Friday, 9 June 2017

What the result means for Brexit

LONDON: British Prime Minister Theresa May s failed gamble on a snap election throws Brexit - and the formal Brexit talks - into unchartered waters. Voters dealt May a devastating blow in the snap election she had called to strengthen her hand in the Brexit negotiations wiping out her parliamentary majority and throwing the country into political turmoil. For a menu of stories on the election: Following are some scenarios for Brexit: BREXIT TALKS Formal Brexit talks were due to start on June 19 just under two years ahead of a British exit due in March 2019. But May has no majority and British politics is now deadlocked http://nitro-nitf.sourceforge.net/wikka.php?wakka=KalpanaChinna meaning talks could be delayed. While May remains prime minister until a new government is formed she does not have a clear mandate for her interpretation of Brexit that includes limits on immigration and leaving the single market. Theresa May arrogantly gambled with our Brexit and blew it said a spokesman for the Leave.EU pro-Brexit campaign. We demand fresh leadership immediately. Germany said there was no time to lose on negotiating Brexit because time was ticking. France said the election result would not call into question Britain s decision to exit. Labour leader Jeremy Corbyn said Brexit talks should go ahead as planned. Given that Britain has already triggered the formal divorce talks it is unclear what mechanism could be used to delay the negotiations. BREXIT HARD OR SOFT? If May forms a minority government with support from the Northern Irish Democratic Unionist Party (DUP) then she would enter Brexit talks heavily dependent on one side of the divide in Northern Ireland and on the eurosceptic wing of her own party. Her ability to drive Brexit reforms through parliament is sharply diminished. With less room for manoeuvre she may be forced to reject compromises proposed by Brussels and drive a harder bargain. The likely narrowness of the majority will give an ability for any small grouping of Conservative MPs to potentially block legislation JPMorgan said. She warned EU ambassadors in January that attempts to punish Britain would be an act of calamitous self-harm for EU countries and repeatedly told voters during the campaign that she would be prepared to walk away from talks without a deal. A disorderly Brexit with no deal would spook financial markets tarnish London s reputation as one of the world s top two financial centres and sow chaos through the economies of Britain and the EU by dislocating trading relationships. The hung parliament makes both a soft Brexit (staying in the Single Market) and a chaotic Brexit (no deal) more likely than before potentially even a second referendum Citi said in a research note. Still hard-but-smooth Brexit would remain our base case Citi said. WILL BREXIT HAPPEN? May has insisted that Brexit means Brexit but it is unclear how long she will remain in power or whether another British election will be called. If May resigns the negotiations could be delayed by months due to the leadership contest potentially new elections and even another process to design the UK s negotiation strategy Citi said. If talks are delayed for long - and if British political turmoil continues - then the timetable for Brexit will slip while uncertainty could undermine economic confidence. Before her defeat May said she wanted to negotiate the divorce and the future trading relationship with the EU before Britain leaves in March 2019 followed by what she calls a phased implementation process to give business time to prepare for the impact of the divorce. Corbyn who voted against EU membership in 1975 but said he voted for membership in 2016 told voters the issue of Brexit had been settled. He wants a trade deal and a guarantee that EU worker rights be preserved as part of any Brexit agreement. Whatever happens Theresa May is toast - it is just a matter of time Brexit campaigner Nigel Farage said. Quite frankly I don t know what s going to happen. But Farage said he feared Corbyn could somehow manage to form a minority government that would allow a second Brexit referendum. The Liberal Democrats whose votes in parliament could help sustain a Labour government campaigned on the position that Britons should be able to vote again on the terms of the final EU deal and stay in the bloc if the deal was rejected. Scottish National Party leader Nicola Sturgeon has argued that Scotland where a majority voted to remain in the EU last year should have the right to hold an independence referendum at the end of the Brexit process. As a Brexiteer who believes in it with all his heart and soul my fear is that Corbyn forms a coalition with the SNP and a few Lib Dems and we look down the barrels of a second referendum in a few years time Farage said.
So it was the Brexit election after all. It started out as one when Theresa May overhyped the threat of pro-Europeans in Parliament weakening her negotiating hand to justify her decision to seek her own mandate. Then it became the non-Brexit election. May offered no new detail about her plans and the spotlight fell on public services and then security. But Brexit undoubtedly affected the outcome of this remarkable election. Remainers and young people who perhaps didn t bother to vote in last year s referendum took their revenge. The hard Brexiteers hoped the election would put the final nail in the coffin of those they call the Remoaners. Instead the tables have been turned. General Election 2017: 6AM results hung parliament confirmed The Remainers have an unexpected spring in their step today. May has paid a very heavy price for ignoring the 48 per cent. The hard Brexiteers who always feared the prize would somehow be snatched from them even after the referendum are re-living their worst nightmare. Brexit will still go ahead since the Conservatives and Labour who won more than 80 per cent of the votes between them both promised that. But it could now be a very different Brexit a much softer version than the one May wanted. Membership of the single market and customs union ruled out by May are now back on the agenda. She wanted to marginalise Parliament in the Brexit process; if she had won a majority the House of Lords would not have blocked leaving the single market or customs union as this was in the Tory manifesto. General Election 2017: Big beasts who lost their seats 7 show all General Election 2017: Big beasts who lost their seats 1/7 Nick Clegg Nick Clegg delivers a speech despite losing the Sheffield Hallam Seat Darren O Brien 2/7 Gavin Barwell Getty Images 3/7 Angus Robertson 4/7 Nicola Blackwood Nicola Blackwood said the UK spent much less than competitors such as Germany and the US PA 5/7 Alex Salmond Former First Minister Alex Salmond is standing for reelection in the constituency of Gordon Scotland PA 6/7 Rob Wilson Rex Features 7/7 Ben Gummer PA Instead Parliament will now play a more important role. Pro-European Tory MPs may well link up with like-minded MPs in other parties to push for a soft Brexit. Some MPs and peers will argue that May s plan for hard Brexit has been rejected. The Tory hard Brexiteers may try to push May or her Tory successor around. On paper they might have the numbers. But there may be no majority in Parliament for hard Brexit. The Tories will almost certainly rely on the votes of Northern Ireland s 10 Democratic Unionist Party (DUP) MPs who support Brexit but may have their own demands on the issue. They are hard-nosed negotiators. May will be urged to seek cross-party agreement which would push her towards a soft Brexit. Squaring the circle between single market access and controlling immigration will not be easy. An election designed to strengthen May s hand in the Brexit talks has done the opposite. The 27 EU countries will spot weakness. The irony is that EU officials would have preferred a decisive majority for either the Tories or Labour so there was some stability on the UK side of the table. The 27 want to see the back of Brexit and move on to other issues. Whatever the final shape of Brexit an already difficult process will now become even more problematic. It could become chaotic as the Tories warning about a Labour-led coalition of chaos boomerang. Negotiations with the 27 EU countries are due to start on 19 June. A delay may be needed. We might have a second election before too long if that became the only way to resolve the impasse between the two big parties in a nation divided between Leave and Remain; the old and young; left and right. An election would cause a further pause in the Brexit talks even though the clock is ticking towards the March 2019 deadline. It may have to be extended which would require the agreement of all 27 EU members. But if the talks were going badly the EU could use the deadline to put pressure on the UK to make concessions by using the threat of no deal being reached in time and Britain resorting to World Trade Organisation tariffs. The other scenario is that the Conservatives cannot command a majority in the Commons. It would then fall to Jeremy Corbyn to see if he could win MPs backing for a Labour Queen s Speech. Labour would try to form a progressive alliance with the SNP the Liberal Democrats the Greens and Plaid Cymru. They could probably agree on soft Brexit. But Labour s policy needs fleshing out. It wants to retain the benefits of the single market but accepts that free movement must end. Corbyn might have to revisit his formula on migration. If he became prime minister Corbyn would adopt a more constructive and conciliatory approach to the talks. Under him there would be less chance of the UK leaving the EU without a deal than under the Tories. Corbyn s position on Brexit in the election has been vindicated. It threatened to tear his party apart. By backing the triggering of Article 50 Corbyn reassured enough Leave voters in the North and Midlands that Labour had accepted the referendum result. May did not scoop up all the Ukip vote as she hoped; Labour got a fair slice after all. If he had mounted stronger opposition to Brexit Labour would probably have suffered the same fate as the Lib Dems. Yet Corbyn also reaped the benefit from the Remainers backlash in London. He had the best of both worlds. As Boris Johnson would put it Corbyn could have his cake and eat it. More about: General Election 2017 Brexit Reuse content
LONDON: Prime Minister Theresa May s Conservative Party failed to win a parliamentary majority in Britain s election on Friday a shock result that plunges domestic politics into turmoil and could delay Brexit talks. Reuters calculations based on partial election results showed May could no longer win an outright majority leaving Britain with a hung parliament . Below are details of what happens next: Who gets power? For the election to produce a majority government the biggest party theoretically must win at least 326 seats of the 650 United Kingdom constituencies. In practice the threshold for a majority is around 323 because the Irish nationalist Sinn Fein party takes up no seats that it wins in Northern Ireland. As incumbent May has the right to make the first attempt to form a coalition though her tough stance on Brexit is likely to make finding a suitable partner difficult. Until a new government is formed May and her team of ministers remain in charge and retain their full legal powers to act on behalf of the country although by convention they would be expected to avoid taking major decisions. Minority conservative government May signalled she could attempt to lead a government without commanding a majority relying on her opponents for support in parliament on an issue-by-issue basis. Speaking as results were still being counted she said Britain needed a period of stability and that she would take responsibility for delivering it if as forecast she won the most seats. This will test the cross-party support for her pre-election pledges. While her hardline Brexit strategy is opposed by all other major parties Britain has already started the clock ticking on leaving the bloc by triggering a two-year negotiation period with Brussels. It is unlikely she would agree to stopping the Brexit divorce. Nevertheless May s plans still rely heavily on being able to pass legislation through parliament. Firstly to convert EU law into British law and then to form new post-Brexit policy on issues like immigration and tax. Delays or outright blockages on this legislation would place doubts over how Britain would control its borders and trade with the EU after Brexit. May s fiscal agenda including plans to balance the budget by the middle of the next decade through a continuation of existing austerity policy would also be opposed by rival parties. Her domestic reforms on issues ranging from fox-hunting to cuts to social care and education funding would also meet substantial resistance and demands for change. However her plans to clamp down on executive pay give workers a say on strategy and make it harder for foreign firms to take over British ones could win support in principle although others would probably demand changes to the policies before agreeing to back them. 2010 redux: Conservative-led coalition The Conservatives formed a coalition in 2010 with the centrist pro-EU Liberal Democrats as junior partner. They governed together until 2015. The two parties are unlikely to be reunited in coalition without major compromises on the central principle of their election manifestos: Brexit. The Conservatives are committed to a complete break with the EU regardless of whether a satisfactory exit deal can be reached. By contrast the Liberal Democrats have promised voters a second referendum on whether to accept a deal with Brussels. Electoral maths do not favour a second coalition. The Liberal Democrats were expected to hold around 16 seats down from 57 in 2010. This limits their ability to take May s support above the require threshold. The party is led by Tim Farron 47 who began his campaign by telling Britons they should have the option of rejecting Brexit in a second referendum and remaining within the EU. The Conservatives other coalition options are limited. They can traditionally rely on the support of Northern Ireland s Democratic Unionist Party which holds 10 seats. The Scottish National Party (SNP) which was forecast by media commentators to win 35 seats are at ideological loggerheads with the Conservatives. SNP leader Nicola Sturgeon has argued that Scotland where a majority voted to remain in the EU last year should https://www.scout.org/user/739886/about not be bound by May s plan to withdraw from the EU single market and have the right to hold an independence referendum at the end of the Brexit process. Labour-led coalition A hung parliament could play in Labour s favour even if it won less seats than the Conservatives because it is politically closer to smaller rivals on several issues. Labour has said it would try to form a minority government and Corbyn has refused to discuss forming a coalition after June 8. He is committed to heeding the results of Britain s EU membership referendum a year ago in which 52 percent voted Leave against 48 percent in favour of Remain. However Labour has fought to water down May s Brexit strategy which could make it easier to reach a compromise with either the Liberal Democrats which has ruled out any coalition or the pro-European SNP which says it wants to stop another Conservative government. Labour has said it will tear up May s Brexit negotiating priorities instead focusing the talks on retaining the benefits of the EU single market and customs union. It has also promised to consult parliament more closely throughout the negotiations. Corbyn who would be in charge of negotiating any coalition deal has said he will ensure there is a deal agreed with the EU before Britain leaves and give parliament a meaningful vote on whether to accept the terms of a final deal. Labour has not defined what constitutes a meaningful vote and this would likely be one area where pro-EU parties would demand the power for parliament to send the government back to Brussels to get a better deal - or even to halt the Brexit process altogether. Beyond Brexit Labour plans a radical change in Britain s fiscal policy: raising taxes on large firms and the wealthy to pay for higher public spending on education healthcare and police - an agenda that would fit with the anti-austerity SNP. Labour s finance spokesman and close Corbyn ally John McDonnell says he can achieve this while ensuring the national debt is reduced over the course of the next parliament. However Labour has also committed to creating a 250 billion pound fund for investment in infrastructure which will be spent over a 10-year period indicating it will be funded by borrowing. Economists expect a Labour-led government to substantially increase bond issuance with the effect of increasing borrowing costs over the long term. In what has been described as one of the most left-wing Labour manifestos for decades Labour has also promised to take on multinational corporations and what Corbyn has called wealth extractors . Labour has pledged to raise corporation tax to 26 percent from 19 percent and impose higher taxes on the top 5 percent of earners.
