welcome to "street signs." i'm joumanna bercetche these are your headlines european markets rebound following china into the green with the dax outperforming as german political uncertainty is put to rest. a franco/german deal commerzbank agrees to sell its equity markets to societe generale in an effort to divest non-core assets. glencore assets sink to the

lowest levels in over a year. and we are just a few moments away from my exclusive interview with bang of england mp michael saunders. all right. just before we get things kicked off, let's look at how european markets are shaping up it is certainly a mood of more optimism and positivity in the air. we had a choppy session in asia. the picture as far as european markets is broadly positive across the board we have the german index leading the charge xetra dax is up 0.7% or about 90 points higher. this is after a last-minute deal was brokered between merkel and her sister party csu more on that later let's look at how foreign exchange is looking this morning. a bit of a bounce in euro/dollar, up 0.2% almost back to 1.17 again.

sterling/dollar up to 1.3170 a bounce from 1.3150 dollar/yen is trading a bit firmer as well let's look at the picture in fixed income in light of the mood that we're seeing in equities, more positive performance bunds coming off a bit ten-year germany at 32.5 basis points ten-year note flattish, and ten-year gilt moving higher as well angela merkel reached a deal with the interior minister ending a bitter dispute that threatened her coalition government after hours of crisis talks, the two reached an agreement on the german migration policy.

and commerzbank has agreed to sell its emc business to societe generale socgen says the deal represents an important potential of synergies. commerzbank's ceo said the sale was in line with divesting non-core assets. and glencore shares are hitting their lowest level since august of 2017 after being subpoenaed by the u.s. department of justice. the commodities trader has been asked to submit documents related to business in nigeria, congo and in venezuela as well we'll have more on these stories later in the show. for the next half hour we'll dedicate our program to a special guest. british mps asked the uk treasury and the bank of england to produce an impact analysis of brexit before parliament votes on a final eu with drodrawal

agreement. joining me is michael saunders, a member of the mpc at the bang of england before we get into the nitty gritty of brexit, i know it's a favorite topic of discussion, i want to talk about you and your own voting history. thank you very much for joining us on theshow this morning >> thanks for inviting me. >> what i find interesting is since march you've been calling for a hike this is so coinciding with the weakest growth in the uk in the first quarter. why have you been calling for a hike >> let's give context. after the recession the uk had plenty of spare capacity unemployment was high, there was lots of underemployment, that was reflected in weak pay growth and generally weak domestic cost

pressures. now after six or seven years of economic growth, steady growth, a lot of that spare capacity has been used up the jobless rate is the lowest in 40 years. underemployment has fallen significantly, and wage growth is picking up. it's not too strong yet. we have gone from a period where pay growth, domestic cost growth was low to one where it's more or less consistent with the inflation target to be sure, the office of international statistics reported that growth was soft in q1 in terms of gross domestic product. but i think a lot of that weakness was erratic or temporary, reflecting the adverse effects from the weather we saw in late february or early march, the heavy snow, the beast from the east, that affected retailing, construction and manufacturing as well with goods not being shipped around as much as usual and inventories ending up in the wrong place. the ripple effect of that hit

march and some sectors in early april. the underlying picture is the economy looks like it is continuing to grow at a modest but steady pace. >> but we're still getting data that will confirm whether or not that serves as a temporary phenomenon and whether things will pick up in q2 let me ask you, what would cause you to change your opinion on whether or not the economy can withstand another hike here? where is the downside risk coming from? >> i would say there's two key things to focus on the first is is the picture of steady growth, which we see over in the business surveys and the labor market data, is that on track? so far the areas of weakness and consumer spending in retail sales, consumer credit, mortgage approvals, many of those have reversed that q2 rebound looks on track there will be more data coming

through. the other issue is is the pick up in domestic cost growth and pay growth still coming through? again, so far the evidence is consistent with that that's a thing we want to see. >> wages are moderating a bit. will that pose a risk to your view >> i think you have to be careful not to overinterpret three-month annualized -- or three-month growth, you get changes in the work force, so shorter term growth rates can move around. the big picture is if you look at private sector, underlying earnings, that picked up 2% year to year a year ago to 3% now that's not too strong, but 2% was consistent with over time an inflation undershoot pay growth where it is, perhaps higher is okay in terms of keeping inflation on target over

