let's get more on this with our north america business correspondent, erin delmore. just take us through these figures. what do they all mean? you now dead. a bit of a mixed picture. we are seeing that consumer confidence did rise injuly and consumers are largely seeing good things ahead for the economy and the strength of the labour market. in that number was a bit better than economist expectations and better than the number that we saw injune so what we can take away is that consumers expect better conditions over the next six months and that is something remarkable for this year but consumers are not so rosy about present conditions and, as you

mention, they are contending with a higher cost of living in higher interest rates right now and so, well we see them optimistic at the outlet, not so much about the present. outlet, not so much about the resent. ., ., ., ., ., present. extrapolating that forward to november. _ present. extrapolating that forward to november, could _ present. extrapolating that forward to november, could be _ present. extrapolating that forward to november, could be start- present. extrapolating that forward to november, could be start to - present. extrapolating that forward to november, could be start to geti present. extrapolating that forward i to november, could be start to get a picture of how people are likely to vote in the election? figs picture of how people are likely to vote in the election?— picture of how people are likely to vote in the election? as you say, it does have — vote in the election? as you say, it does have an _ vote in the election? as you say, it does have an impact, _ vote in the election? as you say, it does have an impact, right? - vote in the election? as you say, it does have an impact, right? this i vote in the election? as you say, iti does have an impact, right? this is one of the toughest that voters tend to vote on. certainly not the only issue and we can see noneconomic issues like me know, some social issues like me know, some social issues orforeign issues like me know, some social issues or foreign policy issues coming into play as well one way that we can sort of gauge how people feel about how they are doing now compared to a different administration parties to look at the consumer spending. we are seeing that people in the lower end of the income scale are feeling increasingly squeezed. and a lot of times these election issues can come down to not the macroeconomics but the micra. the kitchen table issues with how much people are paying for a gallon of milk tank of gasoline for their cars. the data that they

can broadly buy into the us housing market or pay off student debt. some things that really help measure whether they think they're better off today than they were or five years ago. it is something that i spoke about with the chief us economist and asked about the effect of consumer confidence on the november election.— of consumer confidence on the november election. there is a long la. november election. there is a long lac of november election. there is a long lag of perception — november election. there is a long lag of perception and _ november election. there is a long lag of perception and paired - november election. there is a long lag of perception and paired with i lag of perception and paired with how people think things are compared with how— how people think things are compared with how economies looking at data say they— with how economies looking at data say they are. for example, if look at the _ say they are. for example, if look at the basket of goods that people buy versus wages you look at where you are _ buy versus wages you look at where you are in _ buy versus wages you look at where you are in 2019 but nobody is going to feel_ you are in 2019 but nobody is going to feel that— you are in 2019 but nobody is going to feel that way. how people feel about— to feel that way. how people feel about the — to feel that way. how people feel about the economy in july is to feel that way. how people feel about the economy injuly is how they vote — about the economy injuly is how they vote in november. the idea that you can _ they vote in november. the idea that you can have — they vote in november. the idea that you can have some big economic surprise — you can have some big economic surprise isn't really true so it is

criticat — surprise isn't really true so it is critical. ., ~' , ., , surprise isn't really true so it is critical. ., ,, , ., , . surprise isn't really true so it is critical. ., ,, , . ., critical. thank you very much for that. critical. thank you very much for that thank _ critical. thank you very much for that. thank you. _ critical. thank you very much for that. thank you. let's _ critical. thank you very much for that. thank you. let's turn - critical. thank you very much for that. thank you. let's turn our l that. thank you. let's turn our attention to europe because, over the last few hours, with the latest economic growth figures. most countries reported modest growth, but the standout figure came from germany, where the economy unexpectedly shrank in the second quarter of 202a. europe's largest economy contracted by 0.1 percent in the 3 months tojune. that was lower than the 0.1 percent growth expected by economists. and it compares to growth of 0.3 percent for the eurozone as a whole. germany very narrowly avoided a technical recession at the start of the year, but now the �*r' word is once again being bounced around by economists, despite hope of more interest rate cuts from the european central bank. andrew kenningham, is chief europe economist at capital economics, he explained that the german economy had been showing signs of weakness for sometime. andrew kenningham, is chief europe economist at capital economics, he explained that the german economy had been showing signs

