We will have the latest, but first, lets check in on the markets with mark barton. Mark e. U. Go. Look at the right hand side of the chart. Look at the map. Tories 315. 326 is the number they need. They are not going to get that number. This is not a brexit type of exit. European stocks are rising. Ftse is gaining because of the weak pound. Biggest decline since june 27. Sterling two day chart. That is when the exit polls came out at 10 p. M. Last night. Wed be down as much as 2. 5 . Vote, the expectations were if we got a Hung Parliament, sterling could fall as much as 1. 20. The median forecast. The 10 before the Vote Deutsche Bank set if we get a labour victory, the 10 year goes up. If we get a tory, small majority we go down to 90 basis points. Fascinating times, but its ver y much a localized Market Reaction. Francine thank you so much. She promised strong and stable. But we have this morning is anything but. The snap election gamble has backfired. Losing seats rather than gaining them. Mays future as Prime Minister has been thrown into doubt and there are reports she will speak at 10 a. M. Her rival Jeremy Corbyn has outperformed. And his labour party looks to be on course to gain 29 seats, according to the bbc. Hes called on theresa may to resign. The Prime Minister called the election because she wanted a. Mandade. She has got has lost conservative seats, lost the vote and lost confidence. I wouldve thought that was enough to go, actually, and make that wouldovernment be truly representative of all the people of this country. Francine in a moment, we look at the latest Market Reaction with matt miller. First, lets get to downing street. Talk us through the numbers of everything that has happened overnight. Whats happened overnight as you have been saying is a big shock. In terms of where we are looking now, we have just got a handful of seats left a report. Expected to get the final results by midday. According to the projections, the conservatives could finish with 318 seats, down from 330. Labour could finish with 261, a gain of 29. So, what does this mean . It means the most likely scenario were looking at is a Hung Parliament, a conservative minority government, perhaps the most likely coalition is ti could be the conservative with the dup. What were already getting as calls from within the tory party but also from Jeremy Corbyn for theresa may to step down. She spoke overnight in her constituency. She said what the country needs instability. If the conservatives get the most seats, it will be their prerogative to maintain stability. And form a coalition. Jeremy corbyn has been calling for her to step down. Leading the us, there is going to be a lot of uncertainty in terms of what this means for the brexit negotiations. We still have uncertainty over exactly how that government is going to be formed as well. Francine thank you so much. We do understand, according to press reports, that theresa may is speaking and 55 minutes from now. Very likely shell do it from downing street. Matt, lets get to you on the Trading Floor to what is the mood like there . Say a lot of the traders have been here for 24 hours already. They came in yesterday at the regular time and have been trading through the night. That said, trading was relatively calm overnight. Even after the exit polls came out and after became a fairly clear that there could be a Hung Parliament. Its been very focused on almost only the cable trade. Europoundally has been as active. Not as active as during brexit and during the trump election but relatively calm, steady selling a pounds. At one point we came down below 127. I will say the volume picked up dramatically after 6 00 a. M. When a number of Media Outlets said, called the election as a Hung Parliament. Since then, you have seen some actual support in the pound. Andere down at 126. 90 bounced back up to 127 and change. It looks like we have seen the bottom for now but traders are poor. For the remarks at 10 00 trying to figure out what theresa may is going to say, what direction the conservative party is going to take. If they can cobble together a slim majority and how that affects brexit talks. And looks like they do not want to hold the pound into the weekend that we will see after the speech at 10 00. Francine thank you, matt miller. We will go back to them both. The miller there for us on Credit SuisseTrading Floor in london. Lets get more on this shock election. Just three weeks ago theresa may just sixif i lose seats, i will lose this election and Jeremy Corbyn will be sitting down to negotiate with europe. Shes lost far more than that. What is in store for her . Lets ask a Bloomberg News political report. We understand that the tory government has 318. Dup has 10. Can they form a coalition and will theresa may remain Prime Minister . They may not go for a coalition. What they could go for it is an issue by issue minority ingernment, i. E. , the dup say we will back you. We have our conditions. But this is a very, very shaky scenario, indeed. And that is the best theresa may can hope for. May is going to try to cling onto t power but she has lost a lot of support within the party. Francine give me a sense of what it means for brexit negotiations. They were due to start on june 19. Is there any appetite for europe to postpone them a little bit . Well, i think lets figure out first where we are, what kind of the government we have, because the other thing that could happen is, of course, when whatever conservative government we have, if that is indeed the scenario, puts together we have to see if they get enough votes to get it. That would delay another election for now but we could be quitey shaky ground for a few weeks if not a few months. It is very likely in this scenario that brexit talks are delayed. At some point, suspended for a few days, few weeks. We dont really know who is going to be doing the negotiating. Francine give me a sense of what