welcome to "street signs." i'm joumanna bercetche these are your headlines european markets open in the red as trade worries weigh passing a shadow over asian equities washington gives as beijing takes. the american government grants smartphonemaker zte a reprieve from its u.s. band and a chinese court bans micron from selling in china. sainsbury sales growth slows

as it warns of competitive conditions shares in anglo american rise on a mining magnet is eyeing a bid for its south african business good morning we've got some june services numbers crossing from the eurozone that has come in at 55.2 versus a forecast of 55 coming in slightly above expectations here. bit of a muted reaction in europe overall that composite number is coming in slightly better than expected we also got the final composite pmi number, that came in at 54.9 the expectation was for it to come in at 54.8. an upper trajectory and slightly

better than expectations, but euro is not loving it here let's check on how markets are doing in general we had a bit of a choppy session in asian equities overnight. overall things ended up trading a bit weaker despite those stronger china services numbers that we had and hang seng trading down 1%. we're seeing the picture in europe muted we tried to eke out gains yesterday, but unsuccessfully. the stoxx 600 is trading weaker in aggregate today to the tune of about 0.1%. let's get into individual indices. i should also mention that today is the july 4th holiday. usually on holidays volume is thin so some moves may be exacerbated on trading days. you can see the picture in europe is negative across the board. germany is leading the down trade again. down to the tune of 0.32%.

we spoke about merkel planning to hammer out a deal with her csu counterparts yesterday spd, her other coalition partners need to sign off on that deal. all eyes on that today we'll continue to get pmi numbers. we have some coming up in about a half hour's time leadership is coming in from telecoms, also utilities also. nothing major there. on the down side, technology is lagging. this is similar to what we've seen in the price action nasdaq started to struggle also chemicals, travel and leisure in the red as well sainsbury's like for like growth slowed in the first quarter to 0.2% reflecting recent price cuts. they warned of competitive conditions but backed its strategy saying that its merger

will create a new player in the uk retail place. the vice president of e-commerce and digital insights for cantar joins us looking at these numbers specifically, like for like sales on the quarter came in at 0.2% versus last year's quarter, when sales were up 2.3%. yes, slightly better expectati expectations, but the trajectory is on a downward slope >> you have to put it into context, in what is a competitive market there's a decline over the last 12 weeks this result, though a slowdown is on the back of a much higher number, so comparatives are very strong the underlying performance is really the important story general merchandise is showing solid, robust results. even in grocery that is showing some good gains.

i think that's reflected of the overall strategy and that business transformation which is beginning to bear fruit, we're seeing some strong gains in the convenience market and within the e-commerce any challenges that they're facing within the supermarkets is being addressed in the right way. especially switching from a promotional strategy to a price strategy that edlp is paying dividends especially when they look to differentiate quality and range. >> you do see bright spots then. i wanted to ask about that look at the numbers that came out. argo sales were up 12% online grocery sales were up % those seem like solid numbers. is that your interpretation? >> absolutely. it is a challenging market we're seeing a lot of differentiation, a lot of innovation coming from the big three players. when you look at what sainsbury is doing, how they're introducing argos shopping markets, how they're

differentiating in private label, baby, and also looking to encourage artisan products to drive footfall and that important loyalty, we're seeing momentum, and we're starting to see them switching from business transformation to starting to look to unlock growth. >> let's talk about the merger itself one thing that i was reading in your copy, you said the real story here is the non-food component part of this tie up. so the argos angle rather than the traditional grocery angle. can you tell me more about that? >> if you start looking at general merchandise, they can get cost savings, synergies. i think about a half billion in cost savings when you look at the really strong synergies, it's coming from non-food and e-commerce so the combined entity will certainly look to grow argos and there's talk of taking argos to the u.s. and leveraging that

