[theme music] this mandate and majority, we'll at least be able do what >> get brexit done >> you've been paying attention. >> a have good morning a blistering win for boris as the conservatives win a majority in the uk election not so good for the labor party. they've lost over 50 seats mr. corbyn will not be running

in another uk election >> i want to make it clear, i will not lead the party in any future general campaign. i will discuss with our party to ensure there is a process now of reflection on this result. >> the market reaction has been very clear on the back of this we've seen movement on the pound on the upside. the ftse 250 on fresh highs. double digit moves as far as house builders are concerned retailers are not having a bad time of it seeing also strength in the utilities. retailers will not be renationalized >> banks also to the move on the outside. banks surging on the conservative victory the rational appears to be the expectations on the bank of

england rate cuts. pharmaceutical cuts under a little pressure. the moves capping some of the big gains we are seeing elsewhere on the ftse 100. >> in brussels, european leaders voicing results. the consensus that they could break the dead lock and usher in a new phase of negotiations. >> boris johnson celebrating his victory within the last hour or so, we've had comments from the conservative party leader and returned uk prime minister his comments we did it. we pulled it off that was the message of the conservative party

a victory in his peach boris johnson vowed to get brexit done. he said britain will now leave the eu on the 31st of january. >> your hand may have quivered over the ballot paper before you put your cross in the conservative box you may intend to return to labor next time around if that is the case, i am humbled that you have put your trust in me and that you have put your trust in us those peoplewant change. we cannot, must not let them down and in delivering change, we must change too. we must recognize the incredible reality that we now seek as a one nation conservative party literally for everyone >> as we've mentioned, a really

horrendous evening for the labor party. they could probably form some sort of a coalition with other parties to wrestle control away from the tories in a hung parliament it has not been that case. a big failure to make the round away from the democratics. mr. corbyn will not now stand in the next general election. the knives will probably be out within the party the momentum does not appear to have worked. he's been disappointed and will not lead the party in the next election >> in the election campaign, we put forward the manifesto of hope and unity a manifesto that would help to

right the wrongs and justices and inequalities that exist in this country brexit has so polarized and divided debate in this country it has overridden so much of normal political debate. i recognize that has contributed to the results that the labor party has received i want to also make it clear that i will not lead the party in any future general campaign i will discuss with our party to ensure there is a process now of reflection on this result. >> a political earthquake in the last 24 hours, let's see how the markets will react not the least the currency let's look at how the pound is trading. it is a picture of strength across the board yesterday at 10:00 p.m. when the exit poll came out, we saw a

two-point jump in the pound versus the dollar from 1.32 to 1.34 we briefly saw 1.35. it paired back slightly. versus the euro, we are also seeing strength for the pound, just shy of the 1.4 mark this year despite everything, the pound is still about 4% stronger than the u.s. dollar. that is taking into consideration the moves from last night versus the yen, also 2% stronger you can see the gains across the board. let's talk about equities. we are seeing huge reactions here this is the ftse 250, which is the midcap the domestic stocks here starting quite negative has

since regained some of the ground loss. ftse 25 is up 4.3% on the year, the ftse 250 is up about 18%. it has been a good year for midcap stocks. looking at the year saying this election outcome removes a lot of uncertainties let's talk about the individual break down what are the companies that are benefitting the most today from this election outcome. at the top, rbs up about 11% this morning this bank has been under a lot of scrutiny because of the sizeable stake in the bank the sell down of that may have been swarted lloyds as well, a domestic exposed bank barclays up 8%

home builders up 11% bar barrot as well you can see, generally a lot of domestic exposed stocks. what about the losers? any stocks in negative territory. unileaver down a fraction and some of the pharmas down astrazeneca about positive territory. a broad start to trading across the uk this morning. >> thank you for that. let's pick up here from westminster. justin king has joined us. now with terafirma and someone

we had on prior to this election talking about the need for another referendum and the concerns you had about the brexit process we had an election now how do you feel about that >> i still think remain is the best deal this country is ever going to get it is clear we'll step through the exit door. we are not anywhere close to getting brexit done. what type of brexit is still very much in the air much talk of the certain stability. i think we are entering into a phase of instability, sadly. >> this gives boris johnson a remake should he choose to do so the reading on this we've spoken to is there is no need to fear a harder brexit.

we will get pretty much delivered and what has been agreed with brussels >> a couple of things i'll say to that. it is a good thing we have a prime minister negotiating with a strong mandate a strong prime minister will be able to do a better deal than a weak prime minister. we saw that with theresa may boris johnson has promised different things to different people in the runnup to this we don't know which version of brexit might be on his mind or his party's mind we've seen him argue both ways he could ignore the erg and go for the soft brexit or he'll have the strength to ignore the center of his party and do a hard brexit. we don't know yet.

