not only of their governors but what happens with brexit as well. lou: absolutely. byron york is always thank you very much. we appreciate your insight on this extraordinary night in the uk as well. that's it for us. thanks for being with us. neil cavuto continues our special coverage. >> this is "fox business" coverage for the uk general election. here is neil cavuto. no welcome everybody. a year ago today, think about it was a year ago this very month we had the populist way started with something called brexit. he did not go the way was expected to go. the breads have voted three points to get out of the european union to find all polls, all experts in all mainstream media and this was going to be an assault on standards across the world. indeed what started there reverberated pretty much everywhere else culminating in this country the election of donald trump and the populist

wave we were told that set the tone for the next decade. well it still might but the latest signs in europe and particularly out of britain this hour our intent is speed pump just like it had a speed bump in france were then a few weeks ago others followed suit with a moving poll numbers in austria, in switzerland, in italy and across germany now with the party in power. that was the angela merkel party comfortably ahead in major -- every major poll. this is the latest we have going on in britain. this is for control of the house of commons. there are 650 seats. you need to get a majority 326 of those seeds at a minimum. theresa may the prime minister she had a comfortable majority and be off to the races dictating events in that country and sort of them modern maggie thatcher form that would be hard

to deny. a conservative grip on power that could last for years to come. had she not held a special election she was going to be in there for at least -- until 2020 but now she stands the likely risk of being out of power by the end of the week as incredible as that is to believe. what happened and why and what's happening to the populist movement early on in this election right now? ashley webster is live in london with the latest. what's going on there? >> a shocking development no doubt. we have been watching was what's going on here indeed. right now waiting for the individual constituencies to report their numbers. 650 seats in parliament. we have gotten through about 50 of them so far. the exit poll with you have pointed out in that exit poll has been quite accurate shows that conservatives will end up with 314 states. still the party with the most seats but below that magic 326 a

majority so now what happens? the political future of theresa may very much in doubt. she is the conservative party are unable to form some sort of coalition government to give them the majority then she may be forced to step down and invite the party party becomes the second i.e. the labour party under jeremy corbyn to try to form a government. jeremy corbyn make no mistake is far left. this is a candidate who proposes to raise corporate business taxes and taxes on the wealthy to pay for massive public sector spending. also you know he's not afraid of brexit, that's for sure. he would also like to nationalize the utilities, the power grid, the rail lines. it hearkens back to the early 1970s. it wasn't great so as you can imagine a shock, theresa may i can only imagine what she is

thinking right now is a result of the british pound in the sterling has been falling down to 127, 126 to the dollar. what a night it has been. we are going to see a lot of hand wringing and a lot of negotiations going on i believe then this could go on fo several weeks. e negotiations of the brexit are supposed to begin in 10 days. that doesn't seem likely at all. neil: you know what's amazing and ashley all of your reporting on this is when theresa may call this election and she wasn't obligated to do so until at least 2020 when the next one was scheduled she was coming from a position of strength and had strength in her hand presumably and extracting this formal break from the european union. i'm taking two extremes with corbin that his labor could still end up as the party here. he may be running the show

unlikely as that may be but would he -- he said he would not honor that or what is his thinking on back? >> well, he was not exactly an eu fan and he angered many people in the labour party because he wouldn't come out and say we have to remain in the european union. he is talked about as soft brexit whereby they try to maintain some sort of ties to the single market that they would honor the eu blueprint of people. people from all over the eu, the 20 countries become an you could live and work. the kind of things that those watching brexit say it's not what we want. we want our jobs back. we don't want people flooding our hospitals and our schools. jeremy corbyn is much more of a soft brexit tear compared to theresa may. neil: thank you my friend.

