Liam Fox launches Brexit trade crusade confirming informal talks already under way with 12 countries across the world Britain has already begun informal trade negotiations with 12 countries across the world, Liam Fox reveals as he says Brexit is “key to British prosperity”. Writing in The Telegraph, the International Trade Secretary says that Britain is conducting “trade audits” in order to prepare deals that can be announced as soon as the UK quits the European Union in 2019. It is understood that ministers and officials are already in talks with countries including China, India, Australia and South Korea as well as Middle Eastern nations such as Saudi Arabia and Oman. – Daily Telegraph Liam Fox: Britain is embracing the brave new world of free trade When Britain voted to leave the European Union, it was not a symptom of insularity, nor a call for isolation or protectionism. Rather, it represented a desire to return to our roots as a global nation with global influence, a small island with a mighty economy, selling our goods from Los Angeles to Lahore and all points in between… While we remain members we will fulfil our current commitment to push forward trade deals with Japan and Canada, and support international agreements on services and environmental goods. But when we leave, we will want to develop new arrangements with countries such as Australia, New Zealand and India… Since joining the EU, trade as a percentage of GDP has stagnated in the UK. That is why it is time for Britain to get out into the world and rediscover its role as a great, global, trading nation. – Liam Fox MP in the Daily Telegraph Direct rail freight service from China arrives in London – BBC Supreme Court sets next Tuesday as date for Article 50 judgment The government will learn next Tuesday whether it has won its legal battle to get Brexit under way without the need for a vote by MPs. The Supreme Court’s judgement follows an appeal against the High Court’s rejection of ministers’ arguments. Theresa May says the government already has powers to invoke Article 50 of the Lisbon Treaty – starting Brexit talks – by the end of March. But campaigners say Parliament must be consulted before she does so. Labour has already said it will not vote against the government over invoking Article 50. – BBC Theresa May set for parliamentary “headache” over Article 50 – Beth Rigby for Sky News As May rules out the Single Market, Continuity Remain dream of reversing Article 50 – Mark Wallace for ConservativeHome Donald Tusk praises May for “Churchillian” vision as Europe talks tough on Brexit… In a sign that the Prime Minister’s efforts to clear the air had registered in Brussels, Donald Tusk said that Mrs May’s sentiment had been appreciated… “We took note of Prime Minister May’s warm, balanced words on European integration which were much closer to the narrative of Winston Churchill than of the American President-elect Trump,” he said… Jean-Claude Juncker, the European Commission president, said the EU was “not in a hostile mood” towards Britain, but predicted a “very, very, very difficult” negotiation with Britain as a third country outside Europe… Angela Merkel, the German chancellor, welcomed Mrs May’s clarity and acceptance that that the EU would not compromise over Free Movement, but warned that there “cannot be any cherry picking by Britain in Brexit negotiations.”… Even so, there were signs from other quarters of Europe that the member states may prove more flexible than the European institutions. – Daily Telegraph EU’s ‘not hostile,’ Jean-Claude Juncker tells May – Politico European leaders hail parts of Theresa May’s Brexit speech as Italy’s finance minister calls for change – The Sun Agree to £60bn bill before we talk about trade, EU tells May – The Times (£) Brussels think-tank warns there is ‘no easy way’ for EU to replace Britain’s £8.5bn a year contributions – The Sun Brits back PM’s Brexit plan but are dubious of success, poll says – PoliticsHome Daniel Hannan: May’s Brexit vision is Churchill’s vision of Britain and Europe – Daniel Hannan MEP for ConservativeHome Theresa May has taken control – this is a Brexit plan the EU can’t stop – James Forsyth for The Spectator Theresa May’s blurred Brexit lines – Tom McTague for Politico We can’t afford a bitter Euro-divorce – Professor Emily Jones for Reaction The EU should see sense over Brexit – Daily Telegraph editorial …while Downing Street rejects claims Boris Johnson compared the French President to a Nazi Mr Johnson had been responding to comments that Mr Hollande would not be prepared to give the UK a better deal outside the single market than it had in it. He said: “If Monsieur Hollande wants to administer punishment beatings to anybody who chooses to escape, rather in the manner of some World War 2 movie, then I don’t think that that is the way forward and I don’t think it’s in the interests of our friends and partners.”… European Parliament Brexit negotiator Guy Verhofstadt tweeted: “Yet more abhorrent & deeply unhelpful comments from Boris Johnson which PM May should condemn.” But a spokeswoman for Mrs May condemned the reports of Mr Johnson’s comments as “hyped up”. She said: “He was making a point. He was in no way suggesting that anyone was a Nazi… There is not a Government policy of not mentioning the war.” – Sky News We coped with World War Two, we can cope with Brexit, says David Davis – The i PM to tell Davos to listen to those left behind by globalisation… Theresa May will warn world leaders in Davos today that they must listen to those who feel left behind by globalisation. The Prime Minister will use her first appearance at the exclusive gathering to say that Brexit was a response to people feeling dispossessed… A source told Sky News the message “won’t be combative” but said: “The PM is reflecting themes she’s spoken about before – that change has to come in order to benefit who have been left behind.”