>> didn't corbyn do something where he turned it into 26% tax from 19% tax nationalize aiti nationalization rather than ownership. the relief of business owners and investors must be extraordinary today. this was an old fashioned 1983-like election, wasn't it? >> we are talking about the 1970s sadly. >> '83 is when you saw the end i thinks that what we are seeing today. i think in very large part, we are seeing reaction today which is the sigh of relief that corbyn is nowhere near power we've seen the labor party

arguing whether it was brexit or that shift that lost it. my perspective is that it was that shift what lost it. they always spiked themselves with brexit. >> we are saying various parties. >> quite a long list we can agree on that >> british workers whether middle class or working class turned their back on the labor party. >> i thought the most interesting thing in his speech is that he was talking about the need for change. when was the last time a prime minister having just won a massive thumping majority said that he would hear what he had been told. that's because he did recognize a lot of people are not his natural con stit u si

i think we'll get five years of. how the conservative party >> i love your thought there >> put your terafirma hats on. the pound has made assets attractive to international buyers but they haven't come in because they weren't sure about the future the pound may be stronger here but we may have some interim moves here as we understand the fiscal position of the country now going forward. does that mean we'll see private equity looking at the uk and wondering whether their assets to buy here. >> in that view whether that whole risk of field to play.

if ultimately the uk has to deliver with the rest of the world is on your mind. it is still going to be on your mind to come we know with the pound and the world that just got more expensive. there is a question that you've got other risks to point to and also the wider policy of government if you'd like the score drawn with the change of currency. we have to see where in that range of possible outcomes of brexit we are going to land. one of the things that will happen if we stick to the 11-month timetable although we have a strong prime minister, we have a very weak negotiating position because we've sette short clock ticking. you've said it is impossible

that is fair enough as well. boris johnson moves on that and delivers brexit and it takes him two years and two and a half to sell it as well. if you take out the time frame, how weak is our position they sell us more goods than we sell them. they do but not individually dealing with 37 other countries. we are dealing with germany. >> we had one province in belgium stocking we are dealing with 27 other countries and done the same thing in negotiating to this point. we have this massive relationship to europe there are parts that have reasons to fear the failure with trade talks. a lot of it doesn't particularly fear that. how we strike that balance of a

great trade deal and still flexibility with the rest of the world. my own historical section of food that the americans have on their agenda for trade talks we saw that from the leaked documents. frankly, we need to for the food and agricultural industries in the uk we'll have very little wiggle room >> the prices will go down >> except we promised out to 2022 that we are going to retain that level regardless. >> adjusting big to 21/22. >> thank you for that. justin king with us. some business who will be very disappointed this morning. that is the removal men and

women who were hoping that they would be moving into number 10 to shift out boris's furniture let's get out to willem to find out what is going on at number 10 this morning. >> i don't know whether that firm has a contract with downing street or the government to perform those services each time or whether they have to bid for it clearly you you are right, boris johnson will be retaining his role and will continue to live in the building behind me. that's primarily because his party has come through a very significant part of the country with a huge swing over the labor party. you go back, tony blair, they are slightly above 200 after last night's results

boris johnson has a mandate. he has more wiggle room also within his own party that will put him in the driving sae seat we expect to hear from him no doubt about the steps forward. >> we await further comments out of the newly awaited prime minister i want to bring you some breaking news from germany there has been an explosion in the east german city of blankenburg. the explosion occurred in a housing block at 8:55 this morning. they also say the reason for the explosion is not yet known evacuation is ongoing. we'll bring you further details as to when we get that regarding this explosion that has just occurred in the eastern part of

germany this morning okay, joumanna, to say it has been a seismic evening what about the nationalists in northern ireland what went wrong there with the labor party? we'll discuss the misfortunes after a very short break here on "street signs. ♪ think you need to buy expensive skincare products

