Pound dives as United Kingdom plunges into new period of uncertainty

May sought permission on Friday from head of state Queen Elizabeth II to form a minority government, supported by Northern Ireland's Democratic Unionist Party (DUP).

British Prime Minister Theresa May suffered a further setback Sunday in her efforts to stay in power after Dublin warned that her plans to form an alliance with a Northern Irish party could upset the province's fragile peace.

George Osborne called Theresa May a "dead woman walking".


May's party won 318 seats, 12 fewer than it had before May called a snap election, and eight short of the 326 needed for an outright majority.

The Democratic Unionist is the largest party in the Northern Ireland assembly, securing 10 MPs in this general election.

North Belfast MP Nigel Dodds, DUP leader at Westminster, last night ruled out any chance of backing Labour leader Jeremy Corbyn to be prime minister and confirmed they will deal exclusively with the Tories.

Downing Street said an outline agreement on a "confidence and supply" arrangement had been reached and will be put to the Cabinet for discussion on Monday.

Media commentators agreed she had been badly damaged, and some predicted she and her strategy for Brexit could struggle to survive.

May said that "I want to reflect on the election and why it did not deliver the result I hoped for". But the ballot-box humiliation has seriously — and possibly mortally — wounded her leadership just as Britain is about to begin complex exit talks with the European Union.

Barwell was one of the Conservative lawmakers who lost his seat in Thursday's election, which saw the party lose its parliamentary majority.

When Prime Minister Theresa May called a surprise election in April - three years ahead of schedule - the campaign seemed certain to focus on the U.K.'s upcoming talks to leave the EU.

HUNG PARLIAMENT: NO CLEAR WINNER If neither main party wins a clear majority, markets will have to deal with considerable uncertainty over who will form the next government and what compromises the eventual prime minister will have to make to get the support of other parties.

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"This is not the time for sharks to be circling". She's taking us back to those times.

"I'm afraid we ran a pretty awful campaign", Soubry said. "That's not a matter for me", she said.

May is trying to stitch together a credible government this weekend as she fends off a mutiny in her own party.

"At this time, more than anything else, this country needs a period of stability", May said in her electoral district of Maidenhead, west of London, her voice at times shaking. But for now, Foreign Secretary Boris Johnson says reports of a plot to remove May herself is "tripe".

The exact contours of a potential Conservative-DUP deal were not yet known.

Ruth Davidson, a Conservative in Scotland, told the BBC she had words with May over the DUP's record on LGBT rights.

The DUP is a socially conservative party that opposes abortion and gay marriage, and many of its members also are sceptical about man-made climate change and reject the theory of evolution.

The Conservatives are now in discussions about a possible "supply and confidence" deal with the Democratic Unionist Party.

DUP leader Arlene Foster is mired in scandal in Northern Ireland, having overseen a government programme that spectacularly misused public funds.

"Just to be clear, we will act in the national interest".

Above all, investors are anxious about the general uncertainty surrounding the country - whether a bruised May will be able to govern effectively or whether she may eventually resign.

'The Prime Minister reiterated that the Government's approach and objectives in the forthcoming talks to re-establish the Northern Ireland Executive remained unchanged.

  • Myrtle Hill