time i wouldn't want to see a sustained further upturn in pay growth unless followed by higher productivity growth. >> are other members of the mpc buying in on this growth as well the chief economist also joined you in voting for a hike so we have three dissenters on the committee. can we interpret the differences are narrowing between various members? >> i think we take decisions from meeting to meeting. those two things we talked about, the growth outlook is the rebound on track, it's the tightening in the labor market, is that feeding through to pay growth those are two issues we are focused on as to whether we form a consensus one way or the other, that depends on how the data comes through. >> we had another depreciation of sterling here we traded at a seven-month low versus the u.s. dollar the last time this happened,

perhaps not as significant -- the move now is not as significant as last time around. it curtailed the bank of england's ability to meet the inflation target are you watching this move now in sterling and saying perhaps if this move continues and the pound continues to slide it could pose an issue with us achieving that inflation objective? >> we take currency movements into account in our inflation forecast we just assume that the exchange rate will stay more or less where it is, and that feeds through mechanically into trends and import crisis. but i think in terms of setting monetary policy our focus is much more on domestic cost and capacity growth rather than trying to offset imported inflation >> when you think about the neutral rate in this cycle, where do you see that ending up? >> significantly lower than it used to be going back from 1997 to 2007,

the bank of england's policy rate, bank rate, averaged about 5% 3.5% was low 6 6.5% was high. 5% was neutral the neutral rate now is significantly lower than it used to be, that's due to demographics, aging population, wider credit spreads, fiscal policy financial markets suggest that a neutral interest rate is about 2% in nominal terms, 0 in real terms. without endorsing that too strongly, maybe that's a reasonable benchmark for the moment with some uncertainty >> is that one of the reasons that the bank of england decided to change the level at which it would start reducing its balance sheet from 2% to 1.5%, is that one factor that played into your assessment >> this is to do with a question of where the effective zero bound on bank rate is.

going back to a bank rate of 50 basis points, that was the effective lower bound and it would be counterproductive to go below that hence, in able to cut interest rates significantly in the event that the economy were to weaken, you would want to -- you wouldn't want to start to unwind qe until you got 150 basis points on down side of bank rate, which set 2% as the threshold for qe unwind. since then time moved on, the bank cut rates to 0.25% in the aftermath of the brexit vote, we now think the effective zero bound is close to zero so effective lower bound goes to 50 to zero, the threshold comes down by 50 basis points, from 2% to 1.5%. >> all right we'll continue this conversation shortly after this break that is michael saunders from the bank of england. coming up, president trump

takes aim at the wto as global trade tensions continue to swirl. more on that after this break.

donald trump is threatening possible action against the wto, this in the wake of reports that his administration could propose legislation that violates wto rules. trump told reporters that the relationship between the international trade body and the u.s. is unfair >> wto treated the united states very badly i hope they change their ways. they have been treating us badly for many years that's why we were at a disadvantage with the wto. we're not planning anything now. if they don't treat us properly, we will be doing something and speaking on cnbc, u.s. xhe commerce secretary wilbur ross

talked about change at the wto >> we made no secret of our view that there are some reforms needed at the wto. in fact, i was on panels both in davos at the world economic forum and at the oecd in paris a few weeks ago, wto knows some reforms are needed so i think there is a need to update and synchronize its activities we'll see where that leads i think it's premature to talk about withdrawing. >> speaking to our u.s. colleagues, mark mobius agreed with president trump >> the u.s. has been taken for a ride the last 20, 30 years it's time to start saying there has to be some reciprocity between these two countries. it's just crazy to have this kind of deficit. >> still with me is michael

