Her majority in parliament. The pound is on the move. What is interesting is that it is not infecting other markets, relatively calm around the world. This is not brexit. But it is a big surprise. Tell us what happened. Big surprise indeed as you can see from that twoday chart of the pound. It fell dramatically as exit polls revealed last night that we are headed for a Hung Parliament and eventuality that has been confirmed this morning. Nobody will get an outright majority. Why is the pound fall . Because it means were headed for a weak government, whatever color it ends up being. We have a clue a confirmation what color that will be when we hear theresa may speak shortly. Shes expected to confirm she will form another government. What happens next . Well, theresa may did not quite get a majority as we said. She got around expected to get around 318 seats, 326 is needed for majority. Crucially with the dup, thats the democratic and Unionist Party of Northern Ireland to hold fairly similar her political views as the conservatives, she could move forward and operate with a working majority. Not an outright majority, but an effective majority. She would then therefore go ahead and seek an audience with the queen at some point today and form the queen she intends to go ahead and form a government and things would continue as they were before albeit with a weakened position for Prime Minister theresa may and, of course, all eyes Going Forward on brexit negotiations due to start in a couple of weeks. Sara . That seems to be the bigger question for Global Markets, does this change anything when it comes to the uks negotiating position, or the position overall for the country, for brexit, and the future of this country within europe. Well, listen, the brexit question is fascinating. Theresa may called this election specifically to strengthen her hand going into the negotiations. Not only failed to do that, she massively weakened her hand, one political commentator saying she will be a laughingstock when she goes to the negotiations if indeed she does confirm in moments to come she intends to go ahead and form a government. You mentioned that question, could this be reversed . Well, thats uncertain. Labour still says they want to carry out brexit, they put it in their manifesto. John mcdonnell, the shadow chancellor, Jeremy Corbyn the leader want to move ahead with brexit. Doesnt sound like on the face of it will be overturned. The outside chance if labour had to form a coalition with parties like the smp and the liberal democrats that they could promise a second referendum, but i have to say that looks highly unlikely at this stage. The shape of brexit, of course, is just as uncertain, though. What about the question about whether she stays on board . Were waiting to hear from her, but there are some raising that this morning, is this a no confidence vote . How did she totally miscalculate the british electorate as her predecessor David Cameron did . As to the question of is theresa may under pressure, absolutely definitely. This election was very personal, it was also very controlling by her and clearly it has failed massively. She had a big lead, that evaporated. This is a massive personal blow to her. However, as to the question when we hear her speak momentarily, as to whether shes likely to resign or not, the consensus on the ground here in westminster is that absolutely she will not. Why . She can point to the fact that she increased her percentage share of the vote from 37 to 42 between David Camerons score in 2015 and hers, albeit of course the number of seats has fallen. Also, the conservative mps that could be out to get her in due course will likely want to see stability. At least in the shortterm, of course, if they dont go for that it risks opening the door to letting labour in or leading to a second election when it is not under the conservatives control. Well hear from her shortly and we expect her to say shes going to seek an audience with the queen in order to form a government. Albeit a minority government. Thank you. We will check back in with you in a moment. As we await the Prime Minister, lets check on the Global Market reaction this morning. Because it is important that this is not influencing Global Markets in a way that brexit did. Look at futures, higher, futures up 45 points. S p 500 futures up 4. Nasdaq futures up 6. This after another very marginal rally that we saw in stocks. The nasdaq outpaced the other two major averages yesterday, financials, jim cramer looking at that, outperforming for a third day in a row. Theyre the best performing sector so far this week. Well see if that kin contincon. Oil prices, lets show you that, we saw a bit of a rebound yesterday. The rebound has been unconvincing in oil and wti crude, not so just holding right there. 4572. That tended to not last. The rally we get in the 5 00 a. M. In the oil prices. Brent crude oil below 48. 47. 