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to say a mixed fortune for the various parties overnight is an understatement. the performance from the democrats given this legacy after a very strong performance in the elections for the liberal democrats where they were the strongest remaining party. whether the lead for joe swen son. dreadful night despite the loss, joe said she

is very hopeful for the party and vowed to keep fighting for liberal values >> for millions of people, these results will bring dread and dismay people are looking for hope. i still believe that we as a country can be warm and generous, inclusive and open and that by working together with our nearest neighbors, we can achieve so much more liberal democrats will continue to stand up for these values that guide our liberal movement. >> perhaps the question should include discuss. one scottish mp, the other utter failure overnight. not so different in terms of where they stand on brexit and how they were trying to make in

roads. snp had a difficult night as well a mass return to the table >> there is a mandate now to offer the people of scotland a choice over. that mandate already existed and has been reinforced. i absolutely readily accept not everybody who voted will support the independence necessarily scotland should not be landed with the boris johnson government and ripped out of the eu as well that choice has to be respected. >> interesting we'll stick to your a level feed here let's get to the ceo and former communications director of the conservative party

welcome. what was different about this election for the conservatives compared to 2017 and the disaster for theresa may >> the thing is that boris is that high of competition how trump has in america he comes down to working class areas. a great campaigner there was a disasterous manifesto lost the issue of give them more corbyn was diluted this election with a presidential format and tone was very much a two-horse race all the way through. >> theresa may went into battle with a comprehensive agenda

about how the elderly were going to receive their health treatment. boris johnson used every message to reinforce brexit and got pulled off that. >> this was a single-issue election they were ruthless also bypassed the mainstream media with use of facebook, twitter to get to the market they did shun a lot of the mainstream tv debates and it didn't matter. >> interesting that you say boris johnson ripped up the rule book his hero is winston churchill who was an outliar with the party. then fell out of favor losing in 45 and it took another five

years to get back in is boris in power going to get brexit done? >> speaking to all those mps, labor just wants it done the country has moved on the liberal democrats thinking they had moved out this country has been in a state of paralysis and it needs the distinct domestic agenda it has a mandate to it let's see and hope that they carve that out >> he has played fast and lose with the fact at times we can see here that doesn't seem to have had any impact on the vote that conservatives have received at that point you think about how politics and campaigning have changed what does that mean for honest politics in the uk the whole issue around fact checking and fake news

we are also seeing that the mainstream media isn't provided. people are not watching news by appointment. communicating with people, it is really important it is all about the microtarget here >> thank you for coming to us with this. we'll wrap up but come back to us we'll talk more about this market reaction to this win in the uk general election. i'll send it back to you >> we are also going to bring your reaction to the uk election from eu leaders. stay with us

with this mandate and this majority, we'll at least be able to do what >> get brexit done >> you've been paying attention. >> welcome back. a blistering win for boris johnson as the conservatives

celebrate a decisive victory in the uk election. the labor party nurses its losses >> i want to make it clear i will not lead the party in any future general campaign. i will discuss with our party to ensure there is a process now of reflection on this result. >> in terms of market reaction, the ftse 250, that is the midto large cap index in the uk hits a record high on the back of a home run for many sectors. we've got double digit gains retailers and utilities enjoy relief as the labor party has talked about renationalizing >> lloyds up 8%.

banks doing incredibly well. investors scale back expectations for potential rate cuts there is a down size pharmaceutical stocks are underperforming. the moves capping some other gains we are seeing on the ftse and beyond >> sources from the u.s. and china have agreed a phase one trade deal in principal as beijing reportedly agrees to buy $50 billion in product in return for suspension of tariffs. news of a potential phase one trade deal sent wall street into the green yesterday a very strong fperformance.

so with slightly less urgency of what we saw. all what we saw in the green the dow shy of triple digit gains. very positive news to the trade war. it looks like the two sides may have managed to have held the agreement there, positive for markets as well. today, our focus is on the general elections in the uk. the reaction we are seeing in the uk index is up 1.7%. we initially opened up at 8:00 in the morning in the last hour and a half or so, we have seen some losses paired we are trading nicely in the green. even though we are in the export index. it is a risk on day across the

board. cac in france and german index up 1.2% as well. stocks are leading the gains here we are talking about basic resources. with either trade or brexit is doing well this morning. it is a solid morning of gains across the board for foreign equities and uk equities let me tell you more about what you are seeing up 1.7%. it has been a little touch and go the last couple of months and worth baring in mind about three quarters of the revenues of this index, the ftse 100 come from abroad there is that negative core relation with the pound. that index outperforming today is the ftse 250. that index is up 4.4% and has