saunders, member of the mpc from the bank of england. thank you for being with us on the show we were just discussing a bit about where the bank of england could get to the market is pricing in around 30 basis points of hikes a bit more than one hike over the next 12 months does that sound too cautious to you? >> if the economy plays out the way i suspect it may be that the rates need to go up a bit faster than that. my condition on brexit unfolding in a smooth and gradual way is that the economy will continue to grow around the pace we've been seeing the last couple of years, 1.5%, 2%. the jobless rate will fall further and pay growth will pick up a bit and rates may need to rise faster that's about an earlier return to a neutral rate. i think the neutral rate is significantly lower than it used to be. even if rates were to

gradual. not too far, not too fast. >> which is defined roughly as twice a year >> i don't think you can define it as that precisely if you go back to the pre-crisis period there were four tightening cycles average raise was 1 percentage point over 9 months. so a lot of paths would qualify as gradual to that so relatively gradual because we have no great urgency. and limited in the sense that neutral interest rate is significantly lower than it used to be. >> you say you have no great urgency, then we also have not discussed brexit, and one of the key risks highlighted by the financial stability report is to do with brexit the market again is pricing in decent chance of the mpc hiking in august. my question to you is why hike in august when we still don't have clarity and won't have

clarity in the final trading agreement until at least october. >> so what we do on brexit, we take a range of possible long-run outcomes, and work out the average effects on the economy over time and assume that the economy adjusts in a gradual way to that. what's more important is what are businesses doing so far the pay for the economy and what we've seen in business surveys suggests businesses are doing more or less the same kind of thing so it looks like the economy's underlying path is that growth is probably a little bit above potential. we're using up spare capacity. if that's right, we don't need as much stimulus as we do now. it's important to also realize that the monetary policy implications of different brexit outcomes are not automatic let's assume for the sake of argument that we have a soft brexit not making a prejudgement, just as an illustration it might well be that business confidence would rise,

employment and investment intentions might be stronger it would also be possible because financial markets are making a judgment on these things as well that the currency could appreciate so you have different moving parts in the growth and inflation outlook. monetary implications could go either way >> in the last week, we heard of volkswagen, airbus, big companies warning that unless there's clarity on brexit plans, they will have to make significant investment decisions away from the uk how close are you in contact with these key names and key international companies? >> all of the mps spend a lot of time talking to businesses in all sectors and all regions of the uk so i would say if you had the current conditions, high return on capital, relatively low cost of capital, high capacity use you would normally under these conditions expect investment to

grow strongly. 8%, 10% year to year it's clear brexit is damping investment intentions. but overall investment has grown the last couple of years at a modest pace. and what we see in surveys suggests that we will have that. not for stronger investment, which we could have had, but equally not an outright drop on a sustained basis. >> assuming we don't continue to get warnings like that in the future you must be keeping a close eye on that, the language coming out of companies >> we pay attention to what all firms are saying not just ones in headlines but talking to a wide range of firms, across all sectors and regions. we try to get the views of businesses >> looking at the trade numbers, the uk has posted a record goods trade deficit, with the rest of

the world. the uk's growth must be somewhat underpinned by growth in the rest of the world and the pick up in eemergencyingeemergencying markets. are you concerned this could negatively impact uk growth as well >> it's certainly the case that net trade and export growth has been a major driver of uk growth over the last year in the period since sterling's depreciation. in our forecast we expect exports will continue to grow strongly for this year there's something of a puzzle here the surveys of exporters generally look positive. we saw that in yesterday's pmi the official trade data from the o.n.s. has shown exports quite weak i expect the trade data to catch up we have to wait and see the evidence come through. more broadly the uk is sensitive

to swings in global growth i think if global growth were to slow significantly, that would be a negative for uk growth. so far what we see in the surveys of exports is generally still positive >> how do you think a so-called global trade war would play into that >> this is the other big theme on the show and in the markets, this is a potential tit-for-tat trade war between the us and the rest of the world. and the uk will be caught in the crosswinds because it's an open economy. does that concern you as well, the threat of more tariffs on a global trading level >> in broad terms, trade has been a big driver of global prosperity and global growth the uk gained enormously becaus of that.

