Straight ahead. Its wednesday, november 9th, 2016. A special presentation of Worldwide Exchange begins right now. Good morning and welcome to a very special presentation of world wide exchange. The morning after. Im sara eisen. And im wilford frost. A very good morning to you from me as well and congratulation to President Donald Trump a. U. S. Futures have been extremely volatile as it started. Dow futures one down at more than 800 points. Its the biggest weve seen since 20011. Weve recovered a lot of the losses and as we march into the u. S. Open, the dow down 300. S p futures down 39. Nasdaq futures. Its getting hit hardest but this has been a Global Market selloff and while we are off the wofrpt level os testify session, stocks are still lower across the board. Nbc news projecting donald trump winning 278 electoral voigt. Hillary clinton projected to take 218. In congress, a clean sweep. The Republicans Holding control of both the house and the senate. Trump aimed for a theme of unity in his victory speech which could be part of the reason his market has recovered. Have a listen. Now its time for america to bind the wounds of division. We have to get together. To all republicans and democrats and independents across this nation. I say its time for us to come to come together as one united people. Its time. I pledge to every citizen of our land that i will be president for all americans and this is so important to me. Now for some color, the front of the wall street journal, President Trump. Possible surge lifts. And then billionaire candidate scores white house victory and the New York Times reads trump triumphs outside mogul. Captures the presidency, stunning clinton in battleground states. Really quite extraordinary stuff there. I have to say before we dive into some of our guests to discuss the detail, deja vu from the 23rd of june in terms of the level of surprise, market reaction, and really how this came about. Down to factors like turnout. That just blew this out of the water. So much surprise and so much was wrong. The pundits, the polls, the odds, the markets, and that is really where we have been warning. We talked a lot about this after the brexit, where the parallels come down. The question from here is the reaction going to be a brexit. We saw major markets from around the world and a quick and sharp recovery for Global Markets. We realized it would take a long time to play out. Will this be different . Is this an epic buying opportunity like that one or are we in for more prolonged sustained selloff as Big Questions that investors have to unpack this morning . What happened to the supreme court, immigration policies, tax policy. Donald trumps rhetorics are no longer just that, theyre no longer platforms. Theyre reality. And were going to guide you through what it means for your investors and this country. The only asset that continues to sell off and is sig knif cantly lower the pound. Is that something we should be looking at. At the moment u. S. Markets have had their losses. The celebrations are still under way at trump tower. Robert frank is there. He joining us now. Tell us what the atmosphere is like. Reporter well, will, this is the building where it all started. Its the building trump tarter where he started his real estate Building Back in the early 80s. He came down the escalator a little over 500 days ago starting this unlikely campaign that is now being put to bed, retiring to that top 66th floor, threestory penthouse that he lives in and is also the building, which houses the trump organization, his private company. The crowds here have been gathering all morning. Snow probably 50, 60 people gathered in front says brating. Just to show you how raw the divisions are, mr. Trump says he wants to be president for all americans. Right now in the front tower, a lot of emotions. We had a woman come through with a hillary sign. People chased her and tore the sign apart. Emotions still running high here. Were not sure whether mr. Trump is asleep, but hes receiving a call from president obama and calls from putin and around the world. Europe has had its initial losses. It opened down about 3 . Now looking at about a percent of declines for the french index. Less than that for germany and significantly less for the wind falls of one point. So the losses were seeing in european markets incredibly mute. We can see a sign of that. Asia closed at the trops of the day. The nikkei down 5. 3 partly because we saw a yen surge. Still 2 of declines for significant other markets like hong kong and south korea. Oil prices also have had their initial loss. They were down 3 . Now down half a percent for it. They initially saw buying relative to other Asset Classes and we saw the yield push down to 1. 7. What does that mean in terms o peoples expectations for rate hikes . Either way, rate hikes up. Weve seen initial moves. Very liquid at the time that the results started coming out. The dollar down, 1. 7 . Very small moves for the currency. The euro up, 0. 3 . And, sara, if we compare that to the move we saw on brexit day, 8 . Theres the move that. Is the mexican peso. Its down 9. 