Update 5:07 PM: The Guardian is suggesting Vince Cable may get the Treasury portfolio for the banks, with the aim of separating proprietary trading operations from traditional banking, which could hit HSBC, Barclays, and RBS.
Update 4:40 PM: Details of the cabinet are now emerging. Nick Clegg is set to be Deputy Prime Minister, Vince Cable Treasury Secretary behind Conservative George Osbourne as Chancellor. This according to Sky News.
Update 4:18 PM: The Liberal Democrat – Conservative coalition is agreed to last a full four years meaning another national vote is not set to occur in quick order.
What this means right now is uncertain, but barring a dramatic breakaway from the coalition, there will not be another election in the UK for four years.
This should keep UK markets away from the political risk of a new election.
Update 4:10 PM: PM David Cameron has spoken, and confirmed a coalition with the Liberal Democrats, details of which have yet to emerge.
Update 3:26 PM: David Cameron is now officially Prime Minister; he will speak soon.
Update 3:10 PM: David Cameron arrives at Buckingham Palace to become Prime Minister, after being approved by the Queen.
Update 2:45 PM: Sky has confirmed we will see a new UK government tonight, and that Conservative Treasury Representative George Osbourne will be the next Chancellor of the Exchequer.
Update 2:25 PM: Gordon Brown has just resigned, opening the way for a Conservative – Liberal Democrat coalition government, the details of which have yet to fully emerge.
12:55: Sky is now reporting that this is a “3 year deal“, between the LibDems and Conservatives. They also are suggesting Gordon Brown will resign tonight.
12:33: Sky is now clearing up earlier rumours. LibDem Vince Cable does not seem likely to gain the Chancellor’s position, instead a secondary cabinet post as the business secretary or another post in the treasury is more likely,
12:22: Sky is now reporting that Vince Cable, shadow Chancellor for the LibDems, is saying a deal is very close with the Conservatives.
12:16: Sky is now reporting that Gordon Brown is set to leave politics all together with Harriet Harman taking over as interim Labour leader until a new vote could occur.
12:11: The Queen’s private secretary is at the Cabinet office, a sign Brown may be close to stepping down, according to Sky News.
12:08 PM: Here’s a breakdown of what Clegg’s demands were from The Guardian.
Short and sweet: 6 cabinet posts, referendum on voting changes, and a fixed term to coalition.
The BBC is reporting that talks between the Liberal Democrats and Labour have broken down, and that now a Conservative government is the likely result of the UK’s hung parliament negotiations, according to The Guardian’s live blog.
David Cameron, leader of the Conservative Party, now looks set for Number 10 and to be the UK’s next Prime Minister.
rumours have The Evening Standard, a UK paper, set to run with a headline tonight saying the Gordon Brown will be out of Number 10, the Prime Minister’s offices, this evening.
Betting has now been suspended on the UK election, by booking agents SkyBet, according to Sky News.
The deal likely broke down over a lack of Labour Party support, as back benchers bickered over giving up certain policy roles to Liberal Democrat MPs. Full details of the collapse have yet to emerge.
The full extent of what the Liberal Democrat – Conservative coalition would entail has not yet been revealed. Cameron is certain to be Prime Minister in any agreement, but other top posts are up for grabs. Also likely to be included, according to rumours, are a moratorium on a second election for two years and or a referendum on a change in the UK’s voting procedures.
The pound rose notably on the news:
The FTSE is also up on the news, but remains down for the day.
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