The Prime Minister called the election because she wanted a mandate. A mandate shes got, has lost conservative seats, lost vote, lost support and lost confidence. Saying it is in a dramatic falling sterling on the back of the election outcome. Not the only thing that is going down this hour, uk Housing Starts and Home Builders losing their foundation on fears of a labourled government with barclay, Travis Perkins and taylor wimpy near the bottom of the stock 600. With days to go until negotiations start, Jeremy Corbyn says delaying brexit talks is not a british decision. Nigel farage tells cnbc he could return to frontline politics. If the brexit, the british people voted for, gets betrayed, i would have no choice but to go back into full time campaign. What happened last night imperils the whole brexit process. All right, lets bring you up to speed with what we know so far. Is theresa may going or not . Apparently she has no intention of resigning. She will attempt to form the next government. That according to the bbcs Political Editor sky news reporting that the conservatives have already started talks with Northern Irelands dup over forming a coalition agreement, depending on the last remaining seats to be declared. An agreement with the dup could give may what she needs to form the next government. Now, according to the latest count, the conservatives have 316 seats, labour, 261, Scottish National party, 35, the liberal democrats, 12, and the dup, the democratic unionist party, 10. Steve is in westminster, to wrap up the latest for us. Steve . Well, look, jeff, the latest is the same as it has been in the last couple of hours really, isnt it . The tories have failed dismally in what they tried to achieve. Yes, they are the largest single party, yes, they are undoubtedly going to try to form a government, yes, it looks like the dup will be the main support. The aim here was to get a 50 to 100 seat majority, to give theresa may a very strong hand, domestically, with perhaps dissenters who are looking for a different kind of brexit than what she wanted. And, of course, internationally in her negotiations with europe. One might say shes in tatters. But we have been speaking to a whole host of people, john saying it is a good night for the tories because it is the largest party. I think many people will say thats putting a brave face. I spoke to john mcdonald, second most important person in the labour party after jeremy cor n corbyn, righthand man, and i asked him what he thought about the Prime Ministers position now. Lets listen in. It is not me saying it, it is across the political spectrum, a number of our own mps as well. I agree with our position is now untenable. I think she called an election unnecessarily, she put party before country in this election, saw her party as 20 points ahead of us in the polls, even higher at one point in time, purely for party advantage, and people thought that is inappropriate for a Prime Minister. And finally, sir, in terms of if mr. Corbyn were to try to find a government, minority or whatever it would be, what would the style of negotiation be with brexit, where would you stand on things to access to Single Market . We need to change the tone of these negotiations. In my former life, i had an office in brussels, i was a negotiator with other European Countries as well, the tone that we want to change it to is one where you have Mutual Respect and mutual interest. We have a mutual interest, access to access to the European Market as well. Thats the key element for us, protection of our economy, our jobs. I think there is enough room to maneuver around the whole range of other issues that will enable us to achieve it. Do you believe the taxation policies of labour, of mr. Corbyn will be good enough to Keep Companies and high paid International Individuals in this country, though . The proposals we have put forward for corporations was to steadily increase them back to the rate of 26 , which was still below the rest of the g7, so it remained extremely competitive, but, remember, also, that money was then going to be used to invest in our infrastructure, which would modernize our economy and enable as corporations then yes to secure profits and also to secure longterm stable existence in this country. Clearly a very happy chancellor there, John Mcdonnell. They did lose a third successive election, didnt win, just wasnt as bad as they thought. Better than they thought it could be. Is there going to be a return to the fray for nigel farage . Uk had a dreadful night, possibly worse than mrs. May losing ground to the conservatives and indeed labour as well. Does that mean that they need to change focus . Will nigel farage be back in politics . He said only if it looks like brexit is in danger. But also spoke to nigel farage about the kind of brexit that could happen now, that theresa may has a weakened hand. Lets listen to what he had to say. This morning, you know, we see cabinet ministers saying maybe we have to rethink leaving the Single Market or leaving the customs union. If the brexit, the british people voted for, gets betrayed, i would have no choice but to throw myself back into full time campaigning. Do you fear that brexit as you envisioned it, as you worked for, it is in danger now do you think there will be a second vote potentially this year . I think what happened last night imperils the whole brexit process. Im pretty upset about it. It is extraordinary, isnt it . Many thought that brexit was done a torturous negotiation for the next couple of years or so. Now some proponents think it could be you know, uncertain future. Lets ask Professor Malcolm chalmers, Deputy Director general