swings in global growth have an effect on the uk if you were to get a retreat from global trade, that also could affect the uk growth outlook. but so far in the surveys of export orders, it looks as if what we've seen externally is not significantly -- not having a major effect on growth, but clearly a thing we're keying an eye on >> how close does the bank of england watch what the fed are doing? the fed are more than halfway through a hiking cycle the economy is looking robust. all of the hikes have been readily absorbed by financial markets there and also by consumers. so does that give you confidence perhaps that the bank of england, once they start a full hiking trajectory could get to similar outcome without creating too many side effects? >> i would say the fed make their decisions based on their economic conditions, we make our decisions based on ours. there's no sense in which we are

obliged to feel under pressure to follow the fed. i do think -- i think the fed's experience in terms of the unwind of asset purchases has been interesting with a very gradual and predictable pace of unwind so far market implications are limited. i think that's an interesting thing to have seen >> one last point. again, this is a warning from the financial stable report on the validity of contracts and clearing for financial services post-brexit. again, time is running out we only have about nine, ten months until full brexit when would you need to get clarity on what happens to those contracts on the trading side for financial services before you would take it into consideration and it would significantly effect monetary policy outlook >> this is something i'm not an expert on. the governor talked about this i would refer you back to his comments on that sorry. >> fair enough thank you very much for joining

us today that was michael saunders from the bank of england. very much appreciate you coming on the show. coming up later, crisis averted. angela merkel reaches a migration deal with horace seehofer stay tuned you might take something for your heart... or joints. but do you take something for your brain. with an ingredient originally found in jellyfish, prevagen is the number one selling brain-health supplement in drug stores nationwide. prevagen. the name to remember.

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i'm joumanna bercetche these are your headlines european markets rebound following china into the green with the dax outperforming as german political uncertainty is put to rest. a franco/german deal commerzbank agrees to sell its equity markets to societe generale in an effort to divest non-core assets. >> i think if global growth were

to slow significantly, that's a negative for global growth so far things are still pretty positive glencore shares slump to the lowest levels in over a year. it's been a uk-themed show so far sticking with that theme, we got uk pmi numbers coming in at the highest level in seven months, and new order books have risen,

this is the third month of construction recovery. we were talking about the beast of the east impact on the q1 data one of the big laggards there was the construction data, we've seen a recovery there, and that has continued this morning as well we're also seeing sterling bounce on the news about a third of a percentage point higher that's the picture for foreign exchange let's see european markets there's been a recovery on the news that the cdu and csu reached an agreement that has been helping the dax trading up more than 100 points already, or 0.8%. also ftse 100 about a third of a percentage point higher. ftse mib is trading more than 200 points higher.

let's look at u.s. futures dow seen opening up about 60 points higher. nasdaq about 20 points higher. momentum in the tech stocks continuing we've seen that in the last couple of sessions today it looks like it will continue that trend as well. our top story in europe, angela merkel has reached a deal with horace seehofer ending a bitter dispute that threatened her coalition government after hours of crisis talks, the two leaders said they reached an agreement on germany's migration policy willem is in berlin. they were known as sister parties, but after this, csu's authority dipped in the polls, merkel has weakened. it is a negative outcome for a fragile coalition. what do you think the political implications are from here

>> at this stage we're waiting for the spd to give their approval of this latest deal the politicians this morning say they expect that to happen but there may be more tweaks made to the proposal whereby migrants arriving at germany's borders with austria would be screened to see whether they have either registered applications for asylum elsewhere or been denied asylum in germany. if that's the case, they will be turned around inside bulgaria. the csu, there are slight concerns for them among the party faithful, in terms of who might vote for the afd, the far-right party. that's ahead of local elections in october in terms of what angela merkel saw, she sees it as a continuity effort from what she reached last week in brussels. she managed to make a deal with

temperature other european leaders about migration. she saw last night's deal as a continued effort in that right direction as she sees it here's what she said >> translator: that's how we keep the spirit of partnership within the european union and at the same time we navigate an organized secondary migration. this was important for me, and i think we reached a good compromise today after days of difficult negotiations >> horace seehofer says he will continue as her interior minister because he says he got what he wanted let's listen tohow he responde to this deal >> translator: i'm happy that we reached an agreement it shows that it's worth fighting for a conviction. our agreement is a sustainable agreement that will last into the future this clear agreement matches my convictions and allows me to lead the interior ministry