we will go back to ashley who has had mostly by the way. just to put in perspective how the roles can reverse any year remembered june 24 plus 2 in the brexit vote was coming through in britain was opting to surprise everyone, we want out of this club. markets were tanking here come there and everywhere in all major indices fell 3% or more. the irony being tonight this could happen again tonight because it looks like that brexit in terms of what has been expected for the government is reversing itself so the very thing that led to a selloff if you think about it last year is going to be complicated by an additional. it's hard to tell we don't have a way to handicap out the rest of the nice going to go. 100 of the 650 seats that are part of this house of commons switch here right now favor the conservatives but they are down mightily. again to put this in perspective the conservative party has lost

and likely will lose 17 seats. jeremy corbyn's labour party appearing bernie sanders light, bernie sanders of the british accent. they will pick up 37. we have again the same forces that propelled for example senator sanders in this country. the young vote, 2 million more of them that were very instrumental in changing the complexion of this race. we are going to get into all of that. we are going to get into the fact that maybe progressives are becoming a force to contend with again. it might be premature. young voters exercising that at the polls. it's way too soon to make summary conclusions like that. what we can say is that the mirror opposite of what was going on a year ago and if you combine that with a manual macron and others that i have talked about signs of populism might have come and gone.

again it's a bit of a simple reaction but many of in the british press are pouncing on a possibility. throughout the night what we are going to be watching a couple of things and they do this in a unique way where they come before voting and update you on a race in a given district and then leavend oney on we know for sure. we need 326 seats to get it and without getting too arcane no one party is likely to get that so it can to what we see going on in israel. they would have to form a coalition. in britain you can rule without having an outright majority and it does make things a lot more problematic. let's get to read on this and whether populist candidates and ways that work punctuated most dramatically by donald trumps election in this country whether that's a sign of trouble. here is what is going on right now with the foreign secretary

here trying to work and get a sense of what he had passed. remember he was among the tory candidates or the party that's going to turn to him and be a standardbearer. he had knowing just and opted out of the last second. one county one district at a time announced the results. let's listen in. >> frith, james labour party 25,000. [applause] c that looks like a very good result for labour. [applause] >> 683, not all day that the

conservative party candidate, 2100. >> a labour gain. tom watson. neil: you heard a labor gain a liberal party game that is the liberal party again you're going to see on these charts the blue is really red and that red is really blue. labour is representative by red and tory by the color blue. this was a pickup for labour in a seat that was once held by the conservatives, labor pickup much as what you have seen this country. the house cr senate seat which is considered a pickup for the other party. that's what's going on in britain and they are seeing a lot of that today, a pickup where they expected to be 40 for the labour party not the populist wave.

jeremy corbyn is the leader labour. a little more than a couple of months ago was considered a disastrous candidate and he was fortunate and i don't mean to disparage the prime minister but theresa may not nearly as convincing. he may be the latest -- since he declared this sort of otgun election there have been two terror attacks in britain that normally and those types of moments rally round the leader and they did not do that for her because of her stewardship of national security during the cameron administration where she would argue that she also beefed-up terrorism technology. the breds after two successive attacks three and as many months

have said enough already, done and that was real. i was palpable and that was something that jeremy corbyn counts on relentlessly. he would have had to to have hurt the yen gains to have a shot at becoming the next prime minister or he could form his own coalition. that has been expressed in the "london times" and the financial times and some of these other publications that he had better odds of establishing such a coalition. why would that matter? it would be a repudiation of a populist government and the return of the liberals. whether some in this country will seize on that as a preview coming attraction as i stress that is a bit premature but they are seizing on developments. with what is happening in france and austria and certainly germany and that is what could laugh at these markets. appointments on your point of view the pilots get to lou dobbs roy f. kennedy and charles. lou do you buy that notion

whatever you think, whatever you think of donald trump that message has not reverberated? can you extend that to the whole countries region? lou: i apologize. i didn't hear you address me. i think you can extend populism across the continent because i think we are seeing that actually occur. the establishment is fighting back and fighting back strongly, mightily and viciously against populism just as it is in this country and it's important to remember the prime minister is not an avatar of populism in the uk. in fact she was absolutely opposed to brexit and i think there is a strong hangover amongst the electorate in the uk against her for that very reason we are not looking at a popular labour party. we are not looking at a popular conservative party and i think we may be consigned to that

