good morning. welcome to street signs. looking to end the kwaerlt on possibly a so you recall note with banks again leading lower. this says deutsche bank failed the feds stress test once again with u.s. regulators flagging broad and substantial weaknesses in their capital planning. it's the italian banks that are at the bottom of the pile. suspended after falling more than five% made a sector wide

price cuts. the brexit tragedy is no longer -- might be buyer's remorse for the eu block. good morning everybody. and welcome to street signs . really glad you're with us today. we're head lg towards the end of the week. last day of the quarter as well. maybe wrapping and you happen repositions of the books out there. stocks pointing just a little bit lower t. cause this morning were relatively flat. two days of pretty phenomenal strength. the ftse wiping out post direction losses. higher by 3% yesterday. today that's the case. just take a look at the markets in the various sectors out there you're looking here at a little bit of red creeping back on the screen. banks leading the way lower. technology higher.

industrial and chemical ks the ftse off a quarter of a percentage point at the moment so just reserving the gains we saw yesterday. cac hanging on to green: ftse mib. central banks will come to the rescue regardless of what and the we're looking at maybe a little bit of risk asset on trade taking place given the selloff we saw on friday on monday. the stock share in europe off just by a percentage point and indeed we are focusing back on the banks once again. deutsche bank fail lg the federal serve stress test for the second and third consecutive years. siting broad and substantial weaknesses. the feds rejected the payout. when looking at the banking stock this morning and deutsche

bank and uni credit lower. if we move on we can take a look at deutsche bank. and san tan dayia similar story there with regards to the actual strength of these banks. so failing the fed stress test once again, as said. let's move on because meanwhile the u.s. banks received a seal of approval for their plans and dividends -- for dividends rather and buy backs. took a closer look another the test results. >> reporter: nearly all of the banks that submitted plans for this year's stress test at the federal reserve passed with flying colors. some of them were not so lucky. the u.s. units of deutsche bank and santander failed again with the feds raising questions with

the way they plan to return capital to shareholders. they have failed in the past. the companies have been making progress, but there were still series deficiencies whether they were from data or audit units that needed to be emeal rated. it must resubmit the plan by the end of the year. the difference is for morgan stanley, they got a conditional approval so that bank can gt and increase the dividend and increase buy back so the shareholders get something while the bank works behind the scene. one of a slew of banks that made similar announcements after the close of u.s. trading. to that end, bank of america increasing its dividend 7.5 cents a quarter. city group the most stunning raise of the dividend to .16 to

just .05. jhonny peral jpmorgan would authorize buy back to $10.6 million of of the large banks, wells fargo interestingly did not mention a buy back whatsoever. by certainly a little bit of good news for bank investors in a beaten down sector throughout the year as concerns over continued low growth, low interest rates and cost cutting have eaten into their bottom line. at least now investors have a little bit of something to like. for cnbc business news, i'm kayla tow shi. >> good morning, welcome to the show. good to have you with us. >> thank you. >> so banks being sold back

again. having severe falls in the wake of brexit. now we're worrying about the ability to withstand the stress test. >> u.s. banks are much more advanced than the european banks currently. we find many more opportunities in the stock selection in the u.s. banks than european banks. they have head winds and also currently the brexit pressure, there is a number of banks in the uk that might create a contagion on european banks. >> how much less healthy are european banks compared to the u.s. >> the trend of the earnings in european banks is very negative. we still see european banks far from being good invest opportunity at this point. look at a flexion point to get back to the sector.

we far prefer insurance companies in european financials because europe insurance names tend to be more cash flow generative. and find more yield and attract opportunity in that sector. >> aren't the insurer, along where the pension funds, aren't they going to be greatly impacted and suffer from a brexit. >> so we tend to reduce currently, but we still have a wait as we still have a number of names, again, strong cash flow generation that can handle the current stage. >> with regards to some of the nonperforming loans, the bad loans we're looking at, especially when glancing at italy here recently, the reports they could be looking to shore up the italian banks sector by more than 40 billion euros.

