. good morning. welcome back to "street science." >> your headlines this morning. >> no love in this letter. shares hit an all-time low after the ecb tells the italian lender to cut its bad loans the u.k. is to become a low tax center as they vow to cut corporation charges. they are pushing the ftse to levels we haven't seen in a year. shareholders vote whether to back a $27 billion merger as

potential implications loom deadlock down under. australia's election lead to more uncertainty after the results are too close to call. hi, everybody. welcome back. i'm so sorry. a complete coughing fit. we are not robots. >> happy fourth of july for an extra mo extra hour. >> in celebration. if you are watching from the u.s. if you are up nice and early, potentially the east coast and the west coast. >> or staying up late on the west coast. >> happy fourth of july. feel free to send us your tweets or e-mails about what you are doing to celebrate. >> always enjoy fireworks tweet. looking at our european equity markets, we are a little bit lower, a dad down by .33% or

so. m. >> when you look at the markets one by one, we should note they are turning negative, because it was higher when we started the show, disappointing figures which did hit now hitting almost 0.15%. a big focus on the italian lenders. shares hitting an all-time low. the bank says it has been told it must cut its nonperforming loans by 30%. trading in the stock was suspended earlier following the large drop. italy has denied reports and ready to bail out its troubled banks. the spokesman said he willfully respect eu rules and will intervene with public funds which would go against the rules of the banking union.

a commission spokesperson confirmed they were in discussion with italy over possible public recapitalization of the country's banks. citi has called italy's referendum the single bigot risk on the europe landscape this year outside the uk. the bank said if the vote fails, that renzi's government could fall triggering political chaos in italy. deutsche bank says his firm won't need a capital increase for the foreseeable future. the ceo of germany's largest bank says, quote, i believe we can build up our capital organically which we unfortunately did not do over many years hsbc says it has completed its sale of the brazilian business. the sale is part of hsbc's strategy to shift resources

towards select m asian markets. >> the chairman of the spanish bank sabadell says they are off. they said it was almost impossible given the recent fall in banking share prices. >> we need to check in on our markets in asia to get you up to date with bhaes been taking there. singapore, a lot of people focusing on australia and wondering whether or not we are going to see a hung parliament there. >> that's right. time will tell. the next couple of days is going to be absolutely crucial. we still have got the postal ballots to be assessed and counted but in the meantime the government, turnbull is very confident with the risk of the minority government. the kingmakers are the minor parties in the independents. i want to talk about stock

specifics. it has been a day of high drama. the hong kong listing and the a share listing. let me start with a share. they rejected an attempt to oust the board. investors responding positively to that. a-shares went down by almost 10%. it resumed trading after a six-monday hiatus pending restructuring. broadly, if you look at the overlay, it is positive. we have seen a recovery post brexit. you really haven't seen that behind it. let me put it that way. it has been a low conviction, participation, energy up move. given the fact there is still a lot of caution out there. none theless, it looks as though asia, if you look at safe havens is the least dirty shirt p let's

face it. when you look at corporate debt, when you look at em, asian sovereign debt as well, there is a fair degree of yield that can be had. we are witnessing some rotation into those assets. that's how we stand, ladies, back to you. >> thank you very much. shri joining us once again. here in the uk, the conservative party leadership, she will be battling it out to be the candidate. she says she would invoke article 50 quickly if she becomes leader. may says she would not trigger the process this year. >> some pictures, because nigel farage is speaking at the moment. he is saying it is certain that the uk will leave the european union. no doubt there he is responding to some of the protests we have

been seeing in the streets of london over the weekend call sfo inning for a case. he is calling for a new prime minister that will not give in on the free movement of people. i have been spending a lot of time in brussels checking the reaction there. leaders are saying, don't expect this to be an easy ride in negotiations if you want any access to the market, you are going to have to give when it comes to free movement of people. we need someone to resist that tendency. we do not want to give anything on the free movement. >> the leave campaign's website changed quite dramatically after the vote. a lot of promises were taken down. a lot of the people have changed their tine to say we never promised complete closure to people coming to britain from the eu. it is going to be really tough. >> some of the criticisms we have seen. boris johnson writing saying the current leadership needs to come

