Merkel will 'defend interests' of European Union states in Brexit talks

In this situation when British political dynamics is undergoing major changes, May has made a decision to strike a deal with Northern Ireland's Democratic Unionist Party (DUP), raising many eyebrows and dividing the party's opinion vividly.

In a statement at Downing Street, after returning from Buckingham Palace, where she received the Queen's permission to form a government, May shrugged off a growing backlash in the Conservative party, and said she would provide the "certainty" the country needed, reports the Guardian.

The Conservatives lost an absolute majority they had enjoyed prior to the snap election on June 8, which May had called to strengthen her hand in the upcoming Brexit negotiations slated for June 19.

With one result still to be declared, May's Tories have taken 318 out of 650 seats in the House of Commons, 12 fewer than before she called the election.

Theresa May called an early election to cement her position within her own Conservative party.

The opposition Labour Party, which did not secure anywhere near enough seats to form a government even with the support of smaller parties, has said it could still seize power.

The Northern Irish party increased its parliamentary heft by taking 10 seats in Thursday's vote and has indicated its willingness to talk to the Tories. We should remember this was, as you said at the beginning, a snap election.

Political leaders in Northern Ireland had cast the election as a referendum on whether voters want to be part of the United Kingdom or neighbouring Ireland after Brexit and a nationalist surge at regional elections in March raised the stakes in the long and divisive dispute over the province's status.

"There will be people who have lost, who will think why the hell did they lose", the Conservative figure said.

The Tory veteran has said she has no intention of standing down and has been informally backed by the DUP.

SCULLY: We now have a deeply uncertain situation with regard to the British government, and it is extremely hard to see what sort of, you know, progress can be made in these talks.

"The prime minister has spoken with me this morning", Foster said.

The move has been slammed as a "coalition of chaos" by Lib Dem leader Tim Farron, who condemned Mrs May for putting her "party before her country". Similarly divided are the expectations of the exit from European Union as many members seem unclear what they want from the Brexit.

This has not only surfaced a situation of uncertainty regarding the fate of Prime Minister May, but also the party. The currency has been highly volatile in the last year, from $1.50 a year ago before the Brexit vote to below $1.18 briefly in October.

Scottish Conservative leader Ruth Davidson has since sought assurances from May that any deal with the DUP would not affect LGBTI (Lesbian, Gay, Bisexual, Transgender, and/or Intersex) rights across the UK. Meanwhile, her party manifesto contained surprising social care reforms that would mean those receiving home care would have to pay for it, with the value of their homes included in their assets. We've only just scratched the surface here.

Jeremy Corbyn said he will oppose the government all the way, telling the Sunday Mirror he can "still be prime minister".

Brexit Minister David Jones said he supported Mrs May but it was "impossible to say" if she would still be Prime Minister in six months' time.

Currently, investors seem to worry that a weakened Conservative prime minister would not have the power to resist calls from some within the party who want a clean divorce from the European Union, even if that means losing privileged access to the European Union single market.