Queen Elizabeth II died at the age of 96. She ruled a sovereign kingdom for 70 years and 214 days, the longest period in which anyone has ever reigned. During her reign, the monarchy received as much as 90% favor from the English people.
The UK is in peril because Queen Elizabeth died at an inopportune time. With soaring inflation, a weakening currency, and the biggest cost-of-living crises in decades, the country has lost one of its few glimmers of stability and continuity.
Prime Minister Liz Truss' government has declared a national day of mourning that will last until the day of the state funeral. Truss announced a massive risk to preserve the economy on Thursday, barely two days into her job and a few hours before the Queen died.
Some stores and sporting venues were closed out of respect, but for the most part, business continued as usual.
Stocks rose as the London stock exchange opened on Friday, as they did on other European and Asian markets. The London Stock Exchange stated that trade would continue during the period of grief. It will only be closed on the day of the funeral, which has yet to be determined but will most likely be a holiday.
Selfridges, one of the country's oldest department stores, announced the closure of its locations in London, Manchester, and Birmingham, but stated they will reopen on Saturday.
Labor unions, on the other hand, aided in calming a recent wave of industrial action. The Communication Workers Union called off a planned walkout by 115,000 Royal Mail employees on Friday. Rail unions have also called off planned strikes for next week and later this month.
Despite the cancellation of the British Academy of Film and Television Arts' annual pre-Emmy gala this weekend, London's West End theaters remained open.
Holger Schmieding, head economist at the private bank Berenberg, told CNN Business that the Queen's death will have "minimal" economic consequences.
"Stopping the vexing train strikes, for the time being, should assist to mitigate the effects of the days of grief. More money from tourists will most likely help with this "He stated.
Economic recovery jeopardized?
The monarch's death happened just hours after Truss announced that energy bills in the United Kingdom would be capped beginning in October. This would benefit millions of households and thousands of businesses that have been affected by rising prices.
According to Berenberg analysts, the rescue plan might cost up to £150 billion ($172 billion), with the government borrowing the majority of the money. Kwasi Kwarteng, who is in charge of finances, will announce the plan's cost later this month.
Much of the government's attention may now be focused on what happens in the coming days as it prepares for the Queen's funeral and the coronation of King Charles as her successor. Normal business in parliament has also been halted for the next few days.
Danni Hewson, an analyst at the financial firm AJ Bell, told CNN Business that the impending emergency budget is likely to be postponed.
It is also critical to see how the Bank of England manages the government's massive increase in borrowing. Investors are already concerned about the UK government's financial situation, and the bank was anticipated to boost interest rates again at its meeting on Thursday.
However, the Bank of England announced on Friday that it will postpone its interest rate decision for one week "because of the national mourning period." The revised date for the meeting is September 22.
CNN Business reached out to the UK Treasury for comment, but they did not respond right away. Despite the fact that it is a time of sorrow, Truss's official spokeswoman informed reporters that the energy price cap would go into effect as planned on October 1.
After hitting 37-year lows earlier in the week, the pound traded higher on Friday, at $1.16. The long-term decrease in its value since the global financial crisis, however, is likely to continue "unless there is a seismic change in the direction of the economy and economic policy," according to a macro strategist at Société Générale in a Friday note.
"There's a fair probability that King Charles III will be the first British monarch to pay more than a pound for a dollar, or more than a pound for a euro, or both," he predicted, adding that the pound was unlikely to go below parity with the dollar this year.
The Bank of England stated that UK banknotes depicting the Queen will "remain legal tender," and that it will reveal plans to create new money depicting King Charles when the time of mourning ends.