The new British Prime Minister resigns, the pound and the United States are weak and volatile

Both Sky News and The Guardian reported that Tesla would resign. We set a vision for a low-tax economy. I officially announce my resignation as Prime Minister. I cannot fulfill the mission of Prime Minister. I have spoken to the king about this. We have agreed that there will be a leadership election. He will remain prime minister until a successor is elected. Long-term British government bonds pared gains after Truss announced his resignation, with yields rising 7 basis points on the day.

This morning, she met the chair of the 1922 Committee, Sir Graham Brady, and it was agreed that the Conservative Party leadership election would be held and completed next week. This will ensure that the UK government remains on the path to implement the fiscal plan and maintain the UK's economic stability and national security.

A full change of leadership in the UK "will happen in 1-2 weeks, although there could be considerable volatility in gilts and sterling before the change occurs". It would be good news for the pound that someone replaces Truss as Prime Minister of the United Kingdom. Sterling is expected to rebound modestly when the change occurs. According to the Mirror: Jeremy Hunt, the current chancellor of the exchequer, will not become the UK prime minister.

After Prime Minister Truss announced his resignation, market data showed that the probability of former Chancellor of the Exchequer Sunak taking over was 47.6%, the probability of succession of Commons leader Penny Mordaunt was 25%, and the probability of Defense Secretary Ben Wallace taking over was 25%. Chances are 12.5%, current chancellor Jeremy Hunt 10.2% and former prime minister Boris Jensen 7.1%.

Details of the capital transfer are detailed in the Government Supply Estimates published by the Treasury. The new infusion is listed under 'Aid to Financial Institutions - Payments to the Bank of England'. The sum will cover six months of losses. Parliament will debate the content of the statement next Monday.

The new Chancellor of the Exchequer, Hunt, also faces the daunting task of closing the £40bn gap in the government's account. As a result, the UK's fiscal shortfall will be exacerbated. The "transfer" to the central bank is a key milestone that means the Bank of England has gone from a government cash cow to a liability. The Bank of England's annual loss could exceed £20bn as soon as next year.

The FT has learned that senior BoE officials came to this view, backed by its Financial Policy Committee, after judging the gilt market in recent weeks as "very bad".

By contrast, other central banks have begun the process of shrinking their balance sheets to reduce their balance sheets and increase their room to act in any future currency or financial crisis. BoE officials insisted that inflation control could be implemented by changing interest rates, rather than so-called quantitative tightening. At the rate set by the Bank of England, it will take a decade or more to complete the QT.