of weakness for sometime. it wasn't for the major shock because we had some of the monthly data which was pretty weak, particularly industrial production really slumped in may so it was always on the cards it would be a negative and we had been forecasting 0.0% so not a huge shock but definitely a case of germany struggling. it has been close to recession for the last six quarters and the economy has not grown at all since the last quarter of 2019 before the pandemic. so since the last quarter of 2019 before the pandemic.- since the last quarter of 2019 before the andemic. , ., , , before the pandemic. so the problems are uuite before the pandemic. so the problems are quite deep-seated. _ before the pandemic. so the problems are quite deep-seated. let's _ before the pandemic. so the problems are quite deep-seated. let's get - before the pandemic. so the problems are quite deep-seated. let's get to . are quite deep—seated. let's get to the problems. reminding viewers, france reported growth of .3% and portugal .1, slightly down on 01. what is it, then, about the german economy? what is it, then, about the german econom ? , ., , , what is it, then, about the german econom? ., i, , what is it, then, about the german econom? . i, , ., ., economy? germany is very reliant on manufacturing _ economy? germany is very reliant on manufacturing and _ economy? germany is very reliant on manufacturing and industry _ economy? germany is very reliant on manufacturing and industry and - economy? germany is very reliant on manufacturing and industry and that l

manufacturing and industry and that sector has not been doing very well in any country. it is just much bigger in germany than elsewhere. it does not have a big tourism and services sector which is booming in spain for example so that is part of the problem. it is very energy dependent so some of the most energy guzzling sectors, chemicals and metals have been really struggling. and it is very exposed to the global economy and so far as there is a threat of declining demand in other countries it tends to affect germany more than elsewhere. i think the rice and longer term structural issues as well in terms of declining working age population, for example, and relatively low levels of investment which are also not helping. investment which are also not helinu. ~ . ., investment which are also not hel..in_ . ., helping. we will come to the possibility — helping. we will come to the possibility or _ helping. we will come to the possibility or likelihood - helping. we will come to the possibility or likelihood of. helping. we will come to the possibility or likelihood of a l possibility or likelihood of a technical recession. we need to quarterly the impact of the euro zone. the growth report is an expansion of .3% despite that german

figure. as the eurozone, do you think, turned the corner?- figure. as the eurozone, do you think, turned the corner? there are indications this _ think, turned the corner? there are indications this stability, _ think, turned the corner? there are indications this stability, we - think, turned the corner? there are indications this stability, we are - indications this stability, we are seeing. 0utside germany, i would say, the euro zone does tend to have come out of its recessionary period. the report for fans come out of its recessionary period. the report forfans in particular is quite encouraging. plus .3. it was the same on 01 and queue for last year was quite good so france is doing pretty well, it should get a bit of a boost from the olympics as well and italy has continued to defy expectations and grow reasonably well so there is a bit of a recovery. not a strong one other than in some of the southern tourist —dependent countries but there is generally a bit of a recovery which officials at the ecb will be quite pleased about, that is for sure. but! pleased about, that is for sure. and that was andrew from capital economics. to asia now, and the car industry, because japan's mitsubishi motors is in talks overjoining an electric vehicle alliance with honda and nissan. the japanese carmakers are facing growing competition from tesla and chinese rivals. my colleague mariko 0i has more.