at russi, what his thoughts are now. Malcolm, we were speaking earlier off camera about the rock that is so familiar, the tory government floundering and now may. Why do the tories keep having this act of selfflagulation . In many respect the conservatives are a profoundly Pragmatic Party on the issue of europe they are not. Ideological for so many conservative mps. We saw cameron two years ago achieving a working majority, and then proceeding not because of popular demand, but because of pressure from his own party to having that referendum which pushed him out of office. Now theresa may repeating exactly the same cycle. Is it right in your opinion that theresa may goes and thinks about her position now or that she actually tries to form a government with the backing of the dup and just carries on, but significantly worse position than she was in yesterday . I think it is possible she may try to soldier on for a while, but i think it is pretty inconceivable to imagine that she can be the british leader in the brexit negotiations because she simply wont be credible as representing a stable majority in the uk. Who would be credible then . A tory or would it be somebody at the head of the minority government, possibly led by Jeremy Corbyn or another . I think a parliamentary arithmetic suggests the conservatives have to form the government, but the arithmetic also suggests that especially on the divisive issue of brexit, that conservative leader has to reach across the floor and get a broader parliamentary majority for what he or she is doing. If she can have a vote to to blow away the fiveyear fixed term parliament, surely very easy for that to be blown away again on vote after vote over the summer, and the autumn, and have another election, possibly by the end of the year. Thats entirely possible, more instability and another election within next year is entirely possible. Lets not forget, though, that before she called this election, the Prime Minister set the clock ticking on the brexit timetable, that twoyear article 50 timetable, we already were three months into it and made no can we hold pause for a bit while we start that was in terms of the hand that the British Population has, the British Government has facing down what must be feeling very confident, Michelle Barnier, and other negotiators, is the hand weakened or not as much as some pundits have been saying . I think it is an opportunity for a brexit settlement, what people might call a soft brexit, which dilutes some of the red lines which theresa may unfortunately set. Single market then. Possibly. We will have the ecj . Some of the elements, but not we will have free labour. What was it all for . Thats a good question. Thank you very much for your time. Professor Malcolm Chalmers at russi. To recap, if we do have red lines blurred, jeffrey, and Free Movement and labour, ecj dominance and Single Market, i reiterate the question, to our audience, what is it all about . A little bit confusing, you have to say at this point. I want to bring in the other side. Brexit talks, Jeremy Corbyn, the labour leader says his party would push for a jobs first brexit, that means prioritizing proper trade deal with europe. Corbyn added it was clear who won the election and his partys ready to serve. Lets get out to carolyn for more at labor hq and joined by downing street. Some of the calls from corbyn that he might have won the election given he had 261 versus 31 216. He hasnt won. What does this mean for brexit . Look, i think you raise a couple of very important points and i dont have the answers to any of them at this point because to be honest, were just as confused as you are about some of the comments that mr. Corbyn has been making this morning. Theyre ready to serve the country, we will do everything we can to put our program into operation, and he says parliament will have to take a decision on what happens when the government puts forward its program. It is very, very unlikely at this point that Jeremy Corbyn, the labour leader, will be part of any government here Going Forward because obviously first this is this goes to conservatives and theresa may to form a minority government right now. And then only after a couple of steps this could take, you know, weeks and weeks until the conservatives say, hey, were not able to form a government, over to you, jeremy forbe corby form one. They ruled out forming a coalition with either conservatives or with the labour party. So it would be extremely difficult for Jeremy Corbyn to find or form any alliances here Going Forward. Coming back to the comments on brexit, he said that the trade deal with europe is the most important element of the brexit talks, but so far in the campaign hes been pretty vague when it comes to the future of brexit. Of course, a lot of people, a lot of voters overnight like the fact he wasnt as extreme when it comes to the brexit views, and he never said no deal is better than a bad deal, like theresa may did. But at this point, it is simply not clear enough what his strategy would be on brexit. Carolyn, thank you very much. Lets get out to villa for more at downing street. Significant doubt who holds the keys to number ten, theresa may, someone else from the conservatives or Jeremy Corbyn. Not fans in the conservative party of people that lose elections, we know that much from history. Clearly theresa may on under a lot of pressure from members of her own party. The only one that publicly spoken about this, the former minister under david cameron, she said she should consider her position, one imagines the shock in the conservative party are circling in the water around mrs. May. Were expected to hear from