format there to grow sales that's what it's about it's the e-commerce and non-food that are the big synergies where they cannot only drive cost savings but bring innovation and new store formats and product innovation >> are you expecting this deal to go through? will it be met with resistance from regulators? >> there has certainly been discussions around that. it will be mid 2019 when the full decision is made. considering we have 3.5 billion marked to the merger, there's confidence it will go through. when you look at the wider picture, there shouldn't be much resistance to that happening >> something else that struck me from your notes, you're saying on the e-commerce side for sainsbury, both are bigger than amazon in the u.s. it surprises me both of these companies are still relatively

more profitable than amazon in the uk here? >> i think it's when you look at it, it's the convenience and choice amazon have speed, prime now that's where they're encouraging more shoppers across more categories more often. the multi channel retailers can bite back and bite back by differentiating, that's through choice and convenience we look at picking up products from your local store within an hour, that's where we see synergies between sainsbury because it provides fulfillment in that key final mile to win shopper loyalty, but also the innovation and speed sainsbury allowing one-hour delivery so we're seeing a huge amount of competition there. as they begin to merge, particularly the argos area, we're seeing them be able to fight back and remain a bit more competitive against amazon

>> one last thing related to a note i read. you were talking about how sainsbury's were the ones who had the worst perception with a lot of suppliers here. then we were having this discussion about how actually in these days the suppliers have all of the bargaining power, less on the retailers. do you see that trend shifting at any time? >> not necessarily we're going to the next evolution of retail at the moment supplier power is still actually relatively strong, especially looking at smaller suppliers if the likes of sainsbury's, differentiating through artisan brands, they have a lot of supply power, a seat at the table. we are seeing bigger brands beginning to maintain existing relationships with customers, but also start to build stronger and better relationships through direct means, direct to consumer business models. >> all right malcolm, we have to leave it

there. thank you very much for joining us >> thank you the chairman of vedanta is facing push back on his $1 billion bid to buy out the mining company a large minority shareholder said the bid is too low and massively undervalues the company. barclays called the bid opportunistic after it was announced on monday. argarwal's vollcan is planning an investment in anglo's south american business, it would create a combined entity worth $7 billion. 12 boys and their soccer coach were found trapped but alive in a flooded cave in thailand now rescuers face another challenge, getting them out. tonight 2 had hours after

that miraculous discovery -- >> how many of you >> 13. brilliant. >> reporter: thai officials say the 12 boys, ages 11-16 and their coach are all in stable condition. a huge challenge getting them out. one option starting the rescue now. oxygen tanks have now been placed along the exit route. but none of the boys knows how to swim, so they're scrambling to teach them diving skills to navigate tight tunnels that are tricky even for experienced divers two rescue divers would be assigned to help each boy on a dangerous 2 1/2 mile trip, at some points too narrow to wear scuba gear, other parts needing a steep dive >> think of looking through a glass coffee cup, there's no visibility on top of that, there's very narrow passageways the divers needed to run lines in order to be able to get in and get out. >> reporter: the group appearing

thin they're now getting high protein liquid food easily digestible. this official tells us a team of medics is there, too only four people can be in this cave with the boys, to insure there is enough air to breathe tonight, the british diving group that discovered the soccer team is warning a rescue now is risky, especially if the kids panic. >> they talk about teaching them to dive and then do it, that's a bit of a long shot, to be honest >> reporter: another option, keeping the kids underground and sending them supplies until the waters recede. authorities have been trying for days to pump the floodwater out. there's more rain in the forecast, meaning it could be weeks, even months before they're safely out >> up to three to four months. there are no easy options.

another possibility they're looking at is drilling new entries into the cave to pull them out for the families this is a different vigil now. while people everywhere remain captivated by these boys, their coach and this remarkable turn of events. >> phenomenal story. if you have any views on what we've discussed today, e-mail us. the address is streetsignseurope@cnbc and tweet us at @streetsignscnbc or tweet me directly address cnbcjou. we'lha me ene me l veorwh w the smoother the skin, the more comfortable you are in it. and now there's a new way to smooth. introducing new venus platinum. a premium metal handle boosts control... to reveal up to 100% smooth skin.