Video The British Election: What Happened and What s Next? Prime Minister Theresa May of Britain suffered a humiliating defeat in the 2017 general election. Her opponent Jeremy Corbyn the Labour leader re-energized his party and altered the landscape of British politics. So what s next? By FRANCESCA BARBER and AINARA TIEFENTHÄLER on Publish Date June 9 2017. Photo by Adrian Dennis/Agence France-Presse Getty Images. Watch in Times Video embed LONDON What a mess.Britain was supposed to wake up on Friday with the political clarity finally to begin formal negotiations to leave the European Union a process scheduled to start in 10 days.Instead the country is staring at a hung Parliament and a deeply damaged Prime Minister Theresa May her authority and credibility fractured by her failure to maintain her Conservative Party s majority in Parliament.Ignoring demands that she resign the prime minister said on Friday that she would cling to power by forming a minority government with the support of the Democratic Unionist Party of Northern Ireland.Because the Conservatives won the most seats and the most votes Mrs. May gets the first chance to form a new government despite winning only 318 seats 12 fewer than in 2015 and short of a formal majority of 326 in the 650-seat House of Commons. The Democratic Unionists won 10. Continue reading the main story
BRUSSELS: The European Union urged British Prime Minister Theresa May on Friday to start Brexit talks as quickly as possible but warned of complications ahead after she lost her majority in a snap election. As May promised to stick to the timetable for starting negotiations in 10 days time the EU said time was running out to secure a deal before Britain formally leaves in March 2019. European Council President Donald Tusk said the urgent task was to conduct talks in the best possible spirit and minimise disruption for citizens and businesses. The timeframe set by Article 50 of the Treaty leaves us with no time to lose Tusk who acts on behalf of the EU s 28 national leaders said in a congratulatory letter to May referring to the divorce clause in the EU s Lisbon Treaty. Former Polish premier Tusk had earlier called on May to do your best to avoid a no deal as result of no negotiations after Britain s repeated threats to walk out of talks if the EU pushes key issues including a 100-billion-euro exit bill. Brussels was left in shock after May s gamble to increase her majority badly backfired with fears that it could hold up talks that have still not started almost a year after Britain voted to leave the EU. Despite facing calls to resign May vowed Friday to form a new government to lead Britain out of the EU adding after a speech in Downing Street: Now let s get to work. European Commission chief Jean-Claude Juncker said he hoped there would not be further delay in the Brexit talks that we are desperately waiting for. As far as the commission is concerned we can open negotiations tomorrow morning at half past nine Juncker told reporters in Prague. EU Brexit negotiator Michel Barnier who was responsible for setting the goal of starting talks in the week beginning June 19 said they should start when the UK is ready. Timetable and EU positions are clear. Let s put our minds together on striking a deal the Frenchman said on Twitter. Barnier had previously set a timetable of talks starting the week beginning June 19 with agreement on initial issues by autumn of this year and a provisional Brexit deal in October 2018. But EU budget commissioner Guenther Oettinger said Britain s May was now likely to be a weak partner. The British need to negotiate their exit but with a weak negotiating partner there is a danger that the talks are bad for both parties Oettinger told German radio. Britain and the EU are at odds over almost every detail of the divorce from the sequencing of the talks to the rights of EU citizens living in Britain and the size of the bill Brussels says it must pay to leave. EU officials had hoped a strong win for May would make it easier to override domestic opposition and compromise with the EU. European Parliament Brexit negotiator and Belgian ex-premier Guy Verhofstadt warned the election result would make talks more difficult. Yet another own goal after Cameron now May will make already complex negotiations even more complicated Verhofstadt tweeted comparing the outcome to former British prime minister David Cameron s ill-fated decision to call last year s Brexit referendum. Manfred Weber the head of the European Parliament s largest group and a key ally of German Chancellor Angela Merkel said May had caused chaos . EU is united UK is deeply split. PM May wanted stability but brought chaos to her country instead tweeted Weber who leads the centre-right European People s Party. The clock is ticking for Brexit. Therefore the UK needs a government soon. The date for the beginning of negotiations is now unclear. Gianni Pittella leader of the socialist bloc in parliament added: It s a disaster for May. Her huge gamble has backfired spectacularly. She has no credibility in UK or Europe. She should resign. May must now face the other 27 European leaders at a summit in Brussels on June 22 and 23.
If there was any remaining hope in Brussels or European capitals that the British establishment would return to reality-based politics this latest election campaign and result should eliminate it. When it comes to Brexit the UK is like a child that just will not see reason. The only grown-ups left in that room called Europe must therefore start preparing to impose their own solution. The rise of the remainers is about to begin. May s Brexit strategy lies in ruins | Simon Jenkins Read more Another own goal after Cameron now May tweeted Brexit negotiator for the European parliament Guy Verhofstadt last night. Yet the own goal was not holding this election. Last year s EU referendum campaign was waged with lies manipulation and delusional promises leading millions of Britons to vote for an option that was simply not on the menu: shirking all the obligations of EU membership while keeping the benefits. In Boris Johnson s infamous phrase: let s vote to have our cake and eat it. This election could have been the moment when Britain made a choice between two options that were actually available: having that cake and therefore sailing with open eyes into the inevitable economic shock and pain of hard Brexit. Or keeping the cake by becoming a bigger Norway and accepting all the rules of the single market: no end to EU immigration significant contributions to the EU and acceptance of the European court of justice. This is how democracy is supposed to work but it was not at all what Labour or the Conservatives offered. Both all but avoided Brexit during the campaign wallowing in platitudes or pretending this was merely one isolated issue among many. Even by the most conservative estimates Brexit will cost the UK billions. Where is this money going to come from? By and large British journalists let them get away with this and so it was that the BBC election broadcast yesterday took no less than 90 minutes before bringing on Brussels correspondent Katya Adler. She then pointed out what nobody had apparently deemed interesting enough to say earlier: since the UK has triggered article 50 to leave the EU the clock is ticking to avoid crashing out of the EU altogether a scenario that makes the economic disaster of a mere hard Brexit look tantalisingly attractive. Add to this that in a hung parliament these all-important negotiations probably cannot start and you have an absolutely alarming situation. The guests nodded and that was that. This is in one image the state of denial that Britain is still in surprising election result or not. This morning sources around Theresa May leaked to the Tory-friendly Daily Telegraph that she is likely to stay on as prime minister because she does not want to allow Brussels to delay Brexit talks . Brussels cannot afford to risk the integrity of the single market by saving Britain from itself through a sweet deal One has to ask what is in May s morning briefings on the EU and Europe. Clippings from the Daily Mail and the Sun with a balanced selection of Ukip tweets? Ever since the referendum the EU has effectively said first that you can take our rules or leave our rules but there is not going to be a special deal because then every member state will demand opt-outs and exceptions and the whole single market disintegrates . And two please start withdrawal proceedings as soon as possible. As Le Monde editor Arnaud Leparmentier put it on Twitter last night: The great danger is becoming hostage to British foot-dragging. He added: Messieurs les Anglais finissez en (in good English: Get on with it). That is the view from a country where the newly elected president Emmanuel Macron did do what Labour and the Conservatives failed to: present the voters with the dilemmas facing France and then put forward his own set of solutions. It earned him the very thing Theresa May wanted but did not get: a mandate. Alas European leaders now have a duty to look after their own citizens interests. Brussels cannot afford to risk the integrity and coherence of the single market by saving Britain from itself through a sweet deal. But nor can it risk total economic meltdown in the UK since this would send dangerous economic ripples across the continent. It would also jeopardise Britain s ability to pay for its Nato contribution. There are no good options left for the EU. But going on the reactions to this British election campaign in major European newspapers at least Europeans are no longer in denial or delusional about Britain s denial and delusion.Photo Prime Minister Theresa May in London on Friday. Credit Justin Tallis/Agence France-Presse Getty Images LONDON Like a stumbling figure from The Walking Dead Britain s prime minister Theresa May has yet to realize that she is a political zombie. For all her poise as she spoke on Downing Street on Friday the day after Britain s general election when she declared her intention to continue in office she is roaming the land of the undead. Sooner or later reality is going to bite hard.Once again almost all the pundits pollsters and political betting wonks got it wrong. Less than a year after Brexit stunned this country and seven months after Donald Trump won in the United States a political outcome that seemed certain and preordained was upset by people actually going to vote. They made an emotional pick and now Mrs. May has to figure out what to do after a net loss of seats in the House of Commons that deprives her of the overall majority required for stable government.As the extent of the upset became clear on Thursday night it was assumed even by many of Mrs. May s most ardent supporters that she would be gone by Friday morning. There was talk of a dignified exit a timetable for departure and then unavoidably another general election. Instead Mrs. May has formed a pact with Northern Ireland s Democratic Unionist Party an alliance that will give her an aggregate number of members of Parliament that passes just the 326-seat threshold required for a governing majority.Doesn t this suffice? Surely a politician is entitled in such circumstances to be creative if only to deprive her opponents of power? Continue reading the main story
LONDON: Prime Minister Theresa May s gamble of calling snap polls spectacularly backfired today with the British electorate delivering a hung Parliament and forcing her to seek the support of a small Northern Irish party for staying in power as the country braces for hard Brexit talks. May jolted by the electoral setback however remained defiant to calls for her resignation and vowed to form a minority government with the informal backing of the Democratic Unionist Party (DUP). I have just been to see Her Majesty the Queen and I will now form a government -- a government that can provide certainty and lead Britain forward at this critical time for our country a grim-faced May said in a statement delivered outside 10 Downing Street. May 60 said the two parties have enjoyed a strong relationship over many years and she believes that they will be able to work together in the interest of the country. This will allow us to come together as a country and channel our energies towards a successful Brexit deal that works for everyone in this country - securing a new partnership with the EU which guarantees our long-term prosperity. That s what people voted for last June. That s what we will deliver. Now let s get to work she said. Though May s Conservative Party emerged as the single largest party on a sensational election night the impressive show by the Labour Party led by Jeremy Corbyn sent the British politics into turmoil putting May in a complex situation ahead of the Brexit talks scheduled to start on June 19. The results -- a sort of turnaround in fortunes for both major parties -- have thrown that timetable into doubt. With results declared for nearly all of the 650 seats Conservatives won 318 while the opposition Labour secured 262 leaving neither party anywhere close to the 326 seats required for an overall majority. The Tories will now have to rely on the DUP s 10 MPs to get things done. DUP leader Arlene Foster confirmed she will enter talks with May in an effort to pursue stability in Parliament without giving further details on the conditions for the party s support. The shock defeat for Conservatives -- despite the pre- poll projections of a comfortable majority -- was seen by the British media as a humiliation for May to continue in her position. Corbyn 68 may not have dislodged May in the polls but the Labour Party s strong showing prompted him to demand her resignation saying she lost votes lost support and lost confidence of the people. May in April had chosen to call the election three years ahead of the schedule to try to strengthen her hand in talks with the European Union to pull Britain out of the single market. The result threw the UK in a political turmoil amid increasing terror-related incidents. May won her Maidenhead seat in south-east England with 37 780 votes but faced pressure to resign after losing her parliamentary majority she had before the election. The election had been classified as a Brexit election and the result is being seen as giving hope to the 48 per cent who had voted to remain in the EU in the June 2016 referendum and a rejection of May s so-called hard Brexit stance. EU s chief negotiator Michel Barnier indicated Brexit talks now be delayed from the date set for its start. Barnier tweeted the talks should begin only when the UK is ready . Conceding to her dashed hopes of a landslide win May earlier said: My resolve is the same that as it has been. Whatever the results the Conservative party will remain the party of stability. At this time the country needs a period of stability and it will be incumbent on us that we provide that period of stability she said. Corbyn beaming with hope claimed on Twitter that the Labour party had changed the face of British politics . Politics has changed and this is people saying they have had quite enough... I am very proud of the results that are coming in and the vote for hope. The Prime Minister called the election because she wanted a mandate and the mandate is that she has lost seats he said after his win from his seat at Islington North in north London. Labour picked up 29 seats and the Tories were on course to lose 13 seats. The Scottish National Party (SNP) were down by 22 losing seats to the Tories Labour and Liberal Democrats in a major setback for Scottish First Minister Nicola Sturgeon. The turnout in the election is estimated at around 68.7 per cent -- up 2 per cent on the last general election. The Conservatives have won 44 per cent of the vote Labour 41 per cent the Liberal Democrats 8 per cent UKIP 2 per cent and the Greens 2 per cent. The tally for the remaining parties stands as 35 MPs for SNP Liberal Democrats have 12 MPs up four from last time and others at 13 MPs. Among some of the heavyweight losses of the night include that of former Liberal Democrat leader Nick Clegg losing his Sheffield Hallam stronghold to the Labour party while fellow party colleague Vince Cable - who had lost his seat in a shock result in 2015 - has regained his Twickenham seat. The last hung Parliament result in the UK was in 2010 when David Cameron took over as PM and formed a Conservative- led coalition with the Liberal Democrats. The election which has overturned all opinion poll projections of a strong Conservative party majority recorded the highest turnout in 25 years at 68.7 per cent with nearly 32 million of the 46.9 million registered voters casting their ballots. The number of votes is the highest since 33.6 million voted in 1992 when Conservative leader John Major made it four general election wins in a row for the Tories.
