Brexit News for Thursday 9 November

Brexit News for Thursday 9 November
Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team

Brexit trade talks ‘likely’ in December, Irish prime minister says

It is “likely” EU leaders will give the green light for Brexit talks to focus on trade, at their meeting next month, the Irish prime minister has said. Leo Varadkar said this was his own belief rather than a forecast of any European Council decision. He said it would not be possible to settle the question of the border with Northern Ireland until the shape of the future EU-UK relationship emerges. He was speaking in the Dáil (Irish parliament). – BBC News

…as other EU states see Britain failing to meet their Brexit divorce terms…

EU envoys discussed on Wednesday delaying into next year the launch of talks with London on a post-Bbrrexit relationship, raising the risk of businesses shifting out of Britain due to lack of clarity on what will happen after March 2019. A meeting of ambassadors from the other 27 EU states had been due to start discussing how to negotiate a transition that would start when Britain quits the bloc in 17 months. But instead, people familiar with the talks told Reuters, the discussion was dominated by concern that London would fail to meet EU conditions next month for opening future negotiations. – Reuters

  • EU’s threat: Settle the Brexit bill or we’ll force UK firms to relocate – Telegraph (£)
  • For its own sake, the EU must help Theresa May over the Brexit bridge – Telegraph (£)
  • Tories hit back at German ‘wise men’ telling Angela Merkel to stop Brexit – The Sun
  • Brussels braced for fall of Theresa May’s government – Times (£)
  • Brexit is ‘getting dramatic’, says EU – BBC News

European Parliament says Britain’s new offer on EU citizens’ rights is inadequate

The European Parliament has rejected Britain’s brand-new offer on the rights of EU citizens living in the UK after Brexit. The Government yesterday released a technical paper spelling out the details of a two-year grace period for EU nationals to apply for settled status once the UK leaves the bloc so that they can continue their lives in the UK. The Parliament’s cross-party Brexit steering group however today said there were still “major issues” to be resolved while Brexit coordinator Guy Verhofstadt criticised the “inadequate” proposal. – Independent

  • EU is accused of ‘pulling a fast one’ on voting rights for UK citizens left in Europe – The Sun
  • EP outlines its red lines on latest UK citizens’ rights proposals – European Parliament

Davis plays up military symbolism on Brexit diplomacy drive

As Brexit Secretary David Davis takes a diplomatic tour of Europe to press his case in the divorce talks, a military theme has been emerging. On Tuesday, it was Rome, to meet Italian Europe Minister Sandro Gozi and then to visit officials working on Operation Sophia — the European Union mission rescuing migrants in the Mediterranean. Davis’s Brexit department tweeted that a third of those helped were picked up “using U.K. assets.” On Wednesday, it was Warsaw, where Davis visited the Tomb of the Unknown Soldier and met U.K. troops deployed in Poland. – Bloomberg

We want our Brexit cash boost – NHS boss Simon Stevens

The health service should get the cash boost it was promised during the EU referendum, according to the head of the NHS in England. Simon Stevens argued the public would want to see pledges made by cabinet ministers and MPs honoured. – BBC News

Wages to gain momentum in 2018 amid tight labour supply says Bank of England survey…

Wage growth is expected to pick up over the course of 2018, according to new data published today by the Bank of England, with employers still intending to add more workers amid an historically tight labour market. Pay settlements will be between 2.5 per cent and 3.5 per cent higher next year, an increase of half a percentage point compared to this year, according to the Bank’s agents’ summary of business conditions. A separate survey of recruiters published today by the Recruitment and Employment Confederation (REC) painted a similar picture, with growth in starting salaries remaining above normal levels. – City A.M.

…as Square Mile jobs surge boosts pay in financial services

The number of available professional roles in the City continued its surge in October with a 14 per cent year-on-year rise in the number of roles up for grabs and a spike in Square Mile salaries. Buoyant demand for compliance staff in the face of new regulations has been a major driver of the hunt for more staff, according to data from recruitment firm Robert Walters. Financial services are currently adjusting to the broad-ranging Markets in Financial Instruments Directive (Mifid II) as well as work on the Basel Committee on Banking Supervision’s risk reporting requirements. – City A.M.

Wetherspoons boss hits out at the ‘highly misleading’ Brexit rhetoric of Sainsbury’s, Whitbread and Nick Clegg

Outspoken pub chain founder Tim Martin has lambasted senior company directors and major trade bodies for “factually incorrect and highly misleading” statements about the potential impact of Brexit on the UK economy. He argued that under World Trade Organisation rules the UK would be able to scrap EU tariffs on food imports from nations outside the bloc and within it too. Wetherspoon has calculated this approach would reduce the average cost of a meal by about 3.5p and the cost of a drink by 0.5p. – Telegraph

JP Morgan greets increased clarity on Brexit after Jamie Dimon meets Theresa May and Philip Hammond

JP Morgan greeted increased clarity on the government’s aims on Brexit after its boss Jamie Dimon today met Prime Minister Theresa May and chancellor Philip Hammond. Dimon, who has previously said the firm would move as many as 4,000 jobs from the City, was accompanied by Daniel Pinto, chief executive of the corporate and investment bank. – City A.M.