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welcome back ahead of a crunch meeting with her cabinet, theresa may has called on her party to stand together ministers are set to meet on friday where may will hope to thrash out a government solution to the uk's future trading partnership with the eu.

feuding within the conservative party has seen may struggle to come around to a plan for brexit the dutch prime minister called on may to give more definition on all aspects of brexit >> i said in brussels i'm glad we made progress in various areas. at the same time we urgently need clarity about every aspect of the future relationship between the eu and the united kingdom. >> germany's social democrats have expressed skepticism about angela merkel's migrant policy deal saying further talks are needed the chancellor needs the backing of her junior coalition partners if the plan to cap asiylum seekers at the border is to succeed. merkel's cdu party agreed to set up special transit centers on the border with austria.

the worst case scenario is now said to be gone for germany. >> the worst scenario has gone away which is a break up of the coalition that would have scared markets because it would have created uncertainty, but still this conflict is not over. it will be very difficult for the social democrats to accept that compromise because they were against this type of solution explicitly two years ago. they will have a hard time agreeing to it the pressure is high because they wouldn't like new elections. it's not clear they will agree and it's not quite clear what other countries will do. the austrian chancellor has said he would defend austrians, and does not want asylum seekers sent back into austria there are also scars for angela merkel's authority poland's chief justice vowed to stay in her job despite a new

law requiring senior judges to retire at 65 rather than 70. she was required to retire by midnight last night with presidential consent to stay on with the job the move has sparked protests. the government says the reforms are vital to stamp out corruption and cronyism in the communist era judicial system. first half merger activity rose almost 30% compared to the same period last year to 1.$1.9 trillion according to merger market it partly credited a corporate backlash in the surge. just looking at these numbers, tremendous pick up in activity, 30% more than a year ago we have six deals above $20

billion already. 1.9 trillion in totem fal for t year where is this spurt of activity coming from? >> you're right. we're seeing tremendous growth in m&a this year this comes off the back of a couple years of really strong m&a activity the majority of growth is coming from these mega deals that we've been seeing. if we look at the figures, we've seen 26 deals above 10 billion this year, last year we saw 30 across the whole year. >> what is the catalyst for all of these deals happening this year is it u.s. tax reform? what is the incentive here for these companies to boost their m&a activity >> i think there's a few factors at play. you have got strong financing, you got shareholders that are pressuring boards, particularly conglomerates to realign themselves i think the key driver that

we've seen so far this year is innovation the world is kind of -- is changing at a dramatic pace. in terms of the technology advancement. and traditional corporates have now got to fight back against the newer, more innovative firms. i think media is a clear example of this. you have netflix, amazon who have come into the space the last four, five years and changed the way that consumers will interact with media >> already just looking at your notes, the sector is tracking 0 $80 billion already on course to break 100 billion. are we seeing similar activity in pharma space as well? similar industry being affected by consolidation pressures >> yeah. again, because we've seen amazon making moves into the healthcare space with their acquisition of pillpack last week

and we've seen some really big consolidations in the space both this year and towards the end of last year. >> looking at the geographic composition, europe accounts for about one-third of global value of these m&a deals how has that trend evolved over the last couple of years are europe gaining in prominence or losing in prominence? >> it's been gaining in prominence a little bit. we've seen, again, some large consolidations in europe and this comes off the back of political situation which has not exactly been kind to dealmakers but there's still confident in the boardrooms to do deals there's a need to scale up >> just one time question for you. i also noticed that a lot of the m&a has been driven by domestic m&a activity and less cross

border how much of this is on the back of increasing scrutiny from regulators, an we've seen governments look to get involved, particularly in this environment of trade wars and extra tariffs. you also have companies caught in the cross hairs >> i think that's the key factor corporates need to weigh options and decide whether how achievable a deal is these high profile cross border deals which we've seen over the last couple of years, you know, we've seen government become more protectionist, more interventionist, and the figures that we've seen, that's largely been a growth in domestic m&a over cross border. i think we can attribute this to the kind of change in regulatory environment and companies looking to do deals domestically rather than cross border >> all right jonathan, thank you very much