>> this morning members of the german bundestag say they don't see this as a long-term solution, just as last week's agreement in brussels was not a long-term solution there are a lot of devils in the detail about how this policy is applied what it means for freedom of movement in europe and a lot of questions remain about how angela merkel will thread that path between these various competing interests in germany. >> no easy task there for sure at least the worst is behind us. joining us to discuss is laura cooper head of fx strategy and solutions from rbc wealth management looking at the reaction in euro today, a bit of a bounce from the currencies do you think now that some of the political headwinds are out of the way, the trajectory is upwards? >> looking at the euro we saw a lift on the back of the positive news coming from germany this doesn't change our view that looking at the euro and

medium term basis there's little upside for the euro. if anything, when we look at the political risk is likely those will intensify and brew under the surface, this is reflective of the potential for internal conflicts to flair up within germany. as well turning focus to italy we have a number of risks there with respect to italy that could flair up later this year overall we see little upside for the euro >> how does central bank policy play into your view on euro/dollar? anything to do with the fact that the fed seem to be full steam ahead on their hiking trajectory, whereas the ecb is buying time? >> there is little impetus for upside pressure on the euro given that the ecb did announce in june that they didn't expect to raise rates through the summer of 2019 so there's little likely to come out of that. so markets will keep their focus on the political front so even though we are seeing the

fed likely to be more aggressive in raising rates, the markets are already pricing that in. >> as an fx strategist i find it difficult to come to view on how the trade war and tariff discussions will play out in currency space some people say it would be dollar positive thing. others say it would be a dollar negative thing for the u.s how you are thinking about it? >> we are constructive on the u.s. dollar, maybe not to the extent that we saw the appreciation since mid-april we expect it to slow but remain stable this is a reflection of a more aggressive fed in the near-term as they try to not see the economy overheat given the thrust from the tax cuts when they add on to that the additional layer of trade tensions, heightened uncertainty

on that front, we're seeing the u.s. maintain its safehaven status as we see these bouts of risk off sentiment, investors are seeking safety in the u.s. dollar this is further adding a layer of support to our view that the u.s. dollar will continue to trend higher >> do you find investors are looking to attack the current account surplus countries? clearly that's what this whole discussion is about. it's about redistributing trade and some of the key beneficiaries have been china, germany, all of them -- both with huge current account surpluses. do you think that the investors that you speak to have started attacking those and thinking, well, if this is going to be the path going forward, potentially we so see lesser pluses in these countries and depreciation of the country in the future? >> when we look at the u.s., we don't see the deficit that problematic. the u.s. is quite unique in that it's targeting a trade deficit to reduce that particularly with

china. so we're not seeing what the benefit would be to the u.s. economy. when we look at this on a currency perspective it's not that we will see escalating tariffs on eu and china ramp up to an extent that would prompt the u.s. trade deficit to actually narrow, but instead we're seeing just this escalating tit-for-tat rhetoric. so we do expect this is still posturing for a trade negotiation. some kind of deal to play out. when we look at it, the risk is that we could see the global economic expansion tip into a recession. that's not beneficial for all parties involved >> what do you make of the dollar renminbi weakness that has crept up. do you think this is an intentional move on the part of the china policymakers or is it just a function of marking to market because the rest of the emerging market currencies have weakened as well >> i nthink the latter point

we have seen weakness play out in the yuan, so it reached a technic technic technical 6.7 level. many other currencies came under pressure on the back of rising rates in the fed when we look at china, their currency remained resilient. as did most of asian currencies. it's likely to be more of a catch up >> i just realized, i never asked you about the pound. hopefully you watched our interview with michael saunders. what is your view on the trajectory of sterling >> in contrast to what we saw earlier this year where the pound was dreaded by market expectations for a bank of england rate hike. when we saw the slowdown in the first quarter of the year, markets remained cautious on the extent to which the bank will hike rates now that we're seeing signs,

