Election Special - World Markets Live - CNBC Live Events

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Election Special - World Markets Live

We’ll be updating you throughout the day with essential breaking news, data alerts, earnings reports and all the major market movements.

    Sterling dips further as UK PM May set to speak at 1000 London time after Conservatives failed to secure clear majority:
    Jane Foley of Rabobank says:
    The DXY index may be trading higher relative to the end of last week, but its overall tone is soggy and we expect further losses for the USD during H2.  This will provide some support for GBP/USD but given the uncertainty both regarding Brexit negotiations and a hung parliament there is the potential for GBP/USD to dip down towards the 1.25/1.26 area and for EUR/GBP to edge towards 0.89.  
    Further out the prospect of volatility increases given that this election result casts uncertainty on the prospects of a hard Brexit.  This probability of what type of Brexit there will be could change dependent on who the Conservatives are depending on for a majority (assuming the Conservatives remain the ruling party).  
    European Union Commissioner Oettinger says he expects more uncertainty in Brexit negotiations after UK vote, says will have to see if the Brexit talks can begin as planned after UK vote.  That's according to Reuters citing the German Radio.
    Oettinger also says he is unsure Brexit talks can start on time, weak UK negotiating partner risks poor outcome. 
    Sterling one-week risk reversals hit lowest since September at -4.863, pointing to more falls for pound.

    Let's take a look at what the markets are doing with CNBC's Karen Tso

    Britain's FTSE 100 seen opening 1 percent lower, that's according to Reuters citing spreadbetters. Here's what FTSE 100's performance looks like over the past 12 months:
    European Union's Pierre Moscovici says result of British election will undoubtedly have an impact on the spirit of Brexit negotiations. That's according to Reuters.
    Sterling falls back below $1.27, hits fresh eight-week low, trades down over 2 percent on day:
    Sterling also hits new five-month low vs euro, trades down 2 percent on day at 88.60 pence per euro:
    The British pound has fallen sharply following results of the U.K. election which show the ruling Conservative party has failed to reach of a majority in the British Parliament.

    Cable (GBP/USD) fell from levels as high as $1.2977 on Thursday to a multi-month low of $1.2692 on Friday morning Asia time. For the session, it is now down nearly 2 percent against the dollar, trading at $1.2705 at 6:30 a.m. London time and continuing to fluctuate wildly.

    British pound falls sharply as Conservatives fall short of a majority

    CNBCThe British pound has fallen sharply following results of the U.K. election which show the ruling Conservative party has failed to reach of a majority in the British Parliament.


    UK Federation of Small Business says business needs immediate reassurance from the government that emerges about how it will protect the economy from any political turmoil. The UK FSB says we call for a delay to the scheduled start of Brexit negotiations rather than a rush to begin in 11 days time. That's according to Reuters.
    After inconclusive UK election, CEO of carmaker Aston Maritn says cannot stress strongly enough the need for rapid and decisive policy direction to ensure that business can continue to invest for long term growth. He also added that UK's relationship with Europe must be established quickly together with the wider reassurance to our key trading partners that Britain remains a dynamic business environment. That's according to Reuters.
    Aston Martin Lagonda Ltd. Boutique Unveiling And Interview With Chief Executive Officer Andy Palmer : News Photo
    Carolyn Fairbairn, CBI Director-General comments on the UK General Election 2017 results:
    This is a serious moment for the UK economy. The priority must be for politicians to get their house in order and form a functioning government, reassure the markets and protect our resilient economy. 
    Politicians must act responsibly, putting the interests of the country first and showing the world that the UK remains a safe destination for business. It’s time to put the economy back to the top of the agenda.
    For the next Government, the need and opportunity to deliver an open, competitive and fair post-Brexit economy that works for everyone across all our nations and regions has never been more important. 
    This can only be achieved if the next government doesn’t put the brakes on business, remains open to the world and sets out a pro-enterprise vision.
    Firms will support the UK develop our inclusive, innovative and open economy. More than ever, the new Government must work together with business to make the most of the opportunities ahead. Firms can provide the evidence, ideas and solutions from the shop, office and factory floor to secure our future prosperity.
    French PM Philippe says should not read too much into British election results, though they may affect tone of Brexit negotiations. 
    Meanwhile, the German Deputy Foreign Minister Roth says can't waste any time negotiating Brexit. That's according to Reuters.
    Bourses in Europe are set for a mixed open this morning as investors react to a hung parliament in UK general elections.