up with a plan to help this process along. a lot of finger pointing on all sides here. >> ahead of that referendum. >> monte is calling the brexit vote an abuse of democratic power. >> i had a chance to speak to the foreign italian prime minister and asked if he stood by those comments. >> i hate to say this, because i respect and i have a lot of sympathy for david cameron but to call a referendum, not in the general european interest, not even in the national interest of the uk. not even in the interest of the conservative party but to settle an issue of leadership within the conservative party. now, everybody realizes that this was the purpose is a particular abuse of the

democratic instrument. >> that was mario monti, former italian prime minister,

speaking. we are rejoined, managing director and head of effective global strategy. what do you make of this? this is nuts. he says he will continue to support the party and help independence movement. >> it highlights how difficult it is to take any responsibility for the economic consequences of the brexit vote. it is one thing to be campaigning in favor of brexit. >> isn't this so irresponsible from a level. it is like me saying i want to paint a 1,000 bedroom house red. i push through the vote and just

as it is pushed through, i say i don't want to do any of the work. >> it is eroding the credibility of some of the politicians. they need to stand up to what they have contributed. they have to really live up to the consequences. they are refusing to do that 6789. >> a silver lining. it removes the extreme voices once we get to the negotiation stage. listen tog the leaders in brussels, particularly jean-claude juncker. it will be a much easier road in so many words, where as if they still have to contend with people that are quite extreme saying we don't want to give anything in negotiation. perhaps if they are removing themselves, this could point to an easier negotiation. >> i doubt that nigel farage was ever going to be an active participant. boris johnson out now.

representatives will be there to negotiate a better deal for the uk. given that brexit is going to be a process, it is not going to be a one event that, process highlights that some political negatives are in the prize. we are not going to know much before september. there won't be any new developments. for the time being, the markets will focus on the economic impact of what the referendum is going to do to the economy. >> we got a hint with the construction pmi. >> a big part of the survey was conducted ahead of the referendum. presumably, it is likely to get worse from here. we expect the upcoming to highlight starting slowdown in the economy. >> i wonder how many people nigel himself attracted. he was a very charismatic man. he speaks very well. i wonder how many people voted for brexit thinking that they would be helping to lead us out

of the eu and how they are going to react i have been go that he is now not going to be there. >> the natural conclusion is, is there going to be another referendum given that most of the leaders of the brexit movement kind of rule themselves out, effectively step down, if you wish. i think it is very early to speculate about any of this. from a market point of view, it is safe to assume we are not going to see any new developments just yet. we have to wait until september. >> although they did say, bha is done is done. it is the democratic word of the people, not giving any indication if she becomes the laid der, may, is willing to become a second leader. >> it is too early to speculate. if anything, the central presumption is that the uk has voted in favor of brexit. that is the central course, the likely course of action from here. i guess the march kits will

start positions accordingly. the next shoe to drop is how the economy is going to handle that uncertainty. if highlighted, the services pmi later in the week. from the fx point of view is the only player out there that could presumably act a bit more preemptively is the bue. that's any further easing or renewed easing by the bank of england. >> is there political outcome in all this instability here that fx traders prefer that would be more sterling positive or is it all up in the air? >> you try to highlight this with the more extreme voice is now out of consideration for the time being. if anything, what would be the best outcome for the party? despite the outcome of the referendum, that is, the city of london preserves its passporting effectively being able to deal with its partners from the eu

now and at the same time some compromises really arrive on the free labor movement of labor. >> let me ask you again about the pound forecast that you have. because there were down grading the pound against the euro. the pound is going to be 129 by the end of the year. what are you looking at? >> the thing is we have the initial shock. clearly, some negatives are in the prize. from here on, there will be a couple of factors driving the pound lower. one is the underperformance of the uk economy and the monetary easing to come from the bank of england. the market is looking for about 25 basis points of cuts by august. we think the risk will be more aggressive easing ahead. the second, potentially more important driver, is the potential for outflows in the earnings repat treeations out of the u uk. a lot of the investment that was

funding the sizeable uk current account deficit was coming from europe, coming from abroad, some of that investment will go into reverse. >> will the corporate tax change help the investment picture? >> if anything, that's going to have a longer term impact. i was asked this earlier today. it is the case if you look in japan, not the country or economy where they try to stimulate growth by cutting corporate taxes. the impact of that is still to be seen. the idea is by lowering corporate taxes, you lure international firms and you encourage hiring and investment by those companies. you have to offset that lingering political uncertainty. if anything, the fact that the positive impact from any such mesh xwrurs is likely to be an impact two, three years from us. >> get your e-mails through "street signs." you can find us on twitter at nancy cnbc.

