It was at 1295 before this. This is a hung parliament. This is an extraordinary result. Teresa mays poor company has played a huge role. Jeremy coleman captured the number for labor there, significantly better than what they were on before. They were on 229. Theyre up to 226. The pound falling further. Why is the pound falling off the back of it . No goody has a majority. Therefore, there will need to be coles discussions. We will in uncertain phase, this is the exit poll. The result is right. We do not have a clear government. Coalition discussions will have to gin to work out who will be Prime Minister and who will return to downing street . Teresa may calls this on the 13th of april. The polls have her lead. The possibility of a triple digit bubble is correct. That is not enough for a majority and wow i mean a terrible campaign she has played out. Mel lisa, back to you. In the past as i understand the exit polls have been pretty accurate when it comes to these elections, when it comes to teresa may, though, are the Election Results so stunning where her days in power may be limited . Reporter 100 , melissa. First to move on to your next question last years brexit poll got things wrong. It wasnt an exit poll, it was telephone polls carried out during the date of the vote. No Polling Company felt confident in what was a national poll. A single big vote with no history that they could get it right. With these exit polls, years worth of history they do it individually. The results came out the next morning. So marks responsive, as we said, they have missed out. What does it mean first and forepost . Her party has a majority and she will be asked if she wants a former government. Will she try to do that without a majority . We dont know. Usually this means the coalition, another party to join forces with them. As for her leader position as the leader, 100 . She called this as strength. Everyone has been pointing the finger and her mps as much as her supporters and voters will be hugely disappointed with her, 314 seats short of the 02326 feed. Basically the next step in terms of whether or not we see political stability to see whether or not a party will join a coalition with a conservative. Is that correct . And when can we expect that, if that happens . Reporter well, the first step is to let the results come in overnight and see exactly where the seats ends up. This exit poll is not to be exactly correct. She is short, maybe ends up being five or six short in play. The difficulty for teresa may is who can she form a coalition with . Back in 2010 they formed a coalition with the local democrat. That was coming out of the back of many, many years of labor. Government and it was easy for those two parties to decide, look at times we mover away from la bomplt the conservatives criticized unanimously by the party in the campaign. Also the party that really represents a significant move to brexit, its almost inconceivable any of the other decent size parties would form a party. They just about could help them get over the line the Scottish National party certainly wouldnt form a coalition with them. What we look at do they try to form a minority government, where they have to get by vote by vote or do they stand back and allow labor to form a coalition because labor does have the ability to form a coalition easily. All right. Wolford thank you so much. The first exit polls i should say out of the uk elections. Stunning reaction in the currency market. This is a move we rarely see, a move of as much as 2 with the british count hitting the lowest levels since may 31st. 127, 45 for u. S. Dollars, we are seeing a decline of 1. 6 immediately on the back of these results. We talked about and the back of these notes, for the first time in a long time, current volatility is higher. I said i dont know, im not pretending to know what that means. What i do know is this, currency like the british pound should not move a percentandahalf in minutes let alone over the course of weeks. These moves used to take weeks if not month. Now it happens in days. You know what i hate to use this term, you know what trumps all this . The fact that mario draghi used to say significant amounts still needed for youre. They can have all the elections they want. Thats the deciding factor. To go back to the dow, in the day, overnight, this ended up being a very good thing for the uk economy. For that thats. At the end of the day what this does is obviously push out any clear choice with brexit. For the week. The pound, shoot first, ask questions later, i think the Way Investors are looking at this, the positioning in that i think is completely overdone. I agree, its probably a buying opportunity for the pound, as far as we seen it before, they could come in overnight and improve. Again, that itself way i see it. Where is the liquid . Right now you look at this move, its not an exaggerated move because of lack of liquidity in the time of the day in which this is happening. In terms of the markets, we have seen a weaker pound help the footsie, its got so many exporting companies on the footsie. In terms of the u. S. Markets, is this another source, you are already shaking your head . Answer the question. This was obviously not expected. I dont think it will have an impact. Its not brexit. Brexit is inevitable. This is determining the path and i look at it and say i dont think stocks in the u. S. Will be impacted by this. I agree, i tell you what, all you have to look at the volatility t. Fact that it was down 5 . It did rally back. We are right at 10. We are in a very low volatility in terms of the market. It will be interesting to see if we get a sustained move, longer than a couple of hours, where the volatility index goes and can that last any period of time whatsoever . We actually had 12007. 