Is this D-Day for the UK economy?
David Cameron last night threw down the gauntlet to Nick Clegg suggesting it was decision time for the Liberal Democrat party. Yesterday's last-minute intervention by Gordon Brown, who offered to stand down as part of a potential Liberal Democrats and Labour party alliance, has certainly increased the heat in UK politics. So which way will Nick Clegg fall?
There is growing speculation this morning that Nick Clegg and his party seem to favour a Labour Party coalition and UK investment markets have reacted to this. At the moment the UK FTSE 100 is down by 1.5% and there are serious concerns about the short to medium-term outlook for UK investment markets. Whether or not Nick Clegg does actually plump for Labour Party remains to be seen but the speculation is causing more and more concern within the investment arena.
There is speculation as to whether Gordon Brown was pushed or whether he actually decided to leave office himself with Lord Mandelson and Alastair Campbell rumoured to be pulling the strings behind the scenes. We could actually end up with Gordon Brown has a stopgap PM with yet another unelected Labour Party leader set to take over later in the year. There has the potential for a massive constitutional crisis in the UK.
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