>> i'm at louisa borenson. people campaigning for something so important seemingly don't want to do the hard work. i'm simplifying things that are quite difficult. then, leaving everybody else to pick it up. >> we have to hold on for hope that perhaps it helps the negotiation process. >> sure, sure. it might. who knows. there is no plan. #. >> elsewhere, the ceo has blamed the brexit vote on the uk's chronic lack of investment in education. he says he encountered sharp inequalities during a school visit that he compared to scenes he had witnessed in the ivory coast. he is suggesting a better tax structure could improve education for the lower end of the economic spectrum. coming up, investors strike gold after the commodities.

they see their fifth gain. how could the yellow metal lose its shine? we'll ask in a couple of moments. (guy) oh man, the show's pretty much over. (friend) wish we could start it from the beginning. (jon bon jovi) with directv, you can. you see, we've got the power to turn back time let's start over, let's rewind and let's go back and not quit the gym and have a chance to say goodbye to grampy tim

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you hi, everybody. welcome back. you are still watching street signs. i'm louisa borenson. >> and i'm nancy heatherford. the eu will be giving them extra time to allow sanctions from the commission. the delay would be temporary and a compromise between germany, which wants tighter fiscal control and governments looking for more leeway to tackle slow growth and who i unemployments. >> i spoke to the nonexecutive chair of the national bank of greece about reforms in her country and asked whether she

thinks alexis syprus has the stability to carry them out. >> you saw that in parliament with majority voting through the measures. it seems to me that the worst is over. >> reporter: the protesters are still on the street. >> protesters, let's not try and beautify the situation. there are still a lot of people with a lot of problems, people who cannot make ends meet on a monthly basis, pensions over the past years have been cut, wages have been cut. we've lost 25% of our gdp. unemployment is still 24%, 25%. the crisis is still with us as a political system. all social partners need to manage this crisis, see how we can alleviate the situation for many of our citizens and the banking system and the financial system has also responsibility to use the margins that we have

to inject liquidity in the economy specially for the small and medium enterprises which still have no access to the banking system. >> you mentioned the banking system and your role at the country's largest bank. you have a good view about what is taking place. what about the nonperforming loans, how close are you at alleviating the situation? >> we have started taking very bold measures to do so. we have a commitment to reduce m npls. the nonperforming loans to be 45% and now they are 43%. it is the outcome of the crisis and the drop in overall demand. the first priority is to return to normalcy and growth to pick up. so this is the first policy

priority for the economy to go better so that we can start having kind of a greater record of the lows. active policies also matter. banks have invested in special asset units, specially for retail and mortgage loans. much more needs to be done on the corporate side where we need to restructure companies. for that, we will meet and use the assistance of third party that is now we have the legislative frame works both for managing part of the loan and potentially sell some of these. >> on the return to normalcy, a lot of people still waiting for the capital controls to be lifted. will that happen this year? >> hopefully, it will. the process is a bit lengthier than we expected. the first step was the recapitalization of the banks. the greek banks right now are overcapitalized with ratios which are very high relative to european standards. the second part was what we saw last week, which was the

acceptance of the waivers so that greek bonds can be accepted as collateral by the ecb. third step would be reduction of the haircuts on other bonds by the ecb. we still have 45% of those. the last step would be return to or use of quantitative easing and going back to normal. we want to carry through the ecb and the lifting of capital controls. let's switch and take a look at the commodity story out there. you have crude and brent, nymex and brent up .44%. silver and gold having a whale of time. gold around $13.50 at the moment. spot silver also higher by around 2%. going to 20 for the first time in a very long time.

gold rose by 9% in june. with uncertainly on the rise, our next guess says that the yellow metal is a good play. jeremy is the head of gold. we have had a fantastic road for gold. five weeks of gain. in june we were somewhere around 1200. we are now closer to 1350. do you think it is going to continue? >> it is hard to say. certainly, gold is in its element at the moment with uncertainty, what's happened in europe and brexit. a lot of uncertainty with the u.s. dollar this. is the perfect environment for gold right now. i think if this continues with uncertainty, yes, gold will be the focus of people's attention right now for a long time. >> when looking back to 2011, 2012, we went from 1860 down to 1,000. we all thought we would continue lower. many thought we would go lower than 1,000. that change in the trend happening before a lot of uncertainty here in europe, what's been the main driver?

