown pandemic broke out in the United Kingdom. Sunak, then the Chancellor of the Exchequer, came up with a 350 billion pound bailout plan to help British companies and individuals deal with the new crown pandemic, which was widely praised at the time. His image is also deeply rooted in the hearts of the people, and his personal popularity is also soaring.
However, due to dissatisfaction with Boris Johnson’s appointment of Christopher Pincher (the former deputy chief whip of the Conservative Party, who was exposed to molesting a man after drinking), Sunak chose to resign as Chancellor, which eventually led to a vacuum in Johnson’s power. Had to choose to resign, which is also the direct cause of the British two-party election for prime minister in a short period of time.
Although Sunak lost to Liz Truss in the first Conservative Party race, Truss’s performance over the past six weeks has been so impressive that he was forced to resign under pressure Prime Minister, and this time Sunak “laid down and won” the election, made history, and became the Prime Minister of the United Kingdom after 7 years of politics.

Sunak with members of the 1922 committee after winning the election
Source: Sky News

Why did Boris and Mordout drop out of the race:
Just this past weekend, Boris Johnson, the former prime minister who led Britain’s exit from the European Union and battled the coronavirus pandemic, announced his withdrawal from the party’s race, even as he claimed to have won more than 100 nominations from his party’s MPs.
In fact, Boris Johnson has the support of many important MPs: including the current Secretary of State for Business, Energy and Industrial Strategy Jacob Ress-Mogg, the Secretary of Defense Ben Wallace (Ben Wallace) , Upgrading, Housing and Communities Secretary Simon Clarke, former Home Secretary, Chancellor of the Exchequer, Health and Social Services Secretary Sajid Javid and others.
However, according to Boris Johnson’s own statement:
“Over the past few days I have come to the conclusion with regret. This is simply not the right thing to do (Boris is running for prime minister) and cannot be effectively governed unless there is a united party in parliament.”

From these words, we can actually feel that Boris Johnson understands the current situation: even if he is supported by some members of the party, due to his past performance (such as the party incident, the appointment of tainted politicians) ) on his reputation and trust, and he may not be able to win the support of most MPs in the party.

Source: The Sun
In short, if Boris Johnson is re-elected Prime Minister, he may also “have no real power” and won’t have party support on some important issues, and if this is the case, it will be harder to get non-conservatives in the Commons Party MPs support.
And this kind of problem is also the current Conservative Party, and even the British problem. This kind of right is vacated and cannot effectively implement policies. In the end, it will drag down British politics and the British economy. It may even be taken advantage of by some other forces, resulting in a further decline in the international status and influence of the United Kingdom, and a further decline in economic strength. .
So instead of this result, it is better to hand over the UK to a candidate who can unite more parliamentarians, so that the Conservative Party can continue to “stably govern” before the next general election, and lead the UK forward in the current extremely complex environment of the international situation. is more important.
Therefore, Boris Johnson’s “resignation” is not unreasonable. He did not choose to withdraw for his own “regaining the dream of being prime minister”, but from the perspective of the interests of the Conservative Party and the UK as a whole.
Similarly, another Conservative candidate, Penny Mordout, chose to withdraw from the race 2 minutes before the deadline for almost the same reason, and of course, another reason was that she failed to reach 100. The election threshold for inner MP support.
Subsequently, a group of MPs who once supported Boris Johnson and Penny Mordout chose to “turned on the side” and began to support Rishi Sunak, showing a “solidarity” within the Conservative Party.

Sunak warmly welcomed at Conservative Party headquarters
Source: Sky News

Can Sunak ‘steer the helm’ for Britain?
Last month, the pound fell to a record low against the dollar due to the “mini-budget” and the cost of borrowing for the British government has risen sharply.
Last Thursday, Prime Minister Liz Truss, who launched the “mini budget”, announced his resignation as British Prime Minister. Due to political uncertainty, the pound began to fall again, reaching 1 pound to $1.11, and the interest rate on British government bonds continued to rise. high.
Last Sunday, former Prime Minister Boris Johnson withdrew from the race. This morning, the exchange rate of the pound against the dollar rose to 1.14 dollars to 1 pound, and the yield of the British government’s 30-year government bond fell to 3.8. %.


Source: BBC

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At around 15:21 this afternoon, after the results of the British Prime Minister came out, the exchange rate of the pound against the dollar fell again, and came to 1.129 pounds against the dollar.
Judging from the drop in government bond yields, this is a positive signal for the British government, but the British economy really can’t stand the “toss” of the British government. If there are any surprises or major policy changes in the future , then the British economy will face greater risks.
At 16:10 this afternoon, the new Prime Minister Rishi Sunak came to the podium of the British Conservative Party headquarters and started his first speech. He first paid tribute to the former Prime Minister Liz Truss, saying that he had won the MPs from the party. was “humbly and honored” to support and be elected leader, saying:
“The UK is a great country, but there is no doubt that we face profound economic challenges and bringing this country together will be my priority.”

“I promise I will serve you with integrity and humility, and I will serve the British people day in and day out.”

The complex political environment and severe economic challenges have created a difficult problem for the new Prime Minister Sunak. However, in view of Sunak’s background and past performance, coupled with his support in the party, and the public’s favorable impression of him, he is the “best choice” in the Conservative Party, and he has the ability to clean up the current “UK” mess”, “steering the helm” for Britain.
It is expected that tomorrow (October 25), Liz Truss will submit her resignation to King Charles III, while Rishi Sunak will be appointed Prime Minister and form a new government, which will be King Charles The first prime minister appointed by the third emperor.

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