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British Prime Minister Truss resigns


According to the British Broadcasting Corporation (BBC), at 13:30 on October 20, 2022 local time in the UK, British Prime Minister Truss delivered a speech in front of the Prime Minister's Office at No. 10 Downing Street, announcing her resignation as the prime minister. Truss is the first prime minister since Charles III took office as king. She was the prime minister who took office when the UK was facing the energy crisis, high inflation crisis and other economic problems. After she took office, she proposed to cut taxes and borrow on a large scale. Budgets with core content; commonly known as mini-budgets.

The unreasonable tax cut plan in the budget has caused violent fluctuations in the financial market. The value of pound sterling once fell to the lowest point in the past 37 years, and also led to sharp fluctuations in the government bond market, forcing the Bank of England to urgently intervene and announce that it would  purchase Long-term treasury bonds to avoid financial crises. As a result, Truss was under enormous political pressure and criticism both at home and abroad, and was forced to resign first as the Chancellor of the Exchequer, and then the Secretary of the Interior was also forced to step down.

After the Chancellor of the Exchequer was forced to step down, investors lost confidence in the British government. The British pound fell 1.2% on the day to $1.1188 against the dollar, and the British 10-year government bond yield also fell to 3.98%. However, when Truss announced his resignation, the British pound rose by more than 20 points against the dollar, and the US stock market rose by about 112 points after the opening of the market; the yield on the 10-year British government bond once fell by more than 10 basis points.

The YouGov polling report on 530 Conservative Party members shows there are 32% of the party members vote for Johnson to be prime minister again, the second choice will be former finance minister Sunak with 23% vote.
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