6.37am BST 06:37 The Snap: your election briefing Claire Phipps Here we are the morning after the morning after with Theresa May still in No 10 still prime minister and still without a majority. I m Claire Phipps with your morning roundup and the last of this election s Snap briefings and the live blog to guide you through Saturday. The winners who lost It turns out that June could still be the end of May but perhaps not quite yet. The prime minister zipped off to see the Queen on Friday without quite having her own queenmakers in place. While Arlene Foster leader of the Democratic Unionist party agreed that Northern Ireland s biggest group of MPs would be holding talks with the Tories no firm deal appears to have been struck and May herself mentioned her friends and allies only fleetingly in her this is fine Downing Street address. Her new government would provide certainty the PM insisted trying gamely to give the impression that losing her majority had been the plan all along and she absolutely meant to kick herself in the head. Somehow she forgot to mention the vanished majority at all or the colleagues who had found themselves out of a job (an addendum issued later a sad-faced oops). Wiped http://thoughtforthedayquotes.hatenablog.com/ too is the Theresa May s team branding. Back in comes the official but rarely deployed Conservative and Unionist party . That title at least gives some Venn diagram overlap with the DUP but questions persist over where else they might find accommodation. Jonathan Powell chief of staff to Tony Blair at the time of the Good Friday agreement was not the only person to question what this might mean for the Westminster government s duty to be neutral in Northern Ireland especially against the backdrop of a mothballed Stormont. Given the fascination during the campaign with Lib Dem leader Tim Farron s views on gay sex and abortion it s no surprise that the same scrutiny is now turning to the 10 DUP MPs. The answers (along with a tinge of climate change denial) might be no surprise either but are causing concern among some in a Tory party already rather rattled by their leader s unnecessary electoral self-own. Ruth Davidson: I asked for a categoric assurance and I received it . Photograph: Andy Buchanan/AFP/Getty Images Scottish Conservative leader Ruth Davidson a rare cheery Tory yesterday who saw the number of MPs in Scotland spiral from one to 13 tweeted that she was a Protestant Unionist about to marry an Irish Catholic partner Jen Wilson. She said she had received categoric assurance from May that gay rights would not be harmed by a deal with the DUP: I told her there there was a number of things that count to me more than party. One of them is country one of the others is LGBTI rights and I asked for a categoric assurance that if any deal was done with the DUP there would be absolutely no rescinding of LGBTI rights in the rest of the UK and that we would try to use any influence that we had to advance LGBTI rights in Northern Ireland. Davidson also labelled as B cks her asterisks not mine this is the Guardian a claim by the Telegraph that Scotland s Tories were set to go their own way in the wake of May s hubristic result. Also going nowhere for now are five key cabinet ministers. Shuffling the deck is hard when your hand is broken. Chancellor Philip Hammond home secretary Amber Rudd foreign secretary Boris Johnson Brexit secretary David Davis and defence secretary Michael Fallon all stay put. But May s closest aides Nick Timothy and Fiona Hill described by one anonymous cabinet minister as monsters who propped her up and sunk our party might not get one of her categoric assurances. The thornier question is whether the PM s own life cycle is longer than a mayfly. An optimistic reference in her speech to her ambition to over the next five years build a country in which no one and no community is left behind could prove to contain a glaring exception. With the rightwing press darting from cheering her efforts to crush the saboteurs by calling the snap election to she s had her chips in the hours afterwards allies might be harder to find than an ordinary person at a Theresa May campaign rally. Still someone has to turn up for those Brexit negotiations 10 days from now: the talks May said she was concentrating on so much she couldn t spare the time for TV debates. The talks she said would be fronted by Jeremy Corbyn if she lost six seats (she lost 13). The losers who won A big hand: Jeremy Corbyn at Labour party HQ. Photograph: Peter Nicholls/Reuters Who d make predictions these days but chances are it won t be Corbyn at those Brexit chats. Nonetheless the Labour leader who lost the election but emerges as the closest thing to a winner insisted he was ready to serve . A euphoric day for Labour (tempered by the occasional reality check that they were not the government) was dealt an extra dollop of homemade jam on Friday night when it took Kensington the Kensington one of London s richest if not evenly spread constituencies from the Tories by an elfin 20 votes. The stream of Labour MPs confessing to their own faulty polling predictions provided extra balm to Camp Corbyn. Here s Owen Smith last year s leadership challenger: I was clearly wrong in feeling that Jeremy was unable to do this well and I think he s proved me wrong and lots of people wrong and I take my hat off to him. So where did that Labour surge come from? Memes obviously and a canny social media strategy. But beyond that the answers were complex and indicative of a shrugging of the political landscape. There was the youth and student contribution. There was the fact that the disintegration of the Ukip vote did not land plumly in the laps of the Tories but sought out Labour too. There was the Labour manifesto and the malfunctioning Conservative version. There was Wales. There was even Scotland. Talking of which Continuing the theme of the day the SNP won the most seats in Scotland and simultaneously received a thrashing. In 2015 they scooped all but three of the 59 constituencies; the others were doled out neatly one each to Labour the Conservatives and the Lib Dems. Two years later the SNP took home 35 seats saying farewell to its biggest names on the way and witnessed Labour leap up to seven the Lib Dems to four and the Tories to an eye-rubbing 13. It wasn t all about talk of another independence referendum insisted Nicola Sturgeon while conceding it undoubtedly was a factor. Her deputy John Swinney thought the prospect of indyref2 was a significant motivator saying the SNP would have to be attentive to that . Nicola Sturgeon at Bute House: I have now gone 36 hours without sleep. Photograph: Russell Cheyne/AFP/Getty Images The Lib Dems too found that the promise of another vote wasn t a huge vote-winner. Twelve seats is mathematically a chunky boost to the eight they won in 2015 (there was a brief dalliance with a ninth but with Richmond Park returning to Zac Goldsmith after just six months in Sarah Olney s hands we ll skim over that). Twelve seats is not however the party of the 48%. Then again nor was May s result argued Farron a mandate for hard Brexit. Oh and a Ukip leader resigned. Plus ça change as Paul Nuttall probably wouldn t like me to say. At a glance: Caroline Lucas is sole glimmer of light on tough night for Greens. Pound recovers after sharp falls as political turmoil hits markets. Lesley Riddoch: Have we reached peak SNP? Don t count on it. Olympic officials would resist DUP demand for Team GB to be Team UK. Catch up with the Guardian s Election Daily podcast. Read these The BBC s political editor Laura Kuenssberg assesses the mood inside the Tory party: One minister predicted that slowly and reluctantly the party might rally round her. But sentiment in the party never scientific seems to be drifting away from allowing that situation to happen. Three MPs have publicly questioned her right to stay on. One senior Conservative told me she has to go suggesting she has a responsibility to the party to get the Queen s Speech through show the Conservatives can form the government and then she ought to move aside. Other MPs are gently exploring the possibility of submitting letters to the chairman of the 1922 committee 48 would be required to trigger a leadership contest. Another former minister told me: I just can t see how she stays. Play Video 2:35 Arlene Foster: DUP will look to bring stability to UK video In the New Statesman Patrick Maguire says the Tory-DUP alliance poses a challenge to the future of Northern Ireland s devolved legislature: The closeness of the government to the DUP in the last parliament led to James Brokenshire the Northern Ireland secretary taking lines that were frankly nakedly partisan on issues such as Troubles legacy prosecutions. This like the other points of disagreement between the DUP and Sinn Féin was supposed to have been dealt with by the Stormont House and Fresh Start Agreements of 2014 and 2015. Brokenshire s posturing won him few admirers among the nationalist cohort at Westminster. If Nigel Dodds ends up wielding considerable influence over the next Tory government he will have fewer still. There is very little trust and very little goodwill left on Sinn Féin s part towards the UK government and indeed its ability to broker a deal that saves the devolved institutions. Breakthroughs of the day A record number of women were elected to the House of Commons: 208. (That s only 32% though so still plenty of patriarchy left to ruffle.) Over half of MPs in the incoming parliament went to state comprehensives which is somehow staggeringly the first time that has happened. The Sutton Trust finds 51% went to comprehensives and 29% were privately educated. And 3% of all MPs went to a single school which was drumroll Eton. Preet Gill winning Birmingham Edgbaston became the first Sikh female MP; Tanmanjeet Dhesi in Slough is the first turban-wearing Sikh MP. There are now 52 minority ethnic MPs according to thinktank British Future which called it the most diverse UK parliament ever . And there is also a record number of LGBTQ MPs: at least 45. The day in a tweet Police Community (@PolComForum) Dear Theresa it s not the number of MPs that counts it s how you use them. You have to do more with less that s all June 9 2017 And another thing Like the snap election itself the Snap email briefing is now over. Console yourself by signing up here for the Guardian morning briefing instead; you can read the latest edition here. And one last thing Unlike many news organisations the Guardian hasn t put up a paywall we want to keep our journalism as open as we can. The Guardian s independent investigative journalism takes a lot of time money and hard work to produce. Here s how you can support it. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 6.17am BST 06:17 Today s Guardian editorial says Theresa May misjudged the electorate and a lot of people misjudged Jeremy Corbyn: What Mrs May and many others did not see was the mood for change among the British people. After seven years of fiscal austerity with deep cuts in public services and a steady fall in real wages millions of voters wanted a better and fairer way for Britain. Mrs May herself partially understood that as her embrace of the just-about-managing and her disapproval of greedy City executives showed. But she failed to turn those words into deeds. Instead she campaigned as an inflexible ironclad spurning debate parroting inane slogans insulting her opponents and botching her manifesto launch. It was an emotionally unintelligent campaign. At times it verged on the delusional and hubristic. And it ruthlessly exposed Mrs May s many failings Yet just as Mrs May squandered her advantage so Mr Corbyn seized his. He offered hope fairness and a better Britain. The party s ambiguity on Brexit one perhaps of accident rather than design helped attract ex-Ukip voters while simultaneously keeping remainers on board. It was all delivered by a leader who surprised not just the electorate but probably also himself with the warmth of the response to his authenticity and honesty. On the campaign trail and in the interview studio Mr Corbyn displayed all the empathy that Mrs May so singularly lacked. By the end of the campaign Labour was a revived and effective party. It was rewarded by a surge in votes that carried it to a 40% share of the ballots cast for the first time since 2001. Those who said Mr Corbyn was unelectable look foolish today. Although much uncertainty still exists about the party s capacity to work together Labour must try to do so. There must be a recognition that this is Mr Corbyn s party now. The Guardian view on the 2017 election result: a call for a different Britain | Editorial Read more Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 6.00am BST 06:00 It wasn t quite the Oscars La La Land/Moonlight fiasco but the announcement of the wrong winner as the Tories took Mansfield was results night s biggest gaffe (if you don t include calling a snap election in which the governing party loses its majority): Wrong election winner announced in Mansfield video Updated at 6.04am BST Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 5.30am BST 05:30 Richard Adams For the first time more than half of MPs elected to the House of Commons were educated in state comprehensive schools according to a round-up of MPs educational backgrounds published by the Sutton Trust. The new parliament will have 51% of MPs educated at comprehensives compared with less than half in 2015 while the proportion of MPs who were privately educated falls to 29%. Two-thirds of Labour MPs went to comprehensives along with 38% of Tory MPs. The shift comes as the Conservative party struggles with its manifesto commitment to open new grammar schools in England. The policy was pushed by Nick Timothy May s adviser but it failed to impress voters and was downplayed during the election campaign. Almost nine out of 10 of MPs are graduates with 23% having Oxbridge degrees and 29% attending other Russell Group universities. Oxford with 98 alumni in the House has almost double Cambridge s 52. Sir Peter Lampl founder of the Sutton Trust said: If parliament is to truly represent the nation as a whole able people from all backgrounds should have the opportunity to become MPs. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 5.11am BST 05:11 While Theresa May will find in the DUP agreement on Brexit they are pro although Northern Ireland as a whole voted 56% to remain in the EU there could be flashpoints on other issues. The DUP manifesto made commitments to retain the pensions triple lock and universal winter fuel allowance both of which the Tories pledged to scrap. DUP leader Arlene Foster said she would resist any assault on the universal benefit in Northern Ireland. Updated at 5.11am BST Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 4.47am BST 04:47 Matthew Weaver Bernie Sanders has congratulated Jeremy Corbyn on Labour s performance in the general election. The Vermont senator who narrowly failed to win his bid for the Democratic nomination against Hillary Clinton in the 2016 race for the White House said he had watched the UK results coming in on Thursday and was very pleased about the party s showing. I am delighted to see Labour do so well the Vermont senator said in a Facebook post linking to a Guardian news story. He went on: All over the world people are rising up against austerity and massive levels of income and wealth inequality. People in the UK the US and elsewhere want governments that represent all the people not just the 1%. I congratulate Jeremy Corbyn for running a very effective campaign. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 4.28am BST 04:28 The Times editorial today is damning. Usually paywalled the editor has helpfully tweeted out a copy of the leader column that calls the current situation a national emergency : The Conservatives calamitous showing in the election has left Britain effectively leaderless at a moment when its fate depends on leadership. This crisis has been years in the making. Mrs May s party believes that government is in its DNA. Yet it has failed to win a majority in five of the past six general elections and it has left the country all but ungovernable as a consequence of two extraordinary miscalculations. The first of these was David Cameron s decision to proceed with a European referendum from which he had expected to be spared by continued coalition with the Liberal Democrats despite his failure to win from Brussels a meaningful renegotiation of Britain s relationship with the EU. The second was Mrs May s decision to call a snap election against the advice of her chief political consultant with a manifesto described by the former chancellor George Osborne as the worst in the party s history. Mrs May is now fatally wounded. If she does not realise this it is another grave misjudgment. More likely she is steeling herself to provide what continuity she can as her party girds itself for an election to replace her. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 4.03am BST 04:03 The poet laureate Carol Ann Duffy has written a poem for the election entitled Campaign. It appears on the front page of the Guardian this morning: In which her body was a question-mark querying her lies; her mouth a ballot-box that bit the hand that fed. Her eyes? They swivelled for a jackpot win. Her heart was a stolen purse; her rhetoric an empty vicarage the windows smashed. Then her feet grew sharp stilettos awkward. Then she had balls believe it. When she woke her nose was bloody difficult. The furious young ran towards her through the fields of wheat. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 3.44am BST 03:44 Anushka Asthana and Rowena Mason report that cabinet ministers and a string of Conservative MPs are demanding that Theresa May sacks one or both of her closest advisers: Several politicians told the Guardian that Fiona Hill and Nick Timothy who act as the prime minister s joint chiefs of staff in Downing Street must take responsibility for the poor result which saw the Tories lose their majority. The pair were at the centre of recriminations flying back and forth between MPs on WhatsApp groups and even resulted in one cabinet minister branding the pair as monsters who propped her up and sunk our party . Much of the anger centred on a manifesto policy on social care drawn up by Timothy along with Ben Gummer the Cabinet Office minister who lost his seat and policy chief John Godfrey which resulted in a humiliating U-turn that tightened the polls. When asked whether she was planning any personnel changes May said she was focusing on forming a government but said those matters were for another day. Nick Timothy and Fiona Hill leave Conservative Party headquarters on Friday. Photograph: Frank Augstein/AP Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 3.23am BST 03:23 The White House has issued a readout of the call between US president Donald Trump and Theresa May. It offered no explicit congratulations though it mentioned warm support for the PM: President Donald J Trump spoke today with prime minister Theresa May of the United Kingdom to offer his warm support regarding the election. President Trump emphasised his commitment to the United States-United Kingdom special relationship and underscored that he looks forward to working with the prime minister on shared goals and interests in the years to come. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 3.00am BST 03:00 Speaking on Friday to BBC Radio 4 s The World at One Jonathan Powell Tony Blair s chief of staff at the time of the Good Friday agreement said a deal with the DUP could threaten the peace process in Northern Ireland: I do think it s a mistake to go into government with the support of our friends in the DUP. Even John Major avoided doing that and the reason he avoided that is the peace process is based on a balance that the British government has made it clear it is neutral in Northern Ireland it doesn t take sides. Once you have their support you are no longer neutral. It matters for two big reasons. First we haven t managed to get the executive back up and running in Northern Ireland because of divisions between the two sides. The British government were trying to mediate between the two sides to get an administration up and running again and of course now it can t possibly have that role of mediating. And secondly I think it s a mistake because one of the big issues in the Brexit negotiations is the border between north and south. Now the DUP is a minority in its view about Brexit it s in favour of Brexit. This is going to be a very real problem. Whatever you put on a piece of paper you re living there with a minority government. That s dependent on the DUP. You get to a crucial issue and then they say: Remember what we want in terms of talks in Northern Ireland and the government has a choice. Do they say: We re not giving you that. We ll let the government collapse ? Or do they just bend a little on that issue it s just one small issue it doesn t matter? But beyond that the government can t possibly be seen as neutral on Northern Ireland now if it puts itself at the mercy of the DUP. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 2.38am BST 02:38 Nicola Slawson Labour has staged a major upset by taking Kensington one of the wealthiest constituencies in London from the incumbent Conservative candidate Victoria Borwick in a dramatic result 24 hours after polling closed. Emma Dent Coad the Labour candidate and local councillor overturned Borwick s 7 000 majority by just 20 votes. She took 16 333 (42.23%) of the vote compared with Borwick s 16 313 (42.18%) representing a swing of 11.11% to Labour. After the second count in the early hours officials were sent home to rest before the third and final count began at 6pm on Friday evening. Labour s Emma Dent Coad speaking after she was elected as MP for Kensington. Photograph: Rick Findler/PA Supporters for all the candidates made their way back to the Kensington town hall for the count although there was notably more supporters for Dent Coad. The Conservatives were said to have accepted they had not won earlier on Friday. There were also hints of the contest being a bitter fight between rich and poor with Borwick seen to represent the richer members of the constituency and Dent Coad the poorer. Borwick promised that the fight to win the seat back would begin on Saturday. The atmosphere was electric and emotional outside the hall where about 40 members of local community groups from some of Kensington s most marginalised neighbourhoods were waiting to give Dent Coad a hero s welcome as she walked out to greet them. After chanting her name the crowd fell silent to hear their new MP speak. She told them: Kensington has spoken. Always speak out never be silent again. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 2.15am BST 02:15 Claire Phipps Welcome to our fresh live blog as Saturday looms with Theresa May still in 10 Downing Street still prime minister but with an uncertain day week and month(s) ahead. On Friday in the wake of an election that wiped out her own majority a defiant May insisted she could provide certainty with a minority Conservative government relying on support from Northern Ireland s Democratic Unionist party and its 10 MPs. But her initial failure to recognise the scale of the setback or to commiserate with colleagues who had lost their seats in what many Tories see as an unnecessary electoral gamble has caused further irritation in the ranks. The prime minister was forced to address this in a later statement in which she did acknowledge that all was not rosy: I wanted to achieve a larger majority. That was not the result we secured. And I m sorry for all those candidates and hard-working party workers who weren t successful but also for those colleagues who were MPs and ministers and contributed so much to our country and who lost their seats and who didn t deserve to lose their seats. She also confirmed that her top five cabinet ministers chancellor Philip Hammond home secretary Amber Rudd foreign secretary Boris Johnson Brexit secretary David Davis and defence secretary Michael Fallon would stay in their roles. But pressure is growing on May to step aside herself or to sack her two key advisers Nick Timothy and Fiona Hill to whom many in the party attribute the car-crash campaign performance. We will have live updates on the live blog throughout Saturday. Join us in the comments or find me on Twitter @Claire_Phipps. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close
Theresa May has pledged to form a new government to lead Britain out of the European Union despite losing her majority in a snap general election and facing calls to resign. Seeking to capitalise on high popularity ratings the Conservative Party leader and prime minister called for a snap election despite her initial pledges not to urging voters to give her a stronger mandate to lead the UK s Brexit ngotiations. What the country needs more than ever is certainty May said on Friday https://challenges.openideo.com/profiles/592fd7ad9cc23a57898acea81496307634622 after the outcome of Thursday s vote. She had called the election in an effort to extend her majority and strengthen her hand in the looming Brexit negotiations but her gamble backfired spectacularly. READ MORE: UK election live updates May s Conservative Party won 319 seats in the House of Commons the UK s lower chamber of parliament landing seven seats short of a majority. In the 2015 general election the Conservatives had won 331 seats. None of the other parties that stood for election managed to surpass the majority threshold resulting in a British hung parliament. The Labour Party landed 261 seats up 29 seats since the last election a major gain for Jeremy Corbyn who no one expected to deliver such a stellar performance. Mandate from the queen May who received a mandate from Queen Elizabeth II to form a new government was forced to rely on Northern Ireland s Democratic Unionist Party s (DUP) 10 seats in parliament to pass legislation. It is clear that only the Conservative and Unionist Party has the legitimacy and ability to provide that May said in a short speech at 10 Downing Street. This will allow us to come together as a country and channel our energies towards a successful Brexit deal. Downing Street has confirmed that some members of the cabinet will hold on to their posts. Chancellor of the Exchequer Philip Hammond Home Secretary Amber Rudd Foreign Secretary Boris Johnson Secretary of State for Exiting the European Union David Davis and Defence Secretary Sir Michael Fallon will be part of May s new government. What does Theresa May stand for? Corbyn called on May to resign after she lost her majority in parliament. The prime minister called this election because she wanted a mandate Corbyn said at the vote count in his constituency. Well the mandate she s got is lost Conservative seats lost votes lost support and lost confidence. I would have thought that s enough to go actually and make way for a government that will be truly representative of all of the people of this country. Labour Shadow chancellor John McDonnell suggested his party could form a minority government. We have laid the foundations for a minority government and then eventually a majority government he told the BBC. Tim Farron the leader of the Liberal Democrats joined the ranks of those demanding May to step down. Progressive alliance A so-called progressive alliance between Labour the Scottish National Party the Liberal Democrats Plaid Cymru and the Greens would have 313 seats. For its part the EU urged May on Friday to start Brexit talks as quickly as possible but warned of complications ahead. Donald Tusk European Council president said the urgent task was to conduct talks in the best possible spirit and minimise disruption for citizens and businesses. READ MORE: May s demagogic streak and the hypocrisy of the media Britain and the EU are at odds over almost every detail of the Brexit process but European officials had hoped a strong win for May would make it easier to override domestic opposition and compromise. The fact that May was forced to rely on the DUP in parliament further complicates Brexit negotiations for her. While the DUP favoured the UK s break from the EU the party opposed a so-called hard Brexit and insisted that free trade with the 27 country bloc and safeguarding the rights of EU nationals in Britain are among its priorities. Corbyn celebrates Labour s surprising result with Shadow Foreign Secretary Emily Thornberry Darren Staples/Reuters Source: News agencies