had a very nice run. you can see a big jump this morning at the end the last three months, we are up 8.8% for the year. the ftse 250 is up about 8%. so strong gains. that is steve and jeff in westminster. >> thank you for that fascinating market reaction here to rewind in case you are catching up with the news flow we did it. we pulled it off those are the comments as he celebrated the very clear victory we've seen with the uk general election that gives a clear mandate to pursue his own brexit program. he said in that same speech and appearance that means brexit will happen and that the uk will

leave the eu on january 31st next year. >> your hand may have quivered over the ballot paper before you put your cross in the conservative box you may intend to return to labor next time around if that is the case, i am humbled that you have put your trust in me and that you have put your trust in us those people want change we cannot, must not let them down and in delivering change we must change too we must recognize the incredible reality that we now speak as a one nation conservative party literally for everyone >> a brilliant boris johnson there but what went wrong with

the labor party overnight? there were so many issues. concerns over his leadership, tax party, anti-semitism questions or the try angulation over brexit, either way, it was a terrible night for jeremy corbyn they've lost over 50 seats 51 at last count he called the results disappointing and he said he will not lead the party in the next election. >> brexit has so polarized and divided debate in this country it has overridden so much of normal political debate. i recognize that has contributed to the results that the labor party has received this evening

all across this country. the issues of social justice and the issues and needs of people will not go away just because brexit is dealt with in a way that boris johnson presumably plans to deal with it at the moment >> let's talk briefly how brexit banks weigh in goldman sach saying they now plan to buy uk equities with a focus. >> it was yesterday. small caps, it suggests selling as well as guiding closing out cable positions. 1.35 interesting they are picking >> deutsche bank says the outcome presents a double-edged sword. more certainty in the parliamentary process and gives

johnson close to free hand when it comes to negotiations removing checks and balances saying many recessionary warning signs are flashing red i'm not sure they mean for the eurozone or the uk i assume they mean the latter. hovering between 42 and 44 joumanna, i understand you have a fantastic panel in the studio. >> before that, i want to bring you a third opinion as well from hsbc who have raised their forecast for sterling against the dollar and the euro by the end of 2020, following the uk election results plenty of the banks are coming out with their prognosis and what happens next. the pound is trading up at 1.34 right now. the chief economist with barclays and social research

i'd like to start with you it seems the analyst read from the election results overnight is that the tories have come out with a larger majority than expected that also gives them a free hand in the sense that the erg and hard liners diminished what does that mean for you in terms of how brexit is going to go from here >> good morning, i think you hit the nail on the head the discussion on the size of the majority is depending on the size of the erg or at least those hard brexiters with such a large majority, johnson should have more freedom to adjust the course of brexit when needed. what everybody has in mind is when everybody should ask for an extension. is it possible to sign a trade deal in one year

of course it is. it won't be the trade deal on the needs of the economy it won't replace the access to the single market. a pragmatic boris johnson will be well-advised to extend that period two years, three years, give more time to reduce the kind of compromises to get a deal done it is a deal with the eu but also with other countries we trade with it will be a lot of discussion happening over a short period of time that is on everybody's mind. while everything seems to be a bit more straight forward and easier to understand less risks to the small group of mps block the brexit process or any other. it is fair to say as long as we don't have the confirmation or extension of the transition, we will with the uncertainty of

what is going to happen. that's why we remain on the cautious side today. >> we are perhaps also not talking about enough also the question of scotland. snp also achieved sizeable gains. they are asking for an independence referendum. do you think that makes a path towards signing a brexit deal a little trickier for the prime minister now >> it will i think there is a perfect storm forming, if i may for 2021 or 2022 at least in two or three year's time we'll need to have a free trade agreement in place we'll need to have all the infrastructure and implementation ready i'm thinking particularly about northern ireland

the trade arrangement that has been reached with the eu that will need to be implemented in a short period of time if it doesn't work out the way it is planned, as you point out, it comes against the back drop of a slightly more nationalistic landscape in northern ireland and also scotland. those issues will not go away. if anything, they are a bit more present today. those are the issues for the median term. for instance, the snp will play it slowly to maximize their chances to get a send referendum >> thank you for taking the time to chat with us today. i want to get back out to talk about some of the market reaction we are seeing today let's start with the pound we saw that two-point jump

10:00 p.m. from 1.32 to 1.34 and briefly to 1.35. are you getting nervous at this point? do you think it would be wise to take some profit >> our best case was for a tory majority but we were overwhelmed at the success we don't think it is time right now to take your profits on the sterling why we actually support that case is because two of the main taylors have gone. the chances of a corbyn victory and the second is uncertainty around the or deal has literally diminished these two are now put to the sidelines, we expect pound to appreciatation considerably from this point on. >> give me a target. >> i would say we can definitely hit at least 1.38.

