UK rating not immediately affected by election - S&P


The election outcome saw incumbent Prime Minister Theresa May's gambit to secure a greater majority as a disastrous failure, with the Conservative party losing seats and forming an alliance with the Democratic Unionist Party in order to form a government. "We need a government that can act", he told German radio. We know when they must end.

The Czech prime minister said Friday that Britain should not be granted any extension on the two-year deadline for the Brexit talks. But the prime minister said her new government would now prepare for discussions in 10 days time.

Prime Minister Theresa May called a snap United Kingdom general election in the hope of strengthening her hand in negotiations to take Britain out of the European Union.

European Commission President Jean Claude-Juncker, also said earlier on Friday in Prague that the EU "can open negotiation tomorrow morning at 09.30".

"Yet another own goal, after Cameron now May will make already complex negotiations even more complicated", Belgian ex-prime minister Verhofstadt said on Twitter.

LONDON, June 9 Britain's credit rating won't immediately be affected by a national election which yielded a hung parliament, S&P Global said on Friday, but warned it could create further uncertainty by potentially delaying Brexit negotiations.

In a tweet, Barnier said: "Timetable and European Union positions are clear".

The election had been expected to effectively ratify the referendum with polls repeatedly showing that those who wanted to leave the European Union still do so, and that many who voted to stay in it are now keen to get on with the withdrawal.

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"To be acceptable domestically, this deal must minimize the economic risks inherent in Brexit and not put parliament in a position where it is forced to test Theresa May's proposition that "no deal is better than a bad deal".

European leaders have largely given up considering the possibility that Britain might change its mind and ask to stay, something May made clear was not her intention.

The outcome will throw Britain once again into upheaval less than a year after the country's decision to leave the European Union, which led the pound to collapse about 15 per cent against the dollar between June and October 2016.

The shock election projection sent the pound lower against the US dollar and other currencies.

But without the strong mandate Mrs May had hoped for, and with no majority, the UK's strategy for negotiating Brexit has been thrown into uncertainty.

Other EU leaders have expressed concerns the failure to win a majority may make negotiations even more hard.

May's reappointment and determination to soldier on without a clear majority has muted talk of a different ruling coalition taking power with a mission to seek a "softer" Brexit than May is pursuing, possibly seeking to remain in the single market.

But EU officials question how any British government could persuade voters to accept a Norway-style package and so would be wary of starting down the path of negotiating it for fear of ending up without a deal that both sides could ratify in 2019.