UK News Highlights: Confronting UK's 'profound economic challenge' the 'utmost priority', says PM-elect Sunak

Former Treasury chief Rishi Sunak was named UK's PM designate after Penny Mordaunt dropped out of the leadership contest. Here are the latest highlights.

'Looking forward to working closely': PM Modi congratulates UK PM-designate Sunak

Sunak thanks Truss for her 'dedicated' service under 'difficult circumstances'

Confronting UK's 'profound economic challenge' the 'utmost priority': Sunak

Sunak won't take over as PM on Monday, says Downing Street spokesperson

The transition of power from Liz Truss to PM elect Rishi Sunak will not happen on Monday, a spokesperson for Truss said in a 10 Downing Street briefing.

Liz Truss assures PM-elect Sunak of her 'full support'

Theresa May assures 'full support' for 'calm, competent' Sunak

Sunak has 'no mandate': Labour slams Tories, calls for general elections in Britain

Economic stability first priority, UK's Sunak tells lawmakers

Rishi Sunak, poised to become Britain's next prime minister, told Conservative lawmakers on Monday his first priority was delivering economic stability, and then he would look to fulfill the party's 2019 election promises, lawmaker Iain Duncan Smith said.

Sunak, who became leader of the Conservatives on Monday, also told lawmakers "every wing" of the party would be in his cabinet, according to a reporter from The Sun.

Conservatives must unite behind Sunak: Party chair Jake Berry

King Charles III could confirm Sunak as PM tonight itself, claims report

King Charles is expected to return to London from Sandringham, and is likely tobe in Buckingham Palace this evening, The Guardian reported citingITV’s Chris Ship.

The king's return to Buckingham Palacemeans he could accept Liz Truss’s resignation and appoint Rishi Sunak as the country's new PM tonight itself.

Muted reaction across markets as investors await Sunak's statement

Former British finance minister Rishi Sunak was declared the next leader of Britain's Conservative Party by the head of the 1922 Committee of Conservative lawmakers on Monday, placing him on course to become the country's next prime minister.

The initial reaction across markets was fairly muted, as investors will likely wait to hear from Sunak when he makes a statement at 1330 GMT.

The pound briefly edged higher against the dollar before slipping into negative territory, while the blue-chip FTSE 100 held on to the day's gains.

Sunak to address to Tory MPs at 2.30pm UK time after winning PM contest

Having won the UK PM contest, Rishi Sunak is set to addressTory MPs at 2.30 pm UK time,The Guardianreported citingSir Graham Brady, chair of the 1922 Committee.

This will be Sunak's first public address since Liz Truss resigned.

Sunak set to become next UK PM as Mordaunt withdraws from contest

Penny Mordaunt pressed to quit UK PM race as Sunak gains

Penny Mordaunt is facing calls from supporters and members of her own campaign team to pull out of the UK leadership race as Rishi Sunak piles up support in his efforts to become the next prime minister. (Bloomberg)

Will back whoever wins: UK Conservative Party's ERG on PM contest

The head of the Conservative Party's European Research Group, Mark Francois, said on Monday the grouping was unable to collectively endorse either Rishi Sunak or Penny Mordaunt to be Britain's next prime minister,

Francois, who heads the influential bloc of pro-Brexit lawmakers, said the group would unite behind whoever wins.

Mordaunt camp claims to have secured 90 nominations in UK PM contest

Sources in Penny Mordaunt's camp told Reuters that the UK PM candidate had secured 90 nominations.

Many Indians are delighted at the prospect of Rishi Sunak becoming the first person of Indian origin to become British prime minister on Monday, just as Hindus across the world celebrate Diwali.

Some Indians said on social media that Sunak becoming prime minister this year would be even more special as India recently celebrated 75 years of its independence from British colonial rule.

Former British finance minister Sunak, 42, is a practising Hindu and is known to celebrate the festival of lights. He has also been photographed lighting candles outside No 11 Downing Street to mark the occasion.

Some Indians are hoping for closer British-Indian ties if Sunak does become prime minister.

The Conservative Party turmoil is fueling demands for a national election. Under Britain's parliamentary system, there does not need to be one until the end of 2024, though the government has the power to call one sooner.

Sunak, who was Treasury chief from 2020 until this summer, steered Britain's slumping economy through the coronavirus pandemic.

He quit in July in protest at Johnson's leadership.

The Conservative Party turmoil is fueling demands for a national election. Under Britain's parliamentary system, there does not need to be one until the end of 2024, though the government has the power to call one sooner.

