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Market Wire: Truss Resigns, Pound Climbs

Liz Truss has resigned, making her the shortest-serving prime minister in British political history. In a statement given outside Downing Street, she said she had assumed office at a time of “great economic and international instability” and, given the political situation, was unable to deliver on her electoral mandate, saying “I cannot deliver the mandate on which I was elected by the Conservative Party”. Truss will remain prime minister until a new leader is selected within the next week. The pound climbed ahead of the news, and gilt yields are down slightly as markets position for a more fiscally-responsible administration...

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Market Briefing: UK Political Turmoil Continues, Yen Breaks 150, Dollar Climbs

The British pound is back on the defensive, weakening as political chaos and conflicting monetary policy messages sap demand for sterling-denominated assets. Prime Minister Liz Truss—now in power for all of 44 days—is under pressure to resign after firing one of her most senior ministers, receiving resignations from two more, and threatening others with disciplinary action if they failed to vote on party lines. A number of Ministers of Parliament have submitted no confidence letters, and the chair of the 1922 Committee—which represents the views of party leaders—is reportedly meeting with Truss to discuss ways to move forward. The Bank...

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