What Theresa May said: I have just been to see Her Majesty the Queen and I will now form a government. What she meant: I have made a terrible mistake and I am not going to admit it. What she said: A government that can provide certainty and lead Britain forward at this critical time for our country. What she meant: A government that will clear up after itself. The situation is critical because I called an election when I shouldn t have but I will now go into the reactor core and sort it out. What she said: This Government will guide the country through the crucial Brexit talks that begin in just 10 days and deliver on the will of the British people by taking the United Kingdom out of the European Union. What she meant: The Government not necessarily led by me. I tried to make the election all about me and you didn t like it so I am trying another tack. I am just one of the team. But seriously you think Boris could do better? Theresa May to remain Prime Minster after forming government with DUP What she said: It will work to keep our nation safe and secure by delivering the change that I set out following the appalling attacks in Manchester and London cracking down on the ideology of Islamist extremism and all those who support it. And giving the police and the authorities the powers they need to keep our country safe. What she meant: National security. Me. Safe. Not her Amber she just does what I say. Or him David Davis SAS man. He is in Brussels making sure there are sharpened pencils for the meeting. National Security. Me. Safe. What she said: The Government I lead will put fairness and opportunity at the heart of everything we do so that we fulfil the promise of Brexit together and over the next five years build a country in which no one and no community is left behind. What she meant: You thought I was going to announce I would be standing down as soon as a successor is elected. Absolutely right: in five years time. What she said: A country in which prosperity and opportunity are shared right across this United Kingdom. What she meant: The only reason socialism hasn t worked is that it has never really been tried. Read more Theresa May s incompetence has set women back What she said: What the country needs more than ever is certainty and having secured the largest number of votes and the greatest number of seats in the general election it is clear that only the Conservative and Unionist Party has the legitimacy and ability to provide that certainty by commanding a majority in the House of Commons. What she meant: It is a total disaster but if you think I m going to start apologising think again. I got the most votes and seats. It is not a win but I m at this lectern and you try to take it away from me. What she said: As we do we will continue to work with our friends and allies in the Democratic Unionist Party in particular. Our two parties have enjoyed a strong relationship over many years and this gives me the confidence to believe that we will be able to work together in the interests of the whole United Kingdom. What she meant: I ve done a deal with Arlene although she will tell her Free Presbyterians that she is negotiating hard with me and thinks it may be possible to get what they want (pork barrel mostly). What she said: This will allow us to come together as a country and channel our energies towards a successful Brexit deal that works for everyone in this country securing a new partnership with the EU which guarantees our long term prosperity What she meant: I have divided the country as never before and will channel my energies into horse-trading to try to stay in power. Minnie Driver s joy as Theresa May s future hangs in balance What she said: That s what people voted for last June. What she meant: They voted for me. Well they voted to get rid of David Cameron. Same thing. What she said: That s what we will deliver. What she meant: Me. More of me. Until at least Monday. What she said: Now let s get to work. What she meant: No questions. More about: General Election 2017 Theresa May DUP hung parliament Conservative Reuse content
A chastened Theresa May is attempting to move on from her botched election gamble under intense pressure from members of her own cabinet and Tory backbenchers to dramatically improve her game. The Prime Minister spent the day in difficult conversations with senior ministers whose support she now desperately needs despite having likely planned to sack some just 48 hours ago when she expected to win the election outright. The Independent understands a key issue raised was that of the role of her two most senior aides Fiona Hill and Nick Timothy who many Tories see as having undue power at the centre of government. Read more Heidi Allen says Theresa May will be gone in six months Ahead of what is promising to be a bruising meeting with Tory backbenchers next week MPs publicly questioned Ms May s position and her campaign with one even branding it madness while others demanded changes to her Brexit strategy and raised concerns about a deal with the Northern Irish DUP. Government sources also told The Independent Ms May s need to win the unionists support to govern could cause her problems in Westminster as it may commit her to spending on public services in Ulster that she cannot replicate elsewhere. In contrast Jeremy Corbyn s position as Labour leader appeared rock-solid with former critics admitting his more open and engaging campaign had been an effective foil to Ms May s stale stage-managed appearances. Going into the election reports emerged of Ms May s post-vote plans to reshuffle her top team with prominent figures like Chancellor Philip Hammond Brexit Secretary David Davis and Foreign Secretary Boris Johnson either facing the sack or being moved. But the tables were turned after Ms May s credibility was damaged following the election result which saw the Tories lose 12 seats eight held by ministers. By Friday morning it was the Prime Minister s job in question. Just after 5pm Downing Street confirmed Mr Hammond Mr Johnson Mr Davis Home Secretary Amber Rudd and Defence Secretary Michael Fallon had all retained their posts. Allies of Mr Johnson s denied reports he had been on manoeuvres to replace Ms May and said along with colleagues that the top ministers primary concern was to ensure the stability of the Government going into Brexit talks. But The Independent understands other concerns were raised about the handling of the campaign and the role of Ms May s all-powerful aides who some blame for its failures. In particular the humiliating U-turn on a social care policy said to have been dropped into the manifesto at the last minute without proper consultation. A source said: It was raised. Theresa is Prime Minister and it s right that she grasps the nettle of difficult policy but there is a wisdom to not doing detailed stuff in the middle of campaign that was lost. The criticism was not reserved to the Cabinet. One ousted MP who had been a minister Rob Wilson said of the social care U-turn: Looking back on it it was madness to do it particularly as it had never as I understand it been floated before. General Election 2017: Big beasts who lost their seats 7 show all General Election 2017: Big beasts who lost their seats 1/7 Nick Clegg Nick Clegg delivers a speech despite losing the Sheffield Hallam Seat Darren O Brien 2/7 Gavin Barwell Getty Images 3/7 Angus Robertson 4/7 Nicola Blackwood Nicola Blackwood said the UK spent much less than competitors such as Germany and the US PA 5/7 Alex Salmond Former First Minister Alex Salmond is standing for reelection in the constituency of Gordon Scotland PA 6/7 Rob Wilson Rex Features 7/7 Ben Gummer PA By Friday afternoon two MPs Anna Soubry and Heidi Allen had already questioned the Prime Minister s chances of remaining in post in radio and television interviews. On Tuesday the Conservative backbench 1922 Committee will meet where all angry backbenchers will interrogate Ms May over her failures. One MP said: If she s got sense and I think she does she will want to come and explain herself get over the pain and difficulty and try and get people behind her. Another backbencher commented: MPs have already been receiving mail from constituents about a possible coalition with DUP and what that might mean. There s an issue with LGBT rights and there will be a full and frank exchange. At lunchtime on Friday Ms May gave a workmanlike speech outside Downing Street setting out her plans for a DUP deal but failing to acknowledge the problems with her campaign. In an apparent effort to ensure MPs saw her showing contrition she later did an interview giving a full apology to those who lost seats. A visibly nervous Prime Minister said: I am sorry for those candidates and hard-working party workers who weren t successful but also particularly sorry for those colleagues who were MPs or ministers who had contributed so much to our country and who lost their seats and didn t deserve to lose their seats. She went on to promise that in the wake of her losses she would reflect on what we need to do in the future to take the party forward . Who are the DUP? Former Cabinet minister Baroness Warsi also questioned a deal with the DUP tweeting: Short term political gain will lead to long term toxic Conservatives brand on #climatechange #LGBT rights #abortion and other imp issues. After frantic consultations with DUP leader Arlene Foster the Prime Minister headed to Buckingham Palace to seek the formal permission of the Queen to form a new government returning to No 10 to announce she had the legitimacy to continue in office. Senior DUP figures made clear they were looking at a limited confidence and supply http://thoughtforthedayquotes.kinja.com/thought-for-the-day-quotes-pdf-things-can-make-about-yo-1795712873 arrangement rather than a more formal coalition leading to some MPs to predict that there could another general election before the year is out. Read more Britain s election result sends tremors through special relationship Theresa May apologises to Tory MPs who lost their seats in the general Gambler loses 70 000 on unlosable general election bet One government source told The Independent that their demands were likely to be for more money with infrastructure and services likely to be at the top of the party s wish-list. Asked if giving favoured spending to Northern Ireland might be a problem elsewhere the source said: It doesn t matter. They ll do it It s only a small nation in the grand scheme of things. The DUP are experts at playing this game. They know exactly what they want but are never going to get too close to us. More about: Theresa May General Election 2017 Jeremy Corbyn DUP Boris Johnson Reuse content

India's plan to develop key Iranian port faces US headwinds

NEW DELHI: Western manufacturers are shying away from supplying equipment for an Iranian port that India is developing for fear the United States may reimpose sanctions on Tehran Indian officials say dealing a blow to New Delhi s strategic ambitions in the region. Lying on the Gulf of Oman along the approaches to the Straits of Hormuz the port of Chabahar is central to India s hopes to crack open a transport corridor to Central Asia and Afghanistan that bypasses Pakistan. India committed 500 million to speed development of the port after sanctions on Iran were lifted following a deal struck between major powers and Tehran to curb its nuclear programme in 2015. But the state-owned Indian firm that is developing Chabahar is yet to award a single tender for supplying equipment such as cranes and forklifts according to two government sources tracking India s biggest overseas infrastructure push. US President http://thoughtforthequotes.deviantart.com/ Donald Trump denounced the nuclear agreement on the campaign trail and since taking office in January has accused Iran of being a threat to countries across the Middle East. Swiss engineering group Liebherr and Finland s Konecranes and Cargotec have told India Ports Global Pvt Ltd which is developing the deep water port they were unable to take part in the bids as their banks were not ready to facilitate transactions involving Iran due to the uncertainty over US policy the two officials said in separate conversations with Reuters. These firms dominate the market for customised equipment to develop jetties and container terminals. One official said the first tender was floated in September but attracted few bidders because of the fear of renewed sanctions. That fear has intensified since January. Now the situation is that we are running after suppliers one official said speaking on condition of anonymity because of the sensitivity of matter. A Konecranes spokeswoman declined to comment beyond confirming the company was not involved in the project. Cargotec and Liebherr did not respond to requests for comment. Some tenders have been floated three times since September because they failed to attract bidders. A Chinese firm ZPMC has since come forward to supply some equipment the same Indian official said. Threat of sanctions Trump has called the agreement between Iran and six major world powers restricting Tehran s nuclear programme in exchange for lifting of sanctions the worst deal ever negotiated . Last month his administration extended relief on Washington s broadest and most punitive sanctions while carrying out a wider policy review on how to deal with the Islamic Republic. Uncertainty over US policy is already causing long delays in contracts that Iran has sought with international firms to develop its oil fields and buy planes for its ageing airlines. The lifting of United Nations and European Union sanctions in 2016 partly reconnected Iran with the international financial system crucial to trade. But large international bankers with exposure to the United States remain unwilling to facilitate Iranian deals for fear of running afoul of narrower unilateral US sanctions that remain outside the nuclear deal and uncertainty over whether wider sanctions relief will continue. India s ambassador to Iran said the process of procuring equipment for the Chabahar port was under way and that some of the customised cranes needed take up to 20 months to build. The banking situation was slowing improving he added. Tenders are re-floated for a variety of reasons including technical specifications not being met etc. Banking channels in recent months have in fact somewhat eased Saurabh Kumar said in an emailed response to Reuters from Tehran. If some companies do not participate it really is their business. India has been pushing for the development of Chabahar port for more than a decade as a hub for its trade links to the resource-rich countries of central Asia and Afghanistan. Access to those countries is currently complicated by India s fraught relationship with Pakistan. Bureaucratic delays difficult negotiations with Iran and the risk of incurring Washington s displeasure during the financial embargo in Tehran had meant there was little progress on the port until now. But prodded in part by China s development of Gwadar port which lies barely 100 km (60 miles) from Chabahar on the Pakistani coast Prime Minister Narendra Modi s government has unveiled massive investment plans centred around the Iranian port offering to help build railways roads and fertiliser plants that could eventually amount to 15 billion. So far even an initial credit line of 150 million that India wants to extend to Iran for development of Chabahar has remained a non-starter as Tehran has not been able to do its part of work. They have not sought the loan from us because they haven t awarded the tenders either because of lack of participation or banking problems said the second government official. Ambassador Kumar said the Iran had indicated it would be sending proposals shortly to tap the credit line. Meena Singh Roy who heads the West Asia centre at the Institute for Defence Studies and Analyses a New Delhi think-tank said increasing tension between Washington and Tehran would have an impact on the port project. The Chabahar Project has strategic significance for India she said. However ... nothing much seems to be moving due to new uncertainties in the region.