happened in scotland . The snp losing ground. Was that because nicole last sturgeon said she would have a second referendum . That was unappealing to a lot of scottish voters. A strong party. They lost quite a few seats. That they had an incredible gain in the last election. They will be a player if labour try and put together a rival government, sort of rainbow coalition, which i would not completely excludes that. Ruth davidson, the conservative letter in scotland, did a very good campaign, much better than theresa mays campaign. Francine thank you so much. Our u. K. Politics reporter. Joining me here at westminster is lord a former shadow lord chancellor and partner in a law firm. Thank you so much for joining us today. First of all, a quick reaction. For labour . G win he does not have a majority. He does not have the majority but the Prime Minister is destroyed. That is the problem. It is inconceivable the Prime Minister could continue for any length of time for more than a transition are period. Whether it be from the tories or another party because her difficulty is she said she wanted a majority, a bigger majority that she has got in order to have a mandate to negotiate pitch he did not get it. She went backwards. The public have said no to her. And everybody in the country thinks she has no judgment. She is a completely lameduck Prime Minister. From my experience, i cannot think how she could survive in the house of commons on the basis she is but understanding briefly that she is giving from 10 downing street that she intends to stay. Francine we understand by speaking to sources and she will give a speech and 50 minutes. How do you see it playing out . The tories could find a deal with the dup. They replace her with who . It all depends on the numbers are if they can do a deal with a smaller party, the Northern Irish party, or the democratic unionists, that would give them over 326 votes in parliament. Francine do you think they will . They can do it, because the dup will extract a price. That is a very unstable government because her own party, the conservatives, have got some people who want a hard brexit. And the dup only give her majority of three or four. There will be pressures within her own party and that will fall quickly. Francine lets say that she either gets the tories cant get a government together or she falls. If you are labour in order for them to be, labour has allied himself with anybody, what they will say to parliament is we want to form a coalition government. Favor of the queens speech that sets out the program for the government. Francine with who . With nobody. You have to say i am a labour minority government and it is for the the fmp to decide whether or not they are going to support the government and support labour. But the person who gets the first shot is the City Government. And the City Government is a tory. The first question is should mrs. May go . Francine lets say she goes or she stays, unexpected and there is going to be turmoil in u. K. Politics. To go, thencides the brexit talks have to be postponed. There is no point in the European Union negotiating with a government that does not have a boss. You need a boss to give a direction. If she decides to stay and she can get the dup to support her, that she has got to agree with parliament what her negotiation is. She has got no authority. Hascine the article 50 been triggered. The countdown is there. Do you think your pulsate, ok that europe will say, ok. If there needs to me postpone it. You cannot negotiate. Francine what happens to the countdown clock . It keeps on going. It is not really post moment. Postponement. It is not a postponement of the end day. In nineple not starting days time or 11 days time which is when the talks are set to start with the European Union trade they have to start at a later date as reduces the amount of Time Available for the talks. As you rightly point out, it does not mean the end date is any later. Francine what is it mean for fresh election . What does that mean for negotiations . I cant see a stable government emerging from the dup and the conservatives. It might last for a short time. Francine what happened overnight . We have a Hung Parliament. What did people exactly vote on . I think they voted much more an economic issues. I think the reason watching lost authority why she lost her majority is a very large numbers are fed up with austerity and fed up with wages stagnating and they want to change. They didnt want continuity. Although you and i talk about brexit, the public had the referendum. They voted against brexit. Thats sort of got to be dealt with. They are much more into the economic issues. Francine this is essential because there is a little bit of hope in the market that this would lead to a softer brexit. I think it will. Ultimately, the only authority the government can get in order to start the talks is by getting and parliament is much more pro the European Union than mrs. May has been in her approach. Francine even when it comes to movement of people . There will have to be restrictions but a less hard brexit which she was going to negotiate. Lord falconer, thanks for joining us. Here in central london. Lets get straight to the markets, back to mark barton. Mark the bloomberg is a mine of information about the selection. Some fascinating charts. Starting with this one. Odds checkerthe implied probability of the next government. Clearly is the conservatives. The implied probability, 70 it will be a conservative minority. Labour snp coalition is the red line, 10 probability. Labour minority light red, 3. 9 . Snp 2. 1 ib dem, probability. Tory, lib dem does not look likely. Labour lib dem 21 . The most likely probability is a conservative minority. But it is changing. Onanother wonderful chart. 9237. Wese are the directions that spoke to analyst before the result. They suggested sterling would move depending on the various outcomes. 