is it political uncertainty? is it not knowing what's going on with the central banks and whether or not rates are going to continue to go lower. >> i think it is a number of factors, one to do with the dollar where it traded with gold generally speaking. recently, they have both been rising at the same time. the other thing is the move to negative yields on bonds. you have $9 trillion trading in negative yields. go e gold bears no interest rate. it is more attractive as a currency and a commodity. >> what about silver. we have silver joining on the party. 2.5%. pretty astounding there. does silver have more room to run? >> i think silver has. silver is increasingly used now, 10% demand comes from solar panels. you have an additional attraction for silver as well.

commodity investment and also industrial usage. >> what are your thoughts on this? >> the next big data is the nonfarms payroll number. is there anything we can get from this number that will change any expectations from the fed. >> if anything, one of the drivers of gold that was highlighted was that currency argument, the willingness of the feds to sit out really despite improving the economy to keep it at great hikes, which is going to continue to weigh on the dollar. one commodity or asset that seems to have been benefiting from all that has seemed to be the gold. the currency argument still very much there. going into payrolls, our expectation is for a rebound to the extent that that's going to be seen against that will be still fairly dovish. still trying to go through all the implications from brexit and all that need not be such a big threat to the latest gold

rebound. we are fairly bullish. we shared that view. fairly bullish on the gold outlook. the combination of those two factors and lingering on the back of brexit, the deceleration of the global economy should continue to support the gold price. >> jeremy, what is your price for gold and silver? >> it has exceeded our price focus already but with the continuing incertainty, gold has a great future ahead of it. >> we'll leave it there. we have the head of g 6 research staying with us for the time being. >> a ton of you write ng and talking about nigel farage stepping down. >> not sure many would be confident with bojo or farage handling the brexit. a little erratic under pressure. oers saying it is a shame he is

gone. he could have contributed a lot. >> keep your comments coming through either @nancy or louisa borenson. >> baking up a storm. >> you want to be in the kitchen. >> last time i baked a cake was 1904. we are celebrating independence day with some sweet treats.

thank you is what we say. but we mean so much more. we mean how can we help? we mean what can we do? we mean it's our turn. to do our part. to serve you, for all you've done to serve us. ♪

good morning. welcome back to this extended version of street signs. i'm nancy. >> i'm louisa. >> nigel farage stepping aside as he emphasizes the uk must have a pro-brexit prime minister. the ecb tells the italian lend der to cut its bad loans. >> the uk to become a low tax

center as chancellor osborn vows to cut corporation charges. the ftse pushed to levels not seen in almost a year. deadlock down under. australian elections lead to more uncertainty after the results are too xloes to call. welcome back, everybody. if you are just joining us here on "street signs," we have an extended hour of programming. another half an hour to go. given it is uk and -- us independence day, fourth of july, we are trading lower here in europe and adjusting the news that the ukip leader, nigel farage has decided to step down. they are a little bit angry in terms of the people that came forward and pushed so hard for something to p happen, supported the brexit, they don't want to deal with the mess. >> nigel farage was behind

igniting the whole debate. a lot of voters voted on that. >> a very charismatic leader. a lot of people would have voted based on a lot of things he was saying. please let these tweets continue to come through. i wasn't able to vote. i have been paying taxes for 15 years but i'm a citizen. same with you. >> it is very interesting to hear. we work on all of your comments. i would love to learn more. by all means, all views are welcome glchlt is it is not just a political show we are watching, also, the race for the white house. u.s. presidential candidate, hillary clinton, was end viewed by the fbi over the weekend as part of an on going probe into her use of a private e-mail server during her time as secretary of state. joining us now, edward lawrence. we know that hillary clinton was quite eager to have this meeting. what can we expect now?

