BBC News with David Austin.
The leaders of two of Britain’s main parties, the Conservatives and the Liberal Democrats, are discussing whether they can form a coalition government, following Thursday's inconclusive general election. The Conservative leader David Cameron whose party won most seats but fell short of the majority has approached the Liberal Democrat leader Nick Clegg. Here is Ross Hawkins.
David Cameron said he wanted to make a big, open and comprehensive offer to the Liberal Democrats. Direct discussions between him and Nick Clegg about that offer began with a phone call this afternoon, described as very constructive but in which there was no real discussion of detail. Mr. Cameron has offered a committee of inquiry on an electoral reform. Many Lib Dems wanta firmer commitment to changing the way elections are run before making any sort of agreement. And if the current negotiations fail, the Liberal Democrats could yet end up talking to Labor.
With all the results from the seats contested on Thursday now in, the Conservatives have won 306 with Labor taking 258. The Liberal Democrats ended on 57.
The main European stock markets have closed sharply lower after a week in which share prices were hit by worries of the Greek economy and the amount of debt owed by some European governments. In the United States the main stock market indexes also closed lower. Duncan Bartlett reports.
Friday afternoon saw dramatic falls in share prices throughout Europe. At one point it seemed that shares were almost in the state of free fall. But most of the major stock exchanges recovered somewhat before the close of trading. Naturally the uncertainty of the UK election result was a factor in London, but elsewhere traders are much more worried about the way in which banks have been lending money to European governments.Trust between the banks is at risk and that has led to fears that the system may seize up as it did in 2008.