coalition government. i think we also if i may say ought to reserve some enthusiasm here for the prospect that theresa may will ultimately prevail because we are looking at such early results. as you well know these are not conservative constituencies that are coming in here early and we may have to wait some time through this evening to know who is prevailing. neil: to that point kennedy the rap against theresa may was not a populist message. he was the messenger. in fact it was the messenger in france and you could make the argument that macron was a former charismatic individual. it wasn't so much a repudiation of those populist views as much as the populist candidate to lou's point that if you are jeremy corbyn and you were looking at a situation where let's say you don't become the next prime minister you become a

much more powerful force. sunni. kennedy: absolutely and we have seen in the past in the 70s certainly how much damage a liberal populace can do to an entire country in jimmy carter and in the uk. i think there are a lot of parallels here but it's funny because it seems as though the uk is behind the united states here. at first it seems as though the united states is following the uk brexit vote when they made a firm declaration for voters that they wanted their independence but at the same time they wanted the needs of real individual working-class members of society to be met and that wasn't happening. neil: the way he said that slow versus quick break with the rest of the european committee. we are not going our crazy fast with it. i wondering if that's a sense that people are in the mood for change.

kennedy: it's interesting because in this age people want information so quickly. they want resolution so quickly. look what we are going through with their rush investigations country. no one has the patience for this thing to go on for 18 months or two years. we want answers right now. people want change right now and you have a country that seems to have fallen for the masculine wiles of a forward speaker, someone like barack obama and that to jeremy corbyn is. he is bernie sanders with a silver tongue. neil: we say that usually goes to the party that symbol of coalition majority. labour will not have that. they could probably get to something that could produce that but we are nowhere near that as lou pointed out but i do want to get your sense right now charles about what is going on here. already some of the publications out there which is pretty much all publications out there had

been saying that a lot of this has to do with just frustration, the existing promises the government haven't materialized and the average man and woman has been left out which has been corbyn's theme. they are just switching players and theresa may is just the latest player but he oddly worked on that angst by saying i'm even newer. charles: it is language. that's what propelled brexit in the first place and immigration as part of that. not the terrorism aspect of that. people forget 10 other european nations were allowed into the eu and what happened was you have a lot cheap labr coming from poland and the czech republic and drove a lot of folks in brain ouof jobs. there was a resentment there but like bernie sanders corbyn with

young people but unlike our election and maybe we learned a lesson from brexit they did get those young folks out to vote. it is so amazing and so are marketable considering the terrorist attacks and things like that. young people there would still rather go with this sort of, this sort of a, the ariana countered when she came back, maybe not directing borders. for them i wouldn't say it's buyers remorse because they didn't show up the first time but they certainly showed up this time. here's the irony of it all, -- s going to be kingmaker or queen maker of the well and she has a bitter rivalry with theresa may. there are reports that she's willing to get together with labour. 30 minutes ago there were two major vetting firms in london which he talked about with patty power. patty power just shifted to

jeremy corbyn the favorites to 37 minutes ago. going back and forth. that's how crazy this is gotten but remember the headline when we woke up? this was supposed to be asleep or the conservative party giving them more power than they have ever had going back to margaret thatcher. no matter how it comes out it's not going to do that. neil: lou dobbs one of the things that have come up as part of jeremy corbyn's appeato get back to what kennedy was saying this notion that young voters in particular we are told 2 million more of them voting in this go-round in the race in 2015 for david cameron. a lot of these young people were intrigued by the bernie sanders like promise of a more generous government where corbyn talked about raising taxes on the up or income to provide free education and allow more protections for the young, something you would think would have gone out of favor or lost its appeal but maybe owing to what charles was saying about the european union

and all these new entries that spoil things for a lot of workers and government. they were disenfranchised. maybe that was appealing. jeremy corbyn was quite articulate everywhere he went. what you think of that? lou: i think it turns out a bad candidate like jeremy corbyn turns out to be a better candidate than a worse candidate like theresa may has proven to be. she has been an ineffectual political leader and i think that's extraordinarily clear based on her performance during these radical islamist terrorist attacks, the refusal to share information with the electorate on who are desperate to understand what is happening when one of these attacks occur and what has emerged as a police state in the uk is controlling information, not releasing it to the public. i think there's a lot of frustration and secondly that

