Next Prime Minister Rishi Sunak still faces a 'fraught' economic outlook for the UK

The former chancellor has been successful in his bid to become the new Conservative Party leader and thus next Prime Minister, replacing Liz Truss, who resigned on 20 October after just 44 days in office.  The news has spared markets any additional uncertainty today, with sterling edging higher after the announcement and falling gilt yields bringing hope that borrowing costs may continue to ease.  Ten-year gilt yields are down 6% to 3.8%, while two-year gilt yields have decreased to 3.3%, from 3.8% last Friday. Sterling is broadly flat on the day at $1.13, having retraced slightly aft...