>> for the banks, are you expecting them to also change their forecast because of these potential animal spirits what we expect is given the pound's rally and that it will appreciate for a considerable period of time we expect inflation to pull off. we do see by midyear, bank of england is likely to cut rates >> all right we'll have to leave it there thank you for coming on. also coming up on "street signs," lord andrew adonis weighs in on the conservative victory and what it means for the future of the uk ssion. so, my wife kat and i took action. we started a non-profit community bank with a simple theory - give people a fair deal and real economic power.

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president trump. reports that beijing has agreed to increase u.s. farm purchases in return for tariff suspensions. uk leaders have voiced willingness to work with the new government to push ahead brexit talks. joining us live from brussels. who has been the reaction over the developments of the last 24 hours? is it one of relief or optimism? spell it out for us. >> reporter: so far, the reaction from 27 leaders has been sending congratulations to boris johnson. they look forward to work with the new prime minister, the new cabinet in the uk. they are asking for a speedy ratification of the exit agreement. let me step back to explain the next steps once that is approved in the

house of commons, then a transition period will begin until the end of 2020, if that does not get extended. it is that transition period that both sides will be discussing trade i ask the prime minister earlier this morning how he sees this trade negotiation unfolding. let's take a listen. >> for me, it is principal of all the topics it is goods and services we can't reduce it it is also the citizen's rights which is a big aspect for the future and the guarantees we have just to say now that we need to have rules about money and business would be again not to understand whether people's questions. people want to know whether there are guarantees and about the future and how rules are functioning and if you have

coll clarification. now with the majority out. >> when it comes to these trade negotiations, it seems that the tale of these talks will be complicated to put this disagreement together. there is another uncertainty when it comes to this trade negotiations that is the timing will both sides try to get this deal sorted before the end of 2020 i ask that question to the swedish minister of foreign affairs early this morning this is what we want to say. >> we have a close relationship with the united kingdom after leaving the eu it is such a great part of europe still we have a lot of commerce with the united kingdom we have to organize this so that

it is beneficial to the uk and the eu >> is it feasible to get it done in the 11-month period >> it is a short period. we have to focus on the trade agreement, security, both internal and external and arrangements overall it's going to be a tough one but i think it can be done we have an excellent negotiator and they'll lead us well through this process >> you heard from the swedish minister for european affairs that given that there is only 11 months to put this trade deal together, perhaps that deal is gooding to be quite basic, so not the full agreement we saw between the eu and canada. perhaps this will be a smaller deal so let's wait for the trade negotiations we know when it comes to the uk and the eu, trade is a big

component. let's not forget that eu is the uk's largest trading partner >> we have all of 2020 to talk about that potential trade deal. let's back to westminster. i'm going to ask you a question, that is whether you think that the election results in the last 12 to 24 hours is an endorsement of brexit or a rejection of the leftist socialism being put forward by the labor party >> the obvious answer is yes i think it is both of those things i've been around since 1970. i think the biggest elections were '79, '83 was huge, '93 was massive, '97 as well i think this one is up there with some of the biggest elections of my lifetime as

well as you rightly asked the question was it about brexit or a clash of systems and i think it was about both >> yes, i'll agree with that the question is what this will look like as we roll forward to the next election. i know that is asking a lot to project forward on that fact the fact that we saw many of those in the heartland turn blue tells you a lot about how brexit and the public's frustration and the problems we've seen with the political process here in westminster. what they've delivered is a mandate to move ahead with the brexit process those who have voted along the way. those have backed britain, i want to see this issue taken

off. i want us to move forward. >> there will be no second referendum now that majority will pass. brexit will almost certainly happen on the 31st of january. then the questions will remain about the redevelopment and what kind of transition period and is there still prospect many questions remain. many have been solved. >> thank you for tuning in this morning. we'll wrap it up here on "street signs. afr coverage continues te the break. thank you for tuning in.

breaking news, futures surging on reports china has reached a phase one deal in principal. also breaking this morning, brexit reaffirmed as boris johnson's conservatives preserve a crushing victory in the united kingdom. surging on that news and facebook under fire as regulators look to push on an injunction over antitrust concerns no vote in a surprise move late last night house democrats move to delay an impeachment vote this morning. all of that and more as "worldwide e