for coming on. talking about the stellar year so far for m&a activity. morgan stanley says oil prices will rise more than expected in the second half of the year reaching $85ing ina ba this as the white house aims to wipe out iranian crude exports by november. the bank adds the tougher policy could mean iran's production could drop by more than 1 million barrels per day. morgan stanley also says output in libya and angola will deline more than expected leaving the oil market undersupplied b by 600,000 barrels a day. and the iranian president said iran could disrupt oil shipments from neighbors countries if the u.s. forces allies to stop buying iranian oil. the comments were partially repeated during a press conference in switzerland. however when asked if he intended to make a threat,

rohani declared to clarify his earlier statement but said it was unwise to imagine iran will not be able to export its oil. let's check in on oil after those various comments that we heard from morgan stanley and from president rouhani on the day it's a mixed picture. brent trading a bit stronger almost back up to the $80 mark wti a tad weaker on the day. bp and conocophillips agreed to a deal to swap energy assets which will see bp increase its steak in a major north sea development. conoco will sell a stake in clearfield to bp where the british oil giant hopes to increase production to 200,000 barrels per day by the end of the decade in return conoco will get the entire 32.9% stake in the oil field in alaska. coming up, trade war fears

continue to spook asian markets after declines in u.s. tech stocks heighten worries over impending tariffs

welcome to "street signs." i'm joumanna bercetche these are your headlines european markets open in the red as trade worries weigh passing a shadow over asian equities despite a positive service sector pmi from china. the efo director tells cnbc that the world trade organization should stay renewtrenewt -- reunited in the face of tough trade rhetoric >> the message out of the white house is attacking in a sense all wto members, they should stand together fighting this off. washington gives as beijing takes. the american government grants smartphonemaker zte a reprieve from its u.s. band and a chinese court provisionally bars micron from selling in china. sainsbury sales growth slows as it warns of competitive

conditions the supermarket also builds scale. all right. we should be getting the uk pmi services numbers they should be coming out any second now we had construction yesterday. so we just got these now the services number has risen to an eight-month high of 55.1 in universes 54 in may. a bit of a rebound there the new business component has already risen to a 13-month high of 55.3. solid numbers coming out of the uk this again is interesting given the context. we were discussing it with michael saunders from the mpc yesterday as to how the q2 data is beginning to look so far the picture has been resilient on the services side

we also have a rebound in construction yesterday as well as far as the data is concerned in the uk for the last couple of weeks, things are beginning to look a bit better than they did in q1. you can see that the reaction in sterling has been positive speaking about sterling, let's switch and look at other foreign exchange pairs we have euro trading a tad weaker to 1% no major moves here the only interesting one is dollar renminbi which has finally come in a bit from that couple of weeks of depreciation of the yuan. dollar renminbi is trading a quarter percentage point stronger the yuan is trading stronger to the tune of a quarter percentage point. that's bucking the trend of the last couple of weeks european markets are trading in the red the picture is pretty negative across the board with xetra dax leading the down trade again, down 30 points or so a quarter percentage point we have ftse mib struggling as

well this despite some more positive news that is coming out of the german data. all eyes will still be on the political backdrop and what spd decides to do with this migration deal shares in micron fell after a chinese court ruling temporarily banned the firm from selling certain key products in china's mainland the decision comes from a patent case involving umc which micron accused of stealing secret technology the language was disclose and comes amid rising trade tensions between the u.s. and china shares in umc rose after the decision u.s. president donald trump is revving up the tough talk against motorcyclemaker harley davidson trump tweeted that harley's customers are not happy with the company's decision to shift some operations overseas in the wake of retaliatory tariffs

he said his administration is looking to bring other motorcycle companies into the u.s. harley said the levees would add the average cost of $2,000 china is pressing the european union to form an anti-u.s. pact against president donald trump's trade policies, that's according to reuters. beijing proposed an alliance between the two companies and is ready to further open up the chinese market to europe in exchange but is facing opposition from eu officials beijing purportedly proposed a joint action against the u.s. at the wto. the china european summit will take place in beijing between july 16th and 17th earlier we talked about whether the u.n. and china should get closer >> the european nun onneeds to