93. Here is the currency board. This is the this is never dull. This is always the place where you see the political shocks manifest. The british pound is the one you want to watch. Almost 2 move lower. Biggest move we have seen for the pound since back in october. It only takes us back to levels since midapril. Within the band of a lot of the gaming out of the scenarios, that wolf has been talking about, a Hung Parliament was something expected to Something Like this move in the pound. Absolutely. Right. And interestingly, youre seeing the pound weaken in the footse 100. The dollar is stronger against the yen. That bodes well for risk appetite. Not like youre seeing a massive flight from safety to quality that we see for instance in more global surprises like brexit, like the original reaction to President Trumps surprise presidency, that overnight market saying no expected contagion of any sort. Not a lot of economic instability that will grow out of this outside of the uk. And as you say, no kind of risk off trade. I think treasury yields were hanging in there. We watch the euro, down a third of the percent. On brexit day, the euro got slammed. Down more than 1 on this idea that you could see a Ripple Effect spill over. It is unclear what all of this means for brexit. And thats why, look, you got strength in the European Equity markets, especially in the ftse 100 in the uk up more than almost. 75 . They benefit from that weaker pound. Theyre getting that this morning. They are. Asian equities pretty much the first markets able to respond to the surprise results last night. You see still relatively calm, japan up half a percent, the hang seng down marginally, shanghai in the mainland up a quarter of a percent. In the theme of investors having gotten the idea that the political event shocks of whatever magnitude, at least for the time being, dont necessarily have lasting effect and in this case not even much of a reflex effect. Look at the broader markets as well. You look at fixed income, and outside of currencies, here you go, gold actually no response. Weak yesterday. Yesterday we got through the ecb, got through the comey hearings, without a lot of market impact. People kind of thought the uk was probably also going to be a nonevent, the vote over there, didnt turn out to be the case in terms of the actual election. Market impact not very strong. So continuing with the markets, to get more on the Market Reaction to the uk vote. Mike, thanks very much. Back in parliament, im joined by sebastian payne, lead Political Writer for the Financial Times and derrick calpenney, the head of European Research of Global Markets mufg. Sebastian, with what were expecting theresa may to say any minute from now, do you think shes going to resign . Absolutely not. Not at this stage. Her opening will be i am Prime Minister, and im going to stay Prime Minister and as you talked about earlier, she will rely on the irish unionist, to bolster her to get a queens speech through parliament. As soon as she has that through parliame parliament, ten days time, she can put a government together and essentially continue as she did before. Shell be far more hostage to the left and the right of her party. A lot of chatter that her position will be unsustainable. I think theresa mays premiership well be talking about in months as opposed to years. No real prospect of an immediate leadership contest, too uncertain, more instability, and very uncertain time for the country. And if we do see that in a couple of months, say, threats to her leadership as opposed to a number of days, does that come to another general election in the uk, this calendar year, or just a leadership battle within the conservative party . I think at first a leadership battle within the conservative party. They will not go to another general election with theresa may. She didnt win this one. They wont give her another opportunity. And they also wont want to risk it as well because getting a general election of acquiring labour to vote for that as well, delighted with the gains that they made, and this time around. I feel well be in this weird state for the next couple of years, where the conservatives are in a strong position and labour is in a strong position and nobody will call in a election. Lets talk about the market impact. The level of softness, a big surprise, a Hung Parliament, a big surprise. Therefore you relatively surprised the pound didnt fall more last night . There are some positive developments. The fact that the mandate is not they expected is why we had the initial drop. There are two elements, one is what type of brexit do we now get in terms what are the negotiations Going Forward, and thats i guess the focus. I would also stress the importance of what this potentially means in terms of austerity Going Forward. Im pretty sure that Jeremy Corbyn and the labour party will send a message that this election wasnt about brexit per se, it was about what brexit or what being in europe has done. And the domestic situation and austerity is what needs to change. That could be a positive, of course, if we see a pullback from the tories in terms of the degree of austerity Going Forward. What does it mean for Interest Rates . The Monetary Policy is likely to have a bigger impact on sterling Going Forward than the fiscal policy itself. If you assume there is a notable change in terms of the fiscal policy outlook Going Forward, and we get a degree of stability which, of course, isnt quite certain at the moment, you could argue that we could be in a situation where we start to see some expectations of better growth. And that obviously could be sterling supportive as well as pushing the yields higher. Sebastian, could brexit, the decision, be overturned now . I cant really see that, because the vast majority of country has for the conservatives or labour. Both of whom said they would acknowledge the referendum and both essentially are pushing for the same to leave the Single Market and it was the immediate problem is those talks are supposed to get in 11 days time, the same day that the conservatives need to put forward a queens speech. Before that was thought it would just be a matter of process, it would get through. Thats not so certain now. There a good question on whether they delay this. It if they delay it and the clock is