Pound rises in value after it emerges Boris Johnson will resign

FTSE 100 rises 1.2% and pound jumps sharply as City traders hope for an end to the political turmoil after it emerged Boris Johnson will resign

  • Minutes after dramatic reports emerged from Downing Street, the pound rose
  • Pound rose 0.5 per cent against the dollar to $1.1976 – climbing off two-year lows
  • The domestically focussed FTSE 250 index hit a session high after reports broke
  • FTSE 100 up 1.2 per cent on day – but took a dip after news before rising again 
  • Follow MailOnline’s LIVE coverage of today’s dramatic events by clicking here 

News of Boris Johnson’s imminent resignation as Conservative leader has sparked an increase in the value of the pound.

Just minutes after the dramatic reports emerged from Downing Street, the currency rose 0.5 per cent against the dollar to $1.1976 – climbing off two-year lows.

UK stocks also climbed. The domestically focussed FTSE 250 index hit a session high after reports broke.

The FTSE 100, which tends to benefit from a weaker pound, had gained 1.2 per cent by 8.30am – around thirty minutes before news emerged.

It took a short fall after the news emerged, but has risen again since. The FTSE 100 remains positive on opening for the day – as it did before the announcement of Mr Johnson’s resignation.

Mr Johnson is set to give a statement to the nation later today officially announcing his resignation.

But with no clear leader waiting in the wings, and a number of Tory frontrunners expected to challenge for the top job, Mr Johnson could remain in place until a successor is chosen in the Autumn. 

It comes after the British pound hit two-year lows versus the dollar on Wednesday after the resignation of top ministers that had left the Government dangerously close to paralysis.

‘It’s the case of buy the rumour, sell the fact,’ said David Madden, market analyst at Equiti Capital.

Just minutes after the dramatic reports emerged from Downing Street about Boris Johnson’s (pictured) future, the pound rose 0.5 per cent against the dollar to $1.1976 – climbing off two-year lows

Just minutes after the dramatic reports emerged from Downing Street, the pound rose 0.5 per cent against the dollar to $1.1976 – climbing off two-year lows. UK stocks also climbed. The domestically focussed FTSE 250 index hit a session high after reports broke

The FTSE 100, which tends to benefit from a weaker pound, had gained 1.2 per cent by 8.30am – around thirty minutes before news emerged. It took a short fall after the news emerged, but has risen again since. The FTSE remains positive on opening for the day, as it did before the announcement of Mr Johnson’s resignation

UK stocks also climbed. The domestically focussed FTSE 250 index hit a session high after reports broke

‘The pound has fallen so much because of the rumblings of a resignation. I think markets have already priced in a change of government, and that should pave the way for a bit of medium-term stability.’

Meanwhile, Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, said: ‘The clash of political camps and the row over whether the Prime Minister should stay or go is over. 

‘With the mood music changing so abruptly in Westminster and Boris Johnson finally deciding to leave 10 Downing Street, the pound lifted against the dollar, heading back up to $1.20 before dipping back slightly.’

As for the FTSE, Ms Streeter said: ‘The FTSE 100 has stayed firmly in positive territory since the announcement, helped by the still weaker pound. 

The final blows that forced Boris to quit 

6.47am: Northern Ireland Secretary Brandon Lewis – tweeted that he could not longer continue without ‘honesty, integrity and mutual respect’. 

6.49am: Treasury minister Helen Whately – said ‘there are only so many times you can apologise and move on’. 

7.15am: Security minister Damian Hinds – ‘for our country, and trust in our democracy, we must have a change of leadership’

7.21am: Science minister George Freeman – accused Mr Johnson of ‘insults to the Conservatism I believe in and stand for’.

7.50am: Pensions minister Guy Opperman – ‘it should not take the resignation of 50 colleagues, but sadly the PM has left us no choice’

8.02am: Technology minister Chris Philp – ‘the PM should step down’. 

8.09am: Courts minister James Cartlidge – ‘The position is clearly untenable.’ 

8.43am: Chancellor Nadhim Zahawi – ‘You must do the right thing and go now.’  

8.51am: Education Secretary Michelle Donelan – ‘as someone who values integrity above all else, I have no choice’.

‘Investors are welcoming the laser-sharp focus being trained on inflation, and there are ripples of relief in financial markets that the red hot prices look set to be brought down. 