as you said, if this deal is confirmed it will create two camps in the auto industry injapan. the trio of mitsubishi, honda and nissan versus toyota which of course has a tie—up with the likes of subaru and mazda. team toyota sells about 60 million cars each year while the trio would have combined annual sales ofjust over 8 million. more crucially, as you said, globally, they've been behind in the electric vehicle race which of course is currently dominated by the likes of basler and china's uid. they are of course european car—makers as well as china's smartphone maker show me entering the race as well. and that intense competition has been affecting their bottom line. toyota has actuallyjust released that its global output has been falling for the fifth month in a row. and japanese car—makers, especially toyota actually, have until now, been more keen on hybrid cars which use

both a gasoline engine and an electric motor. they are still investing in hybrids as well as others like hydrogen cars but they are now stepping up spending on electric vehicles. electric vehicles. but now —— but not all alliances work but at least just over one third of mitsubishi is owned by nissan so they are no strangers. now, if i asked you which global city is the �*cafe capital�* of the world, you'd likely think of rome perhaps, or maybe even paris. well how's this for a shocker. china's financial hub, shanghai, has seen such an explosion of new cafes, that the local government is now claiming it is the cream of the, with more coffee shops than any other city on the planet. 0ur china correspondent, stephen mcdonell, has been to find out what's brewing. jazz music plays. one of the famous places in the world for tea has taken to coffee in a big way. in most chinese cities, this means major coffee chains. but in shanghai, it's different.

there's been an explosion of small specialist cafes. the shanghai government says that there are over 8,000 cafes in this city. in this street, over a stretch ofjust 100m or, well, a couple of hundred metres, 18 cafes, and every one of them has lots of customers. translation: in shanghai, school students are being . a influenced by their parents and drinking coffee. some grannies send their kids to school and then also pop in for coffee. so how many cups a day are people drinking? as many as they want. translation: shanghai has long been an international trading city. _ we started drinking - coffee a long time ago. smaller cities will also gradually get different types of cafes. -

some cafes in shanghai are run by people with disabilities. this one, with visually impaired staff has a unique way of handing out their coffees. and you just, you order here and they pass the coffees through the window. oh, yes. and there it is! yet with this many outlets, the competition is fierce. what advice would you give a friend who is considering opening a cafe here? translation: don't do it. why? investment versus returns is awful. you need to buy very expensive machines and put a lot of money into decorating. you're earning very small amounts of money compared to other industries. so you've got a cafe, you've spent all this money on rent. what are you going to do with it at night? well, one solution, turn it into a bar. yet with concern about the economy, will thirsty customers keep spending?

translation: i'm quite optimistic. i hope the chinese economy will quickly return to pre—pandemic levels. the chinese government says it wants a consumption—led recovery. well, maybe this is a step in the right direction. stephen mcdonell, bbc news, shanghai. in other news: spain's competition watchdog has fined the online travel reservation platform booking.com 413 million euros for abusing its dominant market position over the last 5 years. it said the platform had imposed unfair conditions on hotels, such as banning them from offering lower prices on their own websites and offering discounts to its own customers. without consulting the hotels beforehand. booking.com says it intends to appeal the decision.

stay tuned.

israeli far—right protesters, have broken into an army base, in a show of support for soldiers accused of abusing a palestinian detainee. large crowds gathered outside the compound in southern israel, after police entered it to detain the reservists, who are now subject to an official investigation. 0thers then broke into the base where the soldiers were taken to be questioned. israeli media reports suggest the palestinian prisoner had been sexually assaulted by the reservists. israel denies allegations by human rights groups that suspected hamas fighters suffer systematic abuse in detention. prime minister benjamin netanyahu released a statement strongly condemning the incident and calling

for "an immediate calming of passions". meanwhile, the us defence secretary, lloyd austin, has said he doesn't believe a �*full—blown fight�* between israel and hezbollah is inevitable. the israeli government has vowed a harsh response to a rocket attack three days ago, that killed 12 young people in the israeli—occupied golan heights. israel has blamed hezbollah for the strike; the group has denied this. more now on our lead story and merseyside police have named the three girls killed in yesterday's attack in southport. they are 7—year—old elsie dot stancombe, 9—year—old alice dasilva aguiar and 6—year—old bebe king. a short time ago, prime minister sir keir starmer laid flowers at the scene and thanked emergency service workers.

emily spurrell is the merseyside police and crime commissioner.