Lib Dem parliamentary party in turmoil as three (of the nine) MPs defy Farron over Brexit vote… Liberal Democrat leader Tim Farron is facing his own revolt over Brexit, after MPs criticised his fight against the Article 50 exit notice. Rebels say they cannot face their voters if they have given the impression they are failing to “accept the result of the referendum”… In the end, three of the other eight Lib Dem MPs – Norman Lamb (North Norfolk), Greg Mulholland (Leeds North West) and John Pugh (Southport) – all abstained. Mr Mulholland told The Independent: “I am not prepared to give the impression that I do not accept the result of the referendum, or that I am seeking to block it.”… Mr Pugh said the Lib Dems must not give people the impression “we are sore losers” or that the party wanted to “stop the negotiation process itself from happening”… Mr Lamb made similar comments to his local paper, saying: “I don’t feel comfortable with having voted for the referendum in the first place – as we all did – and to then vote to block the triggering of the Article.” – The Independent …as Ukip vows to target the six MPs who defied their constituents and voted against triggering Article 50 Ukip has vowed to target the seats of MPs who voted against triggering Article 50 last night, despite serving constituencies who voted Leave the European Union in June… Ukip sources have said they will pour all their efforts into winning over the MPs’ six English and Welsh constituencies in the next general election. Gerard Batten, Ukip’s Brexit spokesman, told the Telegraph: “These MPS have just written their own political epitaphs. Their action is a clear invitation to UKIP to remove them at the earliest possible opportunity”. – Daily Telegraph MPs with Leave constituencies who voted against Article 50 – Guido Fawkes I didn’t endorse May’s Brexit timetable – but I’m no ‘enemy of the people’ – David Lammy MP for The Guardian McDonald’s is set to move its international headquarters to Britain McDonald’s is to move its international headquarters from Luxembourg to Britain in a boost to the country’s status as a centre for trading after Brexit. The American fast-food chain will use its new base to collect royalties from most of its 22,000 hamburger restaurants outside the United States, paying UK tax on profits. McDonald’s makes two thirds of its money outside America and, assuming that the company pays the top rate of corporation tax, the arrangement is likely to generate tens of millions of pounds a year for the Treasury… The chain said yesterday that its reasons for relocating “were sound before Brexit and remain so beyond it — these strengths are unlikely to change as the UK negotiates leaving the European Union”. – The Times (£) McDonald’s move will test the type of post-Brexit economy Theresa May wants – Kamal Ahmed for the BBC Feeling the heat from Brussels over tax? Then move to London – Simon Bowers for The Guardian Conservatives win Sleaford by-election with Labour slipping to fourth place Conservative candidate Caroline Johnson has won the Sleaford and North Hykeham by-election, which saw Labour come in fourth behind UKIP and the Liberal Democrats… Consultant paediatrician Dr Johnson said her election would boost Theresa May’s support on Brexit… She said: “I look forward to strengthening the government’s majority in Parliament so Theresa May, our prime minister, can get on with the job of triggering Article 50, leaving the European Union and building a country and economy that works for everyone.”… Dr Johnson won with a 13,144 majority after securing 53.51% of the votes [17,570], while UKIP came in second with 13.48% [4,426]. Liberal Democrat candidate Ross Pepper won 3,606 votes [11%] to clinch third, narrowly ahead of Labour’s Jim Clarke who was fourth with 3,363 votes [10%]. – BBC Just get on with it, Mrs May! What Sleaford’s voters told me about Brexit – Joshua Neicho for the Daily Telegraph Supreme Court challenge on Article 50 comes to a close The supreme court has been urged to throw out a momentous legal challenge to the government’s powers to trigger Brexit, with Downing Street lawyers claiming parliament’s support for exiting the EU was conclusively demonstrated this week. In closing remarks at the end of a four-day hearing, James Eadie QC, appearing for the government, said a House of Commons vote held on Wednesday that backed leaving the bloc by 448 to 75 was “legally relevant” to the complex case… Closing the hearing, the president of the supreme court, Lord Neuberger, said: “We are not being asked to overturn the result of the EU referendum. The ultimate question in this case concerns the process by which that result can lawfully be brought into effect.”