they expected theresa may or whomever would have been prime minister to be preventing these attacks, not simply if you will console in the population after it occurs without any clear vision for the country. and that theresa may has been quite european just as angola rkel has insisted on assimilating more than a million refugees and immigrants primarily from the middle east and northern africa without any plebiscite or referendum or vote on the people. it's been an extraordinarily authoritarian moment in european history. looking at what has emerged in the eu as not a meritocracy but a bureaucracy made up of the lead and giving life to frankly the populace. neil: terror did not help her and the idea that the government

powers better than anyone we might consider. normally the rally around, she was so horrific at handling it that it cost her. kennedy: it didn't she was the home secretary which as you know is the person who is my to keep the uk safe from external and in this case internal harm. you had a really good point earlier on in your show where you show the difference between president nixon and president clinton and how a thriving economy actually saved -- and i think you can draw those parallels here in the uk. they have had a very rough first half of the year and they are at .2% growth which is below france and greece. they are growing slower than greece. neil: to come down all euros with that. kennedy: if you look at your retirement fund and if you look at your near-term and long-term future under theresa may stewardship she can't make you

rich. neil: stick around, please do. we will update you when we have 153 seats out of 650 declared and conservatives are in a heap of trouble here. they are losing much more than they thought they would. jeremy corbyn labour party is winning. the fact of the matter this seems to be an early repudiation of the government in power but not so that they are necessarily going to give one single part of the benefits of laughter would find a way to come together and dosomething to what seems to be aearly read on this and again they could and likely will chan frothe script but it seems to be the early read. theresa may has overplayed her hand. maybe she got a little when things were good and a little bit more than that when she said i'm going to pounce when the iron is hot and call an early election even though i'm not up in my party is not up for election until 2020.

lou: i think about now she is regretting that choice of big-time. the pound is down a british stocks due to be hit hard and other countries that are about to have elections of their own are also feeling the pinch. we will break them all down, next. my friends think doing this at my age is scary.

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all right, we were just talking about the news today including what's going on in this country and president trump, his lawyer firing back at james, a. let's say got a little nasty but never involved the president himself. no tweeting in days. there were a couple of bombshells today about the former attorney general loretta lynch approached james kelly. during the investigation of the e-mail scandal and asking him not to refer to it as an

investigation, but a matter. it was actually mr. comey who orchestrated the leaking of his memos. that became part of the discussion after we learned why he began began writing memos. at the beginning of his hearing, after his first meeting with president-elect trump, he felt it was necessary. here's what he had to say. >> i thought it was fair to say what was literally true. there is not a counterintelligence investigation of mr. trump. >> what was it about that meeting that led you to determine you need to start putting down a written record. >> i was honestly concerned he might lie about the nature of our meeting. >> why did you stop and say this is wrong, i cannot discuss this with you. >> that's a great question maybe if i were stronger i would have. i was so stunned. >> there was another revelation that he actually made the decision to share his memo with

a friend, daniel richmond, a law professor at university of new york with the intent of having mr. richmond shared with the new york times and publications with then broke the news that the memos existed. the presidents outside counsel, the lawyer had something to say about that. >> today, mr. comey admitted that he unilaterally made unauthorized disclosures to the press of privileged communications with the president. the president also never told mr. comey i need loyalty, i expect loyalty. he never said it in for him or in substance. >> we can tell you, fox news is reporting that the president is actually pleased with the outcome of today's hearing because here at the white house he has achieved what he initially wanted which was to

publicly state that the president was not being investigated in connection to the russia investigations which are now focused on general flynn back to. >> thank you very much. to sum up, one of the reasons why the markets were rushing ahead is this idea that the president might've been inappropriate but it was not illegal. fred, that seem to be sort of a knee-jerk reaction on the part of those who want this to go away. i'm talking about those who want the tax cuts and the regulatory relief, and they want this to be gone, this whole distraction. are they getting ahead of themselves. >> i think this is going to go away, and i think the memo story will have something to do with it. i was in government for 25 years when you are in a situation where supervisor tells you something on a unethical, you

