Results. Home builders and Energy Companies lead the ftse higher. Sygenta jumps as it rejects an offer from its u. S. Rival. Welcome back to Worldwide Exchange. What an extraordinary set of results weve had coming in over the last 11 or 12 hours. The first exit polls sending a surprise across the u. K. With the conservatives doing much better than expected and steve, as we approach the final results coming through it is plausible now that Prime MinisterDavid Cameron will hold an absolute majority in the house of parliament behind us. Were seeing figures confounding expectations. We cant underestimate what a seismic moment that was in the entire election. Up until 9 59 p. M. Last night every single poll that had come out had put them within a tight range of each other. The most recent polls were saying the toris may get 280 seats and labor would get 270. That was not the case. And the conservative feelings throughout this and people like lord bell talking to you and i on wednesday thought that couldnt be the case. It felt better on the ground but from 10 01 we knew the conservative had an outstanding victory in england. North of the border something expected did happen and that was the fact that snp wiped the floor. They wiped the floor years ago and in this election the liberal democrats and labor party wiped out of scotland. And weve seen the liberal democrats suffer heavy losses. And also ed milipand, theband, the leader of the labour party, has had people call for his resignation. We have seen markets rally. The sterling pound up against u. S. Dollar and ftse 100 opening to the positive territory as well. But the point i was raising on squawk box as well was lets wait a few days to workout whether these Asset Classes have a sustainable rally in them as well. Its very interesting that im just wondering are we getting confused. Is that because the city traders are not going to have less pension contributions without tax as well. Theyre not going to see higher income tax. Theres definitely a relief and a bit of confidence among traders but the point is the longer Term Economic fundamentals stay the same and that is the fact that we have a debt to gdp nearly 90 and a deficit among one of the worst in the eu. Absolutely. Lets listen to a bite of David Cameron the Prime Minister. This was as it was announced in his constituentcy that he had won his seat. He was speaking about a desire to unite the nation. I want to bring our country together. Our United Kingdom together. Not least by implemented as fast as we can the devolution for whales and scotland. In short, i want my party and i hope a government i would like to lead to reclaim a mantle that we should never have lost. The mantle of one nation. One United Kingdom. That is how i will govern if im fortunate enough to form a government in the coming days. Now one of the primary factors of why labor has underperformed here is clearly what happened north of the border. The snp has had a stunning success which is interesting because they didnt wipe the floor when it came to the splitting of the union vote last year but we have been speaking to some very Senior Coalition politicians this morning and they warned that last nights results could be a precursor to Scottish Independence at a later stage. We have parliamentary elections in the last 12 months as well and they may feel like they have the power base they need to move forward. Lets listen in to what the likes of campbell and hammond have to say. The snp very disingenuous by saying this election is about a better voice for scotland and westminster when he may have been saying that but throughout scotland candidates were saying we want another referendum and you muntst not forget the Scottish Parliamentary election is next year. I think they will undoubtedly decide they want to have another referendum. I dont want to rub labors nose in it but its a failure of the labor party. The close run thing in the referendum was a failure of the labor party in scottland and whats happened now is a failure of the labor party in scottland. For too long the labor party in scottland has taken the scottish people for granltted and because of that nationalism has been allowed to grow and strengthen in the way were seeing in the result last night. Im delighted to say that we are joined by daniel. He is a member of the European Parliament for the conservative party. Good morning to you. Good morning. Thank you for joining us. A surprise positive result for your party this morning. Yes. I think the polslsters have questions to answer. Did he get his money back . Its extraordinary. It will be what labor is always calling for. An inquiry into how some of these polling companies do. Where do you think the conservative party gained seats . What topics. Why has it gained ground. Last year the economy grew at 2. 8 . Labour labour labour labour shrank by 4. 6 . We were facing a greek style melt down and today we have created more jobs than the rest of the eu put together. Our deficit is worse than greece and france. Its worth than all of the countries we worried about from 2008 to 2012. We cant say George Osbourne has gotten everything right. Our budget deficit was as bad as the countries under gordon brown and the budget deficit had risen during the boom years before the crash. That was the really shocking thing. Instead of paying down debt when we were growing he was still borrowing more. Of course its going to take time but youre right we doubled the debt. There remains a sense of Economic Uncertainty and thats why people realize that now is not the time to send for parties that wanted to tax and spend and borrow. Obviously your party has done relatively well on the economic message. One big threat that diluted the view that the conservatives are good for business is the referendum promised on the eu. Are you hoping that you as a member of European