is this just the beginning. there's speculation that core europe is looking at some of the french banks we'll. >> the issue in europe is the real estate market is highly valued. something we obviously passed the nus years ago. the uk market is especially worrying i think in the current environment. any of that negativity until the real estate market, france, uk, could lead to more of this. so the negative is what we are conce concerned. >> let's move on from banking for a second. gaining more control over migration were dealt a blow when they met yesterday. it was the first gathering without the uk since it joined the eu 43 years ago. donald tusk confirmed the group's unified position. >> leaders are absolutely

determined to remain and work closely together as 27. we reconfirmed that britain withdrawal out from the european union must be orderly and no negotiations of any kind until the uk formally notifies its intentions to withdraw. today access to a single market requires acceptance of all four freedoms, including the freedom of movement. there will be no single market a a la cart. >> said that britain's vote to leave the eu had created add positive momentum for stronger and better europe. speaking the european parliament was a great shock to him.

he also added that a brexit would accelerate and reinforce deflati deflation nare trends. we're just getting some news through that will be running as potential leader for the conservative party as prime minister. we're just hearing that news now. we'll keep you updated. we've been speculating a lot who those names could be. theresa may being a name mentioned as well. let's get back to emmanuel huffman. you say that there are a number of attractive opportunities in the material sector. talk to me about where the opportunities are in your systematic stock picking at the moment. >> sure. this mounts on our strategies. we have seen material be the best contributor alongside books. we sound a number of attractive

place in the gold sector. the gold for last few months. the ecb, feds, has led to a possibility of momentum on gold again. given the risk of devalue we face globally, led to gold mi r minors. been strong play for us in the last few weeks and has helped us tremendously in that brexit shock. >> any names you care to share with us. >> we don't like to share single names. we find a number of attractive mid cap in the uk. a lot of mid cap opportunities from gross places. you have a lot of attractive opportunities in the uk. a lot of frequent based gold mines. >> how about some of the country plays as well because i note

that you say that the reallocation that you're focusing on is towards exuk, ex-euro. >> more defensive country, more defensive currency as well. denmark, norway, switzerland as well. so more defensive stocks in switzerland. number of hedge companies working on related bases very attractive again. so attractive, less defensive plays in countries. >> just coming back to gold for a minute because i was looking at some of the overnight moves as well and noelted that silver is at a one and a half year high now. we have plat tum up as well. do we play the metal sectors in some of those other plays well? >> it's more, you know, volatile and physically more risky to

play through platinum or silver. it gold is a unique way of playing this devaluation we face. >> what if the dollar continues to head higher, does gold remain as attractive. >> the whole gold play is most bank action. current gross is basically negative revenues for companies globally. it's very difficult to see any relay of growth. one can bet there will be more intention to boost stocks and inflated assets in the last few years, but it will continue because central banks are the only basically barrier against major downturn in financial markets. >> i've heard suggestions that we're going to be looking at the feds possibly embarking on qb 4.

do you think that could become a reality. >> i think it's a possibility. they've done it twice already. it's very difficult today to deal with a major recession reshock given how indebted governments are. so central banks are trying to support the market to avoid that negative effects it would have in the deficiency shock you would have. >> so if there's one place you would invest today, where would it be? >> on a related basis, i think u.s. corporate still feel more defensive and the better position. again, the banking sector in the u.s. is -- imaging markets are a lot of bad news and a lot of rate cuts in the last few years that won't happen so we find

attractive opportunities in markets. >> thank you so much for coming in to talk to us this morning. your first time on cnbc so welcome in. you can e-mail the show directly as usual. street signs europe on cnbc. the address is on screen right now. write it down, use it. you can also find us on twitter. street signs cnbc. before we head to a break, nancy is standing by at the viva technology event in paris. high, nan hi, nancy. >> reporter: that's right. we are here at viva technology. invasion was expected to be the big word of the day, but you can guess, the big word is that b word. slugging off brexit fears as it