Photo Mourners attended a funeral in Tehran on Friday for some of the victims of two attacks by terrorists aligned with the Islamic State. Credit Ebrahim Noroozi/Associated Press TEHRAN The Iranian authorities arrested 41 people Friday in connection with the twin terrorist attacks in Tehran this week the semiofficial Fars News Agency reported as evidence mounted that Iranian Kurds affiliated with the Islamic State had carried out the assault.The men who made their way through the Parliament building on Wednesday shooting assault rifles throwing grenades and searching for a way into the main hall were probably Iranian Kurds security sources say though only one has been identified. One of the two assailants at a shrine is understood to be an Iranian Kurd the security sources said.The Ministry of Intelligence identified one gunman Serias Sadeghi as an Iranian Kurd from the city of Paveh in the country s west near the Iraqi border. In 2014 the Democratic Party of Kurdistan Iran an opposition party published a report about increasing Islamic State activities in Iranian Kurdistan that singled him out as a prominent recruiter who at times held sessions in a local mosque.One website KhabarDena.Ir on Friday quoted Mamusta Molla Ghader Ghaderi a community leader from Paveh as saying that some of the attackers were from there. Continue reading the main story
MEXICO CITY - German Chancellor Angela Merkel said on Friday she was concerned about the situation in Qatar adding that all Gulf nations and also Iran and Turkey should work together to find a solution to the regional dispute. Merkel who was speaking in Mexico City alongside Mexican President Enrique Pena Nieto said it would be impossible to sort out the situation unless all regional actors were involved citing Iran Turkey and Qatar. U.S. President Donald Trump on Friday accused Qatar of being a high-level sponsor of terrorism potentially hindering the U.S. Department of State s efforts to ease heightening tensions and a blockade of the Gulf nation by Arab states and others. Arab states tightened their squeeze on Qatar by putting dozens of figures with links to the country on terrorism blacklists while its ally Turkey rushed to its side with plans to send troops. The Pentagon said the blockade was hindering U.S. ability to plan for long-term operations in the region. Al Udeid Air Base in Qatar is home to more than 11 000 U.S. and coalition forces and an important base for the fight against Islamic State. It is the U.S. Air Force s largest base in the region. U.S. Secretary of State Rex Tillerson said he expected all parties to find a resolution.
Qatar is in discussions with Iran and Turkey about securing food and water supplies to stave off possible shortages two days after its biggest suppliers the United Arab Emirates and Saudi Arabia cut trade and diplomatic ties a government official said on Wednesday. We are in talks with Turkey and Iran and other countries said an official who spoke to Reuters news agency on condition of anonymity due to the sensitivity of the subject adding that the supplies would be brought in through Qatar Airways cargo flights. The official said there were enough grain supplies in the market in Qatar to last four weeks and that the government also had large strategic food reserves in Doha. The head of Turkey s main exporting trade body told Reuters on Wednesday that Turkish exporters are ready to meet the demand for food and water in Qatar. READ MORE: Qatar-Gulf crisis - Your questions answered Saudi Arabia the https://www.3dartistonline.com/user/thoughtforquotes United Arab Emirates (UAE) Egypt and Bahrain severed relations with Qatar and closed their airspace to commercial flights on Monday charging it with financing militant groups. Qatar vehemently denies the accusations. This is the worst split between powerful Arab states in decades. The moves isolating Qatar are disrupting trade in commodities from crude oil to metals and food and deepening fears of a possible jolt to the global gas market where the Gulf state is a major player. What s behind the diplomatic breakdown in the Gulf? Food imports are affected as Saudi Arabia closed its land border with Qatar stranding thousands of trucks carrying supplies. Qatar a country heavily dependent on food imports to feed its mostly foreign population of 2.6 million has assured residents it has taken measures to ensure that normal life continues. The Ministry of Economy and Commerce released a video on Tuesday that showed supermarket shelves stocked with food and other goods after citizens and residents crowded into stores on Monday to stock up fearing shortages. Qatar s ports and airports remained open to trade with countries not taking part in the Saudi-led boycott on Wednesday a government official said. We have no problem with food supplies Qatar s foreign minister told CNN on Tuesday. We have strategic reserves in place since 2014 we don t see that life will be affected. Although Qatar is located in a volatile region of the world its huge foreign currency reserves and comparatively small population mean arranging adequate new sources of food imports in an emergency is possible. Support from Turkey Mehmet Buyukeksi the head of Turkey s main exporting trade body Turkish Exporters Assembly (TIM) told Reuters on Wednesday that Turkish exporters are ready to meet the demand for food and water in Qatar. Al Jazeera s Sinem Koseoglu reporting from Istanbul said the Turkish government and some opposition parties had expressed support for Qatar during the rift and had said its isolation was not acceptable. Since the tension between Qatar and other Gulf states has risen Turkey has shown great support for Qatar - not only on a political level but on a public level as well she said. On the public level social media has been showing great support to Qatar with the hashtag Qatar is not alone she said. Pro-Qatar protests are also planned in Istanbul for Wednesday night. OPINION: The GCC will ride out the storm Koseoglu also said there were reports that legislation to deploy Turkish troops to Qatar first agreed in May could be fast-tracked through Turkey s parliament on Wednesday night. Turkey is a key ally of Qatar and is setting up a military base in the country which also hosts the largest US airbase in the Middle East Al-Udeid. Meanwhile Iranian Foreign Minister Mohammad Javad Zarif arrived in Turkey on Wednesday saying there was a need for close discussions with Turkish officials on worrying developments in the region. Zarif was scheduled to meet President Recep Tayyip Erdogan and Foreign Minister Mevlut Cavusoglu for talks on bilateral and regional issues Turkish officials said. Iran shares access with Qatar to the world s biggest natural gas field.Source: Al Jazeera and news agencies
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NEW DELHI: The key Iranian port of Chabahar where India has a key stake is not only being expanded as a gateway to Afghanistan but also being considered as an entry point to Central Asia following Hassan Rouhani s re-election as the Iranian President. Tehran is considering a plan to link the strategically-located Chabahar port with various intra-Central Asia transport corridors. Chabahar currently connects India with Afghanistan through road and plans are on by Tehran to build rail link with Delhi s support. The Rouhani government s plan to also link Chabahar with various Central Asian transport corridors will open up a second route for India s outreach to landlocked Central Asia apart from International North-South Transportation Corridor (INSTC) that also passes through Iran. The subject among other bilateral issues may come up for discussion if Rouhani meets Prime Minister Narendra Modi for a pull aside on the sidelines of the Shanghai Cooperation Organisation (SCO) Summit in Astana on Friday. No structured meeting between the Iranian President and the Indian PM is on the cards in Astana so far. India has been among the first countries to condemn terror attack in Tehran on Wednesday when Foreign Minister Sushma Swaraj telephoned her Iranian counterpart. India too has been considering to link INSTC with various intra-Central Asian connectivity corridors besides making Chabahar port another entry point for INSTC. Currently the Iranian port of Bandar Abbas is the entry point for INSTC that will link India with Russia Eurasia and Europe. On Monday Swaraj denounced misgivings regarding delay in India s role in expanding Chabahar port and asserted that work on the project has gathered momentum. Iran for centuries has been the hub for connectivity links for countries of Asia and Europe including India. Connectivity is one of the key strengths of Iran and President Rouhani is keen to boost all connectivity initiatives through the country. This is a priority sector for Iran and India s role is vital in the connectivity initiatives. Chabahar will not only be gateway to Afghanistan but the plan is to also make it a gateway to Central Asia a top official of the Iranian government told ET. The Chabahar port project was discussed during Foreign Secretary S Jaishankar s visit to Tehran last month. Tehran has offered Delhi a proposal to manage phase one of the port built by Iran even as the two sides are still negotiating terms and conditions of Delhi s role in expanding phase two of the port where the Modi government has announced to invest Rs 150 crore or 235 million. ET has learnt that Tehran has offered Delhi management rights for two years for phase one of the port and such rights could be renewed by another decade. India s allotment of 235 million for phase two of Chabahar is divided into two parts 150-million Line of Credit (LoC) from the EXIM Bank for development of the port complex and 85 million allotted later following contract between the two sides for the supply of equipment to develop two berths in the port complex. A special purpose vehicle has been created by the Indian shipping ministry for development of phase two of the port. On the Iranian side Ports and Management Organisation is the nodal authority for implementing the project. India has been given the rights to operate two berths and few terminals in this phase two of the port. India is eyeing thriving free-trade zone in Chabahar to make the port viable indicated a person familiar with the development.The pound fell dramatically against a host of other currencies on Friday as Britain headed for a hung parliament. Sterling lost as much as 2.3 per cent against the US dollar in the morning before paring back to trade 1.7 per cent down on the day at 1.2734 by the end of London trading. The FTSE 100 main stock index gained 1 per cent on Friday though strategists warned that the result would likely plunge domestic politics into deep uncertainty and raise major questions around Brexit. Brexit talks are now likely to be even more unsettling for markets and the prospect of another election raises the risk of a delay potentially leaving the UK without a negotiated exit settlement said Mark Haefele from UBS Wealth Management s chief investment office. Although we believe the pound had already priced in much of the hard Brexit risk before this vote the currency will continue to experience volatility through the governmental and Brexit talks. Read more Brexit thrown into doubt as Theresa May s election gamble backfires The FTSE 100 has in recent months tended to trade higher when the pound falls as a result of its high international exposure but analysts said that significant uncertainty now would likely lead to investors turning cautious on any and all UK assets. Jameel Ahmad vice president of market research at currency exchange broker FXTM said this looks like another example of traders being on the wrong side of the trade after heavily stacking their cards in favour of a landslide victory for Theresa May when pricing in the UK election . Neil Wilson an analyst at ETX Capital said the outcome had the potential to be the biggest upset in British politics since last June when the UK voted to leave the EU. Immediately after the referendum sterling sank 10 per cent against the dollar taking the currency down to its weakest level in more than three decades. With all but one seat declaring the Conservatives are the largest party with 318 seats a loss of 12 seats and eight short of the 326 required for a parliamentary majority. Labour gained 29 seats to 261 while the Scottish National Party finished on 35 seats the Lib Dems 12 Plaid Cymru on four and the Greens one. Read more Jeremy Corbyn increases his majority by 10 430 votes Tories would lose mandate to leave single market if they lose majority Labour hold onto seat where Theresa May launched campaign Commenting on the earlier exit poll which closely mirrored the actual result Samuel Tombs an economist at Pantheon said it was a thunderbolt for financial markets. Theresa May s electoral gamble has catastrophically failed said Tom Stevenson an investment director at Fidelity International. The market reaction to this unwelcome outcome is likely to hit UK shares bonds and the pound. Markets will likely remain on the back foot while the difficult job of putting together a workable government is undertaken. More about: 2017 General Election Theresa May Brexit British Pound Sterling Reuse content The prospect of a softer Brexit could support the value of the pound despite rampant fears of political instability in the wake of the Conservative party s electoral disaster according to City of London analysts. Sterling shed almost 2 per cent against the dollar to 1.2731 immediately after the bombshell exit poll was published at 10pm on Thursday night and fell as low as 1.2664 on Friday morning - putting the currency on course for its biggest drop since last October. It recovered slightly in the afternoon to trade at 1.2727 after Ms May said she would continue to govern with the support of the 10 MPs of the DUP Read more The British economy was the big winner of last night s election When we saw reports that May was going to stay on as Prime Minister at about 8am sterling dropped. This is suggestive of a perception in the market that with May having lost her majority a soft Brexit is again a possibility said Jane Foley head of FX Strategy at Rabobank International. She pointed out that the DUP has made it clear that it does not want to see trade obstructed on the Irish land border by new customs checks which would seem to rule out a cliff-edge Brexit in 2019 where the UK leaves with no customs or trade arrangements in place and simply falling back on World Trade Organisation WTO rules. Sterling hasn t weakened to the sorts of levels that many were talking about if there was a hung parliament which suggests that this perception that a soft Brexit is a bit more likely is coming into the fray she added. Supported by hope? Reuters Eikon The election result has reduced