Parliament will be out of a job. I am and so are most of the businesses in my constituentcy. Some large banks and corporations invested a lot of time and money in getting a structure that suits them. But entrepreneurs up and down my region want less regulation. Want to be able to trade more freely with the rest of the world. Are fed up by being held back when we could be trading to china, india, or australia. Can i clarify what you said there. You hoped you would be out of a job. So you hope this referendum not only takes place but that we also vote to leave the european union. Thats my current expectation. You can see theres a majority for it in the house of commons. British population has turned their back on the antiimmigration and antieu party. There was no social support. But the other point as well is its polling very badly coming out of the european union. I think that the antieu cause was damaged by its association with an essentially negative antiimmigration campaign. I think in order to win this campaign well have to make the case in global warm positive language and economic language. Were going to have to make the case that we are a great, Global Trading maritime nation. We shouldnt be tied into the only trade block on the planet shrinking. We should raise our eyes and rediscover that global location. You are mep arent you. Ill get a vote youll get a vote David Cameron, ultimately the british people will decide this. Although they pretend otherwise nor should anybody else and the pollsters should show a little bit of modesty. Will it lead to fighting within tory party . Its never a bad thing to have a referendum that reminds politicians that we work for everybody else. Thank you for joining us. That was mep and conservative party member. Great job guys. Lets get back to the seats in the house of commons. As they stand now we dont have all the vote counts just yet but 310 seats for the conservatives. So this is a resounding victory and they are on track maybe even for an absolute majority. This is an outcome that nobody in the u. K. Would have expected for the torys. Labor 227 seats. Looking at the worst Election Night ever. He is expected to resign later on today. So far getting only one seat but were still waiting for the count. This is the constituent sy. If he doesnt get that seat hes expected to resign as well and north of the border were seeing the snp, huge victory for them and theyre wiping out labour. Its been a disasterous night for labour in scotland. They failed to make much in england. This has been a disappointing andy cut night for the labour party. We havent made the gains we wanted in england and whales and in scotland we have seen a surge of nationalism overwhelm our party. I want to say to the dedicated colleagues in scotland that lost their seats im sorry for what happened. Ed bowls lost his seat to an opera singer on the ticket. He said he was sure the labour party would bounce back. Coming up on Worldwide Exchange well be speaking to jonathan powell. A diplomat and business man that knows the inside workings of number 10 downing street. You wont want to miss it. Head to cnbc. Com for up to minute coverage of the u. K. Election, news and analysis and results as they come in from the u. K. Lets look at the Market Reaction. Quite a drastic one overnight. The markets certainly like certainty and what the market was setting up for in the last couple of weeks, that was days and weeks of certainty. Sterling dollar cable surging. We are off the session highs but currently changing hands at 15465. Higher by 1. 5 but off the session highs. Also want to cage the reaction on the equity markets. Ftse 100 is higher. Back above the crucial 7,000 level. The ftse 250, better gauge of the economy here. Higher by 2. 9 and ftse small cap also rallying by almost 1 . Now here are some of the stocks and the sectors were watching and were seeing broad based gains for the paingingbanking and utilities and transportation and Home Builders. All of these they believe would have suffered. In part because of a mansion tax for housing and part of deregulation. More competition for the banks. Were seeing those particular stocks rallying across the board. Barclays higher by 3. 6 . Rbs up by almost 5 and we are seeing them up by 5. 6 as well. Want to get back out to wilf on the green. Now, wilf im just wondering at what point the markets are actually going to focus on what the conservative government actually means because weve got the referendum in two years time. Do you think what were seeing today is a knee jerk reaction and the losses will come later . Thats a big part of it. We saw sterling sell off from the 155 handle down to 151 and its now in the 154. That highlights a shortterm move. The biggest fear for markets has been the chance of there not be a clear result either way. Whether it had gone toward labour or toward the conservative party. Thats what the market is welcoming this morning and the gains are within reason for that. Just over 1 for the ftse is reasonable within that time frame. When will the market start to focus Going Forward from here on the longterm plans of the conservative party and i think that will start to come in but interesting steve that weve seen on the sector performance, banks, Energy Stocks doing better today because those are the ones that would have suffered under a Labour Government with the freeze and po bonus tax and the like. I was here in 1992. I was a mile or so down the road in the ftse options pit where the volatility exploded in advance of the 92 election. It was a major victory having expected to go into the labor party and the Market Reaction there was quite extraordinary. We were down almost 200 point if labour had won. It rahal lid on the day quite aggressively but the point is despite, yes, theres been a little bit of premium buying in sterling and the equity options i