Liz Truss announced as UK's next Prime Minister

A Liz Truss victory has been anticipated in the weeks leading up to the election date, but now is the time we'll observe how the new PM will tackle the many headwinds the UK faces. In the crosshairs is surging UK inflation, a risk of recession and the real income squeeze brought on by soaring energy prices. Therefore, PM Truss has pledged to freeze energy bills and slash taxes to help revive the UK economy, however these promises have been criticised as inflationary. The reaction in markets was minimal. At the time of today's announcement, the pound sterling briefly fell below $1.15 at $1.1498, the lowest since the 2016 Brexit vote. From open the FTSE 100 index was down 0.7% and the FTSE 250 fell 1.1%. Markets have been underperforming with August showing a slew of selloffs across the pound, corporate bonds, and UK government bonds. It's clear the UK is in a precarious position and now all eyes are on Liz Truss, her actions as PM, and how markets react.