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.
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.
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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.
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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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5:57
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%.”
Vladimir Putin has played down the possibility of a meeting with Volodymyr Zelenskyy, saying that while it is possible, certain conditions must be met.
The Russian president was responding to an American proposal of a trilateral meeting between him, the Ukrainian president and Donald Trump.
The idea was floated by Steve Witkoff, the US president’s envoy during talks with Mr Putin on Wednesday, Kremlin aide Yuri Ushakov said.
Mr Ushakov said the three-way option was “simply mentioned by the American representative during the meeting in the Kremlin”.
He added, however: “This option was not specifically discussed.”
On the prospect of meeting Mr Zelenskyy, Vladimir Putin said: “I have already said many times that I have nothing against it in general – it is possible.”
However, he distanced himself from any such meeting happening soon, adding: “But certain conditions must be created for this. Unfortunately, we are still far from creating such conditions.”
Image: Pic: AP
Mr Zelenskyy offered to speak to Vladimir Putin in May, challenging him to meet in Istanbul for talks on ending the war in Ukraine – an invitation the Russian leader declined.
While a trilateral meeting appears to be off the agenda, Mr Ushakov said an agreement had been reached for Donald Trump and Vladimir Putin to meet “in the coming days”.
After the US president touted a “very good prospect” of the leaders meeting for Ukraine ceasefire talks, Mr Ushakov said on Thursday that Russian and American officials had started working on the details.
“At the suggestion of the American side, an agreement was essentially reached to hold a bilateral meeting at the highest level in the coming days,” he said.
“We are now beginning concrete preparations together with our American colleagues.”
Regarding a trilateral meeting, Mr Ushakov said: “We propose, first of all, to focus on preparing a bilateral meeting with Trump, and we consider it most important that this meeting be successful and productive.”
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Will Putin agree to Trump’s condition to meet Zelenskyy?
It would be the first time the two leaders have met since Mr Trump returned to office, and follows a three-hour meeting between Mr Putin and Steve Witkoff in Moscow on Wednesday.
Following the meeting, Volodymyr Zelenskyy said it appeared that Russia was “more inclined to a ceasefire”.
The Ukrainian president said he planned to speak on Thursday to German Chancellor Friedrich Merz, as well as contacts from France and Italy.
He said he planned to discuss a ceasefire, a leaders’ summit and long-term security, adding: “Ukraine has never wanted war and will work toward peace as productively as possible.”
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A poll from Gallup suggests 69% of Ukrainians support a negotiated end to the war with Russia – an almost complete reversal from 2022, when 73% favoured fighting until victory.
Most said they were sceptical the war would end soon, with 68% saying they believed it was unlikely that active fighting would stop within the next 12 months.
Staff at a zoo in Germany which culled 12 baboons and fed some of their carcasses to the lions say they have received death threats.
Tiergarten Nuremberg euthanised the healthy Guinea baboons at the end of July due to overcrowding in their enclosure.
Some remains were used for research while the rest were fed to the zoo’s carnivores.
Plans to kill the baboons were first announced last year after the population exceeded 40, and protestors gathered outside the zoo to show their outrage.
When the site closed last Tuesday to carry out the cull, several activists were arrested after climbing the fence.
The director of the zoo defended the decision, saying efforts to sterilise and rehome some baboons had failed.
“We love these animals. We want to save a species. But for the sake of the species, we have to kill individuals otherwise we are not able to keep up a population in a restricted area,” Dr Dag Encke told Sky News.
Image: These are not the specific animals involved. File pics: Reuters
‘The staff are suffering’
He said police are investigating after he and the staff were sent death threats.
“The staff are really suffering, sorting out all these bad words, insults and threats,” Dr Encke said.
“The normal threat is ‘we will kill you, and we’ll feed you to the lions’.
“But what is really disgusting is when they say that’s worse than Dr Mengele from the National Socialists, who was one of the most cruel people in human history.
“That is really insulting all the victims of the Second World War and the Nazi regime.”
Josef Mengele was a Nazi officer who performed deadly experiments on prisoners at the Auschwitz concentration camp during the Second World War.
Image: Dr Dag Encke
Zoo animals ‘treated as commodities’
Culling animals and feeding them to predators isn’t unheard of in zoos.
At the time, the zoo said it was due to a duty to avoid inbreeding.
Dr Mark Jones, a vet and head of policy at Born Free Foundation, a charity which campaigns for animals to be kept in the wild, denounced the practice and said thousands of healthy animals are being destroyed by zoos each year.
“It reflects the fact animals in zoos are often treated as commodities that are disposable or replaceable,” he said.
Image: Marius the giraffe was put down and publicly fed to lions at at Copenhagen Zoo in Denmark. Pic: Keld Navntoft/AFP/Getty
Zoo asks for unwanted pets
Earlier this week, a zoo in Denmark faced a backlash for asking for unwanted pets to be donated to be used as food for its predators.
In a Facebook post, Aalborg Zoo said it could take smaller live animals such as chickens, rabbits and guinea pigs, as well as horses under 147cm. It said the animals would be euthanised by specially trained staff before being fed to carnivores like the European lynx.
While some people supported the scheme, saying they had donated animals in the past, others are outraged.
“The very idea of a zoo offering to take unwanted pets in order to kill them and feed them to their predators will, I think, horrify most right-minded people,” said Dr Jones.
Aalborg Zoo has now closed the post to comments and said in a statement: “For many years at Aalborg Zoo, we have fed our carnivores with smaller livestock.
“When keeping carnivores, it is necessary to provide them with meat, preferably with fur, bones, etc., to give them as natural a diet as possible.
“Therefore, it makes sense to allow animals that need to be euthanised for various reasons to be of use in this way.
“In Denmark, this practice is common, and many of our guests and partners appreciate the opportunity to contribute.”