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hi, everybody. welcome back. i'm louisa bojesen. micha michael gove has throne his hat in the race for prime minister. in a statement he said, quote, boris cannot provide the leadership for the task ahead. so that statement having just been sent out. he explained his decision to stand for conservative leader and he says he is relung tantsly come to the conclusion that boris cannot build the team for the task ahead. i want to mention to you another

brexit campaigner is to stand for conservative leadership as well. that's according to sky news siting sources we're getting by riders. >> let's move on and talk about technology. despite the brexit vote, he still sees the uk as a core market to invest in. speaking to cnbc at the festival, the ceo praised the virtue of artificial intelligence. >> i think augmenting human capability and capacity and then distilling a set of principals. how can it be programmed to care for humans? not have bias built in. how can it be trustworthy. how can it be transparent? >> those are the principles of ai design that i want us to

approach. air bnb will raise money from large investors. the deal is expected to leave air bnb with an approximate valuation between 25 and $30 billion. yes the sharing economy is upon us. nancy is at the viva technology in paris. >> reporter: yes, air bnb does have representatives here. really designed to bring the disrupters and established players together to talk about how to invacate and solve real world problems facing the industry. a lot of discussion around brexit here and the implications. i had a chance to speak to the ceo and i asked him how concerned was he of the growth

implications of referendum. >> we are not involved in politics and campaigns. clearly every single decision that will be made will have an impact on our business. as there is a strong correlation between the gdp and the advertising business, the communication business. so i don't believe that there will be major consequences, but clearly what will be in office we need to make a few decision, which may have an impact, positive or negative. we'll see who will be elected and what will be the impact. >> is it clear to you at this stage, which front-runner, which candidate would put forth better economic policies. >> it's unclear from an outside point of view. listening to a lot of debate and discussion and promises for the time being it's extremely

difficult to see how they are separated and make a clear separation between donald trump and hillary clinton in term of economic policy. i believe that we will see that right after conventions because there will they will have to present a more detailed program and will be able to have a feel for what they want to do and how they want to operate. >> and you mentioned some parallels as i said between these very populous forces around the world. are committee seeing a backlash against globalization as a whole and if so, what does that mean for your business. >> clearly when we have a globalization, we have some extremely positive aspect. the first one is we have taken a lot of people, 100 million people out of poverty. we have helped large countries like china, india, brazil, including russia to get out of

poverty and to grow faster. at the same time, this has had an impact on our own old economies and we have not yet find a magic recipe which will help doing both, which is helping the emerging market while at the same time protecting our own population from the faears of the future. there is a wealth of thinking to be done in order to change the paradigm on which we are operating. >> your business is so recession sensitive. certainly we've seen stock markets at the moment. do you worry even if it is short term and has the ability to create affects on its own, what that means for businesses demand for spending. >> i believe we will be on a low growth trend rather than a recession. i don't see a sign of recession in the two years to come. and i don't believe that we will face a recession in the short

term so we will have to adapt and everyone has to try to take advantage of the situation in order to grow faster than the market. >> speaking to nancy there. just to reiterate, some surprising developments in the race for conservative leader. the uk justice secretary michael gove has thrown his hat into the minister ring. it was thought he would get behind boris johnson, but in a statement that has just been accomplished, quote, boris cannot provide the leadership for the task ahead. now on top of that, we're learning the brexit campaigner is to stand for conservative leadership swep. those flashing coming through as well. we'll keep you abreast for potential leader for britain, new prime minister. coming up on the show as european leaders push back for open access to the european

union market. we'll be joined by daniel hannan. conservative. he was one of the brexiters. one of the people voting or wanting to leave the eu. let us know what you want to talk to him about. you can find us on twitter. we'll be right back after the break.