ticking and theresa may is weakened when she sits across the table from Michelle Barnier and the other eu leaders, shes not a strong leader with a mandate, shes a weak leader with not much of a mandate. I think if you take it simply, where we started on the 18th of april before the snap election was announced when it was a assumption of a strong mandate, around 125. Now with that completely reversed, you could argue over the shortterm we could at least get back to those levels where we were before the snap election was announced. Great stuff. Derrick, sebastian, thank you for joining us. Sara back to the studio. High drama on capitol hill as former fbi director James Comey Testifies before congress. His grilling still getting a lot of buzz. All on the front pages this morning. Well take you live to washington straight ahead. And as we head out, another check on u. S. Futures at this hour. There was a quick selloff after the result of the uk vote, but coming back since then. Indicated open is higher for the s p 500, dow and nasdaq. Worldwide exchange will be right back. Hey youve gotta see this. Cmon. No. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. Welcome back to Worldwide Exchange. Were live from cnbc headquarters in new jersey and here in london outside the houses of parliament. Reaction to that surprise failure from theresa may last night. Shes failed to secure a majority. We are due to hear from the Prime Minister theresa may any moment now at ten downing street where shes expected to confirm she will seek to move forward and form a government, albeit one with only a likely working majority as opposed to an outright majority. She will go to see her majesty the queen at 12 30 Buckingham Palace where she will ask her permission to form a government. Well hear that from her own lips any moment now due to speak at ten downing street. Thank you very much. As we await the Prime Ministers remarks, lets get you up to speed on the Market Action this morning. U. S. Equity futures looking for a slight gains right near all time highs for most of the indexes. Quick selloff last night, but not a Global Response to that surprise uk vote, not across equity markets. Look at the pound. That is where the reaction has been most pronounced and very localized. You see down about 1. 8 , 127. Still above the levels, i guess, of a couple of months ago. It is a dramatic one day move, but not necessarily unwinding the recent gains. I think were learning more and more this year and certainly this week about political shocks and market impact. The stock market, we always called it teflon, remaining resilient, it is this week in the face of some big surprises like the uk. 2 move lower on the pound. You wonder if it bleeds into overconfidence, people ignoring risk, right now people realize these policy moves are not the thing that markets are pricing in. I would add to that, james comeys testimony before congress yesterday, certainly living up to all of the hype. Lets get to Cnbcs John Harwood in washington with more. We were talking about sort of lack of Market Reaction, even though investors were clearly paying attention to this. That does not mean it created a stir and opened up a lot more questions in washington. Absolutely it did. You had the former fbi director testifying to the Senate Intelligence committee portraying the president of the United States as a liar who fired him in order to change the course of the russia investigation. Now, republicans interestingly did not dispute the credibility of james comey, they praised him as an honest person, but they tried to cast his account of what President Trump did in the most favorable light. Check out this exchange between james comey and james risch, senator from idaho, who suggested perhaps when the president said i hope you can see the way to letting mike flynn go, that it wasnt a direction and here is how james comey pushed back. I took it as a direction. It is the president of the United States, with me lone saying i hope this, i took it as this is what he wants me to do. I didnt obey that, but thats the way i took it. You may have taken it as a direction, but thats not what he said. Correct. He said i hope. Those are the exact words, correct. You dont know of anyone that ever has been charged for hoping something, is that a fair statement . I dont as i sit here. In reality, shortly after that testimony, several cases were identified by legal experts where people had been charged with obstruction of justice based on i hope. Never the less, we do not hear directly from President Trump yesterday, we heard if his lawyer, mark castlewits. He said james comey said he the president had asked him to deter that or stop that flynn investigation, said that didnt happen. He also said the president did not demand loyalty from james comey, but he did say the president expected it. The office of the president is entitled to expect loyalty from those who are serving the administration. It is overwhelmingly clear that there have been and continue to be those in government who are actively attempting to undermine this administration with selective and illegal leaks of classified information. Now, to the lawyers point, james comey acknowledged he in fact had leaked notes of his meetings with President Trump to a friend so they would get in the press saying he hoped it would trigger the appointment of a special counsel. In fact, that is exactly what happened. And thats a problem for President Trump because robert mueller, who is a long time ally of james comey, who is the special counsel, according to james comey, is now investigating whether President Trump