    The FTSE 100 is set to open lower by 23 points at 7,426; the German DAX is set to start up by 21 points at 12,735 and the CAC is seen higher by 9 points at 5,275.
    Here are your top headlines at this hour:
    • The election gamble backfires. U.K. Prime Minister Theresa May falls short of a majority in a shock result that leaves Britain with the prospect of a hung parliament. 
    • Jeremy Corbyn celebrates as he leads Labour to a historic comeback, calling on the Prime Minister to resign in the wake of the results. 
    • Sterling sinks at the prospect of a hung parliament and FTSE futures fall as investors wait to see if the official count confirms the shock exit poll. 
    • And with just 10 day to go until negotiations start, the future of Brexit talks is uncertain, with JPMorgan warning likelihood of delaying the process has risen substantially. 
    Former Liberal Democrat leader and Deputy Prime Minister, Nick Clegg, has lost his seat. In one of the first big upsets of the night, Labour's Jared O'Mara won Sheffield Hallam -- the seat Clegg has held since 2005.

    Speaking after the result, Clegg said he had "never shirked from political battles", but conceded  "You live by the sword, you die by the sword". 

    Clegg also warned about divisions across the country and called for unity.
    It is a parliament which in my judgement will not only face the excruciating task of trying to assemble a sensible government for this country, will not only need to deal with the agonising decisions which we face as a country as we navigate our way towards Brexit. But it is a parliament that is presiding over a deeply, deeply divided and polarised nation. We saw that in the Brexit referendum last year and we see it here again tonight. Polarised between left and right, between different regions and nations and areas of the country. But most gravely of all - this huge gulf now between young and old. And my only plea would be to all MPs, including Jared (O Mara, who has one the seat), from all parties - is this: that we will not pick our way through the very difficult times that our country faces. If in the next parliament the MPs from all parties simply sit to amplify what divides them, we must reach out to each other to try and find common ground if we are to heal those profound divisions.
    The Liberal Democrats Visit Kingston Hospital Dementia Unit : News Photo 
    FTSE futures extend gains, now up 0.8 percent:
    BBC Political Editor says UK PM May has no intention of resigning. That's according to Reuters. 
    Sterling extends fall, trades down 2.3 percent at an eight-week low of $1.2660:
    BBC Political Editor Laura Kuenssberg in a tweet says PM May has no intention of resigning. 
    She further says it will be a big problem if May tries to say:
    Sterling hits 7-month low of 88.55 pence per euro, down 2.3 percent on day:
    Labour leader Jeremy Corbyn has just arrived at his party headquarters:
    European markets are now open for trading as UK wakes up to a shocking result of the country facing hung parliament. The pan-European Stoxx Europe 600 is down 0.3 percent at open:
    Major European indexes are slowly waking up. The FTSE 100 has jumped 0.8 percent higher at open:
    UK Labour Party Finance spokesman John McDonnell says Labour would not do a coalition deal. He says the party will forward to form a minority government, PM May is a lame duck.
    That's according to Reuters.
    Steve speaks to former UKIP leader Nigel Farage at Westminster: 
    I came into politics from commodities trading business. I wanted Brexit to happen, I saw it the way forward for a global trading nation. As of this time yesterday, it was all on course. Article 50 was triggered, we made it pretty clear. What we are seeing with negotiations this morning is cabinet ministers saying we will have to rethink leaving the single market or leaving the customs union.

     This is momentous but it is complete failure of judgement on part of Theresa May to call on early elections.