131 was the big win for the tories. 130 was a small win. Labour, the next line, the blue line, 124. 87. A Hung Parliament 123. 40. Analyst suggested sterling would fall as much as 120 in a Hung Parliament. Were down as much as 2. 5 today. Biggest fall since june 27, just after the election, but we are nowhere near the 120. Investors are looking ahead to the possibilities of a softer brexit. Pricehas moved into gold in pounds, rising as much as 2. 2 . Biggest rise since july 5, 2016. Because of sterlings decline, 100white line, the ftse approaching a record. But the yellow and blue line both falling with concerns about domestic economy versus the ftse 100 benefiting from the weak pound. Lots of fascinating charts in the wake of that shocker election which took place next e yesterday. Francine 126. 98 is the pound level. From her offices in london. A hung told if theres parliament, it would fall off a cliff. It seems the market is more levelheaded than that. E me, its only, excuse over the last couple of months someve had thats given support to cable but nevertheless, it is interesting this morning that cable dips further when we have the headline that theresa may would not resign. Coming into the markets, perceptions give us this view if theresa may goes, we may get a softer brexit. That clear uncertainty is paramount. Its the overwhelming factor which is why sterling is down. There is this perception that if in needs other votes parliament to push through whatever brexit it is or any Prime Minister, whatever brexit negotiations need to be pushed through parliament, it is likely to be a softer brexit if the conservative party dont have a majority, which they dont. The market is confused, we are all confused as to who will lead the tory party. When will brexit negotiations start . The market is beginning to think, actually, the brexit deal wont be as hard as we thought it would be just a few weeks ago. You concerned that the market thinks there could be be no brexit . Oft there is some kind euphoria with demonstrators saying maybe we have a second referendum, fresh elections will bring something fresh. Is that in any way possible . A lot of commentators saying that would be a complete red herring. Thats perhaps a little bit of a stretch at this point in time. If we consider the labour party manifesto. It was going for a soft brexit but a brexit nevertheless. The liberal democrats said they were still i think even the liberal democrats recognize that really for much of the electorate this election was not necessarily about brexit. It was about policing and immigration and the health and education systems. It was on domestic issues. It elected you and me, people in the markets that are so focused on brexit, perhaps not the election. For many politicians, the brexit, its thought it will go ahead. What sort of her brexit we will have weather were not we get another referendum further down the line on the brexit deal that has been done, at this moment, s eems unlikely but it is more likely than it seemed yesterday. Francine jane, were just hearing from the commissioner for brexit talking to us from brussels saying brexit negotiations should start when theresa may is ready. It is unclear whether this means that the clock stopped or whether the clock continues. The u. K. Has less of a chance of getting a deal in those two years. Jane that is the way that things stand today. The article 50 has been triggered. T negotiations later, we have less time to negotiate. Which puts more pressure on the government. So, yes, this a difficult position. That said, there is the possibility of an extension. 27just means all the e. U. Have to agree on that perhaps they went. This is an unprecedented situation coming out of the e. U. Maybe it could be that an extension could be negotiated. Francine jane, thank you so much for joining us. Our senior fx strategist at rabobank. Joining us is george buckley, the chief economist at nomura. What would be more significant to move the needle in terms of inflation, but also gdp . Is it if theresa may stays or what happens to brexit negotiations . George one of the big parts of gdp iis investment. It does not respond very well to uncertainty. We have gotten far too much over the last three years. I am not sure that investment will respond too positive to that. On the Consumer Spending side, consumption tends to respond to prices. So if we see a continuation, which we do not think we will of the fall in sterling, then that would, of course, prompt potentially higher import prices and higher Consumer Prices and potentially weaker consumption. That is the sort of things we are looking at. Issue is what big type of brexit this is going to cause. Is it going to mean a softer or harder brexit or something in between . Could it mean the suspension of talks . Well have to wait and see what theresa may says in just over half an hour. Francine what happens to the economy if we have a minority government led by Jeremy Corbyn . That does the moment not seem as likely as having a minority government led by theresa may. Again, we will have to see what she says but it seems to be the case she wants to stay on as Prime Minister. We will have to see at 10 00. But i suspect it is more likely to be a conservative minority government propped up by the dup. I did not expect to be sitting here with a copy of the dup manifesto. It turns out they were just as surprised that their names have come into the fray. Votes may not be required to hold a form a government at westminster. I suspect this will be a conservative minority government. How long that will last is anyones guess. It might not last year. If that is the case, brexit negotiations may have to cannot to be put on hold. Francine this is complete speculation but does it make a difference if it is a minority tory government led by theresa may or not . Im assuming yes because you could have someone much more prevalent than the c