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There has been a positive market reaction to the resignation of Liz Truss after just 44 days in office, following the fierce backlash against her economic plan and humiliating climbdown.

News that the prime minister was to make a Downing Street statement sparked a rally for sterling versus the dollar – leaving the UK currency almost a cent up on the day at one stage at almost $1.13 before settling at $1.12 in the late afternoon.

It originally rose half a cent following confirmation she was to leave office.

Truss resignation – live updates

Shares also moved upwards initially on the FTSE 100 before closing higher than opening trading while government borrowing costs fell.

The 30-year gilt yield fell back to 3.8% – continuing its recovery since the post mini-budget highs of around 5% that sparked Bank of England intervention. As the afternoon progressed the figure rose to the 3.9% of Thursday morning.

It took a series of U-turns on the tax-cutting growth plan, demanded by new Chancellor Jeremy Hunt after the sacking of Kwasi Kwarteng, for market damage to ease.

More on Liz Truss

The reaction to the departure of Ms Truss signalled a measure of relief that the architect of the Growth Plan – outlined during her campaign for the Tory leadership – was on her way out.

Nevertheless, there was also a measure of uncertainty at play for values, given the complete lack of vision on who would replace the prime minister in Number 10.

It will not be Mr Hunt, who has ruled himself out, leaving him free to continue preparations for the Halloween statement that is to set out the government’s new medium-term fiscal plan.

There will be some jitters over whether its direction is likely to change – or even be delayed to allow the new Tory leader to get their feet under the desk.

There has been no indication that the statement will be delayed as it is expected that the successor will be in place before 31 October.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said of the market moves: “Sterling is highly sensitive to economic policy uncertainty and even though the ship Britannia will still be left largely rudderless, with a successor still to be chosen, as far as investors are concerned, the future is marginally brighter without her in charge.

“Ten-year gilt yields eased further today, as speculation soared about her resignation, a sign of tacit approval from the bond vigilantes who punished the UK by deserting its government’s debt as worries raced up about fiscal responsibility.”

Business appealed for a more stable period ahead.

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Hunt rules out leadership challenge

Tony Danker, the director-general of the CBI, said: “The politics of recent weeks have undermined the confidence of people, businesses, markets and global investors in Britain.

“That must now come to an end if we are to avoid yet more harm to households and firms.

“Stability is key. The next prime minister will need to act to restore confidence from day one.

“They will need to deliver a credible fiscal plan for the medium term as soon as possible, and a plan for the long-term growth of our economy.”

Pantheon Macroeconomics, the economic research consultancy, said in its October UK economic chartbook: “The economy is heading for a prolonged recession … the MPC [the interest rate setting Monetary Policy Committee] will hike Bank Rate further, but will relent at about 4%.”

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Zelenskyy to make first official visit to Ireland – as ‘productive’ Ukraine-US talks under way in Florida

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Zelenskyy to make first official visit to Ireland - as 'productive' Ukraine-US talks under way in Florida

Volodymyr Zelenskyy is set to make his first official visit to Ireland tomorrow, Taoiseach Micheal Martin has revealed.

The Ukrainian president will be accompanied by First Lady Olena Zelenska and meet Mr Martin, president Catherine Connolly and foreign minister Helen McEntee.

Mr Martin said he and Mr Zelenskyy would be holding a bilateral meeting, as well as attending the inauguration of the Ireland-Ukraine Economic Forum, which he said “offers an opportunity to explore the potential for strengthened business-to-business, trade and investment links between Ireland and Ukraine”.

Micheal Martin greets Volodymyr Zelenskyy as he briefly stops in Ireland on way to the US in February. Pic: Reuters
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Micheal Martin greets Volodymyr Zelenskyy as he briefly stops in Ireland on way to the US in February. Pic: Reuters

Speaking ahead of the visit, the Taoiseach said: “It is an honour to welcome President Zelenskyy and the First Lady to Ireland.

“Around the world, he is rightly recognised as someone who embodies the courage and resilience of the Ukrainian people, who have inspired the world in their brave defence of their country and its sovereignty since it was brutally and illegally invaded by Russia.

“I have met with President Zelenskyy many times, including in Kyiv, but I particularly look forward to greeting him on this first official visit of a Ukrainian president to Ireland.”

Ireland has been a staunch ally of Ukraine’s since Russia began its invasion in 2022, offering some 120,000 Ukrainians a safe haven.

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US-Ukraine talks begin in Florida

The Ireland announcement comes after Mr Zelenskyy’s top team engaged in peace talks with the US for several hours in Florida on Sunday.

