UK interest rates may not rise as much as expected. Pound rises as Liz Truss resigns – Business Live | Work

The resignation of Liz Truss as Prime Minister leaves Britain without a leader at a time when the country faces enormous economic, fiscal and financial market challenges, but markets appear relieved, it wrote. There is Paul DalesChief UK Economist capital Economy.

The pound rose from $1.12 to $1.13 and the 30-year coin yield fell further to 3.90% from 3.95%.

In other words, the market is further depreciating the risk premium created by the Truss government. There are still many uncertainties, but the lesson is certainly that the economic, fiscal and financial context is important.

Dales Also, as Jeremy Hunt took charge of the Treasury and “almost erased from history” the truss and kwasi-kwarten tax regimes, fiscal policy went from super lax to lax to totally tight in just a few weeks. It also points out that it has changed.

But the new prime minister and his prime ministers have the big task of navigating the economy through “the cost of living crisis, the debt crisis, the cost of the credit crisis.” Dales conclude.

The pound is still 0.5 cents higher at $1.126 as investors digest Liz Truss’ resignation, reaching $1.13 on news of her resignation.

As Market.com’s Neil Wilson points out, the prime minister’s “disappointing reign” is over, but there is still great uncertainty over whether the Tories will be able to stay in power.

That uncertainty means there is no firm movement in the market ( FTSE 100 is now back in the red for the day.

Wilson wrote:

The market lacks a ton of real new information, despite the seismic events of the last 24 hours, as economic policy was already in the water.

Wilson suggests that Truss’ decision to step down may allow the new leader to complete his term in Congress. It could be the Rishi Sunak/Jeremy Hunt ticket – meaning financial restraint.

Wilson also added that the market “probably prefers the orthodox unilateral Tory economy” over anything else.

Liz Truss resigns as prime minister.

In a brief statement outside Downing Street, Truss (who took office just 44 days ago) said he had notified King Charles of his resignation as prime minister.

There will be a leadership contest, which will be completed within the next week, and Truss will remain until a successor is chosen.

Our political live blog has all the action for another day of turmoil in Westminster:

The stock market actually retreated a bit, but the UK-focused FTSE The 250 is still up 0.6% today and the pound is still trading near $1.13.

Update: Here is the full text of Liz Truss’ resignation letter:

I took office at a time of great economic and international instability.

Families and businesses were worried about how their bills would be paid.

Putin’s illegal war in Ukraine threatens the security of our entire continent.

And our country has been held back for too long by low economic growth.

I was elected Conservative with a mission to change this.

We realized a reduction in utility bills and national insurance.

And he laid out a vision of a low-tax, high-growth economy that takes advantage of Brexit freedom.

However, given the circumstances, I am aware that I will not be able to fulfill the duties of being elected by the Conservative Party.

I have therefore spoken with His Majesty the King and informed him of my resignation as Conservative Party Leader.

This morning I met Sir Graham Brady, Chairman of the 1922 Commission.

We agreed to hold a leader election next week.

This will ensure that we continue to implement our financial plans and stay on track to maintain the country’s economic stability and national security.

I will remain as Prime Minister until a successor is decided.

Thank you very much .

The pound rose following reports that Liz Truss will make a statement about her future outside 10 Downing Street at 1:30pm.

The pound is now up two-thirds of a cent at $1.128, its highest since yesterday morning.

A spokesperson for the prime minister told reporters today that Truss would remain in office after the October 31 fiscal report.

Kariena Makourtoff

National Express reports further recovery in passengers and increased revenues after stepping up services during rail strikes and assisting shuttle police during the Queen’s funeral.

The coach and bus operator said revenues were up 33% in the three months to the end of September, now above 2019 levels, thanks to strong growth in its coach business in the UK and Spain.

In the UK, the company said demand was partially driven by industrial action on the country’s rail network.that included the month of august Strike by railway operators It has stopped intercity trains across the UK.