vrijdag 9 juni 2017

A Stunned Wall Street Reacts To UK's Hung Parliament

It was supposed be a UK general election that solidified Conservative dominance, and boosted Brexit leverage. It ended up being the opposite, after British voters delivered a stinging rebuke to Prime Minister Theresa May and her ruling Conservative party, depriving her of a majority, resulting in a "hung parliament" and thrusting the country back into a new period of uncertainty as it prepares to depart from the European Union. A quick recap of what happened overnight:
- No party managed to get a majority in Thursday's election, resulting in a hung Parliament.
- Theresa May remains prime minister. She could push forward with a minority government, or potentially look to another party such as Northern - Ireland's DUP to give her enough support in the lower house, which is what SkyNews is reporting will happen.
- EU officials have said Brexit talks should only begin once a government is in place.
- The pound fell sharply on the exit polls, and remained low overnight, although it has rebounded from the lows.
- Stocks in the biggest U.K. companies jumped when the market opened, on the back of the weaker pound, but have given up some gains.
- May is said to seek to form government, and she won't resign. Sky says she will govern with the support of the Northern Ireland's Democratic Unionist Party, making her a "lame duck."
On the basis of the declared results available early in the session, the Conservative Party won 316 seats (or just about) in the 650 seat Parliament (losing 15 seats), compared with 265 seats for Labour (a gain of 33 seats). These numbers are fluid and continue to change, mostly in Labour's benefit....