David Cameron talks with Nick Clegg
David Cameron has been in talks with his Liberal Democrat counterpart Nick Clegg about forming a coalition government. While these talks have gone "amicably" there are concerns they could drag on for a number of days yet and put UK and worldwide financial markets under pressure. Investment markets had hoped to have some kind of agreement in place by the start of play on Monday but this looks increasingly unlikely with the two parties still apart on a number of issues.
While Gordon Brown has also been in talks with his Liberal Democrat counterpart, there has been speculation that these initial talks were possibly not as amicable as they might have been. It is believed that Gordon Brown's tenure as prime minister was questioned by Nick Clegg which brought a furious response from Gordon Brown. Whether or not this is just right wing newspapers causing trouble for Gordon Brown remains to be seen but everything should pan out over the next few days.
Even if a coalition was in place by tomorrow morning, which appears highly unlikely, there are still concerns about economic policies and how the UK budget deficit and national debt pile will be tackled.
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