gove. still watching street signs . i'm louisa bojesen. these are your headlines this morning. european stocks liking to end end the quarter on a sour note. this happened after deutsche bank and santander failed a stress test again. uk justice secretary michael gove turns his back on boris

johnson launching his own bid for leadership saying the former mayor cannot build the team for the task ahead. and the brexit tragedy is no longer a fair to complete says the billionaire saying it might be a surprise boom for the eu block. hi, everybody. welcome back and good morning to you if you're just joining. europe markets were called flat following from two strong days. ftse wiping out post brexit losses yesterday. hitting its highest level since patrol this morning. let's just glance at our sectors too and see where that money is being repositioned this morning because we have seen some flip-flopping of the banking stocks over the last couple of

sessions with banks gaining back in yesterday's session this morning once again we are on the lower side from within the banking sector with stocks having been suspended due to worries again. capitol raising exercises have been taking place as of late and you also have now the fed stress test with some european banks seeing some weakness there. that's one thing people again are focusing on. you would have noted while gold has been steady in trade somewhere in the region of 13, 14. silver hitting a one and a half year high over the last 24 hours and platinum and palladium also noted higher over the last 24 hours too. so some safe haven buying also. european market relatively mixed at the moment. ftse mib.

ftse and the cac both are adding to slight gains. seth ra. >> when looking at some of the banks in particular, you've got the stocks 600. little bit lower at the moment. down by. >> we're just glancing at data hitting our wires right now with regards to uk gdp. gi first quarter gdp. just looking to find the actual gdp figure for you. we've got a final reading unrevised at plus 0.4%. gdp final unrevised at 2% year on year. again, completely flat of what

wefr seen previously. the final business investment down by six percent. that's revised a little bit lower. down from minus half a percent and versus what we saw in the fourth quarter where it was a lot worse. just glancing through here, real household disposable income for the fourth quarter, up by 5.4%. that's quite a rise from what we saw in the fourth quarter where that figure was close to 3%. 2.7 in fact. so that's the biggest rise since 2001 when it comes to household disposable income. household savings ratio of 9.5. services and household spending drove first quarter growth. they're also stating manufacturing and foreign trade and investment were in this data, but again the first

quarter above its precrisis peak is what they're pointing out this morning. uk current deficit failing to narrow as expected in the first quarter. accidently also speaking of data, we've got some data out of is the u.s. as well. you have the weekly job claim and the chicago pmi data and that's worth watching out for. got quite a bit of earnings news too. back to surprising developments though in the race for the conservative leader. the uk justice secretary michael gove has thrown his hat into the ring for prime minister role. thought to be getting behind boris johnson, but said he cannot provide the leadership for the task ahead. theresa may is launching her campaign to take over from david cameron as prim minister writing

she took a swipe at rival boris johnson saying running the government isn't a game. we're just looking at some live shots coming through here. we're just waiting for theresa may to start speaking. she'll be speaking here in just a bit. we'll cross over and bring you the latest on what she has to say. let's move on: let's talk to daniel hannan. he's a conservative. he joins us live from brussels. what do you make of the news that michael gove will be running and doesn't back boris johnson as previously anticipated. >> reporter: i'm just an ordinary party member. i only get a vote in the final duoand wait and see who they are. whoever it is has the to be someone who will implement the verdict of the people last week. >> i would like to see leading britain through what is most

likely going to be a rocky couple of years. >> it needn't be a couple of rocky years. we have a terrific opportunity to become a free trading, global, derated economy. linked to every continent and pursuing the natural advantages of trade and languages and migration that link us much wider than the declining euro zone. i want to see someone with a vision of a global britain taking advantage of the freedoms we will have outside of the european union. >> why would britain necessarily get beneficial trade deals given that it's not in the interest of the eu to do so? it's in the interest of the eu to set an example of what the british people have voted and say we need to set up pretty marsh rules going forward so we don't see similar things happening with other countries. >> i assume that countries bhan v behave in their own self interest. i'm amazed by how many people in