when will we get the outcome of this meeting and the inspection? >> many people are speculating this is now the end of the process. generally, the fbi will interview the central figure of a probe when they have collected almost all of their information so they can talk to that person about what they have learned. a lot of folks believing this is toward the end of the investigation. hillary clinton's campaign is hoping they will have a decision on whether there will be charges filed or not by the convention, the democratic convention, which is three weeks away from today. hillary clinton is looking forward. she will be on the campaign trail on tuesday for her very first appearance with president obama. they are campaigning together trying to change the optics. she has an image problem. she wants to make sure folks do not remember the image of her being in to be interviewed by the fbi for three hours over the weekend. she wants the image of her

standing with president obama saying she can lead the country. >> thank you, edward lawrence, for that. australia remains mired in political uncertainty. the results from the weekend's general election remain too close to call. matt taylor has all the details from down under. >> my advice, to dissolve both houses of parliament. >> it was a risky move by the prime minister that could yet prove to be disastrous. an early election was expected to return the liberal national coalition back to power but, instead, it is too close to call. >> australians would no doubt have preferred a clearer outcome. it will be a number of days before the electoral commission completes the count. >> 76 of the house of representatives 150 seats are required to take power. with many seats still hanging in the balance, the chances are the hung parliament are high.

prime minister, malcolm turnball he will lead the new government. >> rye main quietly confidence that a majority government will return when the county is completed. >>. the coalition is banking on pre, and postal votes to get it over the line in marginal seats where counting resumes on tuesday. labor is basking in its perceived victory in taking the election down to the wire after many had written off the opposition. bill shorten declaring july 2 is the comeback night for the labor party. >> there is one thing for sure, the labor party is back. >> years of instability at the top level of government including malcolm turnbal deposing tony abbott nine months ago has driven voters away from

the major parties and the coalition in labor may have to turn to the minor parties and form a new government. >> you can head to our website, cnbc.com and keep on the market reaction. >> valentin marinoff, the aussie dollar moving a bit hirer. >> it confirms a pattern that tells us that political risk never have faced sustained impact on the currency. if anything, the concern more near term is the lack of majority government will make any fiscal stimulus is any is needed. it is less likely. we are leaving the rba on its own having to deal with any potential for the cyclical down turn. however, that's a more longer term prospect.

from the near term, i guess, investors are still coming from a fairly small p version. it is always good to earn some and it is among the more liquid high-yielding currencies out there. >> any surprises with the meeting? >> it is too early for them to respond to the outcome of the election but also to brexit. something we are going to see later in the week. it is too early for the central banks to do anything at this stage, specially given that the markets have seemingly stabilized. from that point of view, the australian dollar could remain more ground if you are bullish on the kiwi. aussie longs look attractive at this level. >> hang on for a second. keep your tweets coming through and your e-mails coming through. a lot of angry people as nigel

farage steps down as head of the ukip party. they plan to slash corporation taxes to help business frs leaving the uk. the initiative is part of the five-part plan. while refusing to retract his warning about the negative forms of exit he plans to build a super competitive economy with a global focus. eric pointed out that the government was calling for higher taxes to make sure these corporation taxes were paid. . oecd is saying if they were hoping to use brexit to position themselves as a tax haven, it won't work. they expect them to cut corporate taxes, knee-jerk reaction and the political costs would be high and further pressure public finances. our next guest says that brexit

has turned into a nonmarket for the markets. he is a partner at lakefield partners. really, a nonevent? i realize markets are taking things in stride at the moment but couldn't there be a lot more volatility to come potentially down the line? >> yes, i believe there will. clearly, the economic impact is coming with the delay. the way we see it at the moment is that the uk seems to have pushed the self-destruction button. they go to make it undone. they swallowed it and re-signed. of course, looking at political events like this is always difficult to guess what's going to happen and what the outcome is going to be. economically, i think that the major impact is going to be on europe and some countries will have big disadvantages. in the uk, it will be a loss and an iteration of purchasing power, which will be the first step and potentially a bit of an

inflation pickup also in europe. so that, i think, in the long-run, might not be necessarily a bad thing. clearly, europe is the weakest link in the global economy. in the global concept of markets, i think that this will not be as dramatic as it was seen in the first reaction. >> we have seen some pretty big drops then also on equity markets in the uk. isn't this set to continue. >> well, i think a lot of that is going to be the consequence of foreign exchange moves. clearly, i think for european investors, it is interesting to invest in the ftse 100, which is mainly export oriented. one clearly has to hedge its currency. i think that competitive devaluation in the uk is clearly beneficial to the economy but only in the transition period until the moment that terrorists are put on or the trade