dont think theres been anywhere near the oscillation and i dont expect anything more. I think the fundamentals for the u. K. Economy are shakily but better than a lot and their fundamentals are still bad. The utility sector. This was somewhere we thought they could get clamped down upon the likes of edf and france and that was one of milibands preelection promises to cap the gains. Theyre losing money hands over fist anyway. So some of those enormous challenges for them for the banks and Big International companies, for the oil companies, theyre still the same as yesterday regardless of this u. K. Outcome so i would be careful of the euphoria today and as i said time and time again. You guys out there in the city of london i know youre breathing a sigh of relief personally for income reasons and pension reasons but i think you have to be careful not to confuse the relief of the city compared with the relief of the u. K. Economy. Wouldnt you agree this type of Market Reaction suggests there was a lot of negative priced into this market on the prospect of labour winning but now that the results show thats not going to take place do you think this is a relief rally . And if so how long does it continue . Yeah i think youre right. I dont know if they thought labour was going to win. I thought they thought there was going to be a messy outcome. Lets go backwards to 24 hours ago. There was always a concern it would take until the new parliament. Until later to the queens speech on the 27th and dont forget you had nick saying that the we had a second election. That was one of his threats in the last 24 hours. We havent gotten a very friday trading. I wonder if a lot of them were selfserving. And the rally were seeing today is based on the fact that were having to have a clear outcome as opposed to who it was pointing toward. Weve seen a big move in guilts like in other european bonds over the last couple of weeks and lets just remember thats not really driven by the election. Thats driven by Monetary Policy expectations. By reinflation naryary pressures and theres a contagion effect. Did you read it . Yes. Everybody else you must read it on cnbc. Com. Well throw it back to you guys. Bonds grabbing the spotlight. Wilfred thank you so much. Steve as well. Well be getting out to them throughout the show. Coming up though on Worldwide Exchange, a show of military from russia head of celebrations. We cross live to moscow with an exclusive interview with president putins press secretary. Fitbit files to go public. And from taxking on taxi drivers to car makers. They make on bmw. Find out why later in the show. And u. K. Labour leader ed miliband to resign after losing the election. Thats according to the bbc. Its been a disasterous night. Lets get information from wilfred on this news. Thank you very much. Yes, this is something that we have been possibly expecting all morning because the results were so bad for the labour party. This is just a bbc report at this stage. But of course we were expecting big losses from the labour party in scottland. That was a tragedy for them but it was already priced in. Its going to be based on how they do up until the latest expectations and where he failed in this election is in england and whales where theyre expected to make gains in seats and made big losses. Maybe he could have clung on to power but it doesnt look like thats the case this morning. He is due to make a speech in a few hours which as you said according to the bbc is expected to be a resignation speech. The big failure for him over the course of this campaign has been failing to convince people that the tory partys economic recovery only benefitted a few and the voters seem to be suggesting that the message that George Osborne and David Cameron were putting across is throughout. That is what has gone on in voters minds and they voted accordingly for the conservative party. Back to you guys. Thank you so much. Lets take a look at european markets. The stoxx europe 600 getting a nice boost from the ftse. Were at session lows though. Take a look at this right at the start of the trading session. We saw the session highs but have been receding ever since. Were still higher by 1. 5 . Later this afternoon we still get the payrolls outside of the u. S. The xetra dax higher. But the ftse 100 out performer by 1. 6 . It was back above the crucial 7,000 level. I want to bring you some news on a couple of individual stocks. The italian banks Third Quarter net profit doubled beating forecasts thanks to interest and trading income. Its committed to selling its 3 stake in the italian insurer toward the end of next year now another mover in italy is the energy companys First Quarter came in just over 4 billion euros. That is ahead of forecasts. This thanks to a Strong Performance by renewables in the latin American Business and stay tuned for an exclusive interview with the ceo coming up at 11 10 cet. Dont want to miss it. Enel higher by 2. 2 . Its been relatively quite in the bond markets over the last 24 hours or so. The bond route weve seen over the last two or three weeks, that has been halted momentarily. Were seeing the ten year yield for germany at 58 basis points. Very high vols yesterday and many people say we could be looking at range bound trade from now on. Now that these excessive moves have been taken out of the market. Lets have a look at the currency markets. The big mover is sterling. Were seeing sterling against the u. S. Dollar at 15470 but also off the session highs, the jump were seeing today was the biggest daily gain since july 2009. Now that the markets seem to have a lot more certainty than previously expected before the outcome of the votes. The dollar did rise yesterday. That was on the back of the better than expected jobless numbers and all eyes on that nfp markets. Were seeing oil under pressure. This is snapping its