Prime Minister of The UK Will Be Rishi Sunak

Tuesday will see Rishi Sunak become the youngest prime minister in modern British history and the country’s first non-white head of state. He has vowed to tackle the “deep economic problem” the nation is now experiencing.

Jeremy Hunt, the chancellor, is urging Sunak to move forward with a new debt-cutting plan the next week in order to prepare for a vital Bank of England meeting on November 3.

Former chancellor Sunak was elected Tory leader on Monday after his two opponents, Penny Mordaunt and Boris Johnson, withdrew from the race. In less than two months, he becomes Britain’s third prime minister.

After a disastrous 44 days as prime minister, Liz Truss announced her resignation. She will hold her final cabinet meeting on Tuesday morning before submitting her letter of resignation to King Charles.

Sunak, 42, will next go to Buckingham Palace to meet the monarch before returning to Number 10 at around 11.30am to begin putting together a cabinet; Hunt is expected to continue serving as chancellor, according to the next prime minister’s allies.

The BoE’s deputy governor, Dave Ramsden, remarked that after a number of policy U-turns, gilt yields were only marginally higher than they were prior to Truss’ dismal “mini-Budget” on September 23.

The economic duo of Sunak and Hunt, both regarded as fiscal conservatives, is hoped to calm the markets and keep borrowing costs low, resulting in cheaper mortgage payments.

The nation was “in a fix,” according to Sunak, and the Conservative party was experiencing “an existential moment.” The first Hindu prime minister of Britain wished his co-workers “Happy Diwali” as the private meeting came to a close.

Politicians Try Mending Relationship With Business

Politicians in the United Kingdom have moved to rebuild their relationship with the business community by hiring Sky executive Andrew Griffiths, as part of Number 10 team.

A source close to Griffiths said Johnson’s appointment of the Sky veteran – who most recently served as the broadcasting giant’s chief operating officer – was “a clear sign of intent” that the former mayor of London wants to build fresh links with the City and businesses across the United Kingdom.

However, the relationship may already be thawing with most business groups giving a cautious welcome to the incoming resident of Number 10 yesterday.

The British Chamber of Commerce was also quick to send its regards, but again warned about the consequences of crashing out of the bloc.

The message to Boris Johnson from business communities around the United Kingdom couldn’t be simpler: the time for campaigning is over — and we need you to get down to business.

Companies need to know, in concrete terms, what your government will do to avoid a messy, disorderly Brexit on 31 October – which would bring pain to communities across the United Kingdom and disruption to our trade around the world.

Business lobby group the CBI echoed other calls for a pro-business Brexit deal, but also on support for infrastructure projects to boost businesses across the country.

Johnson has previously voiced opposition two of the country’s most ambitious infrastructure projects: Heathrow airport expansion and the HS2 rail project.

The pound dropped to $1.247, after the membership ballot result naming Johnson as leader was announced.

As Michael Brown, senior analyst at Caxton FX explains, this was largely due to the fact that the likelihood of Johnson victory had already been priced in.

In the run-up to the announcement a number of businesses had been nervous about the prospect of a Johnson premiership, due to the former London mayor’s insistence that he would take the United Kingdom out of the European Union with or without a deal by the 31 October.