British pound dives as UK enters new period of political uncertainty

The small Northern Ireland party that will play a key role in the new British government will be holding talks with Prime Minister Theresa May as she puts together a minority government. Labour's crucial insight was that the Brexit vote had less to do with Europe than with the state Britain's in: jobs and dignity lost, communities unraveling, education failing, the National Health Service in tatters, nurses depending on food banks, and homelessness on the rise while the wealthy continue to flourish, oblivious and cut off. Cameron's European Union referendum asked Britain the wrong question; Corbyn's Labour Party offered a different set of answers: an end to austerity, a commitment to the public good, the faith that generosity is more powerful than greed. But yields have since bounced from the lows as risk aversion ebbed.Comey accused President Donald Trump of firing him to try to undermine its investigation into possible collusion by his campaign team with Russia's alleged efforts to influence the 2016 presidential election.While this was the most eagerly anticipated US congressional hearing in years and was approached by investors with caution, it did not offer fresh insight for the financial markets.

They said she could, however, hang on until Brexit negotiations are ended in 2019.

Chief EU negotiator Michel Barnier tweeted that "negotiations should start when U.K.is ready".

"She's safe for the foreseeable future, people want her to get Brexit started", a member of the government said.

According to a forecast from BBC, the Conservatives stand to win 322 seats, short of the 326 needed to secure a majority.

Rather than resign, May quickly grabbed the lifeline of an alliance with the DUP, which won 10 seats.

A Tory leadership contest seems unlikely even if May resigned as Prime Minister or is forced out of government by opponents like Jeremy Corbyn.

"She has to go and ask for things now and they can say "well we'll see".

In May's camp, recriminations were immediate and stinging. The Scottish National Party's Stephen Gethins won the Fife North East seat by a mere two votes, while his colleague Pete Wishart defeated Conservative Ian Duncan in the Perth & North Perthshire race by only 21 votes. "Our leader needs to take stock as well". Against all odds, Jeremy Corbyn proved to be a plausible version of that leader, just as Bernie Sanders did in the U.S. Labour's increase in seats from 229 to 261 - with one seat still undecided - confounded expectations that his left-wing views made him electorally toxic. But he also stressed he would not enter into any "pacts or deals" with other parties.

The DUP and Conservatives have been in close touch throughout Mrs May's year in power, and contacts are believed to have continued as election results came in this morning.

"And with so much to negotiate between now and then, any time lost (having already lost seven weeks to the election campaign) will merely serve to raise the risk of ultimate failure for the talks", he added.

Gus McKay, a 38-year-old Conservative voter at Euston station in central London, said he was "frustrated" May had failed to connect with younger voters.

May is preparing to name the rest of her cabinet, after revealing Friday that her five most senior ministers would stay in their posts.

"I think the Conservative party as a whole is reluctant to get rid of Theresa May now because it would mean a leadership election, it would mean stalling on Brexit talks", Menon said.

May wasn't the only big loser. U.K. Independence Party said "Theresa May has put Brexit in jeopardy". Its casualties included Alex Salmond, one of the party's highest-profile lawmakers.

"We may well be looking down the barrel of a second referendum", he said.

European leaders grappled with the question: what next?

In a 2003 study published in the British Journal of Political Science, Smith concluded that popular support for leaders who call early elections tends to wane in the run-up to the vote.

"These are discussions that will be long and that will be complex. So let's not kid ourselves", he said.

European Union budget commissioner Guenther Oettinger said the European Union is prepared to stick to the timetable that calls for negotiations to start in mid-June, but also said: "Without a government, there's no negotiation".