5 . So the peso is more acting like the pound after brexit in terms of the sharp fall bearing the brunlts of the pain and the Political Uncertainty of the Trump Presidency. That makes sense. Also the japanese yen, out of the peso, out of mexican assetses. Is it an overreaction or is this going to be a sustained drop. Thats going to be the question. The dollar move against the mexican peso, its stronger against others. The dollar index itself overall is almost bang on flat and thats an extraordinary position to be in compared to brexit. The dollar almost flat. For more on this market reaction, lets get straight to nan deany rah ma krishen in london and in studio michael purv purvis, chief global strategist. If you look at that reaction, clearly markets were not positioned before a trum press temperaturecy and theres been an bit of recovery, where do you groix nemt. You have to keep your eye on certain things. Trump has artist pated on the campaign trail a couple of things, lower taxes. You can well see that tenure yield come a lot higher we have to step back. You mentioned brexit. What helped facilitate that bullish move on u. S. Equities right after brexit two weeks after was the tenyear yield went to the record low levels. If thats really an unwind, were going to see certainly choppier markets for that one reason alone. The weaker dollar that were seeing wont be enough to help buffer that. You think yields have ticked it off a above where they with. Not because of changing expectations. On the tenure, yes, exactly. I mean the shorter term yields will, of course, pick up that lower december hike probabilities that youre seeing. I think theyre down from yesterday. But the tenure treasury is going to be incredibly important here. You know, over the last year, 93 of its movements can be seen. Another question is whats driving that . Is it this other idea thats been brought up that we have to seriously look at the creditworthiness of u. S. Government debt . Right. Exactly. I think thats going to linger in the markets. Trump has talked about structuring the u. S. Debt. I doubt he follows through on that. Thats going to linger. Thats something youre seeing playing out three months later really in the uk. Anyone deny, lets start with stouks. Do you see this as this gut reaction as a buying opportunity . Yeah, well, actually the opening doesnt seem to have been as drastically bad as maybe the sort of high beta nature or nervousness that had been baked into the markets. Actually as it weakens a bit around 1 , 2 , if there are prices, they should find them and come back in. Nandini, what stock prices are most attractive under a Trump Presidency . This is always a tough one to call. Looks like with a slight weakening of the u. S. Dollar were seeing some of the skprts if the u. S. Economy really good but the cent Earnings Releases shows a prts strong growth. With that we like some of the trade affiliated but less dollar played ones in the market. What if you got a call with a tempt to buy. The dow looks to open down. I dont think you need to rush in here, right . Because at the very least you can argue trumps made volatility grid again. Theres so many known unknowns and unknown unknowns with the presidency. We dont know how much was Campaign Rhetoric and how much was put into place. If hes talking major tariffs, if he really follows through on that, youre going to start seeing very interesting impacts in the earnings stream. Ful if he comes up with it, youre not going to know that answer at the u. S. Open. Were not going to know tomorrow. A lot of questions. Thank you for joining us. Nandini ramakrishnan and michael purves. Still to come, reacting strongly. Were joined to dissect the jolt in currency markets. Stay tuned. Youre watching a special election reaction version of Worldwide Exchange. Were back in a couple of minutes. Now that fedex has helped us simplify our ecommerce, we could focus on bigger issues, like our passive aggressive environment. Were not passive aggressive. Hey, hey, hey, there are no bad suggestions here. No matter how lame they are. Well said, ann. Ive always admired how you just say whats in your head, without thinking. Very brave. Good point ted. Youre living proof that looks arent everything. Thank you. Welcome. So, fedex helped simplify our ecommerce business and this is not a passive aggressive environment. I just wanted to say, you guys are doing a great job. Whats that supposed to mean . Fedex. Helping Small Business simplify ecommerce. Its been what they call a historic event, but to be really historic, we have to do a great job, and i promise you that i will not let you down. We will do a great job. Hopefully at the end of two years or three years or four years or maybe even eight yeas s you will say so many of you worked so hard for us, but you will say that that was something that you really were very proud to do. The 45th president of the United States, donald trump a few hours ago celebrating his victory, announcing he had received a call from secretary Hillary Clinton conceding the race. Lets show you the currency markets following Donald Trumps president ial victory. We saw a ton of action overnight. Buying the japanese yen. Selling the dollar like the euro and the pound but buying it against the mexican peso that has slammed. Plummeting almost 10 . Still it is among the hardest hit. Simon, we want to talk currencies, but looking at this bond yield, its shooting up to 193. These are levels we havent seen in a while. Is this the creditworthiness of the u. S. In question . What do you make of the fact that theyre selling of u. S. Government debt and the u. S. Dollar . I think its fair to say youve seen across the board. I suspect this is a reflex of more positioning of u. S. Credit. I think were talking about this. Theyre starting to take into account doesnt go in december. That, i think, is absolutely the interesting thing thats happening right now. It shifts so many different expectations over the next few months. I think its something radically different. In terms of the scale of moves, some of the things like that the nikkei, for example, some of the moves in dollar yen at least earlier in the day dont look like the sort of thing we would see. The reason is this. You will also remember over the course from june through till september, actually within that period of calm, im wondering whether actually from now through the inauguration, it looks like