engaged in a obstruction of justice, that is a huge problem for this white house. So upshot, john, does the political attention still completely focus on the russia question and investigation or on the legislative agenda . Did the needle move one way or the other post comey . Yes, i think, sara, this ensures that the russia matter and the investigation by robert mueller, the Senate Intelligence committee investigation, is going to loom larger in washington and the agenda is going to take the back seat to that. One of the things that was chilling for the white house, i think, was at the end of the hearing, richard burr, the republican chairman of the intelligence committee, praised james comey, saying you love your country enough to tell it like it is. If richard burr believes that james comey was telling it like it is, that means this investigation is going to get more and more serious, and that makes it more and more difficult for the president and Republican Leaders in congress to advance that agenda. John harwood, thank you. Is the market telling a different story or the fact there is no movement good for markets . I think it is okay for markets because other things are going right. The economy is good enough, earnings are good enough. I dont think you had a lot of policy priced in at the very at the moment. I think the markets are looking at it like this kind of looking like both sides will get dug in, the backdrop in washington for a while right now. You know, still you hear people say, you know what, the senate is work on Health Care Still a story line that says things are happening on the legislative front even though we dont see them. Think about the obama presidency, not a lot got done on the legislative front. 2013, enforced gridlock. Coming up, continuing coverage from the uk, where the country, talk about deadlock, faces political deadlock this morning. Still awaiting comments from british Prime Minister theresa may. During this hour, well bring you those live as soon as they happen. Stocks to watch, including the maker of these scary looking robots. Well tell you why they are back in the news. Thanks for loading, sweetie. Oh, burnton gravy . Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. New cascade platinum powers through. Even burnton gravy. Nice. Cascade. Hey, ive got the trend analysis. Hey. Hi. Hi. You guys going to the Company Picnic this weekend . Picnics are delightful. Oh, wish we could. But were stuck here catching up on claims. But we just compared historical claims to coverages. But we have those new audits. My natural language api can help us score those by noon. Great. See you guys there. We would not miss it. Watson, you gotta learn how to take a hint. I love to learn. Looking from a fresh perspective can make all the difference. Watson, you gotta learn how to take a hint. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Welcome back to Worldwide Exchange. We are still awaiting theresa mays speech live in downing street, though it has already been confirmed at 12 30 p. M. Local time, 7 30 p. M. Eastern time she will travel to Buckingham Palace and ask the queen for permission to form a new government. Shes pushing ahead all be it in a weaker position. We saw a sharp move in the british pound last night. You can see it fell 1. 5 as the exit polls came out, 127. 18 the price of the british pound. May, her speech imminent. Down almost 2 . Worst drop since october. Well continue to follow that. In the meantime, want to hit u. S. Stocks to watch today ahead of the wall street open. Cloudera is down. Results better than expected, but the Data Software companys operating expenses more than tripled and its marketing bill doubled and shares are down nearly 16 . Endo getting hit after the fda instructed the drug company to remove pain reliever opener from the market. This is the first time the Regulatory Agency has asked a company to pull an opioid medication from the market. Hudson bay, sales dropping more than forecast. The owner of saks fifth avenue saying it will cut 2,000 jobs across north america in a major restructuring effort. Well talk about nordstrom as well. Familiar story in retail. Coming up, more on the dramatic moves in the currency market following the uk vote and what the results mean to your money as we get ready for the final trading day of the week. Stick around. Worldwide exchange will be right back. Mom gets breakfast in bed. You get to do the dishes. Bring em on. Dawn ultra has 3 times more greasecleaning power. A drop of dawn and grease is gone. Good morning. A stunner in the uk as british Prime Minister theresa may loses her majority in parliament. Drastic moves in the currency market, were live in london with more on this unfolding story straight ahead. Keep calm and rally on. U. S. Futures pointing to another record open on wall street as investors seem to shrug off the news from across the pond. Were setting you up for trading day ahead. Major firework on capitol hill as former fbi director James Comey Testifies before congress. We have got the fallout. Friday, june 9th, 2017. Youre watching Worldwide Exchange on cnbc. Good morning and welcome back to Worldwide Exchange on cnbc. Im sara eisen with mike santoli. Willford frost in london with more on the british election. Well hear from him in a moment. Lets show you the Market Reaction this morning. Got to start with the british pound tanking overnight on the surprise results of a Hung Parliament. Down now almost 2 against the u. S. Dollar. This is the center of the action. This is where we are seeing the most Market Reaction, the pound falling against the dollar, falling