… The court is expected to deliver its judgement before the end of January. – The Guardian Brexit battle in Supreme Court: Key points – Dominic Casciani for the BBC The Supreme Court and British values have had a good week – Mark Fox for Reaction Wales voted for Brexit – but not for Welsh people to suffer – Mick Antoniw for The Guardian Wales’ QC, Mick Antoniw, was politely savaged by the Supreme Court over Brexit and Article 50 – David James for WalesOnline What is Article 50? The only explanation you need to read – Daily Telegraph >Yesterday on BrexitCentral: Hugh Bennett explains why the Supreme Court should acknowledge the result of the amended Commons motion on Article 50 EU must keep UK as close as possible after Brexit, says Merkel’s Deputy… The European Union should aim to keep as close a relationship with Britain as possible after Brexit, German Economy Minister Sigmar Gabriel said on Thursday. Germany, the EU’s largest economy, is concerned about the likely financial costs of Brexit but has also stressed the need for a unified stance among member states in the divorce talks, warning Britain against trying to “cherry-pick” the bits of EU membership it would like to preserve. “My personal point of view is: We should do everything, as far as this is politically justifiable, to keep the Britons as close as possible to Europe,” Gabriel told foreign reporters, without elaborating. – Reuters Merkel’s deputy says Brexit taking far too long in nudge to May – Bloomberg …as Theresa May plays down suggestions that German Chancellor Angela Merkel holds the key to Brexit As leader of the European Union’s most populous and economically powerful country, Mrs Merkel is widely viewed as the strongest influence on the EU’s approach to Brexit and her comments are scrutinised closely for clues to her attitude. Brexiteers argue that she will want a liberal trade regime to preserve one of Germany’s largest export markets for luxury products like cars, while others warn that Berlin’s priority will be to send a signal to other EU states that quitting the 28-nation bloc has consequences… Speaking to the Financial Times, Mrs May insisted it was important to deal with all 27 of the other EU states and not simply focus on Germany. – The Independent Theresa May on decision-making, Brexit and doing the job her way – Theresa May interviewed in the FT (£) Theresa May warns delay in launching Brexit will make people ‘lose faith in politicians’ – Daily Mail Britain pushes covert diplomacy ahead of Brexit talks Britain is wooing European politicians behind the scenes to win them over ahead of delicate Brexit negotiations next year. Senior members of the Conservative party have stepped up contact with members of the European People’s Party, the centre-right bloc in the European Parliament, to discuss the UK’s negotiating position. Greg Hands, trade minister, and Mark Field, vice-chairman, are leading the initiative, along with senior staff from Conservative party headquarters. They are focusing in particular on Germany’s Christian Democrats, the Spanish People’s Party and the French Republicans. Theresa May, the UK prime minister, is also hoping that her personal friendship with Bernard Cazeneuve, the new French prime minister who was her counterpart when she was home secretary, will help the charm offensive. – FT (£) Key Brexit quotes from non-UK figures – BBC Tory MPs suggest firms draw up list for bonfire of EU laws after Brexit Senior Tory MPs have begun pushing for a list of regulations affecting companies to tear up after Brexit, even though Theresa May has promised to carry over all EU law into British law. Two former cabinet ministers, John Whittingdale and Michael Gove, suggested to the CBI business group on Wednesday that companies should start drawing up a list of regulations they want to see abolished or reformed. The two leave campaigners raised the prospect of EU laws being scrapped after the passage of May’s great repeal bill carrying over existing legislation, as they cross-examined witnesses at a session of the Commons committee on exiting the EU. – The Guardian UK food prices will rise without EU workers, claim trade groups Food prices will rise unless the government ensures EU citizens can work in the UK after Brexit, according to industry groups representing the major supermarkets and food manufacturers, including the owner of Marmite. The open letter to the government is signed by 30 food and drink industry bodies… Any points-based permit system for immigrants should place the food and drink supply chain on a par with financial services and the automotive sector, the industry leaders say. “All options should be explored, including a workable points-based system for shortage occupations, sector-based and seasonal/guest worker schemes and effective transitionary arrangements. If it is not, the UK will face less food choice and higher food prices.” – The Guardian EU workers in food and drink industry need assurance over Brexit – Letter in The Guardian Seasonal Agricultural Permit Scheme needed to alleviate labour pressure post-Brexit, farmers say – FarmingUK Yvette Cooper launches committee probe on immigration with pledge to hold town hall meetings across Britain – LabourList David Cameron warns the existence of European single currency is hanging in the balance David Cameron warned on Thursday evening that the existence of the European single currency was hanging in the balance, telling an audience in the United States: “I wonder how long it can last… I see more trouble ahead,” said Mr Cameron, speaking to a gathering of students at DePauw University in Indiana. “It is not working as it was intended. Some countries have seen decades of lost growth. Those countries have a single currency but they don’t have a single fiscal system, a fiscal tax system. It creates bigger differences… The greatest question is