… Her speech at Davos will be aimed at drumming up trade and investment, as she plans to tell world leaders that Britain is set to “rediscover” its role as a “great, global trading nation” outside Europe. – Sky News …as she prepares to meet top bankers from Goldman Sachs and JP Morgan… May will meet chief executives from banks such as Goldman Sachs and JP Morgan a day after two other bosses – HSBC’s Stuart Gulliver and UBS investment chief Andrea Orcel – confirmed that between them they would shift up to 2,000 jobs out of London when Britain leaves the EU… However, City experts do not believe there will be an exodus of banking jobs from London, despite the HSBC and UBS plans. “I just think it’s crying wolf,” said Ian Gordon, head of banks research at Investec. “We won’t see anything like this amount of sabre-rattling at other banks.” “It’s all positioning, it’s all playing to the gallery,” added Simon French, chief economist at Panmure Gordon. French said other banks are unlikely to make similar announcements – partly because they risk prompting staff to switch to rivals that guarantee permanent jobs in London. – City A.M. Toyota, HSBC and UBS warn of Brexit damage – FT (£) Lagarde claims UK will face Brexit “pain” – BBC Wetherspoons boss accuses economists of ‘catastrophically poor judgment’ over Brexit predictions – The Independent In the high temple of rationality, many Davos delegates still don’t appear to get it – Ben Wright for the Daily Telegraph (£) …while UK unemployment falls to 1.6 million UK unemployment fell by 52,000 to 1.6 million in the three months to November – the lowest level for more than a decade – official figures showed. The jobless rate was steady at an 11-year low of 4.8%, the Office for National Statistics said. The employment rate was steady at a record 74.5%, while wage growth picked up pace. Average weekly earnings excluding bonuses increased by 2.7% compared with a year earlier… The number of full-time workers was 209,000 higher at 23.25 million people, while the total of part-time employees jumped 86,000 to 8.55 million. – BBC Theresa May: We’ll make Brexit work for workers Those 12 objectives are just part of my Plan for Britain. Because last summer’s referendum was not just a vote to leave the European Union. It was a vote to change the way our whole country works… The plan I have set out this week will build that better Britain. We will make Britain stronger by taking back control of our own laws… We will make Britain fairer for ordinary working people by getting control of the numbers coming here from the European Union… By leaving the single market and ending freedom of movement, this process will be managed properly… Not only will the Government protect the rights of workers’. We will build on them. And we will guarantee the rights of EU citizens living here, and the rights of British nationals in other member states, as soon as we can… We will also use this moment of national change to build a truly Global Britain, reaching out to old friends and new allies alike. – Prime Minister Theresa May for The Sun Theresa May will use Brexit to make Britain work for ordinary people again – The Sun Theresa May’s Brexit plan has potentially disastrous gaps in it – Sir Keir Starmer MP for The Guardian Scottish voters don’t want hard Brexit and they have a say in the future too – Angus Robertson MP for the New Statesman Staggers blog PMQs showed why Brexit is killing Labour – Michael Deacon for the Daily Telegraph (£) Theresa May is broadening the Brexit coalition – Douglas Carswell’s blog May takes back control of the Brexit agenda – Peter Bingle for Comment Central Guy Verhofstadt: We’re not out to punish Britain, but you need to shed your illusions The EU will work in a frank and open manner to help deliver a Brexit that is least harmful for all concerned, but we must be honest with each other too: the days of UK cherry-picking and a Europe à la carte are over… No one in Europe wants to “punish” either Britain or the British. I have never heard any MEP or European leader call for this, in private or public. But it is an illusion to suggest that the UK will be permitted to leave the EU but then be free to opt back into the best parts of the European project, for instance by asking for zero tariffs from the single market without accepting the obligations that come with it. – Guy Verhofstadt MEP for The Guardian Simon Jenkins: This is Brexit poker – and Theresa May was right to up the stakes In setting out the terms of engagement, May had no option but to hang tough. That is what her EU opposite numbers have been doing for six months of virtual denial of Brexit. Much of Brussels still does not believe it will happen, while Europe’s elected politicians at least sense that anti-EU sentiment is growing in their backyards… That is why the prime minister clearly felt the need to lay the revolver of “hard Brexit” on the table, to tell the Brexit deniers that Britain would be just fine on the deep blue sea. She threatened them with a trade war and fiscal blitzkrieg. She threatened an offshore Singapore, a Grand Cayman, a 51st state of America, a thousand City traders unleashed on Europe’s banks if “passporting” is denied… Behind the poker table bluff is realism. – Simon Jenkins for The Guardian The right way to do Brexit: positive – but tough – The Spectator editorial Sebastian Payne: Theresa May converts Remainers into reluctant Brexiters In the referendum debate, I was a reluctant Remainer. I have dithered ever since on whether Brexit will be a total disaster or manageable. Mrs May has left open the option of a liberal Brexit, which means those of us who were on the fence last year must become reluctant Brexiters. After all, Brexit is steamrollering