Burnham takes over from Stammer! Investors closely watch the selection of the Chancellor of the Exchequer, and the pound remains stable.

As Andy Burnham is set to succeed Keir Starmer as the Prime Minister of the United Kingdom, the market is eagerly awaiting the confirmation of the new Chancellor of the Exchequer, the British pound remained stable overall on Monday. As of the time of writing, the pound was trading flat against the US dollar at 1.3467, and slightly up against the euro by 0.11% at 1.1774. On July 17th, the ruling Labour Party in the UK announced at a special conference that Burnham had been elected as the leader of the party, and upon appointment by King Charles III, he would succeed Starmer as the Prime Minister. According to the process, Starmer is expected to resign on July 20th. Subsequently, Burnham will accept the King's appointment and formally take office as Prime Minister. Burnham's election this time did not involve intense competition, as he emerged as the sole candidate with support from within the party. Having previously served as the Mayor of Greater Manchester for a long time, he has gained high esteem within the Labour Party due to his experience in local governance and his representative image of the northern regions of England. In his first speech after assuming office as party leader, Burnham stated that the new government would "create a new political landscape", change "the political direction", and persuade people that the Labour Party can "build this country better" and "drive Britain forward as a whole". Burnham also emphasized that his leadership of the Labour government would promote economic revitalization, strengthen public sector management, and devolve more power to local authorities. Analysts point out that Burnham's most core political capital is the "Manchesterism" he developed during his more than 9-year tenure as Mayor of Greater Manchester. Burnham has held this position since May 2017. During his leadership, significant changes have taken place in the Greater Manchester region in the north of England: tall buildings have sprung up in the city center; residential areas and commercial complexes have been rapidly developed; public transportation is now managed locally and has gained public support. Data shows that from 2015 to 2023, the economic growth rate of Greater Manchester is approximately twice that of the UK as a whole, making it one of the fastest-growing regions in the country. Burnham's governing philosophy, known as "Manchesterism," involves devolving power to local authorities while strengthening government regulations in the public service sector. He has expressed his intention to promote this philosophy nationwide and has proposed relocating some national functions out of the capital city of London, expanding local autonomy in areas such as housing, transportation, and education to counter the concentration of resources in London. Additionally, Burnham advocates for the expansion of social housing construction, advancing social welfare reform, and seeks to strengthen relations with Europe, "consolidating" the progress made in existing negotiations with the European Union. However, like his predecessors, Burnham's path to governance will not be smooth, as he faces a "mountain of challenges" including social welfare, defense spending, cost of living, and geopolitics. Many of these issues could impact the financial markets, including concerns over weak economic growth and fiscal discipline. Therefore, one of the most closely watched issues by investors in recent weeks is who Burnham will choose as his Chancellor of the Exchequer. Last week, reports suggested that Burnham may appoint the more centrist candidate, Shabana Mahmood, as the Chancellor rather than a more left-leaning candidate. This news supported British assets, as the market interpreted it as Burnham not intending to significantly increase government spending as some investors had feared before.