The United Kingdom has voted the Conservative Party out of government and propelled the Labour Party into power in a landslide victory after Thursday's general election (July 4).
Outgoing Prime Minister Rishi Sunak and Prime Minister-designate Sir Keir Starmer have been reelected in their respective jurisdictions.
Outgoing cabinet ministers Oliver Dowden, Jeremy Hunt, and James Cleverly have also been reelected, albeit as opposition MPs.
On the other hand, former prime ministers Theresa May and Liz Truss lost their seats after Labour candidates won in their respective constituencies. This is also the case for several Conservative frontbenchers.
Sunak is expected to tender his resignation to King Charles III on Friday afternoon, and Starmer will be requested to form a government.
Labour Landslide, Tory Bloodbath
The BBC reported that, as of Friday morning (July 5), Labour had won 411 seats, while the Conservatives, locally known as the Tories, retained 119. The Liberal Democrat Party had a big win as the third-largest party, with 71, while the Scottish National Party (SNP) was the biggest loser, with nine seats in Westminster, compared to the 48 it held in 2019.
Meanwhile, Reform UK Party gained four seats in its first general election performance, including party leader and outspoken Brexiteer Nigel Farage.
Former Labour leader Jeremy Corbyn retained his seat as an independent after he was kicked out of the party for his far-left ideologies, leaving the way for Starmer to reform Labour to its eventual election win after five prime ministers and 14 years of Conservative government.
Business Stability Under Labour Expected, Analysts Say
Reuters reported that the British pound (GBP), UK-based stocks, and government bonds rose Friday after Labour's landslide victory.
The FTSE 100 index rose by 0.38% upon market opening, while the 10-year government bonds dropped by three basis points to 4.17%, which was in line with other European markets.
As of 07:00 UTC, the GBP also rose by 0.1%, which meant GBP 1 is equivalent to $1.2777. The pound has also been steady against the Euro at GBP 0.8475.
Due to Labor's win, CNBC also reported that the FTSE 350 household goods soared by 1% .
According to the abrdn head of developed market equities, Ben Ritchie, a landslide victory provided the "clarity and stability" that equity markets needed in an increasingly volatile world.
Ritchie added that if the Starmer government gets things right, businesses that are very familiar with the British economy would garner a big win.
On the other hand, Societe Generale, head of corporate research for FX and rates Kenneth Broux, insisted that Labour's win was unexpected due to the perceived increasing Tory incompetence, adding that Labour would have to lay out its economic and business policies.
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