Theresa May becomes British PM, with task of leading Brexit

  • May to enter Downing St as prime minister
  • New PM must steer EU divorce, unite divided nation
  • Cameron bows out after shock of Brexit referendum

Financial markets, which had been extremely volatile since the referendum, reacted positively to news on Monday that May would become prime minister earlier than expected.

Stock markets traded within sight of their highest levels of the year as the prospect of stimulative economic policy across the developed world eased immediate concerns over the impact of the Brexit vote.

Economists predicted in a Reuters poll that the Bank of England would halve its main interest rate to 0.25 percent on Thursday in a pre-emptive strike to try to ward off a recession and reassure markets.