Rishi Sunak was elected Tory party leader by fellow Conservative lawmakers on Monday, and will formally become the U.K.'s third prime minister in two months following a meeting today with King Charles III. The revolving door at 10 Downing Street comes after Liz Truss rocked financial markets with an economic plan to cut taxes and increase spending, which prompted a selloff in the British pound and U.K. gilts. Sunak had spent a previous leadership battle warning of the economic consequences if she were chosen for the top job, and is now on hook to restore market order and head off a recession.
Quote: "The United Kingdom is a great country, but we face a profound economic crisis. That's why I am standing to be leader of the Conservative party and our next prime minister. I want to fix our economy, unite our party and deliver for our country."
In terms of economic policy, Sunak will have a wide range of issues to contend with from spending and reducing the deficit to immigration and the U.K.'s relationship with the EU. Based on his resume, he's likely to prioritize fiscal conservatism and trim spending where possible, even if that entails deep cuts. He also backed Brexit in the 2016 referendum, but wasn't a hardliner, and will face pressure to solve a dispute related the Northern Ireland Protocol.
Some history: Before entering politics, Sunak worked as an analyst at Goldman Sachs and was a partner at hedge funds like the Children's Investment Fund Management and Theleme Partners. He was first elected as a Conservative MP for a constituency in North Yorkshire in 2015, but then worked his way up inside the party. Sunak served as Chief Secretary to the Treasury from 2019 to 2020 and as Chancellor of the Exchequer from 2020 to 2022 under former Prime Minister Boris Johnson.
ETFs: NYSEARCA: EWU , NYSEARCA: FXB , NYSE: IRL , NYSEARCA: EIRL , BATS: EWUS , NYSEARCA: FLGB , NASDAQ: FKU , NYSEARCA: HEWU
For further details see:
Sunak becomes U.K. prime minister: What's on the economic agenda?