Incoming UK Prime Minister Rishi Sunak delivers his first speech
Rishi Sunak said he was “honored” and would serve with “integrity and humility” in his first speech since being announced as the UK’s next prime minister.
Sunak was elected Leader of the Conservative Party by Conservative Members of Parliament at 2pm London time. As the party with the most MPs after the 2019 general election, he will now be sworn in as leader of the nation.
“The UK is a great country but there is no doubt that we face a profound economic challenge. We now need stability and unity and I will make it my top priority to bring our country together,” he said.
“Because that is the only way we will overcome the challenges we face and build a better and more prosperous future for our children and our grandchildren.”
Sterling was flat against the dollar following the comments, with the FTSE 100 up 0.4%.
—Jenny Reed
Choppy Pound, Gold Yields Lower as Sunak Announced as New UK PM
Rishi Sunak has been appointed as the UK’s new Prime Minister, after beating competitor Penny Mordaunt in the fast-paced race for the leadership of the country.
holly adams | Getty Images News | fake images
The British pounds was 0.1% higher than the Dollars at 3pm London time, an hour after it was announced that Rishi Sunak would be the new Prime Minister of the United Kingdom.
It fell 0.2% against the dollar in early afternoon.
Gilt yields fell sharply, with the benchmark 10-year yield down 25 basis points and the 2-year yield down 26 basis points. Yields move inversely to prices.
The volatility in the UK sovereign bond market, triggered by former Prime Minister Liz Truss’s budget announcement a month ago, was a key reason why she was forced to resign for his party late last week.
Sunak was finance minister under Truss’s predecessor, Boris Johnson, and was widely considered a market-friendly candidate, though analysts say he will. face hard work with the UK facing a recession and energy crisis and with many seeing the country’s situation Damaged economic credibility.
“The drop in gilt yields following today’s news that Rishi Sunak will become the UK’s next prime minister has reduced the chances of significant fiscal consolidation,” said Ruth Gregory, senior UK economist at Capital. Economics. “Still, the new prime minister will still have to work hard to restore stability in the eyes of the financial markets.”
—Jenny Reed
Prosus sinks 14% on China growth concerns
Pearson education group jumped 8% after ‘outstanding’ growth in English language learning
Pearson shares rose 8% on Monday after the company reported 7% growth in underlying sales over the past nine months, beating market expectations.
The education company said “outstanding” performance in learning the English language helped drive the results, with English courses reporting 28% growth.
Higher education fell 4%, which was in line with company expectations.
— Hannah Ward-Glenton
UK 10-year gilt yield falls as UK prepares for new PM
UK 10-year gilt yields trade at record low from the mini-budget, which caused market turmoil on September 1. 23
The move comes when former Finance Minister Rishi Sunak looks ready to become the new prime minister.
10-year yields traded almost 21 basis points below 3.846% at around 9am London time.
European markets: here are the opening calls
European indices are expected to open higher this morning, with the UK’s FTSE up 23 points to 6,992, Germany’s DAX up 130 points to 12,846, France’s CAC up 50 points to 6,079 and Italy’s MIB up 221. points to 21,647.
CNBC Pro: Oil could go up or down, and these energy stocks are winners either way, portfolio manager says
Whether oil prices go up or down, energy stocks are worth investing in, according to Brian Arcese of Ford Asset Management.
He mentions a couple of his favorite energy stocks, including one that he says will generate a “significant amount of cash” if oil prices stay high.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Hong Kong stock movers: Tech drags broader index lower
Chinese tech companies dragged down Hang Seng Index in the morning trade, with heavy hitters like Tencent Y alibaba falling about 6% each.
Meituan lost 4.87%, while jd.com decreased about 6% as well.
The Hang Seng Tech Index was 3.49% lower and the latest Hang Seng lost 2.73%.
— Abigail Ng
Earnings reports from big tech companies due this week
A slew of big tech names are reporting third-quarter earnings this week. Due to the size of the market caps of many of these companies, any subsequent moves in earnings will likely affect the entire market.
Alphabet and Microsoft report earnings on Tuesday, Followed by Meta Platforms on Wednesday. Apple Y Amazon Will report on Friday.
—Carmen Reinicke
Stock futures rise on Sunday night
Stock futures rose late on Sunday as Wall Street looks to continue its best week since June amid third-quarter earnings season.
Futures linked to the Dow Jones Industrial Average gained 289 points, or 0.93%, just minutes after the start of futures trading on Sunday. S&P 500 futures were up 1.18%, while Nasdaq 100 futures were up 1.37%.
—Carmen Reinicke