the world think people trade with each other as a favor or kindness in some way. if you're right and i'm wrong, if if european union really will damage its own economy in order to prevent others from leaving, it's not a clever nation at all. it's a protection racket. i don't think you are right. i think the interest on both sides here will be the same to maximize prosperity. while finding an arrangement we can all benefit from. obviously we've taken the decision to leave. we need to do that in consultation with our friends and alleys. we're not going to walk away from or immediate neighbors. we want to repatch rate the laws. >> daniel, you're accused of misleading voters saying after leaving the eu might not result in immigration cuts. do you understand why people are upset giving the pulling back

from the promises we seen from the leave camp. >> there hasn't been any pulling back by me. i said the same thing consistently. i said the same thing. i couldn't have been clearer. what we want is to take back control. take back control to me can only mean that no longer will foreign courts determine who can enter the uk or reside in the uk. parliament will have that decision. how parliament uses that decision, the extent to which parliament decides to have free movement of labor with other countries, that's not going to be for me. that will be for a future parliament to decide. that's all you can ever promise in a referendum. >> you're for free movement of labor then. >> as i say, that will be for a future parliament to decide, but i think an element of some reciprocal deals of labor make sense in our economy. i've said that throughout. you'll google in vain for any suggestion my ever saying the opposite.

>> the official leave campaign when looking at the when website, it's wiped some of the entire claims from the internet. the claim that the 350 million pounds that are paid to the eu on a weekly basis would go back to the nhs. that's since been called a my take by nigel farage. you had promised energy bills will go down. in reality household energy spending one would think would go up if we see inflation. how do you respond to some of these claims? >> i mean, a referendum is not a general election. people understand that. a referendum is an instruction to the government. you're not voting for the leave campaign. you're telling the government to get out of the eu. >> daniel, hold that thought for a second. theresa may is just going to start speaking live in london.

we'll come back to you in just a couple of minutes. >> good morning and thank you for coming and thank you, chris. i want to start by paying tribute to the prime minister. it's's to forget how far the conservative party and our country have come since david cameron was first elected leader in 2005. thanks to david, we were elected into government for the first time in 18 years. we won a majority in the house of common sense for the first time in 23 years. and in difficult times, we stabilized the economy, reduced the deficit, and helped more people into work than ever before, but david's legacy is about more than the economic rescue mission we undertook. some of our biggest achievements including the introduction of same sex marriage and taking the lowest paid out of income tax

altogether. they've been all about the pursuit of social justice. we have shown that when the conservatives have an open inclusive one nation agenda of social reform, we win elections and we change the country for the better. so i want to thank david on behalf of our party for his public service and for his significant achievements as prime minister. it has been a privilege to serve in his cabinet. i've invited you here today to announce my candidacy to become leader of the conservative party and prime minster of the united

kingdom. i do so for three reasons. first following last week's referendum, our country needs strong proven leadership to steer us through this period of economic and political uncertainty and negotiate the best possible terms as we leave the european union. second, we need leadership that can unite or party and our country. with a labor party tearing its to pieces and divisive nationalists in scotland and wales, it is nothing less than the patriotic duty of our party unite and govern in the best interest of the whole country. and third, we need a bold new positive vision for the future of our country. a vision of a country that works not for privileged few, but for every one of us. i will turn to those three issues in just a moment, but as we know, this is not a normal leadership election held in

normal circumstances. so si want to talk first about the immediate need for political certainty and economic confidence following the referendum. whether you supported leaf eed remain in the referendum campaign and whether you predicted the sky would fall in our whether you didn't, the result means we face a period of uncertainty that needs to be addressed head on. the country needs strong leadership and a clear sense of direction to give confidence to investors to keep the economy moving and to keep people in work. the fundamentals of british economy are strong. we'll continue to be strong as we negotiate our departure from the eu. economic growth has been solid. budget deficit has been reduced from 11% of the national income at the time of the banking crisis who predicted 3 this year. our financial system is well

