England Face Iceland In Make-Or-Break Match

England meet Iceland in the Euro 2016 last-16 tonight in a match they are expected to win, and manager Roy Hodgson cannot afford to lose if he is to earn a new contract.

Hodgson's team will play the smallest and lowest-ranked team remaining in the tournament in Nice, with hosts France waiting to meet the winners in a quarter-final in Paris on Sunday after they eliminated Ireland.

England will start as firm favourites despite not having won a tournament knock-out match for 10 years.

Defeat would rank as one of the greatest upsets, and humiliations, in recent English sporting history, and for Hodgson it would also in all probability end his four-year term as England manager.

His contract expires after this tournament and the Football Association have made it clear they will base their decision on England's performance in France.

Chief executive Martin Glenn offered Hodgson his support this weekend, but a second-round exit to a country with a population of just 330,000 would fall well short of expectations, and could make Hodgson's position untenable even with a dearth of obvious English replacements.

Hodgson appeared relaxed about his position at his pre-match press conference, and said his greater concern was for the players and fans.

"Every result is significant if you are a football coach, that is the nature of the game, but it is most significant for the football team and the country," he said.

"We desperately want to stay in the tournament... we'll be trying our very best to win because we want to stay in the tournament."

Hodgson is expected to undo many of the six changes he made for England's goalless draw against Slovakia, which meant England finished behind Wales and slipped into the tougher half of the draw.

Captain Wayne Rooney is expected to return to midfield, with the Tottenham's quartet of Dele Alli, full-backs Kyle Walker and Danny Rose and striker Harry Kane also in line to be recalled.

Manchester City forward Raheem Sterling is also reported to have been recalled after receiving heavy criticism for his displays in the opening two matches of the tournament.

Rooney accepted that he and his teammates would have to make their chances count against opponents who are likely to be organised but defensive in outlook.

"We appreciate the way they have played and they have our respect, but we will have to find out a way of breaking them down."

Since beating Ecuador in the second round of the 2006 World Cup, England have lost to Portugal on penalties in the same tournament, been trounced by Germany in the last 16 of the 2010 World Cup, and beaten by Italy, also on penalties, in the Euro 2012 quarter-final.

Hodgson's challenge against Iceland is to start reversing the decade of underachievement, knowing that failure might set a new low.

Osborne Moves To Calm Brexit Financial Turmoil

George Osborne will try to calm economic fears amid concern over the political power vacuum created by the UK's Brexit vote.

The Chancellor will make a statement before markets open in London and lay out the Government's plans to "protect the national interest" after the shock referendum result.

The move comes amid unprecedented political and economic upheaval, which has seen sterling plunge to a 30-year low against the dollar, the resignation of Prime Minister David Cameron and a coup against opposition leader Jeremy Corbyn.

The pound fell further overnight as markets opened in Asia, while top economists at investment bank Goldman Sachs predicted Brexit would push Britain into recession early next year.

A Treasury spokesman said: "The Chancellor will make a statement to provide reassurance about financial and economic stability in light of the referendum result and the actions that he and the rest of the Government will be taking to protect the national interest over the coming period."

The Chancellor is also under pressure to set out a timeline for opening negotiations on the terms of Britain's "divorce" from the EU.

Mr Cameron has insisted his successor should be the one to invoke Article 50 of the Lisbon Treaty which sets in train formal withdrawal procedures after he leaves Downing Street in October.

But EU leaders are becoming increasing impatient with this proposed delay as they insist the UK has opted to quit and needs to be out of the bloc as soon as possible.

Pro-Brexit leaders had hoped to hold informal talks with the EU before triggering the strict two-year timetable for exit set out in the Lisbon Treaty, but Brussels is hostile to the idea.

Mr Osborne will also need to clarify whether he will try to bring in the so-called "punishment Budget" comprising of £30bn worth of tax rises and spending cuts that he insisted during the referendum campaign would be necessary in the event of the UK voting for Brexit.

Pro-Brexit Tory MPs and the Labour leader made it clear that they would not vote for such a financial package if Mr Osborne tried to get it through the Commons.

In a note for clients that painted a bleak picture of Britain's future, Goldman Sachs economists Jan Hatzius and Sven Jari Stehn wrote: "We now expect the (British) economy to enter a mild recession by early 2017."

They said they expect the referendum outcome to chop a cumulative 2.75% off UK gross domestic product in the next 18 months and have knock-on effects in the US and European economies.

Madagascar stadium blast kills two

A grenade explosion has killed at least two people during Madagascar's national day celebrations in the capital Antananarivo, officials say.

About 70 people were wounded in the blast at a stadium, officials are quoted as saying.

It was not immediately clear who or what was behind the explosion.

The political situation remains fragile in the country, with supporters and opponents of President Hery Rajaonarimampianina at loggerheads.

CBI Chief To Warn Javid Over Brexit Migration

The head of Britain's biggest employers' group will this week demand new safeguards for EU workers living in the UK following the country's decision to quit the European Union.

Sky News understands that Carolyn Fairbairn will raise the issue during a meeting with Sajid Javid, the Business Secretary, amid concerns that many thousands of British-based workers across key industries could be forced to leave.