The US-Ukraine talks were quickly organised after Donald Trump released a 28-point proposal that was largely seen to be favouring Russia, having been developed in earlier negotiations between Washington and Moscow.

The plan would have imposed limits on the size of Ukraine’s military, blocked Ukraine from joining NATO and required it to hold elections in 100 days. It also initially envisioned Ukraine ceding the entire eastern region of the Donbas to Russia.

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Sky’s US correspondent David Blevins analyses what’s at state this week

Read more:
Who is Steve Witkoff, the property mogul seeking a peace deal?
Go behind the scenes on the frontline with new-look Sky News show

It isn’t clear what changes have been made so far, but US secretary of state Marco Rubio has reassured Ukraine over the plans.

“This is not just about ending a war. This is about ending a war in a way that creates a mechanism and a way forward that will allow them to be independent and sovereign, never have another war again, and create tremendous prosperity for its people,” he said.

“Not just rebuild the country, but to enter an era of extraordinary economic progress.”

He added: “This is not just about peace deals. It’s about creating a pathway forward that leaves Ukraine sovereign, independent and prosperous. We expect to make even more progress today.”

Rustem Umerov, head of Ukraine’s security council, responded by saying the US was “hearing”, “supporting” and “working beside” Ukraine.

Mr Zelenskyy’s team in the US was without his former chief of staff and lead negotiator, Andrii Yermak, as he quit on Friday after officials raided his home amid a corruption scandal.

After the meeting, Mr Rubio said the talks had been “productive”, but more work remained to be done.

On X, Mr Zelenskyy said: “I am grateful to the United States, to President Trump’s team, and to the President personally for the time that is being invested so intensively in defining the steps to end the war. We will continue working. I look forward to receiving a full report from our team during a personal meeting.”

Later this week, Mr Trump’s special envoy Steve Witkoff is set to travel to Moscow to continue talks with the Kremlin.

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‘Ukrainians have a delicate job’

Sustained Russian aerial assaults over the weekend

While peace talks ensued, Russian forces launched overnight attacks in and around Kyiv over the weekend, killing at least seven people and injuring dozens more.

Impacts were also reported in the regions of Dnipro, Kharkiv, Odesa, Sumy and Kherson.

Mr Zelenskyy said: “Such attacks occur daily. This week alone, Russians have used nearly 1,400 strike drones, 1,100 guided aerial bombs and 66 missiles against our people. That is why we must strengthen Ukraine’s resilience every day.”

The attacks also hit Ukrainian energy facilities and left hundreds of thousands without power in the capital. Supplies have since been restored.

Targeting such infrastructure has become a familiar tactic from Russia over the winter, in what Ukraine officials say is the “weaponising” of the cold.

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Moment Ukraine strikes Russian ‘shadow fleet’ ships

Ukraine launched its own drones at two of Russia’s so-called “shadow fleet” oil tankers in the Black Sea on Friday, and claimed responsibility for damaging a major oil terminal on Saturday near the Russian port of Novorossiysk.

The terminal is owned by the Caspian Pipeline Consortium, which includes Russian, Kazakh and US shareholders.

Subsequently, on Sunday, Kazakhstan’s foreign ministry said it viewed Ukraine’s attack as “an action harming the bilateral relations of the Republic of Kazakhstan and Ukraine”, adding it expected Ukraine to “take effective measures to prevent similar incidents in the future”.

Ukraine’s foreign ministry said the country’s actions were not directed against Kazakhstan or third parties and were only aimed at repelling what it called “full-scale Russian aggression”.

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‘This is journalism at its most raw’: Go behind the scenes on the frontline with new-look Sky News show

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'This is journalism at its most raw': Go behind the scenes on the frontline with new-look Sky News show

A new-look Sky News series takes viewers straight into some of the world’s most hostile environments.

From dodging gunfire in Syria to navigating gang-controlled streets in Haiti, Hotspots shines a light not only on the stories themselves but how those stories are captured – through every breath and decision.

“This is journalism at its most raw and its most genuine,” says special correspondent Alex Crawford, who stars in the series alongside chief correspondent Stuart Ramsay and their fearless teams.

It is a testament to the journalists who venture into some of the world’s most hostile and difficult to reach places to bring the truth to light.

Told using only natural sound and raw action gathered in the field – with the entire team mic’d up – Hotspots immerses audiences in unfiltered reality.

This multi-perspective coverage delivers unparalleled transparency in an era of fake news, giving viewers a real-time look at how Sky News’ eyewitness storytelling unfolds on the front lines – and the challenges journalists face to uncover the truth.