the likelihood of a hard Brexit which is economically positive for the UK and Europe agreed Mark Burgess of Columbia Threadneedle Investments. A softer approach to Brexit could see potential structural support for sterling down the line. It seems reasonable that any Brexit deal will now be subject to greater Parliamentary scrutiny and the government is more likely to seek to retain some elements of single market access. But Kevin Gardiner global investment strategist of Rothschild Wealth Management urged caution over this interpretation. Some commentators are making a soft Brexit or even a second EU membership referendum more likely but we should not take this for granted. There are two parties to the Brexit negotiation and we think it is wrong to assume any UK Government can pick its preferred outcome. Read more Pound sterling falls sharply as Tories lose majority Pound could plummet if general election delivers hung parliament Morgan Stanley slashes sterling forecast ahead of UK general election Mark Horgan the chief executive of the foreign exchange service Moneycorp stressed that sterling was already down around 15 per cent since last June s referendum. What we ve got in the price right now is the current situation. The next half point for sterling is if you do or you don t get a hard WTO Brexit. That s the next point where Sterling s going to get hit. Where we are now is a very difficult position for continuity. My view of the disaster scenario is Theresa May hangs on until October then she gets turfed out in the Conservative conference then the Conservatives lose a vote of no confidence we re back into an election in November. Forget about Brexit negotiation at that point in time because we just don t have the people to execute. Volatility is going to be higher to reflect the short and medium term uncertainties about Britain s political and economic future said Chris Iggo of AXA Investment Managers If the government sees the need to be more populist on the domestic side then this will mean more spending and more borrowing. The relaxation of fiscal austerity should lead to the steepening of the gilt curve. Ten year gilt yields which move inversely to prices - yesterday spiked early yesterday as high as 1.064 per cent but fell back to 1.035 in the afternoon. Mr Horgan of Moneycorp said that his company had seen a three-fold increase in trading volumes relative to a normal day. But he added that Moneycorp s clients - mainly small firms seeking to hedge their foreign exchange exposure - had learned the lesson from last June s Brexit vote which sent the currency down a record 10 per cent in one day. Everybody s been less caught out there s been a huge increase in hedging since Brexit. If you ve got a business making 10 per cent net profit and 10 per cent disappears in a currency movement you re focused on not letting that happen again. More about: pound sterling Brexit Theresa May General Election 2017 Moneycorp Reuse content Changing money for your holiday today? If you do it at the airport 1 will get you less than 1. As the pound plummets in the wake of the General Election results currency exchange rates at airport bureaux de change have fallen below parity with the euro. The Independent has been sent photos of this morning s rates at the Gatwick South Terminal Moneycorp branch selling euros at an exchange rate of 0.9848. Rates have plummeted against most currencies this morning (The Independent) This means that 100 changed at the airport today is worth a pitiful 98.48. To get 100 you ll be charged 101.54. At 5 a coffee and croissant on Ryanair on the way out will now cost you 5.07. And a McDonald s coffee in Switzerland is now nudging 4. Rates at Moneycorp Stansted were even wore this morning with 1 worth just 0.96. This means spending 100 to get 100 - and that s before the 4.99 commission charge for transactions between 15 and 300. The pound has plummeted against the euro this morning (Katherine Wheatley) Rates against the US dollar are equally ignominious - 100 will net travellers just 110.24 at Moneycorp s Gatwick prices and a shocking 107.62 at Stansted. Rates with other currencies are also dire not least because many other currencies including those of the UAE China and much of Latin America are linked to the dollar. Read more Brexit tourism: Pound slump fuels surge in foreign spending At Moneycorp s Gatwick rates today 100 will get you 136.62 Canadian dollars 362 UAE dirham or 1566 Argentine pesos (last week while The Independent s travel team was in Argentina the going rate was around 2000 pesos for 100). Of course airport currency rates are notoriously low. The Post Office is offering online rates of 1.08 for euros against sterling today rising to 1.10 for amounts above 1000. It has the US dollar at 1.2172 against the pound. This isn t the first time sterling has slipped below parity with the euro at airport rates. In January The Independent noted an even worse rate at Moneycorp Gatwick of 97.4 euro cents for every pound. Today s rates mean a regular cappuccino at McDonalds in Switzerland will set you back 3.95 (at current rates against the Swiss franc) while a Big Mac is 5.24. More about: Travel money Exchange rates Pound Euro Dollar Reuse content Crash bang wallop. Yes as soon as the first exit poll was in and pointing to a possible hung Parliament the markets started having a tizzy. We re doomed I tell you doomed! What s happened to the strong and stable government we were told was a cert? Theresa May s hubris and a desultory campaign was what happened. Letting a lead of what was it 20 25 points has quickly evaporated. Quite an achievement. Barely had the poll surfaced and the panicky predictions were flying in. UBS was first out of the stalls: this does not bode well for the Brexit negotiations they said. As if they were going to go well with Theresa May getting a comfy majority. Chaps have you not seen the people around her who would in theory end up running the negotiation? Time to take a chill pill. For a start it s going to be a long night and the poll might be wrong. Someone might have to eat their hat. Perhaps not Paddy Ashdown and certainly not the boss of YouGov. Its polls might have come closest. Someone though. However here s the thing. Compared to Brexit the market reaction to http://all4webs.com/thoughtforquotes/home.htm?20097=356 the poll was a barely perceptible wobble rather than anything serious. Exit poll predicts hung parliament The pound fell by 2.5 cents against the dollar on its release about a cent against the euro and it then started inching back up (it s only a poll after all). The Brexit vote? That knocked 10 cents from the value of sterling. So context. FTSE 100 futures rose a bit because that s what happens when the pound falls. Then they started drifting off (Jeremy Corbyn in No 10? Nooooo!) However the business community more generally might be less disturbed about this than the initial wobble might suggest. The biggest economic risk facing Britain is after all not Jeremy Corbyn but a chaotic hard Brexit. Most strategists were (until the poll) predicting just that. Conservative ministers keep saying no deal is better than a bad deal when in fact no deal is the worst possible option. Moreover people are starting to believe that the swivel-eyed EU-haters dominating the party s thought processes right now mean it about flouncing off into the North Sea. If that happens exporters to Britain s biggest overseas trading partners will overnight start facing WTO tariffs. They could be every bit as damaging and destructive to the UK economy as Labour s plan to hike corporation tax (which anyway might not happen). Would it be the worst thing in the world if nothing got done for a while and a shaky coalition said you know what we ll stay in the European Economic Area for a bit and see how it goes? A bit more tax but stable-ish free-ish trade? That might not be such a bad idea. Business would not love the instability it never does but once business leaders start thinking about it it might be the least worst option. Which was what the election was all about for a lot of people anyway. More about: Brexit Jeremy Corbyn Theresa May General Election 2017 Reuse content 5.06pm BST 17:06 Pound falls shares rise after UK election The pound initially fell 2.5% against the dollar after the shock election result but had recovered some ground by the time London markets closed. It was still down 1.6% at 1.2740 but was off its eight week lows against the US currency. Even so the decline gave some support to the FTSE 100 and its overseas earners while news that Theresa May was forming a government - even if with the help of the DUP - provided some support for shares and the pound. European and US markets shrugged off the UK result with the Dow Jones Industrial Average hitting a new peak as investors preferred to concentrate on the latest twists in the Donald Trump saga.Jasper Lawler senior market analyst at London Capital Group said: Although the pound fell the FTSE 100 as well as other global indices opened higher on election result day. Traditional havens like gold and the Japanese yen dropped as global markets shook off the result as a UK-only affair. The closing scores in Europe showed: The FTSE 100 finished up 77.35 points or 1.04% at 7527.33 Germany s Dax rose 0.8% to 12 815.72 France s Cac closed up 0.67% at 5299.71 Italy s FTSE MIB was 0.38% better at 21 122.42 Spain s Ibex ended up 0.23% at 10 978.3 In Greece the Athens market added 0.39% to 782.10 ahead of next week s key eurogroup meeting On Wall Street the Dow Jones Industrial Average is up more than 100 points or 0.5%. On that note it s time to close for the day. Thanks for all your comments and we ll be back on Monday. But don t forget our politics blog is still going with all the latest developments in the wake of the election result: Election 2017: May postpones reshuffle and will reflect on why Tories lost seats live Read more Updated at 5.09pm BST Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 3.29pm BST 15:29 The ratings agency also warns another election could be on the horizon (!): Prime Minister Theresa May will seek to form a government with support from Northern Ireland s Democratic Unionist Party known as the DUP after her governing Conservative Party fell short of a parliamentary majority. While this would avoid a prolonged period of coalition talks the terms of the agreement are unclear and another election in the near term is possible. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 3.27pm BST 15:27 Fitch added: The election increases the possibility of looser fiscal policy. The Conservative manifesto aims to balance the UK budget by the middle of the next decade later than previously planned although detailed tax and spending proposals were broadly consistent with March s budget. But Labour s stronger-than-expected performance after campaigning for higher public spending and investment funded by higher corporation tax and other tax increases suggests that austerity fatigue is a meaningful factor in UK politics. Meanwhile a minority or Conservative-led coalition government may have to compromise on the pace of fiscal consolidation or specific policy measures to maintain parliamentary support (the reversal of proposals to increase social contributions for the self-employed in March s budget highlighted a degree of inflexibility in fiscal policy making). The possibility of a second Scottish independence referendum has receded after the Scottish National Party lost 21 MPs compared with the previous election in 2015 although it remains the largest party in Scotland. We will continue to assess the UK s sovereign creditworthiness with reference to the resilience of its economic growth prospects and its public finances as the domestic political situation develops and Brexit talks begin. We affirmed the UK s sovereign rating at AA /Negative on 5 May. The next scheduled review is on 27 October. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 3.25pm BST 15:25 Fitch says election result adds to Brexit uncertainty Fitch has now chimed in on the election result and says unsurprisingly it will cause uncertainty: The UK general election result creates uncertainty over the policy platform political cohesion and longevity of the next UK government Fitch Ratings says. This will have implications for Brexit and potentially fiscal policy. The political economic and institutional uncertainty stemming from the June 2016 Brexit referendum and the upcoming UK-EU negotiations is reflected in the Negative Outlook on the UK s AA sovereign rating. Updated at 3.34pm BST Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 3.16pm BST 15:16 If the UK s Brexit negotiating stance remains unchanged despite the election result that would a negative according to Deutsche Bank. Analysts Oliver Harvey and Mark Wall said: We see the initial move lower in the pound on the election result as justified. The election has resulted in a weaker rather than a stronger UK government which will make negotiations with the EU27 more difficult. The medium-term outlook will depend on the tone of the Prime Minister s stance on Brexit and fiscal policy over the next few hours and days. A course towards softer Brexit and even a second referendum has potentially been opened albeit is highly path-dependent. But if the UK government sticks with existing Brexit plans in a much weaker domestic political position significant sterling and/or economic weakness would again be required to shift the UK away from a crash Brexit. On that front we view the Prime Minister s just-delivered speech on the steps of Number 10 as extremely negative. As well as confirming that Brexit negotiations will begin on schedule in 10 days time the speech made no concessions to the Conservatives weak showing last night or the clear electoral rejection of hard-Brexit plans. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 3.10pm BST 15:10 Just a reminder. The latest political developments after the shock UK election result are in our live blog here: Election 2017: May says Tories will work with DUP to proceed with Brexit - live Read more Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 3.05pm BST 15:05 Wall Street opens higher The shock UK election result has had little effect on US markets which have been more concerned about the latest revelations surrounding Donald Trump notably Thursday s testimony from ex-FBI boss James Comey. The Dow Jones Industrial Average is currently up around 60 points while the S&P 500 and Nasdaq Composite both opened up around 0.13%. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 2.14pm BST 14:14 UK government bonds could fall back if the new administration decides to boost the domestic economy. Chris Iggo at Axa Investment Managers said: Britain hasn t been doing elections (referendums) very well recently. Last year s vote on European Union (EU) membership and the General Election of 2017 have not resulted in the desired outcome for the two people that called the vote... More importantly Britain faces huge uncertainty about its place in the world together with significant internal divisions. Going forward one strategy might be to make sure people feel better about the domestic economy at least in case things don t go well with Brexit. That may mean less austerity. From the UK bond market point of view interest rates are not likely to move but gilt yields could rise if the new government thinks allowing some fiscal slippage is an acceptable price to pay for staying in power. Gilts could underperform US Treasuries and Bunds as a result and break-even inflation rates could move back to their highs of earlier this year. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 1.58pm BST 13:58 More on UK GDP and Capital Economics has looked at how it has been affected by political uncertainty: Capital Economics (@CapEconUK) Political uncertainty could weigh on GDP growth. But the economy shrugged off uncertainty related to 2010 Hung Parliament and Brexit vote. pic.twitter.com/iz5x231Urd June 9 2017 Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 1.54pm BST 13:54 UK economic growth subdued - NIESR The UK economy was seeing subdued growth ahead of the election according to think tank NIESR. Its latest estimate of GDP showed output growing by 0.2% in the three months to the end of May the same as during the three months ending in April. This is below its long term trend of 0.6% it said. NIER s James Warren said: The subdued performance of the economy in the three months to May was driven by weakness in the production sector offset by a mild rebound in services. The current political backdrop may lead to greater uncertainty and a drag on growth prospects in particular business investment which contracted in 2016. In the light of the election result NIESR director Jagjit Chadha added: The subdued performance in the economy throws the political turmoil of a hung Parliament into sharp relief. People are looking for answers to low levels of economic growth limited improvements in productivity and falling real wages. That none of the parties wholly addressed our long run problems or how we ought to address exit from the European Union is the reason there was no clear winner. NIESR s most recent economic forecast published in May suggested GDP growth of 1.7% in 2017 and 1.9% in 2018. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 1.40pm BST 13:40 Richard Watts manager of Old Mutual s UK Mid Cap Fund isn t convinced by Theresa May s pledge to carry on as prime minister. He argues that a hung parliament election make a softer Brexit or even no Brexit at all more likely: Rather than strengthening her position she has been significantly weakened perhaps fatally. It is not clear that she can hold on to her position of prime minister although she has announced that she intends to do so. In 10 days time talks are set to start with the EU over the terms of the UKs withdrawal from the EU. In our view the election result has called in to question the government s mandate for a hard Brexit. It also appears that the DUP favours a soft Brexit and may make this the price of doing a deal with the Conservatives. What this means for Brexit is unclear but it makes a soft Brexit or no Brexit more likely in our view. This may not be a bad thing for the UK economy. However the timing of talks could be delayed as Theresa May seeks to form a government which adds another level of complexity to the negotiations. Watts also thinks that Jeremy Corbyn could have dealt a massive blow to austerity even though he didn t actually win the election: With a continuation of a Conservative-led government we do not expect any major policy changes. If anything we may see a fiscal easing. It s obvious that Jeremy Corbyn s anti-austerity policies have resonated very strongly with parts of the electorate. In time this could be good for UK domestic cyclical stocks. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 1.08pm BST 13:08 Theresa May to form next government Over in Downing Street Theresa May has just returned from her audience with the Queen - and announced that she is forming a new minority government. It will be a government that can provide certainty and lead Britain forward at this critical moment she says -- not acknowledging the uncertainty created by yesterday s election. Over the next five years we will build a country in which no-one and no community are left behind she insists. Whart the country needs more than ever is certainty and having secured the largest number of votes and the greatest number of seats only the Conservative and Unionist party can provide it May continues. She confirms that she will work with the DUP and pledge to deliver a successful Brexit deal that works for everyone. Now let s get to work she concludes before marching back into Downing Street. It s almost as if that pesky election didn t happen. Rowena Mason (@rowenamason) No acknowledgement there from May that she has gone backwards - astoundingly defiant like she thinks no one will notice what happened June 9 2017 Michael Deacon (@MichaelPDeacon) Is it possible that Theresa May hasn t actually heard the election result June 9 2017 Katie Martin (@katie_martin_fx) I must have missed the bit where she said she was listening to concerns and she was sorry about Tory losses. June 9 2017 Katie Allen (@KatieAllenGdn) I would tweet a reaction to May s speech but our stable leader with her strong mandate as told us to get back to work June 9 2017 Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 12.57pm BST 12:57 Today s hung parliament shock is reminiscent of a similar political https://www.smore.com/bfvn0-thought-for-the-day-quote crisis over forty years ago. Our economics editor Larry Elliott explains: When it closed for business on election day the City of London was in confident mood. Theresa May was Margaret Thatcher. Jeremy Corbyn was Michael Foot. Labour s manifesto was if not the longest suicide note in history the second longest. Opinion polls were pointing to a Tory majority of about 100 which is what Thatcher got in her second general election victory. By 10pm when the results of the exit poll were released it dawned on the City that this was not a rerun of 1983 but of 1974. May was not Thatcher she was Ted Heath a prime minister lacking the human touch who had called an election when there was no need to do so. With a hung parliament pointing to the possibility of a second general election within months another echo of 1974 the markets responded in predictable fashion by dumping the pound. Here s Larry s full analysis: UK economy now in the fog of election uncertainty | Larry Elliott Read more Updated at 3.52pm BST Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 12.45pm BST 12:45 Here are some predictions from another heavyweight global investor Allianz Global Investors: The UK election result may augur a more pragmatic approach to Brexit and increase the likelihood of a soft Brexit perhaps even retaining access to the single market. Our high-conviction view is that the Bank of England will put rate rises on hold for the next 2-3 years or longer. The election reinforces such a view. Speculation about another election puts downward pressure on sterling but economic data is likely to be the key driver. A weak government or coalition probably means that fewer contentious manifesto pledges can be enacted although there may still be action on utilities. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 12.19pm BST 12:19 Lunchtime summary: Sterling pounded by hung parliament shock The general election results (with Kensington still to declare) Photograph: Sky News Time for a quick recap. The pound has suffered heavy losses in volatile trading as the impact of Britain s inconclusive general election ripples through the City. Sterling tumbled over three cents against the US dollar this morning to an eight-week low of just 1.265 putting it on track for its worst daily loss since the EU referendum. It also slumped to a seven-month low against the euro at just 1.13 as investors warned that Theresa May could be forced to resign after failing to secure a majority. But the pound is now clawing its way back after May seemingly secured a deal with the Northern Irish DUP for a confidence and supply arrangement that can keep her in Downing Street. General election 2017: May strikes deal with DUP to form UK government - live Read more Theresa May is heading to Buckingham Palace right now to ask the Queen for permission to form a new government. Sterling is currently trading at 1.275 down two cents or 1.5% since the exit polls struck after a wild morning. The pound vs the US dollar Photograph: Thomson Reuters Connor Campbell of City firm SpreadEx says the DUP deal has calmed the City a little: The pound gradually pulled back from the brink this morning though the currency still finds itself in a very bad way following the shock general election result. As expected Theresa May appears to have made an agreement with the DUP whose 10 seats in Northern Ireland would allow the Tories to just about manage a parliamentary majority. While the pound is obviously pleased that May is set to visit the Queen at midday to seek permission to form a government therefore likely avoiding another election in a few weeks times the unstable nature of such a government and what that means for the Prime Minister s ability to negotiate with the EU has only seen sterling erase the top layer of its losses. Several major City firms have also voiced their concerns: Legal & General suspects that Theresa May could face a rebellion from angry colleagues UBS has predicted greater volatility for UK assets such as the pound JP Morgan has predicted that Britain won t be ready to hold Brexit talks in mid-June Citi has warned that May could be forced to step down Many UK companies have suffered losses on the stock market today; shares in housebuilders and banks have fallen due to concerns that the UK economy will struggle. Royal Bank of Scotland are the biggest faller on the FTSE 100 down 3.2% followed by building firms Barratt Developments and Taylor Wimpey. Retailers such as M&S and Next have also dropped on fears that a weaker pound will drive up inflation hurting consumer spending. Utility firms has risen though as the threat of being nationalised by Jeremy Corbyn seems to have faded. After jumping in early trading the FTSE 100 has dipped back -- currently up 34 points or 0.5% at 7484 points. Multinational companies who will benefit from cheaper pound are rallying such as drinks firm Diageo and fashion chain Burberry. The FTSE 250 which is a better gauge of the UK economy has shed 100 points or 0.5% to 19639. Business leaders are extremely unimpressed by the situation; the British Chambers of Commerce says it s essential that the UK has a functioning government while the CBI urged Westminster to get its house in order. Credit rating agencies are also watching the situation closely; S&P has warned that Britain s credit rating could be cut. Updated at 12.33pm BST Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 12.14pm BST 12:14 Legal & General Investment Management one of the City s biggest investors is concerned that the governance of Britain hangs in the balance . Hetal Mehta LGIM s senior European economist says: Theresa May could face a rebellion as some in her party might blame her for losing both a sizeable lead in the opinion polls and valuable Brexit negotiation time. This could mean that her position might become much weaker possibly to the extent that she will have to stand down thereby triggering a leadership contest. As we saw after the EU referendum last year the Conservatives can pull together relatively quickly to elect a leader but the risk is that the process is long and drawn out over the summer. If the Conservatives become preoccupied with internal party politics the chances of forming a minority government quickly may be lower although an arrangement with the DUP is emerging as a likely outcome. However the situation is extremely fluid and it is worth remembering that back in 2010 the coalition between the Conservatives and Liberal Democrats took six days to form and that was when that partnership was amongst the likely outcomes. As such the uncertainty and political wrangling is unlikely to lift quickly. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 11.43am BST 11:43 UK retailer Sports Direct has told the City that it won t suffer from the drop in the pound as it s fully hedged . In a statement it says: Following the outcome of yesterday s general election and in view of the associated market volatility in particular to sterling / dollar exchange rates Sports Direct International plc is pleased to confirm that its sterling / dollar exchange rate is fully hedged for FY18 at 1.31. Last October Sports Direct (which pays for some of its imports in dollars) issued a profits warning after a currency hedge backfired when the pound suffered a flash crash . That cost the firm 15m -- at a time when it was trying to improve its image following the exposure of poor working practices at its Derbyshire warehouse. Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close An analysis of billions of online searches conducted in the UK over the past year indicates that when it comes to finance people are most concerned about exchange rates. Research carried out by Yahoo and published on Thursday reveals the most frequently searched for terms in the 12 months to the end of April. Exchange rates topped the list followed by The Budget house prices student finance and mortgage rates . Read more Pound sterling near two-week high as UK voters take to the polls The pound has fallen more than 10 per cent against the dollar since the UK last June voted to leave the EU. That pushed inflation up to 2.7 http://thoughtforthedayquotes.com.yolasite.com/ per cent in April the highest since September 2013 and consumers seem to be starting to feel the pinch of higher prices. See how much you could save on international money transfers with HiFX: sign up and make a transfer Data from YouGov and the Centre for Economics and Business Research (CEBR) published at the end of May showed that consumer confidence had fallen to its lowest level since July last year largely as a result of concerns around people s household financial situation. Yahoo said that consumers want clarity on how the Government intends to support that situation which was why The Budget was the second most searched-for term. Other search terms that made it into the top ten included car tax universal credit pension changes new 1 coin and Lloyds share price . More about: UK Yahoo Centre for Economics and Business Research Reuse content