clearly this: does the Brexit vote and the election of your president mean an end to globalisation,” he said. “I would say very clearly: no.” – Daily Telegraph Donald Trump and Brexit mean turbulent year ahead for Europe, says ECB chief Mario Draghi – The Independent ECB keeps record low rates but tapers bond purchase rate to €60bn a month – Daily Telegraph Europe’s comfort blanket is being pulled away – Ambrose Evans-Pritchard for the Daily Telegraph Row over Saudi Arabia comments blows open rift between Theresa May and Boris Johnson Ministerial allies condemned Downing Street’s treatment of the Foreign Secretary, calling it a “ridiculous attempt to belittle a member of the Cabinet”. They pointed out that Mr Johnson was the most senior Leave campaigner in the Government and that Mrs May would rely on him to “sell” her Brexit deal to the public after she reaches an agreement with Brussels… Some Eurosceptics are concerned that only one of the Cabinet’s “Three Brexiteers”, David Davis, the Brexit Secretary, appears to have the ear of the Prime Minister, while Mr Johnson and Liam Fox, the Trade Secretary, both give the appearance of being more detached from the inner circle. – Daily Telegraph Johnson unrepentant over Saudi ‘puppeteers’ attack – The Times (£) Is Boris Johnson in bother? – Laura Kuenssberg for the BBC Does diplomacy matter any more? – Andrew Lilico for CapX Boris Johnson doesn’t deserve our mockery for calling out Saudi Arabia, he deserves our admiration – Sean O’Grady for The Independent The campaign against Boris as Foreign Secretary is becoming ridiculous – Iain Martin for Reaction Fraser Nelson: Fearless on Europe and free trade – Mrs May’s strategy loses its mystery Her demands are fairly simple: no free movement of people, which probably means no more single market. And no to the European Court of Justice and its various diktats. She’ll then try to keep as much tariff-free trade with Europe as she can wrangle from the negotiations, but no one knows how successful she will be. And that’s it: the Brexit strategy revealed. No more mystery. – Fraser Nelson in the Daily Telegraph (£) General Sir Graeme Lamb: While Europe blusters, Britain’s military will still be a force to be reckoned with after Brexit Ever since Britain took the historic decision to leave the European Union, Brussels has lost no time trying to revive its plans for a European Defence Force. After the Brexit vote Jean-Claude Juncker, the President of the European Commission, spoke of the requirement to establish a European Army with its own command headquarters, which would act independently of the Nato alliance… [T]he reality is that, in Europe, the EU has at best a marginal mandate on defence issues… [N]o matter how hard the EU tries to improve the integration, interoperability and intelligence sharing of member states, it is unlikely ever to be a match for NATO. – General Sir Graeme Lamb, former head of UK Special Forces for the Daily Telegraph Brexit comment in brief The seven moments that lost the referendum for Remain – Tim Shipman for The Spectator How Britain can make the best out of Brexit – Philip Collins for The Times (£) What is the EU negotiating position? – John Redwood’s Diary Britain must look beyond trade deals to turbocharge exports – Ben Digby for City A.M. Listening to the elitist bubble is a risky strategy for investors – Matthew Lynn for the Daily Telegraph (£) The real Mr. Brexit, Oliver Robbins – Charlie Cooper for Politico Eurocrats should make the most of their new golden egg – it could be their last – Douglas Carswell’s blog The EU’s £300m ‘Space Egg’ stinks – Rory Broomfield for CommentCentral Nicola Sturgeon is reacting to a Brexit agenda rather than dictating an independence one – David Clegg for the Daily Record The 11 things we know after the Brexit plan debate – Julia Rampen for the New Statesman Staggers Blog Time to move on from Remoaning and rifts: we’re all Eurosceptics now – Allister Heath for the Daily Telegraph (£) Leavers start to rebuild their campaigning capacity – Mark Wallace for ConservativeHome Is a sector-by-sector Brexit possible? – Professor Christopher Grey for The UK in a Changing Europe Why house prices haven’t fallen since the Brexit vote – The Economist Brexit news in brief EU legal action against UK over VW emissions scandal response – Sky News Brexit does not have to be bad for UK exporters, north-east firm tells MPs – The Guardian Lastminute.com founder Tom Teichman slams ‘Brexit’ doomsayers as he reveals positive outlook for UK startup scene – The Drum Holiday bookings not hit by Brexit as UK sun seekers flock to book next summer’s break – Daily Mail Northern England’s Brexit voters need to be heard, says thinktank – The Guardian The Northern powerhouse plans must include rural Brexit voters, a think tank will today warn – City A.M. Minister hints British Bill of Rights could be pushed back until after Brexit – PoliticsHome Leave MP Kwasi Kwarteng scolds Remoaners Brexit farce: ‘I would be pro-EU if that’s what people wanted!’ – Daily Express Surge in hate crimes stops as Home office figures show a return to pre-Brexit levels – Daily Star Sturgeon snubs May’s offer of a post-Brexit indyref2 – The Scotsman 145 MPs pledge to make UK greenest country in world after Brexit – The Independent