A 'different' PM
Walid Koudmani, chief market analyst at financial brokerage XTB, said the country could yet see a different Liz Truss to the one on the campaign trail.
"There is certainly a degree of uncertainty over the economic plan under prime minister Liz Truss. This is why investors are selling out of the pound aggressively and why UK bond yields are racing higher, He said.
"Of course, now that Truss has won the premiership, we might see a different Truss to the one campaigning to become Conservative leader.
"This might mean her policies could be toned down somewhat and if we start to see moves such as this, it will likely make investors more comfortable."
He said earlier comments about changing the Bank of England's mandate are already being rolled back.
"The independent Bank of England is a beacon to the stability of the UK for foreign investors. If the role of the Bank is amended or their ability to set interest rates independently of the government is changed, it would dramatically alter how international markets view the UK's financial landscape and not in a good way.
"Comments from Truss and her supporters over the weekend have diluted her ambitions on the Bank's role it seems."
carmen.reichman@ft.com