against the euro as well. Worst levels now since midapril. And biggest drop since back in october. So nothing like the brexit reaction, but certainly this is bearing the brunt of the surprise. As for european stocks earlier this hour, amazing resilience, strong across the board and that includes the ftse 100 in the uk teeing off the weaker pound, helpful for exporters. You are seeing strength in places like germany, up half a percent, france as well. U. S. Equity futures going strong, taking the surprise news in stride, not really feeling any surprise negative reaction. Nasdaq futures up 7. Close to more record highs. Overnight action in asia as well, lets show you what happened there, the nikkei in japan closed up half a percent. Youre seeing some weakness in the japanese yen, which bodes well for risk appetite, not seeing a flight to safety. Gold is lower. The yen is lower. Treasuries even. So the safe haven assets not so much in demand as a result of this surprise vote. In the uk, the shanghai comp in china closing up a third of 1 . That bears out that steadiness in broader markets as well. Oil, still sticking near the bottom end of the recent range after that pullback from the mid40s from wti. It is holding in there right now. Yesterday, actually, Energy Stocks attempted to rally as crude oil did bounce a little bit. Lost it by the end of the day, those stocks seem like theyre pretty oversold. You see the commodity is basically hovering above the flat line. Tenyear note, not seeing that flight to safety, at least in this market. 2. 197, 2. 2 yesterday, for a little while, and it gave some life to the financial stocks, banks especially and also tenyear note yield, bottom end of the range as well, above the recent lows. Look at the u. S. Dollar, sara mentioned the yen was weaker against the dollar, which does help risk appetite. See it across the pound. Down 1. 8 and the euro looks leak just marginal loss there, little under 112. To gold, not much of a response from the precious metal here, down a quarter of a percent, 1276, still 20 below the recent highs. On the week as a whole, on this tri, sofriday, sort of oka. Tech and financials interestingly are the standout performers this week. Financials is a little bit of a role reversal. It is. Yesterday you saw kind of the inklings of another rotation happening, a lot of big tech stocks didnt do anything. Financials up, small cap stocks were up. Thats been the rule, net movement at the index level, quiet trading. Sector rotation keeps the market up. Lets get back out to willford in london for more reaction to the uk vote. What happened and what happens next . Sara, lets just look at the pound again, that stunning move over the last 24 hours, 2 fall at the moment, the results came out. The british pound still down. Now, why did it fall . A recap of the results for that. The conservatives are expected to end up with about 318 seats. To get an outright majority, you need 326. Before this whole process started, they had 330. The pound has fallen because of the expectation of a weaker government to come. Theresa may certainly losing her shine off the back of this whole election process. How did it go wrong for theresa may . The first crucial factor is that people expected turnout to fall, and instead it rose, compared to the 2015 general election to around 69 . Particular increase is thought to have come from young voters. That led to some stunning results for labour in cities and university towns. A recount in kensington and chelsea, very affluent area going on in london, which would paint the picture perfectly. If it didnt end up going towards labour, the fact it is close highlights Extraordinary Results in cities that labour won. The uk brexit vote did not go unanimously to conservatives as it was expected. It was split pretty seenly between evenly between labour and the conservative party. Finally, the conservatives were saved from a worse outcome but large gains in scotland. The smp had a bad night, conservatives had their best performance in scotland for over two decades. That leaves us as we stand with this outcome of a Hung Parliament, we expect theresa may is due to speak any moment in ten downing street to confirm shes going ahead to form a government, a weaker minority government. What does this all mean for markets . Simon derrick joins me. Chief currency strategist. Good morning to you. Good morning. Thank you for joining us. We have umbrellas by our sides. Apologies if we have to bring them up. Just started raining again. Well bear with it at the moment. Pound has fallen. This was such a surprise result. Should the pound have fallen more . I think it is fascinating that it also plays in a matter of seconds. The initial results, we got down. Since then, we have been waiting to find out the outcome of today overall, a Coalition Government or government that was supported by another party. And from there where do we move on . I think the key here is sterling does react to political stability and instability. And we go back to the 2010 coalition debate, remember how poorly sterling did as we debated that. Equally remember what happened last year, during the leadership. So todays been a good day, good news, bad news story in a way. Well end up with support from the dup, for the government, so a government come before them, the question is how long does that last . Thats the bad news. That might be the stellar weakness, it weakens over a period of time. Lets talk about the medium and longterm in a moment. Today and next week, if theresa may as expected comes out, forms a government, perhaps exactly the same cabinet as she had