>> May heads for election landslide was one headline in April, but a month is a long time in politics. A new poll out on Wednesday, predicting UK Prime Minister Theresa May could lose her majority in the snap election she called. If accurate, it would be one of the most dramatic backfires in the history of politics.
Reuters Senior Correspondent Patrick Graham has been watching the market reaction.>> That's a total shock to financial markets, which have been expecting and betting on a landslide victory for May since she announced the election a month ago, or just over a month ago. And as a result, sterling has fallen very sharply.
>> The latest survey follows a number of polls reflecting a narrowing gap between the Conservatives and Jeremy Corbyn's Labour Party. Today's drop in the pound, a reflection of the uncertainty over who will lead the UK into divorce negotiations with the European Union.>> The market's not happy with the hard Brexit direction that Theresa May is taking.
It would much rather Britain remained as close or in the single market, so there is that dichotomy in markets at the moment. But on the one hand, May may be generally bad for Brexit. But on the other hand, compared to where markets are now, I think they would prefer her to have a stronger hand within the Conservative Party, than a weaker hand.
>> The YouGov poll projected that the Conservatives could lose 20 seats and fall short of the 326 required for an absolute majority, raising the prospect of a hung parliament and even a labor-led administration. But many polls are still predicting a comfortable win for the Conservatives when Britains head to the voting booths next Thursday.
Even so, the markets are now having to wear out the possibility that Prime Minister Corbyn could be negotiating Britain's Brexit terms.>>