Ms Fairbairn is expected to outline further details of her wish-list on Monday before she and other business leaders meet Mr Javid on Tuesday.

Speaking to Sky News, Ms Fairbairn said on Sunday: "EU migrants already working in the UK, and contributing greatly to our economy, should be given long-term certainty that they can stay here."

Business leaders will tell Mr Javid that they are seeking urgent reassurance about the Government's ability to negotiate dozens of bilateral trade deals during the coming years.

The importance of migration as an issue for business underlines the extent to which one of the most divisive issues of the referendum campaign will continue to provoke debate.

The chairman of one of the world's largest professional services firms said that economic migration had been "the single-biggest issue raised by clients" since the UK voted for Brexit last week.

Ms Fairbairn is expected to say this week that there should be no haste from ministers to trigger Article 50, the invocation of which would start the two-year timetable for Britain to leave the EU.

The CBI, which was strongly in favour of remaining in the EU, held calls with individual members on Friday and will this week convene discussions with its trade associations council, chairman’s committee and president’s committee to digest the implications of Brexit.

In an article in The Sunday Times, Mr Javid acknowledged concerns about "unrestricted immigration from the EU".

"I am sympathetic with many of them, and it's vital they are addressed if we're going to tackle the rising tide of anti-politics, anti-business sentiment.

"But tightening our borders cannot mean barring the door.

"For centuries, foreign businesses, foreign investors and skilled foreign workers have come to the UK and helped build the world-beating economy we have today.

"That outward-looking attitude must continue."

During an interview on the BBC's Andrew Marr Show, Mr Javid repeatedly refused to say whether he stood by his forecasts during the referendum campaign that Britain would plunge into recession if it left the EU.

The Business Secretary is already under intense pressure over efforts to rescue the UK’s steel industry following criticism of his handling of the crisis.

Sky News revealed on Saturday that a number of bidders are expected to walk away from the auction of Tata Steel's UK operations, partly as a consequence of the referendum result.

Smoke In Cabin Forces Heathrow Flight Evacuation

Passengers on an American Airlines flight were forced to use an emergency slide to evacuate the plane at Heathrow Airport after smoke was seen in the cabin.

Footage showed several passengers, including children, sliding to the runway at Terminal 3.

Ross Hiscock, who was on another flight, said he saw smoke coming from the aircraft when the doors were opened.

"I wondered if it was normal, whether it was just exhaust fumes," he said.

"Then the door opened on the right side of the aircraft and crews deployed slides from the rear and the middle of the plane.

"Next we wondered whether it was a drill, but then we saw they were real passengers. I saw at least one carrying a child.

"It all happened in a matter of seconds. Everyone seemed to be okay."

American Airlines said about 25 people had used the slides to leave the plane, while the rest of the passengers and crew had exited using the jet bridge.

Heathrow said the "technical issue" had been resolved.

Fallujah 'Fully Liberated' From Islamic State

The Iraqi city of Fallujah has been "fully liberated" after more than two years in the hands of Islamic State.

Lieutenant General Abdul-Wahad al Saadi made the announcement on Sunday after his troops entered the northwestern al Julan neighbourhood, the last area under IS control.

He said the campaign, which began in May, "is done and the city fully liberated".

Police Probe Post-Brexit Attacks On Poles

Immigrants are being told to go home and sent hate mail as evidence mounts that post-Brexit racism has hit the streets of the UK.

Former Conservative chairwoman Baroness Warsi told Sky News that race hate crime organisations had reported some "disturbing early results".

And she blamed the "divisive and xenophobic" leave campaigning during the EU referendum.

Police are investigating a racist attack on a Polish community building in London and hate notes posted through the doors of Polish residents in Cambridgeshire.

There were also scores of accounts of post-Brexit racism being posted on social media.

The Polish Social and Cultural Association in Hammersmith

One woman tweeted how her daughter saw a Muslim woman surrounded by a gang of men in Birmingham telling her to "get out, we voted leave".

Speaking to Sky's Dermot Murnaghan, Lady Warsi said she wanted leave campaigners "to come out and say that the campaigning was divisive and was xenophobic and give a commitment that future campaigning and the way that they intend to run this country will be united, will make people from all backgrounds feel like they belong".

She added: "I've spent most of the weekend talking to organisations, individuals and activists who work in the area of race hate crime, who monitor hate crime, and they have shown some really disturbing early results from people being stopped in the street and saying look, we voted Leave, it's time for you to leave.

Baroness Warsi attacks 'xenophobic' campaign

"And they are saying this to individuals and families who have been here for three, four, five generations. The atmosphere on the street is not good."

A Metropolitan Police spokesman confirmed there had been "racially motivated" graffiti sprayed on the doors of the Polish Social and Cultural Association in Hammersmith, west London, on Sunday morning.

While Cambridgeshire Police were investigating laminated cards being posted through doors in Huntingdon carrying the message: "Leave the EU - no more Polish vermin."

During campaigning Nigel Farage was roundly lambasted for his "Breaking Point" poster showing a snaking queue of refugees in Europe, saying the UK needed to take control of its borders.

It prompted Lady Warsi to announce her support for the remain campaign having previously backed leave.