either speak up, reported or resigned. james comey knows that. what did he do, he slinked out to his car, wrote a memo to leak against the president later. i think that raises serious questions about his ethics and credibility. i also think it suggests underlying antipathy against the president that was really affecting this whole relationship. >> imagine, had he not been fired, he leaked this out to this law professor who leaked it to the media after he had been fired, but knowing now what we know, that he really didn't trust the president and thought he was a liar, and this guy would be the guy heading up an investigation, knowing full well whether the president wasn't part of that investigation, he wasn't really keen on the guy, that's a whole another can of

worms. >> what i heartoday waa man who was a member of the washington establishment. these people hate trump. they really hate him. they think he's an outsider. they don't think he should be in washington. i thought james comey's comments dripped with contempt toward the president. as i've said earlier, i think he should've been fired on trump's first day in office. what we saw, with the way he handled this memo, i think that proves that point. neil: the one thing that amazes me, all of a sudden i was noticing some of the questions he was getting is that this is the same guy they were disparaging and yet treating him like john the baptist today. >> it was interesting. so many emotions. they were so torn because on one hand they want total vengeance for hillary clinton's loss and they blame him for that utterly because hillary clinton gives

them permission to because she goes on a non- apology to her and makes excuses every other day. on the other hand, they want james comey to bring down this administration. that's what they truly want. they want him to rewrite history , but unfortunately what they needed today were for the president since to be far more numerous, and that didn't happen i was honestly surprised when he admitted to leaking that document to a friend because this is something he had admonished wikileaks for, and some of the weaknesses within law-enforcement and intelligence , and even within the white house, the leaks are so incredibly harmful. >> they were saying we can't trust reporters, like what are you doing. >> it was so remarkable. the one take away i have is that

this guy was all too human to be fbi director. he's just way too emotional. he brought up his mom one time, he was just sitting there, it was almost like a therapy session. this guy trump was so mean to me , he was so mean and then diane feinstein tries to talk them up a little bit, you're a big strong man. it felt like it was the scene from a movie where the drill sergeant is like stand up, be a man, be a man. here's, i talked to one former official today and said something to the effect that they think muller was getting this separate investigation going, he thanks he could wrap things up before labor day, but a speedier investigation, getting this out-of-the-way is better than dragging it on. let's say he does, and there's

nothing that even hints of impeachable behavior, then what, what happens. >> there is no impeachable behavior. eventually the evidence will dry up and there's nothing left to investigate. i think this will become an issue that divides the republican and democratic parties for quite some time. i think both intelligence committees will put out reports that there will be a strong dissent by the democrats. this happens on divisive issues, and i think the country will move on. i think the american people are getting tired of this - will you write about that. that got more pressing worries and they might be looking across the pond. but if that's the end results of this, before labor day we get a report that says effectively that, one of the markets doing. >> they would love to move on for this, but all eyes remain on washington d.c. this time for getting the job done.

what help to the market today? nothing that could really go much further. but you had the house pass this bill, dismantling some of dodd frank and you have president trump talking more about his infrastructure project. 1 million apprenticeships, concrete stuff. bank stops went up, these are the things we need to work on. neil: what do you think. >> i think charles is absolutely right. the market is the most agnostic barometer. they want everything to move on. unemployment numbers are moving in the right direction. they can't do that, they can't move on until we get past this drama.

you don't have to like the president, but you have to want the country to do well and that something democrats have to remember. >> it always comes back to the economy. in britain they are blaming it on the conservative party that it's not going well. it seems to be the terror attacks that are at no end and right now that is something that is really weighing on them. we are getting some updates and i will have the breakdown of this and what they're looking at right now. that is the range that we are getting on the conservatives, the tories as they're known in britain, capturing anywhere from 308 - 328 seats. even 328 would be below the 331 they currently hold. it is a wide swing here and a lot of people are asking why is there a wide swing. i really have no idea. all i can tell you is they were wrong. the polls and the estimates were wrong, but they started cascading south during the

campaign. they had a very brief campaign about six or seven weeks and that's it. between the terror attacks and disruptive campaigns and an economic platform that seemed to really great at a lot of britain's, the feeling was no, you may not. >> you keep this up and i'm in a get my british accent. [laughter] okay, i picked out my dream car.