Middle East investment is pouring into London’s skyline

London remains the top city destination for Middle Eastern property investment despite Brexit-related uncertainty, according to a report. Middle Eastern investors spent £1.28 billion ($1.68 billion) on commercial London property between Q2 2016 and Q2 2017, according to CBRE’s Middle East “In and Out 2017” report. New York ranked second at £625 million ($820 million), while Washington D.C. ranked third with £357 million ($469 million) of investment. – Business Insider

Theresa May loses second minister as Brexit-backing Priti Patel resigns

Theresa May has lost her second cabinet minister in a week, after Priti Patel, the international development secretary, was forced to resign over undisclosed meetings with a lobbyist and Israeli politicians. Ms Patel’s departure adds to the instability around the British government, which is also struggling with sexual harassment allegations, cabinet splits on Brexit and a lack of firm leadership from Downing Street. – FT (£)

  • Penny Mordaunt favourite to replace Priti Patel to keep Brexit balance – The Sun
  • Conservatives give the Prime Minister until Christmas to turn her administration around following second Cabinet departure – Independent

Brexit ‘an opportunity’ to expand EU into the Balkans, says Bulgaria’s PM

Brexit is a chance for the European Union to expand and welcome Western Balkan countries as members of the bloc, the prime minister of Bulgaria said today at European Commission headquarters in Brussels. Boyko Borissov said the Brexit negotiations were tough but added: “This really is an opportunity for us to bring the Western Balkan peninsula on board as the UK withdraws from the EU.” – Telegraph (£)

Daniel Hannan: Coercion might be working in Catalonia, but it won’t work here

It looks as if I had the Catalans completely wrong. I had assumed that the hard line taken by Madrid would boost support for independence. If I had been a previously undecided Catalan voter, I would have reacted with fury to the police brutality that accompanied the referendum. My local pride, however slight before, would have been outraged by the way in which my democratic rights were mocked. I’d have felt personally affronted by the arrest of Catalonia’s elected leaders – who, if reports are accurate, were stripped naked and locked in a police van with the Spanish national anthem blaring at full volume. Even if I had not voted for their parties, I could hardly fail to have felt the insult to all Catalans. – Daniel Hannan MEP for ConservativeHome

Simon Nixon: Britain must seize the opportunities Brexit offers — or remain in the EU

Legatum is right to note that the UK’s post-Brexit success hinges on persuading the EU and other leading trading partners such as the United States to agree to an entirely new type of trade deal based upon mutual recognition of regulatory standards, particularly in services. It is also right that the window of opportunity for such deals — if such a window exists at all — won’t stay open for long. – Simon Nixon for the Times (£)

> Shanker Singham on BrexitCentral: The world needs Britain to have its own trade policy and not align too closely to the EU’s regulatory system

Manoj Ladwa: As Brexit looms, it’s time for Britain to forge a new, equal relationship with India

The UK has every interest in establishing an English-speaking bloc straddling every continent of the world, with common or similar legal and other systems, a combined GDP of $10.4 trillion or 14 per cent of global GDP and a population of 2.4 billion or a third of the world. Given the UK’s gaping trade deficit and what it stands to gain, the UK must do a lot of the heavy lifting. And though the UK can use its considerable soft power and prestige to seek to reform and reinvigorate the Commonwealth, it should also use this to enter a new phase of international relations, confronting its past, and presenting a transformational vision of future multilateral ties that partners like India will find satisfactory—equivalent to the exclusive G7, G20, ASEAN or APEC. – Maoj Ladwa for Prospect Magazine

Thom Brooks: Bringing Labour into a grand coalition team would give May new options in Brexit talks

The risks for Mrs May are two-fold. The first is that the Brexit delivered by a coalition might depart significantly from what she set out at the start. This would be a welcome change because it could bring more flexibility into the negotiations and help make progress more quickly. The second is this brave act of statesmanship putting the country ahead of party may not be available for much longer. Every prime minister thinks about his or her legacy. Now is the time for Mrs May to do some serious reflection about to turn things around fast. Time won’t stand still for her to choose a new direction or the keep with the current bus crash in painfully slow motion. – Thom Brooks for the Times (£)

Charles Powell: Margaret Thatcher had failure and success in Europe—but she was right to stand up for Britain

Margaret Thatcher is the only one of the prime ministers on the list [for this lecture series] not to be alive and able to give her own up-to-date views on Europe in her own time and subsequently, so we have to rely on the historical record which is fortunately abundant. I worked directly for her from 1983-91 and remained in touch with her thereafter. During her time as prime minister from 1983 onward I attended every European meeting, and every bilateral meeting with individual European leaders that she held. That gives me a claim to insight into her views, though for the period before that I have to rely mainly on what she recounted to me herself and what she and others have written. It is risky to speculate on what her view would be of Brexit. But it’s fair to cite such evidence as is available from her record without actually attributing a view to her. I shall come on to that. – Charles Powell for Prospect Magazine

  • How British R&D can change the world – Jonathan Dupont for CapX
  • Rebalancing the economy will make Britain less dynamic – Diego Zuluaga for CapX
  • The elite ‘would love another referendum’ says Kate Hoey – Get Britain Out
  • France urges Berlin to seize ‘historic opportunity’ on Europe – Reuters
  • German advisers want tighter ECB policy, longer Brexit talks – Reuters
  • Tory MSP Adam Tomkins urges Brexit bill compromise – BBC News
  • Brexit talk breakthrough would bestow biggest boost on sterling – Reuters
  • Canary Islands beg for Brexit deal to keep UK tourists on side as economy threatened – Express