    Shares in Italian bank Ubi Banca halted from trading after rising 6.5 percent:
    Britain's mid-cap index, FTSE 250 , the domestically-focused index is trading 0.5 percent lower:
    Moritz Kraemer, Sovereign Chief Ratings Officer, S&P Global, joins us on the phone from Frankfurt
    When we set the outcome is unlikely to lead to a softer Brexit, we were basing that on the assumption that the Tory majority would hold. This is not the case. What we are looking at right now, is a coalition government between the Conservatives and the DUP in the Northern Ireland which would create a narrow majority which would require a lot of discipline.
    When we lowered the ratings result after the referendum, it was based on our reassessment of the institutional framework of the UK political party at large. We took the view that policy making in the UK is not as predictable and effective as we had seen it happening over the past decade, What we are seeing right now is another manifestation of the reason for the downgrade last year. It reconfirms out concern that we had at that time that the predictability of the British policy making is really weaker than it was.
    Here are your top headlines at this hour:
    • The UK election ends in a hung parliament as Theresa May's conservatives fail to win a majority, while Labour leader Jeremy Corbyn calls for the prime minister's resignation. 
    • Sterling plunges to a 7 month low against the euro and 8-week lows against the dollar as investors digest the reality of a coalition government. 
    • UK housing stocks and homebuilders lose their foundation on fears of a Labour-led government, with Berkeley, Travis Perkins and Taylor Wimpey near the bottom of the Stoxx 600.
    • UK companies who make their money in dollars get a boost from the election result, with miners leading the bunch higher.
    Azad Zangana, Senior European Economist, Schroders, comments on what a hung parliament means for markets:
    This is a disastrous result for the Conservative party, which must raise questions over the future of Theresa May as Prime Minister. As the largest party following the election, the Conservatives are likely to remain in power as a minority government, relying on the confidence and supply of votes from friendly opposition members of parliament. This suggests a less stable government, one that will have to make concessions and seek a consensus even when introducing simple changes to legislation.
    On pound:
    The fall in the pound has been smaller than expected given the hung parliament. At the margin, lower sterling will push up inflation a little further than previously forecast, which will have a small negative effect on household spending.
    What about Brexit?
    As for Brexit, serious damage has been done to the UK’s negotiating position. Without a strong mandate, Europe can ignore the UK’s demands. Even the UK’s threat to pull out of negotiations will now appear hollow and lacking the support of the British public.
    EU's Juncker says "our defense to NATO can no longer be used as a convenient alibi to argue against greater European efforts" on defense. 
    Juncker also says U.S. "no longer interested in guaranteeing Europe's security in our place." That's according to Reuters.
    UK opposition Labour leader Corbyn says ready to do everything we can to put our programme into operation. He says "we are ready to serve this country"
    Corbyn says Parliament will have to take a decision on what happens when government puts forward its programme. Brexit negotiations will have to go ahead as Article 50 has been invoked, Corbyn said, adding that trade deal with Europe is most important element of Brexit talks.
    Labour Leader Jeremy Corbyn Heads To Labour Party HQ : News Photo
    Franklin Templeton's David Zahn says expects UK political uncertainty to benefit gilts. Zahn says British pound is undervalued but will remain driven by politics, says has no sterling position. 
    Let's look at the UK gilts this morning:
    Here's what Labour leader Jeremy Corbyn told BBC in an interview:
    Viktor Nossek, director of research at WisdomTree in Europe, reacts to the fall in the pound and why there is no notion of strong and stable in markets after this vote.
    This is a real shock for markets which had, like the polls suggested, expected the Conservatives to increase their majority.

    There will be no notion of strong and stable in currency markets after this vote. The pound has tumbled overnight, and this could be just the start, with volatility likely to remain elevated. Indeed, as the ramifications of this vote become clearer, the falls against the US dollar and other currencies could become more pronounced.

    Looking across markets in general, uncertainty will reign as parties try to form a government, so expect an increase in volatility in the near term and a focus on companies which are global in nature and therefore protected somewhat from domestic events in the U.K.

    The vote also kills off the notion of hard Brexit, and means months of fractured negotiations within Parliament over the final terms the UK pushes for with Europe.
    Investors in shock as UK faces a hung Parliament. David Zahn of Franklin Templeton tells CNBC what investors should be doing now:
    European Union's Federica Mogherini says seems difficult to tell when we will know Britain's position on Brexit. That's according to Reuters.
    The 27 Remaining Members Of The European Union Meet To Discuss Brexit : News Photo
    Northern Ireland's DUP considering supporting UK PM May's Conservatives through a "confidence and supply" arrangement. That's according to Reuters citing Sky citing sources.
    Gero Jung, chief economist at Mirabaud Asset Management comments on the UK election outcome:
    The UK election outcome of a hung parliament - with no party decisively winning - implies that trying to get things done will be more difficult. Higher political uncertainty is certainly likely to impact the beginning of the Brexit negotiations but also fiscal policy. As to investment implications, we believe that the main short term transmission mechanism is likely to be felt in the currency space, and we re-iterate our view of a weaker Pound Sterling. While equity markets will react, we do not expect a sharp fall in the short term and do not change our neutral stance on  UK equities.

    Northern Ireland's DUP considering supporting UK PM May's Conservatives through a "confidence and supply" arrangement. That's according to Reuters citing Sky citing sources. CNBC's Geoff Cutmore explains the meaning of confidence and supply arrangement.

    EU Brexit negotiator Michel Barnier says negotiations should start with UK is ready:
    Andrew Belshaw, Head of Investment Management at Legg Mason affiliate, Western Asset Management comments on the outcome of the UK election:
    Know when to hold them, Know when to fold them. Words Prime Minister May should have heeded when she took the decision to gamble the certainty of three years in office against the prospect of a larger and longer mandate. The result today is clear. She gambled and lost. After one of the worst Conservative campaigns in living memory, the Conservative Party was returned with less seats than it ended the last Parliament with, insufficient to form an absolute majority, but enough to remain the largest party. The Conservative party will likely stay in power, either as a minority government or with the support of Northern Ireland’s Democratic Unionist Party (DUP). 
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