Investors welcomed Rishi Sunak as Britain's new prime minister on Monday, but they're likely to give him little leeway to diverge from spending restraint and tax rises after his predecessor shook their faith in the Conservative party's management of the economy.
Earlier Sunday, Sunak formally announced he was standing for the top job, just weeks after having failed in a first attempt.
Fabulously rich from his pre-politics career in finance, he has been mocked as out of touch with Britons struggling with decades-high inflation.
Johnson cut short a luxury stay in the Dominican Republic to join the seemingly three-way tussle, with allies saying he was "up for it."
Britain's third female prime minister beat Johnson's former finance chief Rishi Sunak for the top job on a platform of sweeping tax cuts that won over the Tory rank-and-file.
The crisis-hit PM, elected Conservative leader just six weeks ago on a tax-slashing platform, announced her resignation Thursday.
British banks are bracing for a potential tax hit to their profits as the government scrambles to plug an estimated 40 billion pound ($45 billion) hole in its finances.
British Prime Minister Liz Truss's insistence that she would not quit after sparking a financial crisis was met with howls of laughter, incredulity and shouts of "resign, resign" as she spoke in the House of Commons on Wednesday.
Britain told China's Charge d'Affaires in London that the right to peaceful protest must be respected, after he was summoned to explain an incident in which a protester was seen being pulled into the grounds of a Chinese consulate and beaten.
British company owners are pulling investments as a crisis triggered in Westminster pushes up borrowing costs and hits confidence in an economy once seen by businesses as a haven of stability.
Sterling rallied 1.1 percent to $1.1293 ahead of Jeremy Hunt's fiscal announcement due 1000 GMT.
Britain's political and economic turmoil has been greeted with thinly veiled satisfaction among pro-European and leftist politicians abroad, with some commentators drawing parallels to chaotic Italy.
New finance minister Jeremy Hunt promised to win back Britain's economic credibility by fully accounting for the government's tax and spending plans, while insisting his boss Liz Truss remained in charge of the country.
Britain's new finance minister Jeremy Hunt faces an early test of his attempt to stem the crisis of confidence in Prime Minister Liz Truss on Monday when the bond market delivers its verdict on his weekend overhaul of her economic programme.
International Monetary Fund Managing Director Kristalina Georgieva on Thursday rebuked the British government over its planned tax cuts, telling its finance minister and central bank chief that their policies should not be contradictory.
The use of cheap carbon offsets by companies to meet net zero targets could curb their efforts to cut emissions and slow the delivery of climate goals, Britain's climate change advisers said on Thursday.
British house prices rose last month at their slowest pace since early in the coronavirus crisis and they look on course to fall as a surge in mortgage costs adds to uncertainty about the economy for home-buyers, a survey showed on Thursday.
British shoppers are stocking up on electric blankets, candles and energy-efficient slow cookers as surging gas bills and record food price inflation force millions of people to prepare for a tough winter ahead.
The UK Supreme Court begins two days of hearings on Tuesday to consider whether the Scottish government can pass legislation allowing it to hold a second independence referendum without the approval of the British government.
Britain's King Charles III will be crowned at London's Westminster Abbey next May in a ceremony set to follow the traditional pageantry used for anointing monarchs over the last 1,000 years, Buckingham Palace announced on Tuesday.
British finance minister Kwasi Kwarteng, who last month sparked a bond market rout with unfunded tax cuts, sought to reassure investors on Monday by bringing forward a budget announcement and naming a Treasury insider to run the department.
British finance minister Kwasi Kwarteng needs to make 62 billion pounds ($69 billion) of spending cuts or tax rises to stop public debt growing ever-larger as a share of the economy, the Institute for Fiscal Studies (IFS) said in a report on Tuesday.
