Britain's Blair withstands anger over the Iraq war to secure a historic third straight victory -- but a slashed majority in parliament could sink his ambition to serve out a full term
*Blair reappoints finance minister Gordon Brown and foreign minister Jack Straw but changes host of other ministers to freshen up his team after winning a third straight election.
* Britain's Conservative party faces a period of turbulence after Michael Howard says he will quit as leader of the once-mighty party of Winston Churchill and Margaret Thatcher following modest gains in Thursday's election.
* Sterling slips against the dollar and touches a two-week low against the euro as British election results show Blair has returned to power but with a greatly reduced majority.
Quotes
* "It seems as if it is clear that the British people wanted the return of a Labour government but with a reduced majority ... We will have to respond to that sensibly and wisely and responsibly" -- Blair
* "Iraq has been a deeply divisive issue in this country ... (But) after this election people want to move on" -- Blair
{{/usCountry}}* "Iraq has been a deeply divisive issue in this country ... (But) after this election people want to move on" -- Blair
{{/usCountry}}* "As I can't fight it (the next election) I think it is better for me to stand aside ... I intend to stay as leader until the party has had the opportunity to consider whether it considers those (leadership) rules should be changed" -- Howard.