ahead. There is no plausible way it will be stopped. The conversation must move on. – Sebastian Payne in the FT (£) If Remoaners don’t stop their wild hyperbole (and vilification) they will end up damaging Britain – Stephen Glover for the Daily Mail Matthew Goodwin: Remainers are wrong: Britons do want a hard Brexit, and delivering one would create a new Conservative ascendency Most Remainers have still not grasped that the vote for Brexit was not simply about economic self-interest, which is why they cling desperately to warnings of financial doom. If the vote had merely been about economics and if such warnings were effective, then Britain would still be in the EU. Not only does this conveniently ignore the economic reality across the channel, which is a toxic cocktail of stagnant growth, unemployment, debt and widening disparities, but it also mistakenly assumes that voters will respond to any future economic problems in Britain by rushing back to the liberal consensus on EU membership… As her speech revealed, Prime Minister May is more firmly in tune with how the political currents are changing. This goes a long way to explaining her popularity and why, were an election held tomorrow, Labour would likely poll its lowest share of the vote since 1918 while May would be returned with a commanding majority. – Matthew Goodwin for the Daily Telegraph (£) James Kirkup: Like a bull in a field full of heifers, Boris Johnson has got his mojo back No one who read or heard The Speech this week could miss his influence. The Theresa May who spoke this week displayed a rollicking optimism that bordered on the rambunctious. That’s not her style. It’s Boris Johnson’s… He’s got his mojo back. You can see the results in the headlines today. Boris Johnson vs Francois Hollande over the Second World War: as ever, the Foreign Secretary finds the image and idea that catches attention and draws the eye. Unwise? Undiplomatic? Unwelcome in No 10? Quite possibly all three. But he’ll survive, galloping on headlong into the future with all the vim, vigour and grace of a bull entering a field full of heifers. – James Kirkup for the Daily Telegraph (£) The Times: Europe’s Challenge Theresa May reassured the world on Tuesday that even as Britain bows out of European integration, it does not want to see the EU unravel. She was right to do so… A wholesale disintegration of the union would be a victory for Vladimir Putin, generating opportunities for him to pursue his corrosive brand of international adventurism at the expense of a rules-based global order. Across the continent, Eurosceptic and anti-immigrant parties are on the march, including in countries that have elections this year… The risk now is that if moderate European leaders do not wake up to the concerns of the voters driving this trend, more extreme elements will… The solution is clear enough. Free movement of people, as a guiding principle of the union, is not politically sustainable. – The Times (£) editorial Tom Harris: Has there been any proper opposition to Theresa May’s Brexit speech? Has there heck Oppositions’ job is to oppose. But occasionally, at times of great upheaval and national crisis, they are called upon to pull in the same direction as the government. They may be sceptical about the chances of May leading successful negotiations along the lines that she set out yesterday. There may even be justification for such scepticism. But this is the road on which we, as a country, are now setting off. After the most divisive few years of political life this country has seen in two generations, is it too much to ask that now, at this crucial juncture, we unite behind the team captain? – Tom Harris for the Daily Telegraph (£) Brexit comment in brief Britain must be tough but empathetic toward the EU to secure a good Brexit for the City of London – Jeremy Browne for City A.M. Yes, Brexit will bring new problems for Universities. But it will also bring new opportunities – Dr Simon Clarke for ConservativeHome You can’t build a ‘Global Britain’ on controlling immigration – Ian Birrell for CapX The Brexit I love versus the Brexit I fear: A British renaissance or a missed opportunity – Graeme Leach for City A.M. How the capital can get the best out of Brexit – Evening Standard editorial EU deals with other countries offer clues before trade talks – Oliver Wright and Henry Zeffman for The Times (£) If UK didn’t leave the single market, what was the point of Brexit? – Ryan Bourne for The Hill The iron legacy: how Margaret Thatcher paved the way for Brexit – John Campbell for the FT (£) Theresa May’s Twelve Steps for EU recovery – Charles Moore for The Spectator Coffee House Trump says Europe is in trouble. He has a point. – Sebastian Mallaby for the Washington Post Brexit news in brief UKIP leader Paul Nuttall set to contest the Stoke Central by-election, say reports – Daily Telegraph Business rates are biggest reason for retailers to shun the UK – Daily Telegraph Hard Brexit is ‘wise,’ Norway says – Politico The most likely Brexit deal struck by the UK is the so-called “Canada-plus” option according to Morgan Stanley – Business Insider UK CPS calls for Theresa May to review aid spending after Brexit and claw back the £1.4bn sent to the EU – Daily Telegraph Brexit Secretary David Davis won £1,000 betting Britain would vote Leave – Evening Standard And finally… Wife Swap set for Brexit special on Channel 4 Channel 4’s reality show Wife Swap is returning for a one-off special with a new political slant. The show, which sees matriarchs of families trade places for a week, is returning for the first time in eight years with a Brexit special. The one-off episode is set to feature “couples from either side of the Brexit debate” as families with different views are forced to see things from the other perspective. – Evening Standard