before, faces wee s we know, f investors can trust. I dont think it is a buying opportunity. We go back to the mid120s, maybe a little lower. And it is precisely because despite the fact that they have dealt with the issue of getting the new government in place, Everybody Knows that it is unstable. We have the relatively soft brexit story with regards to the dup, and yet within the back benches of the conservative party we have something looking for brexit, people will debate how can that last . We had a tweet from donald tusk, the european counsel president , he said dont know what talks start but we know when they end, putting the pressure on the fact that theresa may already in article 50, the twoyear clock has begun. Is the uk hand in these negotiations incredibly weak . Will the european outcome be stronger because of this . I think it is weaker than it was. It has to also say the europeans were always going to take a brexit means brexit is opposed to things. Are they going to change the approach because of what happened here . Maybe only in the sense that they perhaps sense a little bit more weakness and negotiating position. But i think maybe thats really what donald tusk is saying here today, look, you got to get the process going, whatever happens. Yeah, i do think that we have a slightly weaker negotiated position, i think it tends to weaken sterling over time, for the moment at least, we have a government. And thats the key why we arent seeing a radical form of steriling. What does this mean for the European Union and your current view on the euro . I think what it means for the European Union is it continues to strengthen that cohesion that you see, ever since article 50 was triggered. It looks Even Stronger after today. So i think from that perspective, youre talking about far less opportunity, maybe somebody leaving, and next two, three, five years and if thats the case, it presents the stronger story for a euro that starts to appreciate from here. European numbers have been really good over the course of the last few months. Mr. Draghi i think underneath it all, youll recognize the direction and simon, pleasure to see you. Simon derrick at byu melon. Paul donovan writes colorful notes overnight from ubs, wrote losing means losing, brexit means brexit, or Prime Minister may. Is there any chance there could be another referendum called on the topic of whether the uk does exit . There is a chance, you have to say it is highly, highly unlikely. First, and foremost, because theresa may, we think or we know, but we havent seen herself, will go ahead and form another conservative government, we know, of course, that she is on a path to make sure brexit is carried out, but the step further from that is that labor, too, in their manifesto, Jeremy Corbyn, they said they intend to carry out brexit. Not that theyre going to be in government either way, but the two main parties want to carry out. The question is what shape it takes. The outside 5 chance would be another election and labour force to make a coalition with the smp, liberal democrats, the green parties, but even then it is a far step to try to overturn article 51. Willford, glad youre there, explaining this all to us. As we await the Prime Minister theresa may said to be headed to Buckingham Palace later to form a minority government, were expected to hear from her first, thats a live shot of ten downing. Well take it as soon as she emerges. When we come back, how the big upset in the uk election is playing out in the british papers. Todays must reads are straight ahead. And as we head out, lets look at u. S. Equity futures. The gentle upward pressure, that momentum near the all time high seems to continue. All week, we had to get through thursday, we got through it, even with one big surprise, but no broad market impact. Surprise by unscathed. The comey stuff was messy, but ambiguous. The markets are carrying on. Ten year note, no big response, hovering right near, just below the 2. 2 level. But off the low. So i think okay for equity markets now. Worldwide exchange will be right back. Its taking the best technologies out there and adapting them to work for you. The ultrasound that can see inside patients, can also detect early signs of corrosion at our refineries. Hightech military cameras that see through walls, can inspect our pipelines to prevent leaks. Remotecontrolled aircraft, can help us identify potential problems and stop them in their tracks. At bp, safety is never being satisfied. And always working to be better. Apparently, i kept her up all night. She said the future freaks her out. How come no one likes me, jim . Intel does just think of everything intels doing right now with artificial intelligence. And pretty soon ai is going to help executives like her see trends to stay ahead of her competition. No more sleepless nights. Were going to be friends im sorry about this. Dont be embarrassed of me, jim. Im getting excited about this we know the future. Were going to be friends because were building it. Thithis is the new new york. E . Think again. We are building new airports all across the state. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov welcome back to Worldwide Exchange. Im sara eisen with michael santoli. Willford frost from london. We await Prime Minister theresa may. The must reads, do we have a lot of them. I picked peggy noonan in the wall street journal what comey told us about trump, noonan, long time oped writer, speechwriter for reagan. The worst part of the testimony she says is when the president pressed mr. Comey for his personal loyalty. President s dont lean on fbi chiefs in this way. At odds with traditional boundaries, understandings and protocol. Embarrassing to read, she says. It is how someone who learns about government by Binge Watching house of cards would play. It was bumptious, a colorful read, a good summation and not a takeaway. She sort of puts two questions out there. One on the legality, she said, as many people say this morning, no smoking gun on whether it is obstruction of justice, and the other point, im clear what it is going to mean for his supporters who may not have even watched the comey testimony. Watched it and if you went to the supporters, it echoes what paul ryan said, hes new to this, naive, doesnt know the kind of niceties and protocols, uncouth in a lot of respects, but his supporters said he was there to break some glass. And not necessarily go along with maybe you dont think thats weird. Wouldnt go with the protocols. My pick also in the wall street journal relates to the uk vote, of course. By richard barley, it is called britain is an uncertainty generating machine. He says there is another example of markets worrying about Political Risk and all the wrong places. Brexit and trump were shocks, jitters around elections in france and the netherlands passed without incident. Investors usually get a break from application politics after and now a honeymoon period. Neither seems to have that luxury in the uk this year. The idea being that essentially that this result in the uk does not help clarify the picture in terms of brexit, for investors, anything like that. And i think there is this theme in the markets where democratic governments are unpredictable and messy and cant really be effective now. Big companies, were okay with that. Currencies are more volatile than stocks now. Currencies are never dull. I think that is the thing from last night. Lets bring in will fred to find out how the results are playing out. It is your fault, every time you go there, you generate massive incerta uncertainty. I love your comment, currencies are never dull. You dont think theyre dull even if theyre dead flat, a day of volatility you love in particular. Lets look at the front lets look at the front pages of the British Press if i can manage to do this one handedly. The first one, the daily mirror, left leaning red top, caught blamy, exit poll boost for corbyn as may faces humiliation. Couple of the right wing ones, excuse me. I dropped more papers than i intended to. The sun, right wing leading sun, of course, supporting theresa may throughout saying mayhem, coalition of chaos feared, of course, that has been avoided, but is the exit poll wrong . Late night edition, of course, we know that the coalition of chaos has been avoided. And that we will hear theresa may going to Buckingham Palace to form a new government shortly. We still await her speech, and shes just got herself over the line, kicking and screaming with a working majority albeit not an outright majority. My apologies again for the language slip there, guys. We are keeping an eye on this live shot of ten downing as you mentioned. Prime minister may set to speak, we see the lineup, i know it is raining there. We saw your umbrella. Clearly the press is waiting. The cameras are positioned. Were expecting to hear from her at the top of the hour, right . About 48 minutes late. And we assume shes going to come out and announce shes going to the queen to form a minority government. Is that the assumption . Yeah, i dont think we need to assume that now, thats been confirmed by official sources. Decision perhaps maybe she will lean now zirksd to speak after that, as you say, were not a couple of minutes late, now 48 minutes late and therefore it has gone past a short delay. Either way, the Key Development of this morning as opposed to last night is the fact that she decided to go ahead and form a minority government, shell go to see the queen at Buckingham Palace at 12 30 p. M. After that, shell return as Prime Minister once again and be able to form a government again as we said before a minority government, a little shy of an outright majority in her own right. With the support, most crucially, of the dup party, Northern Ireland, won ten seats, she should be able to govern from a weaker position, not just where she was six weeks ago, but a lot weaker than where she thought she might be if she had won this election more resoundingly. With brexit talks to take off one week from monday. Willford, thank you. Up next, keep calm and rally on. Were watching Futures Holding firm here, positive as investors shrug off results from the uk election. The pound is down nearly 2 . Dow futures are up 43 points. Youre up, mostly green, across the equities. Worldwide exchange returns. This is a story about mail and packages. And its also a story about people. 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Everything in one place, so you can travel the world better. Welcome back to Worldwide Exchange. Eight minutes to go before the top of the hour. The team is getting ready for squawk box in new york. Andrew ross sorkin joins us this morning. We have a lot coming up. Youre awaiting theresa may. Were awaiting theresa may. If we get her, well take her, of course. If you get her first, you will take her. And probably run into the beginning of squawk. That will be the topic du jour and comey, comey, comey, a little bit of the aftermath post mortem on what it all means. Julian tet will be here at the top of the hour to talk about the uk situation. Well be seeing wolf. And later in the show, well talk to Christopher Waylon about the choice act and then separately after that, zeek emanuel talking health