form a coalition the trade policy out of the white house these days is attacking in the sense all wto members, and they should stand together in fighting this off. i think the situation we're in now, is that we all know that many systemic issues in the world economy come from china, or from russia and they are not really between europe and the united states yet we find europe in search for allies and coalition partners in china, in many other places in the world where we actually have issues too so that's a paradoxical situation. i think the priority number one now must be to defend a multilateral system. as we head into the second half of the year, dominic chu looks at the current state of play for the markets and what investors can expect going into the next six months. >> a lot of times traders like

to look towards history in terms of how they look at the current situation. that's one reason they look at seasonal trends in the market. and one of the things they look at is whether or not they do look at the trading for the major u.s. indices then look at how they've done on average. here's how the numbers bear out. if you look at the russell index, it's been on a tear as of late in the second half of the year it's up north 3% on average. the s&p 500, our main benchmark, up about 3.5%. it's a positive trade 71% of the time the dow is up about a full 4%. it's a positive trade 71% of the time and the nasdaq has been pacing things all year and it could continue if history bears out. it's on average up about 5.5%. that's a positive trade three quarters of the time

maybe that nasdaq momentum continues. now, you throw into it a little bit of a nuance here it is a midterm election year. how often does that happen we haven't had that many of them since 1990, but if you go back to 1982, in the third quarter which we're in now, it's not a great quarter. markets on average, the s&p 500 down north of 2% it's positive only 56% of the time however, you carry that into the fourth quarter, a seasonably strong trade in the fourth quarter that even bears out more so in midterm election years on average it's up 8.5% in the fourth quarter it's a positive trade nearly 90% of the time. as we talk about these seasonal trends, it's not to say that traders automatically say this is going to happen it just gives us guidance for what we could expect in the future, and that's something they'll be watching. to talk about guidance for the future, i have brett gillespie from anderson capital. what are you focussed on now what is the number one narrative

you're focused on for the second half of the year in is it tariffs? is it monetary policy? is it inflation getting out of control? >> we're in an interesting situation with the world now and globally the u.s. right now has overheated when we look at what's happening in the u.s., we have unemployment sitting at 1% below the nonaccelerating rate of inflation or nari. so they're really cooking this economy at a point where normally they would be seeing an uplift in wages and inflation, and we're seeing that in lead indicators >> you have pcs still recovering around 2%, it's nowhere near overheating territory yet. what makes you confident the numbers will pick up

>> if you look at the lead indicator ts of inflation in th ism survey, nfib survey, they all are at 20-year highs so they have a nice lead to inflation with eight months. when we break down inflation into baskets and forecast it on tradables and publicly set inflation prices, we see a grinding up of inflation in that area if we look at the atlanta fed wage tracker, that's tracking very high as well. so there's a variety of measures saying the economy is very tight. quick rates just hit a high since '04 as well. >> assuming your prognosis is correct, let's talk about the sequencing fed are behind the curve they will presumably have to play catch up and hike faster than what the market is pricing. what does that mean for asset classes? surely that's not a good thing for equities or fixed income >> that's right. the way i like to frame it is that the fed needs to tighten

financial conditions tightening financial conditions will slow the economy. so they need to slow the economy. the question is how will financial conditions tighten so, you could have a tig height tightening from financial conditions from the fed conditions, and we would need a 15%, 20% move to tighten financial conditions enough. so i ask the question, are we in '94, '98, or '68 '98 the financial conditions tightened. equity markets did a big fall. the fed, though the economy was strong, they turned around because financial condition s tightened so much, and right now we could see a crisis develop that does the tightening in financial conditions for the fed via a strong u.s. dollar and weak equities.