04 if terms of the currency trading. Thats the lowest level since april 18thing. By the way, s p futures. Hush. There you go. We had this conversation so we talked about a nonevent. Volatility and nexus is basically telling you we flag the frnlgs at least for one day. Lets turn our attention to the other big story of the day. Wall street took collective sigh of relief following testimony from former fbi director james comey. Eamon javers joins frus walk. If you were looking for a smoking gun, nobody got that huh . Reporter didnt get a smoking gunl. James comey was offered the opportunity to say whether or not he thought the president s behavior in this case amounted to obstruction of justice, he effectively punted on that question and said thats a question for the special count sell robert mueller. Meanwhile, todays testimony really boiled down to a question of trust. Do you trust the gman or the president of the United States . Thats ultimately where this goes. Comey was asked, why should we trust you as opposed to the president . Heres what he said. I think people should look at the whole body of my testimony. Because as i used to say to injuries, when i talked about a witness, you cant jury pick it. You cant say i like this but on this hes a dirty rotten liar. I tried to be open and fair and a really significant fact to me is so why did he kick everybody out of the oval office . Why would you kick the attorney general, the president the chief of staff out to talk to me if it was about Something Else . And so that to me as an investigator is a very significant fact. Reporter and comey flat out said today what the white house said about the fbi being if disarray because of his leadership was nothing but lies. That prompted a response from the white house on this issue of trump, Sarah Huckabee sanders issuing a statement in an off camera gaggle today, she said, ki definitely say the president is not a liar. So a tough day for President Trump, absolutely. But his lawyer came out and said he feels vindicated because comey backed up certain piece of what President Trump has said. Ultimately, thatly fight this, the white house said they dont think the white house said the things that comey said he says, now were down to a he said, he said. That seems to sway in the favor of the Trump Administration at this point. Thank you. So is this now the all clear to keep buying stocks . The Market Selling with a vix below ten with records on the dow, records on the nasdaq. You know what, you just keep buying . I dont think so. Ill tell you why, he said this is not a great day for trump. I think there will be other people at this desk that took a different view. I think the fact that he said its up to mueller tells you there is more to come of this. Lets be very frank, donald trump launched his political career on one of the worst racist lies ever about birthism. He continued with silly little lies how big his inauguration crowd was and another big lie about the Obama Administration that they were wiretapping him. What im saying all the people that surround themselves to defend him is a liar. I think comey was specifically taking notes on each of these six to nine events because he knows hes a liar, mueller will get down to it. The stock market, you can leave ballistic i politics and break out the stockmarket. Stockmarket one thing tax reform and regulation reform. And spending. Right. Obviously spending. The stockmarket is focused on those poor events, right and theyre getting the path to the market basically to q1 18th. Basically, it doesnt matter, liar, whatever it is, impeachment is probably off the table. It will take to move a mountain and a holehill to get that done. Investors dont blink when they watched the comey hearing. Bonds are up, stocks moved around more. Investors didnt really care. For more on today events, we are joined with jim vandehi. It was a great day for trump. Why . I think it was a very good day for trump. Long term, listen, its an investigation, unless you dig deeper. If you think of what happened today, there is nothing new that would say he is impeachable. I think you saw republicans ramally around him. They were careful in isolating the people arnold his conversation with flynn which is one sentence. Its exactly helpful to him. If you think of the approach he has, fake media, fake media. Comey says the bomb still story in the campaign is wrong. So now republicans will say, look, heres evidence of fake news. There was a moment. Have you as to watch it, it was amazing, steve, it was jimmy stewart, a performance unlike things we rarely see, but there was a moment where he talked about last year, he said, listen, this is comey talking, he says, i felt like clinton were trying to align their campaign with loretta lynch, the attorney general at the time. Trump will say, look, they did it, i did it. So short term the markets are reacting correctly. There is nothing new to point to impeachment. The impeachment, by the way, obstruction of justice will be assigned by krong congress, controlled by congress the threshold here is way up there. So it will be really, really hard to hit that and now what you will see republicans do is try to swing into action and see can they break loose on health care, if they cant move it out of the way and move to tax reform. The president knows his numbers are sinking, they got to do something with all republican rule, because those numbers are record numbers in the markets. Thats his saving grace. If you can keep saying that a year from now, hell be fine, republicans will be fine. If you cant say that, hes in a heck of a lot of trouble because he doesnt have a tremendous amount of support out there. To that. The pivot is on doddfrank. What do we say getting rid of it. Tweaking it. Thats the next thing on the horizon. Again the question will be in the Senate Whether or not you can stick together to undo it. But they feel they will at least be able to get marginal changes to. Frank. There is dusting more optimism about health care. Trump