agreements are not negotiated yet. so i think it is a temporary relief of something that will cause more negative effects to come. in the meantime, i think the markets will focus on the economy out there and that doesn't look that bad. >> bruno mentioned the ftse 100 but the other has been exposed to international exports. do you think it is not going to get a boost there? >> depending on the exposure to the economy to the extent that the stocks are part of that index are predominantly exposed to the domestic economy. they could continue to underperform to the extent the broader index captures the performance of commodity producers exporting company that is will outperform the presumption. it will lie behind the global economy for the time being. down the road, you would think

that the weaker part would make uk investments attractive. the costs of hedging that exposure, fx cost of hedging are still quite elevated despite a drop in the fx. they will likely remain elevated given the uncertainty regarding bank of england. investors will continue to be very cautious on the pound and that will continue to make it somewhat more expensive to invest in the uk for the time being. >> bruno, also touching on this caution, due to such uncertainty we have for quite some time, we had one guests suggesting it could be the time to build up exposure to emerging markets. do you agree? >> yes, i believe that emerging markets will benefit from this. one thing that is a bit of an ironic effect. this basically made a quanta tiff easing boost. it was touched upon.

12.5% more bombs are yielding negative. this is putting money in the equity markets. it is also benefiting countries that which need lefrverage. the emerging markets look atrk tiff compared to the industrialized countries. growth is higher. commodities are in the stealth mode of picking up and will benefit the new consumers and move the global economy forward. >> kind of a temporary relief where by yielders tend to do well. they are having a level of uncertainty, a fairly gloomy picture. i want to contrast the positive development with the increase in uncertainty. uncertainty is inherently bad for business. it means that businesses are forced to delay investment and forced to delay hiring

attention. a lot of that investment coming out of the developing markets. there is not much the central banks or the governments could do to really stop that slowdown. we see the brexit as a growth negative, global growth negative outcome. longer term out, still, fairly cautious on emerging markets as a whole. it is a temporary rebound, which i don't think is going to be sustained. >> can i just ask you in closing how you see the feds strategy playing out now? is the fed going to be injecting more stimulus. we have heard about qe-4. what do you think they are going to do next and how is that going to impact our european play? >> well, i believe that they will have to p increase the rates. that's what the market is preparing for. it would be a good sign. it would mean that the economy can take it. as long as they are not convinced about that, i think

they will not do it. we see an interest rate, still one interest rate going forward. i believe that will be a bit of a relief to the market and give a little bit back to the fed for the inevitable recession that's going to come for the next president somewhere in the distant future. so i think it would be positive. i believe one more is coming. if not in july, then after the summer. >> in three words, what's the possible bottom for the pound compared to the dollar? >> we think that 130 could be broken as a level. so we could be trading below that level. it is the case that some negatives are clearly in the pri underpriced. it is a question of how much worse things can get from here. we will be acting preemptively. more aggressive responses are likely than less aggressive.

we could break 130, 129 as our year-end target. clearly, a possibility is that we can not overshoot on the down side there. >> valentin, thank you very much for your time today. managing director, head of g-10 research. u.s. stock markets close the first half of the year on a high despite a rocky couple of weeks. where are they headed next? >> it is the start of the second half of the year and after an already tumultuous first half, where do we go from her? the main issue is the tension between the bulls who accept on tina, there is no alternative to stocks and bears, who believe that earnings and valuations are way too high and the market will move lower in the second half of the year. tina is not quite right. there are always alternatives to stocks. high-yield and municipal bond funds and gold. gold hit a two-year high. that is giving a major boost to gold. as for earnings, they are not

going to collapse. estimates for an increase in the second half are really dependant on a lot of things going right. there are two big issues, lower interest rates and second the strong dollar. lower rates for longer will be a problem for banks, particularly if the yield curve remains flat, because banks make money on higher rates and a greater difference between long and short-term rates. a dollar spike is another big issue. a spike in the dollar turned into a huge problem for material stocks, industrials and many technology stocks, all of whom cited the dollar strength as impacting profits. besites earnings, plenty of other events that can move the markets like the u.s. presidential elections. that could throw a monkey wrench into the markets as well. back to you. france, powers past iceland into semifinals. ending a fairy tale story for the smallest populated country

