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Sources claim Conservative party deal imminent

Sources within the political arena believe that a Liberal Democrat and Conservative party coalition deal is imminent. It looks as though the momentum created by Gordon Brown's offer to resign yesterday has backfired on the Labour Party and indeed there have been reports that the Labour negotiating team have become hostile and aggressive towards the Liberal Democrat party.

It looks as though David Cameron is literally on the verge of grabbing the keys to number 10 Downing St. and taking up the role of prime minister. However, there have been many rumours and counter rumours this morning and nothing can be discounted until deals have been signed and announcements have been made. There is always a chance that Conservative party MPs or the Liberal party MPs could reject the relevant deals and opt to look elsewhere. However, it is becoming apparent that the Labour Party is being frozen out of the situation.

It will be interesting to see how the UK financial markets react to any eventual coalition announcement as skepticism regarding the incoming UK government has been high for some time. Will the new government hold any power? Would we see another election in weeks or months? Is the UK budget deficit going to be slashed?

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