May’s Future in Danger as Brexit Election Gamble Backfires – Bloomberg
The pound dropped after the BBC and other broadcasters said May’s Conservative Party is on course to win just 314 seats in the 650-strong House of Commons. That’s down from the 330 she held before calling the snap election seven weeks ago and less than the 326 needed for a majority. Jeremy Corbyn’s Labour Party will win 266 seats, compared with 229 before the election, according to the joint exit poll.
Such polls have generally been reliable, though the one in 2015 underestimated the size of the Tory result.
Investors will balk at the prospect of another round of political turmoil less than a year after Britain voted to leave the European Union. Attention will initially focus on May’s future after she chose to call the election to strengthen her mandate before Brexit negotiations. If the exit poll is accurate, she will have to decide whether to resign or try to form a new government.