capitalized and resilient. the liquid assets they hold mean they have the flexibility to keep on lending to businesses and families and the governors swift action last friday means the bank of england is ready to provide significant additional fund and liquidity in foreign currency. he's also made clear that the bank continues to assess the economic conditions and will take further action if necessary. so the bank of england has taken the right actions to maintain confidence and i know that the chancellor has said he will support the bank if other measures are needed, but beyond that, i want to use this opportunity to make several things clear. first, brexit means brexit. the campaign was fought, the vote was held, turnout was high, and the public gave their verdict. there must be no attempts to remain inside the eu. no attempts to rejoin it through

the back door and no second referendum. the country voted to leave the european union and it is the duty of the government in parliament no make sure we do just that. second, there should be no general election until 2020. there should be a normal statement held in the normal way at the normal time and no emergency budget and there should be no decision to invoke article 50 until the british negotiating strategy is agreed and clear, which means article 50 should not be invoked before the tend of this year. third, we should make clear for the foreseeable future, there is absolutely no trade in britain's trading relationships with the eu or other markets and until a new legal agreement is reached with the eu, which will not happen for some time, the legal status of british nationals living or working in europe will not change and neither with the status of eu nationals in

britain. and fourth, while it is absolutely vital that the government continues with its intention to reduce public spending and cut the budget deficit, we should no longer seek to reduce a budget surplus by the end of the parliament. if before 2020 there is a choice between spending for the spending cuts and more borrowing and tax rides, the priority must be to avoid tax increases since they were disrupt consumption employment and investment. these are all measures that will be taken by conservative government i lead. they offer stability and certainty to consumers, employers, and investors for the foreseeable future. i want to resassure companies that we are the same globally minded and big thinking country we have always been and we remain open for business and welcoming to foreign talent, but

looking ahead, negotiates the best possible terms as we leave the european union will be crucial to our future prosperity. that is going to require strong proven leadership. i intend in the coming weeks to set out in some more detail my proposed negotiating principles, but for now i want to mange two important points about the way we conduct this negotiation. first, nobody should fool themselves at this process will be brief or straightforward. regardless of the time it takes to negotiate the initial deal, it is going to take a period lasting several years to disentangle our laws, rules, and processes from the brussels machine machinery. it is going to require significant expertise and a consistent approach. i will therefore create a new government department responsible for conducting britain's negotiation with the eu and for supporting the rest

of the european work. that department will be led by a senior secretary of state and i will make sure the position is taken by a member of parliament who campaigned for britain to leave the eu. the second point is while the ability to trade with eu membe states is vital to our prosperity, there is clearly no mandate for a deal that involves accepting the free movement of the people. it is not the time for me to set out my negotiating principles, that will come later. i want to be clear as we conduct our negotiations it must be a priority to allow british companies to trade with the single market in goods and services, but also, to regain more control of the numbers of people who are coming here from europe. any attempt to wiggle out of that especially from leadership who campaigned to leave the eu will be unacceptable to the

public. >> theresa may there speaking live in london declaring her intention to stand for prime minster in uk. six years as secretary is what she has bind her. she's been campaigning quite a while, quite a long time against migration and wanting tighter border control. no doubt we'll with hearing nor about that. let's get back to daniel who joins us live out of brussels. daniel, how do we work towards still having hope trade ties with the eu, but yet potentially looking at more closer with regards to migration. >> well, there's a difference between accepting the jurisdiction of the regulatory bodies that run the single market and having access to the single market. if you're watching and have an iphone nearby, look at the back of it. it's made in california and

china. you don't need to be in the single market to trade to it. that did, no one is talking about closing our borders. what theresa said there is what people have said through the campaign. we want more control. that doesn't mean we're going to raise the drawbridge. she correctly said this has always been an outward looking nation. we're very much open for business and one of the main reasons we campaigned to leave the european union because we want freer trade with united states, australia, china, the bits of the world that are actually growing. >> don't you think a lot of people who voted to leave voted on the basis of thinking migration control would become tougher. >> well, the number one issue, all of our internal polls showed this and the accomplished ones have shown the same thing. the number one issue for leave voters were democracy by a long