Last aired on TV in 2021, Hotspots returns with a new digital-first format and a host of exhilarating locations, including:

  • Syria: Caught in the crossfire between armed groups
  • Haiti: Inside displacement camps where hostility takes on a different face
  • Somalia: Searching for ISIS hideouts in remote terrain
  • Colombia: Tracking coca farmers deep in the Amazon
  • The West Bank: Reporting under constant watch from Israeli forces
  • Libya: Discovering overloaded migrant dinghies drifting in the dark

“Authenticity is what our viewers are desperate for. And we are giving it to them in spades now,” says Crawford.

“This fresh, behind-the-scenes Hotspots takes you right inside our team to give you an unvarnished look at how we operate, how we communicate and how we just plain survive in the most hostile and challenging of environments.”

Watch:
Why Stuart Ramsay went back to Haiti’s gangland
Sectarian violence in Syria explained

Ramsay, whose team takes viewers behind the scenes in the West Bank and Haiti, says he hopes it will provide an insight into “what it takes to bring you the news”.

“It takes a whole team to produce our stories, but as a rule you only ever see me! Hotspots gives people an opportunity to see the whole process, to see how we all work together, and to watch my team in action.

“The job is not always easy, it has its challenges as you’ll see, but I happen to think I have one of the best jobs in the world, and now through Hotspots you can (sort of) come along with me on assignment.”

Watch Hotspots on the Sky News Hotspots YouTube channel.

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More than 600 dead in Indonesia and Thailand after floods and landslides – and Sri Lanka reporting more than 200 deaths from cyclone

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More than 600 dead in Indonesia and Thailand after floods and landslides - and Sri Lanka reporting more than 200 deaths from cyclone

The death toll following flooding and landslides in Indonesia and Thailand has risen to more than 600 – with nearby Sri Lanka also reporting more than 200 deaths after a cyclone.

Three people have also died in Malaysia, officials have said, due to the extreme weather in South Asia and Southeast Asia.

In total, Indonesian officials said 442 people had died and Thai authorities reported 170 deaths in the southern part of the country, as of midday UK time on Sunday.

People move a car damaged by floods in Songkhla province, Southern Thailand. Pic: AP
Image:
People move a car damaged by floods in Songkhla province, Southern Thailand. Pic: AP

Rescuers search for flood victims in Tanah Datar, West Sumatra, Indonesia. Pic: AP
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Rescuers search for flood victims in Tanah Datar, West Sumatra, Indonesia. Pic: AP

Rescue efforts were ongoing throughout the day, with more than four million people affected – almost three million in Southern Thailand and 1.1 million in Western Indonesia – by the effects of a tropical storm formed in the Malacca Strait.

Indonesian relief and rescue teams have used helicopters to deliver aid to people they could not access because of blocked roads on the western island of Sumatra.

Rescuers search for victims at the site of a landslide in Adiankoting, North Sumatra, Indonesia. Pic: AP
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Rescuers search for victims at the site of a landslide in Adiankoting, North Sumatra, Indonesia. Pic: AP

Many areas have been cut off, while damage to telecommunications infrastructure has hampered communications.

Officials said on Saturday that they had received reports of people looting supply lines as they grow desperate for relief in other areas.

Hat Yai, the largest city in Thailand’s Songkhla province, received 335mm (13 inches) of rain on Friday last week, its highest single-day tally in 300 years.

After days of rain, meteorological authorities in Malaysia lifted tropical storm and continuous rain warnings there yesterday, forecasting clear skies for most of the country.

However, there are still about 18,700 people in evacuation centres, according to the country’s national disaster management agency.

Read more from Sky News:
Surgeon may never face justice over ‘botched’ operations
William ‘moved’ by severely ill Gazan children’s courage

A road heavily damaged by a flash flood in Bireun, Aceh province, Indonesia. Pic: AP
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A road heavily damaged by a flash flood in Bireun, Aceh province, Indonesia. Pic: AP

A soldier uses ropes to cross a river during a search operation in Tanah Datar, West Sumatra, Indonesia. Pic: AP
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A soldier uses ropes to cross a river during a search operation in Tanah Datar, West Sumatra, Indonesia. Pic: AP

More than 200 dead in Sri Lanka

Across the Bay of Bengal, Sri Lanka’s disaster management centre said in a situation report on Sunday that 212 people had died as a result of Cyclone Ditwah.

Another 218 people have been recorded as missing across the South Asian country’s 25 districts, and more than half a million people have been affected nationwide.

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