theyre going to ease rates. Perhaps theyll see it. Very quickly the losses were paired to the extent that the dollar is up against emerging markets. Its hardly down against the pound and euro. So outside the dollar yen, its hardly suffered at all. Is that a big surprise . I think relatively speaking, its a reflection of the shift at this point. But remember, i think one of the things that when youre coming out of the aging session and into the european session, one of the big shifts. One of the big concerns is were going to find out the actual results of the election at least until tomorrow. Theyre saying, look, were going to have to wait and see what happens. Therefore, when you saw Hillary Clinton carrying it out and saying, i have actually conceded the rash, that was the point when you saw a degree of risk back up. It may have been people looking up saying, fine, we are where we are. At least we have a degree of certainty. But i do agree that perhaps that the dollar do seem a little odd, but i think all in all f you take into account that shift in expectations by the fed, my view is actually a little more likely. Theover thing is you had the bank of japan implying they would intervene. You had comments again during the late Asian Session that perhaps they would be able to do something. There may be a degree of caution there. Is there anything there for the global banks to have to speak up or possibly intervene in twak of a u. S. Election . Oh, thats a very good question. No, not that i remember. It is interesting to talk about elections and the currency impact. One was in 19 992 when he was going to bring it to depreciate. Actually then the market ignored that. The market then ignored that. Then posted it. Particularly when Fred Bergsten started speaking. Then the pressure came on. For me rn for me, dont be that surprised if you have a surprising degree. But i do i would not be surpriset surprisu surprised if you saw it particularly as we get into the new year. Thanks so much for joining us. Still to come on Worldwide Exchange, still more on the Economic Impact from the Trump Presidency from trade to policy. That conversation as we continue to monitor this market selloff. Dont go anywhere, were back in just a couple of minutes. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back to Worldwide Exchange. Americans wake up to donald trump as president. S p futures down 42. Nasdaq futures down 110. Still we are way off from session lows when the momentum started to shift toward trump overnight, you saw a selloff that was more than 800 points. Stocks went limit down as they say where they actually had to be holted with Circuit Breakers because they were plunging so hard. Weve come off those worse levels by a lots but were looking at a big selloff. A lot of action in government bonds. Were looking at levels here that we have not seen since april. 193. There is yelling of u. S. Government debt this morning. Were trying to figure out exactly while getting a number from investors. Out of dollars, stocks, and bonds is the trade. This after the initial election to buy treasures took yields down to 171, shot all the way back up to 193. As for oil prices, lets show you quickly a little less action here in the commodity market. Certainly off the worst levels of its session. Wti trading just under 45 trading just under 46 a barrel and a lot of action in currencies where the dollar is selling off against the euro, the yen, and the pound, but it is gaining strength which are getting hit a lot harder, especially the mexican pay sow which is down almost 10 right now. What will Trump Presidency mean for the economy . We posed that question. He joins us from london. A very good morn dwroug. Before we get to that specific question door you think the market moves weve seen so far this morning are justified, in particular i mean by that quite a significant rally from the lows. Were now down only a couple of percent in the premarket equities. Hello, wilford. I felt what we saw last night was more justified than what were seeing this morning. Of course, we dont know what a Trump Presidency really will mean, but if you go on what he said in the campaign and over the years on per rif real politics, the two key things donald trump believes in, i think, are both very negative for risks and for the markets as weve heard in terms of the Market Movement and they are that first the global trade isnt just a zero sum game but a negative sum game and therefore its something that has the growth of global free trade is something that has to be reversed. Thats very negative for markets. The second thing he clearly believed in is a big surge in deficits and golf deficits in the u. S. Would do the world and the economy no harm and probably quite a bit of good. Now, that may actually be positive for assets in the u. S. But it ultimately will lead fairly shortly to higher u. S. Interest rates which, again, are very damaging to risk assets all over the world. We ran into u. S. Asset classes from dollars, bonds, equities. Which of those do you think has rebounded too much . Which do you think would play the more depressing view of the election result that you have . I would look at particularly emerging market and international equities. I think they have a lost downside from where we are today, which after all is near record highs essentially. Theres a lot of downside to bond prices all over the world because it seems to me that a trump temp if youd like to regulate it to terrell 80s is bound to yield a higher rate and also a higher dollar rather than a lower dollar. Just quickly, a lot of european elections coming up this year and next year. Do you think the incumbents are going to be worried of a possible populist result having seen this and the brexit vote . I this i th