Currently that looks unlikely. Opinion polls say an election would spell disaster for the Conservatives, with the left-of-center Labour Party winning a large majority.

Boris Johnson loyalist Priti Patel comes out in support of Rishi Sunak as UK PM

Priti Patel, a loyalist of former British prime minister Boris Johnson, on Monday came out in support of Rishi Sunak to take over at 10 Downing Street as the Conservative Party leader after her former boss withdrew from the leadership contest.

The Indian-origin former home secretary, who resigned from the Cabinet when Liz Truss was elected the Prime Minister last month, said the Tories must put political differences aside to give Sunak the best chance of succeeding as the new leader.

Her intervention came as the former chancellor looks well poised as the frontrunner to make history as the first Indian-origin Prime Minister of the UK, with publicly voiced support for Leader of the Commons Penny Mordaunt still well short of the 100-MPs threshold.

Penny Mordaunt, one of two candidates to be Britain's next prime minister, is still in the leadership race and is gaining endorsements, a campaign spokesperson said on Monday.

“Penny is speaking to colleagues from across the party. She’s getting the numbers and she’s in it to win it," the spokesperson said in a statement.

British government bond prices rose early on Monday after Boris Johnson dropped out of the race to become prime minister, paving the way for former finance minister Rishi Sunak to win the leadership contest.

Prices fell on Friday as investors braced for more uncertainty, with some thinking that a second Johnson premiership could reverse the fiscally conservative stance of new finance minister Jeremy

Sunak could cap a stunning reversal in fortunes by winning the leadership as early as Monday afternoon, following ex-premier Johnson's unexpected move late Sunday.

Polls over the weekend suggested that the Tories could benefit from a change of leader, after Truss's missteps plunged them to unprecedented lows.

But a survey by Conservative pollster James Johnson still found Mordaunt had a negative rating of -15 among the electorate, with Sunak polling at -2.

Tories' 357 MPs would hold an "indicative" ballot -- from 3:30 pm to 5:30 pm on Monday -- to show members which candidate commands the most support within the fractious parliamentary party.

The Tories were forced into their second leadership contest since the summer due to Truss's resignation after only 44 days following the disastrous market response to her tax-slashing mini-budget.

She had replaced Johnson in early September following another government revolt over a slew of scandals, most notably the "Partygate" controversy involving Covid lockdown-breaching parties.

Just two months ago, the members selected Truss over Sunak, who had more support among MPs. Mordaunt is popular with the grassroots.

Mordaunt has struggled for momentum, attracting just two dozen public backers among her fellow MPs.

She is expected to come under growing pressure to abandon her leadership bid and end the contest quickly as Britain grapples with multiple crises.

If the 49-year-old resists and is able to garner 100 nominations, the race will be decided by the party's roughly 170,000 members in an online vote later in the week. If it came to that, the result would be announced Friday.

Penny Mordaunt is the only other declared contender

Johnson's withdrawal from the race -- before he had even formally announced his candidacy -- left cabinet member Penny Mordaunt as the only other declared contender.

Sunak moving to top of therace initially saw sterling jump almost a cent in Asia to $1.1402, but that could not be sustained and it edged back to around $1.1330

Investors will worry the political uncertainty is far from over given Sunak is not exactly well loved by right wingers in the Tory party and fresh divisions could erupt at any time.

Rishi Sunak, front-runner for UK PM could Ssay, ‘I told you so’

RishiSunakwould have every right to be smug. Throughout the summer,Sunak, Britain’s former finance minister — and now the front-runner for prime minister — warned against the economic policies of Liz Truss as he competed with her for the nation’s top job, and then lost. From the first television debate, when he described her plans as a “fairy tale,” to the final days of the contest, when he said he “struggled to see” how Truss’ tax cuts and spending plans would “add up,” he sounded the alarm.

Boris Johnson Drops Bid to Return as UK Prime Minister

Boris Johnson on Sunday evening pulled out of the race to succeed Liz Truss as Britain’s prime minister, ending a quixotic bid to reclaim a job he lost three months ago amid a cascade of scandals, and leaving his rival,RishiSunak, in a commanding position to be the country’s next leader.

Rishi Sunak one step closer to be elected UK PM on Diwali after Boris Johnson exits race

Rishi Sunak is one step closer as the clear frontrunner in the Conservative Party leadership race on Monday to be elected Britain’s first Indian-origin Prime Minister after his former boss, Boris Johnson, confirmed he would be pulling out of the contest.