‘Runaway inflation is still viewed as the demon threatening economic stability around the world, and although sharp slowdowns and recessions could be a consequence, the attitude that it’s better to go in hard and fast now to prevent a further price spiral is largely being welcomed.’

It comes as it was revealed Mr Johnson will quit today after his new Chancellor ordered him to go and another eight ministers walked out demanding he accepts reality.

The PM has admitted defeat half-an-hour after a shattering intervention from Nadhim Zahawi, who was only appointed on Tuesday night in the wake of Rishi Sunak’s departure. He told Mr Johnson that his situation is ‘not sustainable’.

A No10 source said Mr Johnson has spoken to Tory 1922 Committee chairman Sir Graham Brady and agreed to stand down, with a new Tory leader set to be in place by the party conference in October.

A spokeswoman said: ‘The Prime Minister will make a statement to the country today.’

Although he stopped short of resigning, Mr Zahawi appears to have struck the killer blow with his public call for Mr Johnson to give in. He tweeted: ‘Prime Minister: this is not sustainable and it will only get worse: for you, for the Conservative Party and most importantly of all the country. You must do the right thing and go now.’

Education Secretary Michelle Donelan, who was installed in post at the same time as Mr Zahawi, also declared she is quitting, barely two hours after Northern Ireland Secretary Brandon Lewis fell on his sword.

Up to then the PM had vowed defiance despite the overwhelming evidence of his authority draining away.

However, it is far from clear that Mr Johnson staying on until October – more than two months – will be acceptable to Tory MPs. More than 50 government members have resigned, and there will be questions over whether they can simply be reappointed, or would even agree to that.

George Freeman, who announced he was resigning as science minister this morning, said Mr Johnson must apologise to the Queen and advise her to call for a caretaker PM.

‘Boris Johnson needs to hand in the seals of office, apologise to Her Majesty and advise her to call for a caretaker prime minister,’ he said.

‘To take over today so that ministers can get back to work and we can choose a new Conservative leader to try and repair the damage and rebuild trust.’

A former minister told MailOnline: ‘We need to be rid of the Johnson poison as quickly as possible.’

The PM has admitted defeat half-an-hour after a shattering intervention from Nadhim Zahawi (pictured), who was only appointed on Tuesday night in the wake of Rishi Sunak’s departure

The lights in Boris Johnson’s Downing Street living room burn through the night pictured at 4.26am today

At 6.47am, Mr Lewis tweeted that he could no longer continue without ‘honesty, integrity and mutual respect’.

Minutes later Treasury minister Helen Whately followed suit saying ‘there are only so many times you can apologise and move on’.

Security minister Damian Hinds and science minister George Freeman had followed by 7.30am, and pensions minister Guy Opperman by 7.50am.

Meanwhile, Wales minister David TC Davies publicly announced that he had refused a promotion to take over from Welsh Secretary Simon Hart, who quit last night. The Attorney General, Suella Braverman has called for Mr Johnson to resign and said she is only staying in place to keep the government functioning.

With the resignation tally reaching well over 50, the government was unable to find a minister willing to go on the airwaves to speak up for the PM this morning – with total silence from his team for hours.

The chief whip Chris Heaton-Harris was seen going into Downing Street early, after the lights were seen on in the PM’s flat deep into the night.

However, Mr Johnson’s critics were swarming to studios.

Former Cabinet minister Julian Smith warned that the premier had seen how Donald Trump behaved in relation to the Capitol riots after the US election, and was looking to have a ‘mini version in the UK’.

There were even suggestions from allies that Mr Johnson could try to force a snap general election in a desperate bid to cling to office – something that could drag the Queen into a constitutional crisis.

Veteran Tory MP Bernard Jenkin had urged Carrie Johnson to step in a convince her husband that he should throw in the towel.

Labour leader Sir Keir Starmer said: ‘It is good news for the country that Boris Johnson has resigned as Prime Minister. But it should have happened long ago.

‘He was always unfit for office. He has been responsible for lies, scandal and fraud on an industrial scale.

‘And all those who have been complicit should be utterly ashamed.

‘The Tory party have inflicted chaos upon the country during the worst cost-of-living crisis in decades. And they cannot now pretend they are the ones to sort it out.

‘They have been in power for 12 years. The damage they have done is profound.’

Source: Read Full Article

Previous post Passenger reveals why she'll 'never use Wizz Air again'
Next post Even blasted with a BLOWTORCH, this Chinese ice cream just won't melt