it's not automatic that the fed will have to do the rate hikes >> your big call is a strong u.s. dollar then let's talk about asian dynamics going on in markets. goldman sachs this morning talk about the sheer outflows we've seen in the last couple of months alone i think $35 billion worth of outflows, taking us back to 2016 levels all the money gone into asia has now left where is that money going? >> first off t hasnshg it hasn'. if we look going back to 2009, when we talked about quantitative easing globally and zero interest rates, the money has been chasing yield globally. looking in terms of dollar amounts, the bulk of that money has gone into investment grade credit in the u.s. when we look at what might cause a stress when this tries to reverse, the amount of money in investme menment grade credit i

increase the money into sovereign credit is a 200% increase in emerging markets. when they move to the exit, that's going to be difficult what we've seen so far is emerging market equities, which is also a recipient, that money has been flowing heavily, but we have not seen the emerging market bond flows reverse, but they tend to follow performance. so we think we'll get a lot of stress in that area as a burst to the qe bubble that's where we have some real dislocations the etfs are promising a lot of liquidity. >> what do you think that means for developed market fixed year income will the money flow in to ten-year notes does it mean because of this flight to quality back to the u.s. that the money will stay roughly where it is now? >> the money comes in at a price. if we look at what's happened with investment grade credit in the u.s., what's happened was

nor r foreigners have come roaring into the u.s. market we had four years of japanese and european investors coming in they're the big egest holder ofi investment grade credit in the u.s. at 33%. but their fx hedge cost is getting expensive. now they're starting to reverse. when that happened, the people that sold them were domestics in the u.s., but at a price they'll do the same on the way down, but it will have to be at the right price. >> as with everything, it comes at the right price and right timing thank you very much for joining us on "street signs. japan's service sector continues to grow in june according to a private survey released today makiko utsuda joins us from the nikkei >> yes the nikkei japan services purchasing manager's index or pmi edged up to 51.4 in june

from 51.0 in may, indicating strong activity in the service sector a reading above 50 signals an improvement and june marks 21 months of continued expansion. japanese manufacturing activity also grew at a slightly faster pace in june due to new product launches and increased orders. the month saw weaker growth in employment and rising costs outpaced selling prices and ate into profit margins and businesses are not optimistic. a bank of japan survey shows that business confidence among japan's large manufacturers worsened for a second straight quarter in the three months up to june. they cite the rising cost of labor and materials as well as concerns over escalating global trade frictions. bank of japan board members warned in a speak today that hiking interest rates would impact financial institutions, indicating that the central bank

will likely stick to its current ultra loose monetary policy. they also said the unemployment rate which hit the lowest there 25 1/2 years in may needs to fall further to meet the goal of a 2% hike in consumer prices that's all from the nikkei back to you. >> thank you for that. elsewhere, malaysia's former prime minister pleaded not guilty after being arrested and charged with abuse of power and three counts of criminal breach of trust sri has more >> this is day one, round one of what would be a long political and legal saga that could play out over the course of two years involving the former prime minister we know that he has been released on bail for around 1 million after pleading not guilty to three counts of criminal breach of trust we now know that the prosecution

team, headed by the attorney general here in the newly installed government, do want to move this case to the high court where he could face further charges. this is an important case for malaysia, they're watching this one carefully. remember the new government that is barely two months old was elected on a clear anti-corruption ticket, that's where this new government really wants to emblazon its anti-corruption credentials with this case and draw a firm line and achieve closure with the one mdb saga does this mean the end of patronage politics and everything the former prime minister stood for, including cash is king politics? we put that question to an official earlier today >> it is very important for the government one of the promises of the government is to undue the patronage work of the previous

government it's all about using government sources to build patronage networks if najib faces the full force of the law, that's the beginning of the end of the patronage network. that will hopefully discourage politicians from building similar networks in the future >> so this is just the beginning of what could be an overhaul of malaysia's civil service, justice system and institutional reform broadly starting with stamping out corruption and drawing a clear line under the one mdb saga there's a lot of take on board a lot of moving parts, it could involve recrimination of people close to najib including his inner circle and family. this is only just got started. back to you. hna group co-chairman and co-founder wang jang died.

he suffered injury after a fall. the board expressed condolence to wang's family and friends and said this would mourn the loss of a gifted roleader and role model. hna has been shedding assets including a stake in deutsche bank after an aggressive global buying spree landed the company deep in debt of course they did reduce that stake from 10% to just under 8% a few months ago we'll be back after this bre brea smooth. now there's a new wayo introducing new venus platinum. a premium metal handle boosts control... to reveal up to 100% smooth skin. venus