was talking to mitch mcconnell. They think there will be a vote. I am super skeptical, it can be approved by the house. Few think of health care i will assume it doesnt get done. Then they will think in more realistic terms about taxes. Its a little delusional. But there are things they can do, repatriatation, they can do a Corporate Tax reform, a cut in the rates, that would have an effect on the markets, even though it feels they have factored in success on tax reform. So in terms of the view through the market lens, yesterday versus today. Today was more optimistic the Trump Administration will push the agenda or be more successful than a day ago . I think you have to be arc do i agork they assume a felony might be committed. The testimony was compelling. It is not damming for donald trump in a legal context or a political context when you think whether or not republicans are behind it. Find me a republican more critical than 48 hours ago on capitol hill. You cant find it. I see people like rubio, no friend of trump. Senator cotton who is, both had dinner with the president and come out and do questioning in a way that i think helped the president. So if anything it brought them a little closer together. Thats what trump needs. He needs to somehow bring the Republican Party through, there is not a democrat in town that will get through the trump bill. Are you on the opposite side in terms of the market view events. I agree with all these guys. I do think were in a be19 sort of environment where the mark is going up. We had none of this legislative agenda push through. I think jim is correct. There is low hanging fruit there. They can get winds on repatriation or other things. I dont think doddfrank speexz to his base. They are focused, they want to speak to tear base. They want to do things that kind of resonates to the base. His base versus the market . I would think so. If dodd bank gets through, you saw the reaction. Its all about perception, right . Whether or not it gets through is whether they enforce singer e certain things. Just the idea that there will be reform. Thats just been the idea of all this stuff for six months now. The idea is why the markets are fully pricing in reform right now. Right . Smr no, its pricing in a little expectation. If we get anything points on the board, we will see the financials rip. Look at the yield curve and whats happened to them. Right. We seen that flatten out, its starting to seep in. The fact is, we are seeing a rate rise, an rse of a lot of these financials basically in the toilet by the financials here, it will look like the trump trades is back on. Just because of the bad positioning and oversold nature of a lot of these factors. Do you believe in the markets more today that you did yesterday . Do i believe do we get an all clear . Yes. The reason i say that, you started this whole conversation off with the idea that this was a bad day for trump. I agree with jim. I think when you look at the testimony today, it sounded like a win for me for trump. If you look at volatility the direction in the mark, we were up 80 points, we ended up with the volatility back over ten. When you look at the real strength in the mark, the financial, other areas. The market, you mean underlying . Its one of the clearest. That record high. Were holding it flat, record highs and if he had such a bad day today, you would have thought this would have gotten sold off, right . You think for a second this issue will be done an dusted on june 8th. Okay. Special prosecutor. On that point. Yes. Please. Can i come in . You think im right today. You could be right long term. Deep forget just because today wasnt devastating. You still have mueller is the real deal. Hes got real lawyers around him. He has comey who is a master working the press. He has the Intelligence Community aligned against him. You have these threads theyre pulling at on jerry kushner, in particular, that has the white house really nervous. If there is ever going to be an oh my goodness now we have a crisis moment, its going to be because of what you happen when you dig deep into the investigationer, when you look at context. Why are you meeting with a russian bank sfwher why are you meeting with the Russian Ambassador with the whole world watching you . I want to see what you do in the Business World. Once you start pulling there, its not tomorrow, its probably months if fought years to get to the bottom. We have runway until that investigation is complete or near completion. So this could be a year of just putting your head down on capitol hill and trying to get the agenda done. This is dominating. It is definitely going to slow every single thing down and think about the white house has not brought anybody new in. Its very difficult when you are managing like a company, the white house, to deal with a scandal and deal with wins. So they only have a couple of staffers. They dont get along that well. Somehow they have to manage trump and a scandal and try to do legislation. Even if they have republicans working with them or for them, its still going to be a harder slide. So i would expect lots of volatility in terms of volatility. Did you see there . It will be a long time. Thank you for your analysis. Jim sprand vandehei. For the purposes of this show at least, whether or not i think hes a liar and that doesnt matter the fact is, the market is here, the market is within a whisper of an all time high as you said. Its had every reason to sell off. It has not. What does that mean . Ill say it. It wants to continue to ratchet higher. Xlf against 23. That held umm. We talked about nvidia, tesla. Look at those names, again, whether my feelings for the president for my purposes doesnt matter. Its what the market is doing. The market wants to go up. The exit polls project teresa Mays Conservative Party. A company may go private. 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