evidence like this morning, uk pmi, we're seeing signs that growth is rebounding, that that market focus is turning towards brexit when we look at sterling in particular against the dollar, we are quite negative on it because we see the brexit uncertainty playing out in terms of market. when we look at sterling, particularly against the dollar, when we look at volatility, it remains quite low and below the average it's been at so markets seem to be discounting that we could still see a no deal brexit, or internal frictions within the government that could lead to a leadership challenge >> seems to be a perpetual risk there. thank you very much for coming on the show. that was laura cooper, head of fx separate trategy and solutio. commerzbank has agreed to sell its equity markets and commodities businesses to societe generale the emc unit had gross revenues of 381 million euros in 2017

socgen says the deal represents an important potential of synergies. the commerzbank ceo said the sale was in line with the bank's strategy of divesting non-core assets. glencore shares are sliding hitting their lowest level since august of 2017 after being subpoenaed by the u.s. department of justice. the commodities trader has been asked to submit documents relating to its business in nigerya, the democratic republic of congress o and venezuela. and strikes and staff shortages caused cancellations for ryanair in june. despite that, traffic grew 7% to 12.6 million customers the lowest factor of the month was 96%. a statement from both the russian and the saudi arabian oil ministers has seen them agree to continue to coordinate actions. the two ministers also discussed plans to raise production outputs. the two ministers met after the

opec summit in vienna. you can see oil is trading a bit higher on the news brent is pushing up towards $80, back at 77.60. also got crude trading at 7 5. we talked about a lot of things on the show and spent time talking about the uk we spoke with michael saunders hopefully you watched that if you have any views, e-mail us the address is streetsignseurope@cnbc.com and follow us on twitter, @stre"street signsstrec . coming up, the latest on the world cup. that's when we come back my digestive system used to make me feel sluggish

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welcome back shares in facebook fell in after-hours trading after a report in the "washington post" revealed the investigation into a data breach at the social media firm has broadened

investigators from the fbi, s.e.c. and fdc have joined the justice department in a probe into facebook's role in the cambridge analytica leak the broader focus will examine whether mark zuckerberg led the firm to make sufficient disclosures to investors and users over data sharing practices. in a statement facebook said it is working with investigators in the u.s., uk and beyond. facebook is reportedly buying a british ai firm in a bid to crack down on fake news on its site the artificial intelligence develops natural language tools for question and functionali functionality. and dell has agreed to buy back its own tracking stock tied to vmware. the deal values dell between 61

and $70 billion. the deal allows the computermaker to return to the stock market without listing in a traditional ipo. the company was taken private in 2013 dell founder michael dell outlined the changes that had taken place since taking the firm private >> in the last five years, a lot has changed. we transformed the business, become the essential infrastructure company, changed the profile nature of the company in terms of our capabilities, a broad set of capability the across the data center, software defined everything 85% of our engineers are software you look at our business last quarter, it grew 17% in growth earnings were up strong double digits this was about simplifying our capital structure, and exposing the value that we created to shareholders bitcoin has started the

second half of the year in resurgent form rebounding 12% after falling below $6,000 bitcoin is down 50% year-to-date, it's been a dramatic decline from early 2018 levels what has happened here why has everyone almost, broadly speaking, or a big part of the community buying into this fallen out of love with the asset class? >> i think there's a few things weighing on bitcoin's performance since that record high from last year. we've had a number of hacks to cryptocurrency exchanges that knocked confidence in the market an issue is the regulatory uncertainty across the world some countries have come down hard on cryptocurrency trading then on the other hand you have some countries like switzerland

and the uae who are more open to cryptocurrencies as a whole. there have not been the new financial products in the market that many expected we are talking about cryptocurrency etfs and bitcoin etfs last year those have not materialized. futures came on to the market last year and there was little demand for that product. that huge institutional investor investment has not hit the market and there's not been a lot of good news in the market all those factors added together >> yet we're seeing a bit of a rebound now. where is the optimism coming from as of late? >> there's a couple things there's people buying on the dip. that traditional method of finding value when the price drops. that's one element of it i think there's a few more noises around regulators opening up a bit more to cryptocurrencies perhaps bringing in more regulation which is sometimes seen as bad. for a wider community it is a