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neil: let's look at the town. it is down. again, there's not this freefall of panic. we will get a gauge very soon. bottom line, this is not having the brexit fallout we had a year

ago when they stunned the world by saying we don't want to be part of this club. that was by about a 51 - 48% margin. i wasn't here at the time. i was having heart surgery. i didn't get many cards from some of you, but that's okay, i'm over that. i am looking at this now. you were expecting a freefall, were not seeing that yet. they have to find some sort of a coalition. here is where we stand right now conservatives are losing. labor liberal, they are gaining seats. whether that's enough to tip the balance of power and have a jeremy corbin or bernie sanders become the next ime minister, we are a long way from that. you would have to cobble together a coalition government to do that. the feeling is the conservatives might be up to do that but they might just say teresa, you are not the person who will do it which is the same phenomenon they had last year when they

turned on their prime minister, david cameron and then they went through this process of determining and attentive to him and it was teresa mae from everyone but the security guard who said no, i'm not interested. we have john brown, former parliament member, with us now. it's early but let's say they fail to take a majority with the conservatives. it's a lead but it's a close lead over labor, over the liberal. who would gain from that? what would happen after that? >> the european union will go gain the most because what it does is threaten the british hand in negotiating brexit and it may even threaten brexit altoge gain and maybe would be leaders within the conservative party will gain personally, if teresa

mae is forced to go, outcome a whole lot of kittens to do allianz job and it doesn't look as if there are many. >> this is the latest,he process that they do over there, sort of district by district announcing the change. let's listen. [applause] logan robin green party 823. jeffrey walker, the conservative party candidate, 13561. steven dominic winston, social democrat party, 70. totals boiled papers, 89 and i hereby declare that jerrod omara

has been duly. [inaudible] >> another one who loses, a lot of establishment players are losing out in this election today. this is very surreal what happens in wave elections for this is way too soon, he had an uphill battle. let's take a listen. >> to declare the number of votes cast for each candidate is as followed. alexander johnson, conservative party, 23716. [applause] mark alan green party, 884. abeth len mp, uk independence party 1577.

vincent lowe, labour party, 18682 liberal democrats, 1835. number of ballot papers rejected was 83, and i hereby declare alexander johnson is hereby elected to serve as member of pollen parliament. neil: boris johnson might be one of the conservative that stays strong right now. you might remember boris johnson was the figure who everyone had wanted to be the conservative candidate to rise as the new head of the tory party. he opted out to take that job.

john brown, we are seeing he wins in his district but a very prominent liberal democrat, establishment type who goes down to defeat, i know it's very early for you to gauge what's going on here, but let me ask you, what's going on here? >> it's going to be a very difficult parliament. it looks ahead and creating great uncertainty, particularly of brexit and that will upset markets and sterling dlar relationships. >> explained that because the same thing last year was feared and it didn't materialize because of brexit. now you have a confirmation, brexit remains but is it that the players and the fact that we are kind of reversing last year that's going to cause? that i don't understand.

>> brexit is still there, and the question is who is going to lead the coalition, whether it will be tresa may or someone like boris johnson who is also very pro- exit himself. that is a big question, but it's uncertain. it's not the sudden shock that happened when suddenly the british people voted to have their country back, and for their independence. >> i just want to be clear, this is not abandoning brexit. >> exactly. and it depends exactly how the coalition breaks down, who's going to be supporting who and so on and whether some of the scottish seats go to conservatives and improve the conservative position. it's difficult to tell in advance but it looks like a hung parliament. even more you see threats to prime minister may administration, is there going to be a new conservative administration? that's another uncertainty. how convinced are they going to

be to make a very tough negotiation over brexit.