Truss Brings In Rival Who Could Steady the Ship, or Take Her Job

A political commentator was asked yesterday who will be running the country now? PM Truss or nechancellor J Hunt?
He answered.. Neither.. its the Markets.

Yes, Hunts appointment is a smart move. But it's naive to believe that by simply replacing a unpopular chancellor with a more credible one, without totally scrapping the policies (the "MiniBudget") that begat and created the crisis in the first place, will be credible to the Market or ultimately to the public. The public is not naive and while spin may help to resettle the political anger sweeping the country, its only complete reversal of the remaining £26b unfunded tax cut element that will/can only be financed with a revisit to Osborne type austerity, IMHO, however Hunt dresses it up.
More particularly the Markets are not naive, and as weve seen this and other global events have made them very intolerant to further Risk-On. Borrowing will be necessary to provide support to mitigate domestic and business impacts of Ukraine War energy spike but a fiscal policy that is pulling so directly against BoEs anti-inflationary monetary policy is IMHO a recipe for the very disaster were seeing.
#Just a Thought

What do you reacon - Truss beyond redemption? Hunt for no 10?

My personal judgement is that Truss is gone. In the eyes of the public, and that of the conservative party.The problem is how to engineer her replacement without a storm of public outrage demanding a GE which would leave 2/3 of current Tory MPs on the dole. (Turkeys voting for Christmas) So..a political analysis? My information suggests that despite that there are already a bunch of "letters" as per 1922 committee protocol for replacing a sitting PM, awaiting opening on monday morning,
I would also not rule out a vote of no confidence being tabled next week by Labour.
The real issue is how with any credibility, the Torys can impose yet another PM without inviting irresistible public pressure for a GE. And no. I dont know how that might be done.. There are a lot of very smart brains mulling on that this weekend. Yes Hunt is potentially a shoein PM. But that wont happen untill he shows hes restores some credibility.
Yeah.. dont say.. a crap answer..
All I can say with certainty is .. that I, prob like you,will be up Sunday night/ Monday morning to see if Asians are convinced or sell off the £. And how the Gilts yield moves.
ALL above just IMHO.
PS I saw a tweet yesterday asking after Hunts appointment WHO was effectievly now running the UK. Truss or Hunt> Great answer.. NEITHER.. at this stage ..THE MARKETS.

#Just a Thought

That aboslutely concurs with our thinking. We've spent significant time working 'What If's' and what repositioning we still need to accomplish (not an easy task across a range of markets). And yes - Asia is probably going to hold sway on how we approach the coming week(s) so indeed it looks like an all nighter (again)...