good thing the etf is another question that could be approved this year. people are still hanging on to see whether that might come to the market >> then it becomes a matter of survival of the fittest for these cryptocurrencies have to leave it there thank you very much for joining "street signs. sports news, belgium and brazil are the latest sides into the quarterfinals of the world cup after wins yesterday belgium were given a scare by japan. adam is here with details. >> yes the japanese disappointed to go out of the world cup, but would you be pleased to know they cleaned up the dressing room and left a thank you note for their time in russia grateful to the end, the japanese they scored their first ever knockout goals, but at the same time it wasn't quite enough. they did take the lead, haraguchi with the opening goal, and it looked like a shock was

on the cards but then vertonghen's looping header brought belgium back into the game robert to martinez brought on fellaini and chadli, and they made the difference. fellaini using his aerial presence to equalize, and then with just 30 seconds to go in added time, nassar chadli brought about the goal that led the belgians to the quarterfinals of the world cup where they will face brazil, a neymar-centered performance from brazil for good and bad reasons. here's the good. assisting willian who gave the ball back to him, neymar tapping in his second goal of the tournament that got brazil ahead against mexico mexico going out of the world cup the last seven occasions at this stage now they're still looking to get through to the fifth game as they call it neymar putting it on a plate for liverpool's roberto firmino.

it will be an exciting quarterfinal and we have time to look at the state of play so far in the last 16 just those last two places over on this side of the draw still to be taken up by sweden and switzerland, colombia and england. that's the last game this evening. now, gareth southgate rested plenty of players for the last group game defeat against brazil he will welcome them all back this evening and he's just excited to see his hungry young lions let loose again. >> we are the youngest team left in and the most inexperienced team left in but we have some old folks as well who help the younger ones to get through it, show super leadership everything is ahead for this team they're hungry they want to do well for their country. they're proud to wear the shirt.

i'm confident we'll see a good performance tomorrow >> england/colombia, looks like the reserve team will not be playing today because they're the reserve team the odds pointing to an england victory tonight? >> i think this is too -- it's a coin toss. a lot of it probably depends on whether colombia can call up on their playmaker, james rodriguez. he starred in a breakout tournament in the world cup in brazil he went to real madrid, now plays for bayern munich on a two-year loan. he's integral to the way they play touch and go whether or not he'll be fit he came off upset to be punching the ground in frustration at his body laying down against senegal in the last group game james rodriguez could be the differencemaker for colombia if they play tonight. a huge opportunity on that side of the draw for england or colombia with spain going out in particular >> yeah. many surprises

adam, my friends are telling me i'm spending too much time talking about football so for a change i will talk about tennis and wimbledon day one saw a routine win for roger federer on center court. it was his wardrobe choice that got people talking also. >> yes this is an interesting one for 20 years roger federer has had nike branding on his clothing but turned up on center court with uniglo. federer has been involved with nike for 20 years, but explaining why the change and why it wasn't a complete move away from nike on that point, that meant that nike -- well, they still had branding on the shoes. without the branding as you can see here the rf missing from his shoe logos. that's had an effect as the way nike were trading yesterday.

nike were trading one of the worst performers yesterday 1.7% lower traded. >> shows you the power of product placement. >> he's closely associated with the brand. >> good luck to england tonight. before we head out a quick look at u.s. futures and see what the picture is like. it's green dow opening up about 70 points higher nasdaq 22 points higher. that is it for today's show. i'm joumanna bercetche "worldwide exchange" is coming up next. we all want to know about the new thin

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oil prices on the rise again a new opec country not named saudi arabia now the big focus president trump taking steps to keep a big chinese tech company from entering the american market. china's central bank is looking to ensure investors that it will keep its currency stable even as it falls. facebook under fire, the s.e.c., ftc, fbi all now reportedly investigating facebook. and glencore shares falling after receiving a u.s. subpoena regarding money laundering. and manhattan real estate suffering it