way. immigration was a fairly distant second issue. don't assume that everyone who cited immigration wanted a completely moratorium. what we want is the ability to decide for ourselves roughly who comes in and roughly in what numbers. >> when looking at the volatility that we had on friday and monday in the markets and also when thinking about the potential volatility that still could come and in particular if we see it led by the financial sector once again, when would you like to see article 50 being invoked? >> much more important than the timing is the outcome. we need to get an equitable settlement. whether that happens in two years, three years, i think sg a completely secondary issue. there was some volatility. you've seen our ftse 100 index

was pretty much where it was before the vote. it's true the pound has fallen a little bit and i think that was long overdue because of the problems in the euro zone. it was overvalued. it's a great relief for a lot of businesses in my con sitwhen si that is a more realistic level, but both sides have an incentive to get a deal that works for everybody. one that maximizes the good bits of the relationship while addressing some of the problems. this is something i think people who voted leave and people who voted remain can come behind. it was a close vote. we leave as one. we didn't win by a huge amount. we have to take into consideration that very large minority who voted for the status quo and try to work with them to get a different relationship with the eu, one where we can gain control and retain. >> wouldn't it have been better to have a vote where you opt out

of the eu if say there's an overwhelmingly majority like 70%. instead of a situation every other person in britain is upset. >> well, that's the rules. that's democracy. i don't think it's a bad thing. they're not all upset. there's a range of how strongly people feel about this. as i say, we have to recognize, those of us who won, that the other side was a very large minority. scotland voted to remain. and there are good patriotic people who voted to remain for good reasons. we need to listen to what their concerns are about economic links and continues programs in universities and so on. we need to try to build those concerns into a united negotiating position so we can come back with a deal that works for all sides. >> does it worry you the far right uprising that we've seen in pockets of britain with regards to a real divide and

especially also quite a racist divide as well? >> i'm sorry. i just don't recognize the word uprising. that's an extraordinary word to use. in every country, including mine, there are a handful of racist idiots. there isn't a place in the world where you don't find a few numb skulls. they existed before the vote and they will exist after the vote. whichever way it will go. i've yet to see anyone show a connection to their behavior and how we voted. >> we've got to go. thank you very much. daniel hannan joining us live from brussels. when we return, talking about formula e. speak to the clean car racing ceo about all the challenges facing the company.

alejandro agag is the crow of formula and he recollects is spanish. >> first of all brexit is bad news for europe and really for this country. for my business, it's short of good news. when down a lot we have a lot of income in euros and we spend pounds so we are making profit on the exchange. in the long-term it's going to be tough. we have to get on with it and keep working. we're committed to the uk anyway. this is our home. >> formula e for people who might not be aware is a race only for electric cars.

>> yes, it's only electric cars. it looks like formula one, but it's all electric. >> you're raising in the park. you might not be able to race next year. >> we are not going to race there next year. >> is that brexit. >> this is another brexit. racing in cities is fantastic. we're racing the heart of some of the biggest cities in the world. in london we were racing in a park which is not ideal. we're looking to race in the streets of london. we're talking with the team of the new mayor to put the race the palace or some really big landmark because in paris we race around the identice fell t >> they're not as loud. they're really good for the city. the cars look really cool and we want to excite especially the kids.

those kids are five or six or ten. when they buy a car r c, has to an electric car. >> social media play as huge part where the fans can give the driver an extra boost by voting for them. >> yes. we're looking at reaching. it's very difficult to reach this generation of fans. you need to go with them the way that interact now. that's social media. >> vote for the favor driver. >> yes, and the one who wins gets more energy in the race. >> isn't it unfair if they get. >> that's the point. >> thank you very much for being with us. ceo of formula e. we'll be back tomorrow for more street signs. a global product endorsement. and millions of women everywhere decided, "i love that shoe." and the company's data center handled the spike in traffic without any drama.

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plus, with the next uk prime minster please stand up, breaking just minutes ago. well known conservative michael gove announces he's ready to challenge boris johnson. worldwi"worldwide exchange" beg right now. >> good morning and