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welcome back u.s. auto sales rose in june fueled by continued demand for suvs as rising trade tensions were largely shrugged off. call it cruise control auto dealers enjoyed steady demand in june, driven once again by consumers looking for pickups and crossover utility vehicles that helped the largest automakers post positive sales last month

>> they look great, you know even as car sales have kind of collapsed, truck and suv sales have more than made up for it. so the overall impact is still growth, and truthfully, growth in higher profit vehicles. so it's still great news for the automakers, at least today >> reporter: for general motors, which reported second quarter sales, the last three months show the automaker is succeeding in pushing pickup trucks and crossover utility vehicles in the second quarter, gm has been able to push the average transaction price to a record high the big question weighing on the auto industry is what impact will president trump's push for higher tariffs on steel, aluminum, and potentially imported vehicles have on demand for now, germany's most popular brands are still seeing solid sales, but if the u.s. puts a 25% tariff on imported bmws, audis, or mercedes-benz, will buyers walk away instead of paying several thousand dollars more for a particular model? overall, auto tariffs could be

the biggest threat to one of the best runs of strong sales the auto industry has ever seen. but the second half of this year could be a bumpy one, especially if new tariffs are put in place for imported vehicles, which could drive up prices in the showroom. tesla shares hit the skids on further concerns about its model three and the worth that its skipping brake tests the automaker has stopped putting the model through brake and roll assessments before they leave the factory. in response tesla said they eliminated this stage of the production progress because it test drives every vehicle to verify braking among other checks, adding there are no exceptions and dubai-based ride hailing firm careem says it intends to focus on growth into new markets and doubling down on existing

cities this following reports that it's in talks with uber over a potential merger they suggest the two firms have discussed several different types of deals, among them uber acquiring its rival and another strategy could see kareemcareems leaders manage the combined business. england took colombia to a shootout for a place in the quarterfinals, and despite previous losses with spot quicks, they prevailed 4-3 >> quite amazing for the first time in world cup history, england, that's right, england, have won a penalty shootout it's estimated that 28 million people may have watched that game last night against colombia it wasn't pretty, a bit bruising but england came through they went ahead -- who else would score the goal harry kane getting his sixth goal at the world cup. his third from the penalty spot making no mistake.

a long delay before that spot kick the colombians were protesting for quite some time. it looked like england would do it in normal time as well. but in added time, mina scored his third goal of the championships, getting a goal. so it looked like it would be more struggles for england again. then jordan pickford performing heroics, saving from carlos bacca, and it was left to eric dier to score the winning penalty. look at this moment for england. england scoring the winning penalty. contrast that to the emotions 22 years ago of his now manager, gareth southgate, he missed one famously for england in euro , '9 -- '96, but redemption for the england manager. >> great redemption. we were composed in our use of the ball and in a big game i think that

was impressive from a young group of players we then had to keep our discipline several times which was outstanding. we had a blow in 90 minutes and had to show resilience to come back from. >> just -- i can't explain the relief around england, the fact that you think you know what's coming with them in a penalty shootout >> it's exhausting >> it is but only because we've been here before england's record in penalty shootouts at the world cup is particularly shocking. these fans have seen it all before three times they faced penalty shootouts. they lost against germany in 1990, argentina in 1998 and lost in 2006 against portugal they are into the last stage they won a knockout game for the first time at the world cup since 2006 this is how the last eight

looks. ek la england will play on saturday against colombia -- sorry, they beat colombia, they are playing sweden there are some great match-ups now here's a selection for that game against belgium, it feels completely justified england's senior side doing what the junior sides have been doing, winning at world level. >> let's see we don't want to count our blessings too soon hopefully england have a few days to rest that's the latest on the world cup. elsewhere, we have some important interviews coming up make sure you catch them we're speaking with pier padoan at 14:30 cet and director of the 140 aational trade centert :0cet. this wi-fi is fast.

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