Queen appoints Theresa May as Britain's Prime Minister

The Bank of England kept interest rates unchanged, wrong-footing many investors who had expected the first cut in more than seven years.

Hammond tried to sound a reassuring note today, pledging that he would not introduce an emergency national budget - even though there are question marks hanging over the economy following the country's decision to leave the EU. The pound rose sharply on the news, while shares fell.

"Other than one meeting this afternoon with her majesty the queen, the diary for the rest of the day is remarkably light", he joked.

Since the vote to leave the EU, Johnson had suffered widespread criticism and ridicule for failing to present a clear Brexit plan and swiftly dropping out of the prime ministerial race.

May announced key appointments to her cabinet: former foreign secretary Philip Hammond has been named new chancellor of the exchequer, Boris Johnson as foreign secretary, and Amber Rudd as home secretary.

May took over from David Cameron less than three weeks after Britain voted to leave the EU.

Davis went on to say that by "stopping the flood of unnecessary market and product regulation", the United Kingdom could significantly improve its growth, but that this would not mean cutting workers' rights.

He'd got one big thing wrong - the referendum on leaving the European Union, on which he gambled and lost.

Mr Letwin was due to lead Brexit negotiations until Ms May sacked him in her first reshuffle yesterday. "We will do everything we can to give you more control over your lives", the former interior minister said.

Britons chose Brexit despite a barrage of warnings that severing ties would create huge uncertainty and plunge the economy into recession. However, this will be politically hard as it would likely mean keeping the free movement of people and immigration was seen as a key reason many voted to leave the European Union. She also supports fewer welfare benefits and is vocal about her pro-life stance.

Britain will be in a position to trigger the official process to leave the European Union "before or by the start of next year", the newly appointed Brexit Secretary has said.

Johnson made the comments earlier in May this year while criticising US President Barack Obama's intervention in the European Union debate.

"I know from the work we have done together that you have so many qualities to bring to the service of our countries at this time", he wrote.

"When we take the big calls we will think not of the powerful, but you; when we pass new laws we will listen not to the mighty, but to you; when it comes to taxes we will prioritize not the wealthy, but you", she said.

"It's our task to work very closely with governments of ally countries", Merkel told a news conference in Bishkek, Kyrgyzstan, adding there were many problems in the world that made such close cooperation necessary.

The appointment of Johnson, known for making colorful and often undiplomatic remarks, was met with surprise around the world.

Boris Johnson has said that Brexit does not mean leaving Europe
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