UK Markets – 1, Truss – 0

With Liz Truss’s agenda of tax cuts and supply-side reforms dead before it had even begun, her resignation as UK prime minister has limited immediate implications for the economic outlook. More political uncertainty won’t help, but fear of the markets means that whoever replaces Truss will likely pursue the fiscally austere polices signalled by the current Chancellor.

What you will learn:

• A vote will be held among Tory MPs within a week to choose a new PM, with the likely frontrunners including Rishi Sunak and Penny Mordaunt, and, potentially, Boris Johnson. But given the Conservative’s currently dire poll ratings, we think a new leader would resist calls for an immediate general election.