her in the next hour or so. On brexit, clearly, she called this vote, said to strengthen her mandate, she suspects a much larger parliamentary majority, so she could outflank members of her own conservative party, who might have been slightly more in favor of not leaving the european union. She clearly hasnt won that majority. Let alone that ability, that cushion to outflank members of her party who might have been in favor of remaining. So now were left with the situation where as carolyn mentioned, were looking at a slightly softer brexit as people a lot of analysts saying that might be longterm better for the british economy, in the shortterm were faced with yet more uncertainty. Clearly in brussels people saying right now this does not look like negotiations could start as soon as june 19th, the deadline that Michelle Barnier set. We heard from giunta earlier this morning talking to german radio, saying the eu budget commissioner saying without a government there will be no negotiations. So a lot of Difficult Conversations for theresa may ahead of her in the hours and days to come. Thank you very much indeed for that. Interesting, sky, here in the uk, carrying a report that the Northern Irish dup are considering supporting Prime Minister mays conservatives through a, quote, confidence and supply arrangement. Let me just explain that to you. A confidence and supply situation is one where the party agrees to support the conservatives on confidence votes, and on matters of appropriations. So effectively around taxation through supply votes. But for most other matters, would vote by conscience. So it is a limited it is a limited support mechanism, if you like, but could be sufficient to get the conservatives over the line. Karen, to you. How are the markets doing on this . Great day if youre a day trader. Sterling, 126, at 32 at the low end. 1 126. 88. There is an argument that sterling has been undervalued for some time. Risk event like today pushed the currency much lower. Shortterm there are signals for 1. 25 handle on Parliament Quite negative for the trade on currency. Keep in mind, longer term calls were hearing is you might see yields steepening, positive for sterling trade. So i think shortterm, longterm trade quite different on how you used sterling at this point. What has been clear if you look at it from one definitive trade on the market today has been around domestically focused stocks, sold down, more subsidiary on the ftse mid250. What has been a trickier trade is ftse100. 7535 was the high point for the stock market in the uk. We have come off that level. We peeled down to the point where were up 40 odd points, so half of 1 . Very big divide between the dollar and foreign currency at the top of the market. All the domestic focus names at the bottom, in particular the Home Builders as we have been flashing up this morning. A lot of selling pressure, some down 4 odd percent. Well take a break and be back in a moment. When we come back, top Bank Analysts weigh in on the general election result. Well bring you their comments. And recommendations as to how you might make money from this. Well squeeze in the break. Livestream your favorite sport, at the airport. Binge dvrd shows, while painting your toes. On demand laughs, during long bubble baths. Tv on every screen is awesome. The allnew Xfinity Stream app. All your tv at home. The most on demand, your entire dvr, top networks, and live sports on the go. Included with xfinity tv. Xfinity the future of awesome. Welcome back to our special election coverage. I want to show you more stock trades and reaction to what has been a shocked outcome, Hung Parliament. The banking stocks in particular suffering here today. There was a view that certainty around brexit and stronger hand for may would be good for the banks, now the uncertainty really knocking some big names. Still a view by analysts that a conservative led government would be more positive than a labour led one. Thats what analysts are saying around the bank stocks specifically. If you see the extent, metro bank one of the upstarts is suffering the most, down more than 4 . Across youre seeing a pullback, the exception the owners elsewhere, banks with jurisdictions focused on some emerging markets and other areas across the globe that stand chartered, hsbc. Home builders to the bottom of the index on the ftse, eclipsing the losses on the banks has been these particular stocks. Taylor whimpy down 4 . In lockstep, 3 as perceodd perc the other big names. Think Bigger Picture when there is room to negotiate, a push on the Property Market about concerns for demand for housing. Balance that against calls for Market Participants saying you might see a steepening of the yield curve, general uncertainty. Want to take you to what is really the flip side of this sterling trend. You can see the companies that derive their revenue from off shore. Bp rio tinto, Drug Companies trading higher as well. Other foreign earners, diaggio, all in the green. Back to you, jeff. Thank you very much for that. Just some comments from Michelle Barnier, he would be the chief negotiator for the eu and the brexit discussions here. Brexit negotiations should start when the uk is ready. Timetable and eu positions are clear. Lets put our minds together on striking a deal. He says. We had various comments this morning from commissioners and others suggesting that the timetable remains the same until either party indicates that there are any significant shifts in that timetable. So we will wait and we will watch. It takes how long it takes to cobble together a coalition is the question when you count down to ten days to negotiations. But here has be