in the tournament. they are setting up a tasty clash with germany who lost to italy on penalties. such a long game. the other semifinals, madrid teammates, bail and rinaldo going head to head. the protuguese side has yet to win a game in 40 minutes. >> so close to have bhawhil wha iceland together. if you weren't watching football, you may have been watching f 1 reigning formula 1 champion, won the grand prix against nikko rossberg. haimi hamilton started on pole position and led all wait to the final lap. a collision between the mercedes

duo allowing hamilton to pass and finish first with rossberg back in fourth. >> i went to henley. >> very different than f 1. >> lots of rowing. >> duff your dress below your knee sns. >> they will not let you in if you are a woman. it has to be below the knee. woman had to go to the little town and buy a little dress. it has to be below the knee. >> i wore it all the way down to the ground. i did. >> that's a better way to go. they don't have to take the ruler to measure. >> listen, after the break, baking up a storm. outsider tarts are here. some of america's favorite sweet treats to celebrate independence day. where is the apple pie there? >> i don't recognize any of this. >> the reason i have been baking all of those in our spare time here.

♪ welcome back to "street signs" everybody. if you didn't know, you could have guessed from the music, louisa, it is independence day in the u.s. happy fourth of july to the millions of americans that are hopefully tuning in right now if you are staying up late from firing up the barbecue, drippinging beer and baking. >> a real american tradition. >> super american. it is bigger than new year's eve, right? >> it is, indeed. all the food to go with it. >> i always think of the great chevrolet commercial, baseball, hotdogs, apple pie, chevrolet. >> you would know that. >> we sadly don't have apple pie here but it is an array of treats brought to you by david lesniac, co-founder of the outsider tart. you are an american here in london trying to bring some u.s.

treats here. what are the top favorites? >> for the fourth of july, we have some classic picnic treats from around the country, a red, white, and blue new york-baked cheesecake, some cupcakes which you have got to have. >> red, white, and blue cheesecake. >> vanilla is the flavor. it is kind of classic if you will. we have some fried pies. we have a blueberry here, this one is strawberry and this is a sour orange in honor of donald trump. a little commentary. we have red, white, and blue velvet whoopie pies. that's a classic treat. >> this is quite interesting. remember, anyones, the cupcakes were all the rage. >> we have those here and. >> whoopie pies kind of gave cupcakes a run for their money. >> only americans buy this.

>> we're based in westland and we have a pretty diverse group of people that come to us so we have a three-day barbecue running. it started on saturday just like it would at home if you have a fourth of july weekend. barbecue the whole weekend. we started saturday, sunday and we are doing it today specifically for the ex pats in the community. >> what business do you do from the year for the fourth of july? >> it is probably about a good 25% overall. everybody kind of joins in and we try to make it as inclusive as possible regardless of the political climate everywhere at the moment. so we just try to keep it as american as we can with the food but we keep it open. >> you mentioned the political climate. i have to ask you as a small business owner, what are you thinking looking at this brexit situation here? >> you know what, it took two days before we started getting feedback from suppliers in terms of price increases with the dollar and the pound were doing in the market. that was a bit of a shock.

i thought -- i kind of assumed just theoretically it was going to happen. i didn't expect it to happen so quickly. >> your suppliers are coming from the u.s. >> other way around. i am actually waiting for the u.s. suppliers to come, quite the opposite. they can offer price breaks. >> good news. we do source a lot of the ingredients and products from back home. some of our suppliers use european chocolate flour. >> i am just dying to ask. what is this? what camera are we? >> that is an arizona flat dog. >> look a squashed dogle. >> you split the hotdog before you grill it. we are doing it on an indian fry bread as the bun.

it is cossed with chile, cheese and sauteed onions with a little flavor. >> the m other version would be butterflied steak on nan bread. >> i facmily in cincinnati. they do spaghetti with chile. >> what is the most popular thing people buy around fourth of july? >> something always sort of silly, like the fried pies we do only at this time of year. >> we have to go. david lesniak, from "outsider tart." happy fourth of july. >> thank you both. if you want to sell your car

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male announcer: america is struggling to shake off the recession. pu disealthy ceos remains high. but more and more bosses are looking for radical ways to reconnect with their workforce in order to find out what's really going on in their companies. each week, we follow the boss of a major corporation as they go undercover in their own company. this week on undercover boss, the chairman and ceo of chiquita brands international, one of the largest producers and distributors of fruits and vegetables in the world, poses as an out-of-work immigrant pursuing the american dream. - manuel. - nice to meet you. - i just got my citizenship last year.