care with us. A lot on tap this friday morning. The Market Reaction has been fascinating to see stocks near record highs this morning, despite the political surprises. Thank you. Well see you in a few. Speaking of stocks, u. S. Equity features going strong, dow futures up 44. Art hogan is with us, chef Market Strategist at wonderlic security. We got through super thursday. There were plenty of surprises with the uk election. Dont think the market was expecting a Hung Parliament. And plenty of revelations out of james comey. Are you surprised to see another climbing the wall of worried kind of day on wall street toward record highs . Yeah, i think it is a great question. You put it correctly on wednesday, talking about whether reaction was going to be, and it is in the currency markets. Were seeing the volatility show up in the currency markets, a new phenomenon over the last couple of weeks, the volatility in currency markets is a whole lot greater than equity markets. The super thursday with three major catalyst has come and gone. You get the probably have to classify it under that could have been worse. There is a lot of drama in the comey testimony, but also ambiguity. I think that imminent impeachment has been pushed off a bit. That disaster du jour has been at least delayed or put off for a bit. I think the market is okay with that. I think that the ecb has come and gone and that didnt have a market moving effect and here is the uk election, although it is a surprise that it came out the way it did, it certainly feels like theresa may has the opportunity to set up at least a minority government and keep moving forward with brexit negotiations. So we seem to have survived the super thursday, equity markets, and the real volatility showing up in currency markets. Markets seem okay, that appears to be the case right now. Interestingly, there was really not a lot of buildup of anxiety, a lot of volatility heading into that super thursday. Previous times we had scheduled uncertain events, you had the market kind of prepanic a little bit and got a bounceback afterwards. I wonder where that leaves us in the way of markets. We have been drifting higher for the most part. And maybe do we see Something Like another rotation back away from the defensive stuff from the big tech into more cyclical groups and what does it mean when the fed comes in next week. I think youre spot on when you talk about even though the market seems to be drifting higher on this lower and lower Interest Rates, slower Economic Growth as you like to characterize it, that is true. What we have seen is a massive rotation. Think about the post election sectors that came out of the gates strong, whether the financials, midcycle and industrials, they have given up all or most of the gains. The rotation has been into the dividend the bond surrogate. I think that rotation will continue if the yield on the ten year starts to inch up a little bit, if the u. S. Dollar tends to get a lift here, you may see some rotation out of that sector. The utilities and the reits and the staples. Perhaps back in the more defensive groups in midcycle industrials. I wouldnt be surprised if thats the case. Okay for the Technology Sector to take a breather here. Thats the leadership the last couple of months, used as a source of funds for sector rotation. Financials having the best week since march, making a move up. We have to leave it there. Thank you for weighing in. Art hogan, less than one minute left in the show. Lets get back to will fred with what were watching there today after this very surprising result of the election. Sara, we talked about lots of the finer details. I wanted to step back and say this is yet another vote against the political establishment. Yes, the labour party arent a new political force, but Jeremy Corbyn is certainly a political outsider. And theresa may is the incumbent, has taken the flack of political dissatisfaction across the uk. Result, a Hung Parliament and falling pound, coverage throughout the day from here in london. We look forward to it, wilfred, thank you. That will do it for us from Worldwide Exchange. Squawk box coming up next. Thank you to michael santoli. Its what busch is known for. What are you known for . Im cool under pressure. What is that . A fish hook . chuckling golly [sfx buschhhhh] good morning. Uk election fallout, theresa mays gamble back fires as british conservatives fail to secure a majority and the pound is getting slammed. New reports say the Prime Minister has reached a deal already to form a government, a live report from london straight ahead. More must see tv out of washington. President trump expected to hold a News Conference later today. Hes expected to field questions about james comeys testimony on capitol hill from yesterday. Plus, no more bad blood between taylor swift and streaming services. In a surprise announcement, the megapop star releasing all her music now to streamers overnight. Is it just an effort to sabotage katy perrys new album . Think about that. Friday, june 9th, 2017. Squawk box begins right now. Now we got bad blood we used to be mad love live from new york, where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box here on cnbc. We are live from the Nasdaq Market site in times square. Im becky quick with joe kernen and andrew ross sorkin. U. S. Equity futures, with all of the news that has been hitting the markets including the surprise uk elections, the testimony from comey, you are looking at the dow futures up another 45 points. This comes after the dow set a new session high yesterday during the trading day. S p futures are up by 3, the