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Unionists, Tories come to terms on UK government

Published 06/10/2017, 02:48 PM
© Reuters.  Unionists, Tories come to terms on UK government
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  • The Democratic Unionist Party of Northern Ireland has agreed in principle on a "confidence and supply" deal to (narrowly) form a coalition government with Conservatives in the United Kingdom, providing a way forward to govern after the Tories lost their working majority in a disastrous general election loss Thursday.
  • That may not be enough to save the job of Prime Minister Theresa May, as conservative MPs may push for new party leadership in the wake of Thursday's defeat. May's two top aides, co-chiefs of staff Fiona Hill and Nick Timothy, are out of their posts today either voluntarily or with a push.
  • The DUP's 10 members are enough to give May a one-seat majority needed for a minority government -- not a full coalition but one where the DUP bails out Conservatives in key votes it might lose without their support.
  • DUP chief Arlene Foster would now takes a key side role in guiding Britain out of the European Union. That reduces the odds of a "hard Brexit" (which would have made for new border controls between Ireland and Northern Ireland). And it surely secures investment of billions of pounds into Northern Ireland.
  • The pound, at $1.295 Thursday before the election results, is down to $1.2741.
  • ETFs: FXB, EWU, GBB, DBUK, FKU, EWUS, DXPS, HEWU, QGBR
  • Now read: Theresa May: Brexit talks to start in 10 days


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