Sign up here to receive the daily news briefing every morning with exclusive insight from the BrexitCentral team David Davis says Brexit talks are ‘reaching the limits of what we can achieve’ without moving on to trade… A UK-EU free trade deal cannot be discussed until the EU deems sufficient progress has been made on other matters and gives the green light. In his statement to MPs, Mr Davis said the UK was “reaching the limits of what we can achieve” in Brexit talks without moving on to talk about trade. He urged EU leaders to give counterpart Michel Barnier the green light at this week’s EU summit to begin trade talks. – BBC …as he accuses the EU of trying to drag out the talks to get more money… David Davis, the Brexit secretary, has accused the EU of trying to drag out the talks to try to get more money out of the UK, as he urged other countries to allow negotiations to move on to discussions about trade. The Brexit secretary said the UK was ready and prepared to start discussions on the future relationship, as a deal must be struck before exit day in March 2019. But he suggested the EU was deliberately refusing to move on to talk about trade and transition in order to get the UK to concede it will pay more money as part of its financial settlement. “They are using time pressure to get more money out of us.- Guardian Michel Barnier says he’s not delaying talks – The Times (£) > WATCH on BrexitCentral’s YouTube channel: David Davis statement on the fifth round of negotiations …while the European Parliament President slams Theresa May’s €20bn offer as ‘peanuts’ European Parliament President Antonio Tajani dismissed British Prime Minister Theresa May’s €20 billion divorce bill offer as “peanuts” Tuesday. In a combative interview with BBC Newsnight, Tajani accused the British government of not being realistic in Brexit negotiations. “I’m not against the U.K. But please, help us to help you,” he said. “Twenty billion is peanuts. It’s peanuts, 20 billions. The problem is 50, 60, this is the real situation.” He said: “We need our money back, as Mrs. Thatcher said 30 years, 40 years ago.” – Politico Boris Johnson holding up talks by blocking ‘divorce bill’ offer, suggests Merkel ally On the Today programme Michael Fuchs, vice chair of the CDU/CSU group in the German parliament and hence an ally of Angela Merkel, the German chancellor, suggested that Johnson was to blame for the lack of progress on the Brexit talks. He told the programme: “We have to have a fair deal. I think Theresa May has to come up with fair proposals. At the moment it is not really that much. But I know there are internal problems. Whatever she’s offering, Boris Johnson is saying it’s too much … His influence seems to be pretty strong. Otherwise she would come up with other proposals, I guess. The problem is she has internal trouble with the Tories”. – Guardian Amber Rudd says it is ‘unthinkable’ that there will not be a UK-EU deal at least on security… It is “unthinkable” that the UK will walk away from talks with Brussels without a deal at least covering security co-operation, Home Secretary Amber Rudd has said…But Ms Rudd insisted there would be agreement on the vital issue of security co-operation, stressing that it was in the interests of both the UK and the remaining 27 EU members to reach a deal. “It is so much in their interest as well as in ours; in their communities’, in their families’, in their tourists’ interests to have something in place. We will make sure there is something between them and us to maintain our security.” – PA Army could be deployed to protect the border if Britain leaves the EU without a Brexit deal – Telegraph Amber Rudd says that a no-deal Brexit is ‘unthinkable’. She’s very wrong – Fraser Nelson for The Spectator …as she reveals the UK will begin registering EU nationals for ‘settled status’ by the end of 2018 The registration of 3 million EU nationals in Britain will begin by the end of next year with the “default position” of the Home Office to accept applications, the home secretary has told MPs. Amber Rudd said 1,200 extra staff were to be recruited by next April to provide an “easy access” registration process she promised would be “completely different” from the troubled permanent residency application system that has undermined confidence in the Home Office. She told MPs on Tuesday that the Treasury had so far made £50m available to fund the preparation costs this financial year for the new registration system. – Guardian Treasury rejects OECD’s call for second Brexit referendum The Treasury has flatly rejected calls for a second EU referendum after the west’s leading economic thinktank, the Organisation for Economic Cooperation and Development, said reversing the decision to leave would significantly benefit the economy. “We are leaving the EU and there will not be a second referendum,” the Treasury said in a terse statement that reflected the government’s unhappiness with the OECD’s intervention. The Paris-based group, which has 35 of the world’s richest countries as members, said it would revise the gloomy forecasts it made in its annual health check were Britain to stay in the EU. “In case Brexit gets reversed by political decision (change of majority, new referendum, etc, the positive impact on growth would be significant,” the report said. – Guardian Reverse Brexit to boost UK economy, urges OECD .- The Times (£) UK economy will continue to grow despite Brexit according to think tank – Express OECD received £85 million from EU – Guido Fawkes Two-year Brexit transition may be too short, claims Bank of England’s Mark Carney A two-year transition period after Britain leaves the European Union may not be long enough for the country’s banks, Mark Carney has warned. The Bank of England governor said that lenders would need more time to adjust than the prime minister has proposed if the final Brexit deal limits the amount of regulatory co-operation between countries. The failure to agree a transition deal or a change in government policy to a hard Brexit might also force the Bank to downgrade growth estimates for the UK. Mr Carney’s warnings came after the Bank’s two newest policymakers expressed doubts about raising interest rates next month. Its nine-strong monetary policy committee is expected to vote for an increase from 0.25 per cent to 0.5 per cent in November, which would be the first in a decade. – The Times (£) Boris Johnson blasts Labour as ‘supine protoplasmic invertebrate jellies’ over ‘divorce bill’ Boris Johnson has blasted Labour for being “supine protoplasmic invertebrate jellies” in a heated row on the so-called Brexit “divorce bill”. The Foreign Secretary accused the opposition of having no spine – and “would readily fork out” up to €100bn to Brussels to quit the EU. Mr Johnson was being quizzed by the shadow Foreign Secretary Emily Thornberry in the House of Commons on his views on whether the UK would pay up. She asked if he had changed his mind, last month saying if the EU demanded a “single penny” then they could “go whistle”, but then saying more recently the UK would “meet our obligations”. – The Sun > WATCH on BrexitCentral’s YouTube channel: Boris says Labour are ‘invertebrate jellies’ over Brexit bill Brexit must be agreed by end of year, warns London Stock Exchange boss France and Germany risk starting a new financial crisis if they try to use Brexit to dismantle the London-based heart of the global economy “just to make a political point,” one of the City’s most senior figures has warned. Xavier Rolet, chief executive of the London Stock Exchange Group, says European leaders who demanded tighter global regulation after the 2008 financial crisis are now threatening to “fragment” those same standards to punish Britain for Brexit. Writing in The Daily Telegraph, Mr Rolet calls on the Bank of England and regulatory bodies in Europe to speed up talks on regulation to ensure that the carefully constructed system of global regulation developed to stop unexpected risks emerging does not collapse. – Telegraph (£) Failure to spell out transition plan could put global financial security at risk – Ben Wright for the Telegraph (£) FCA: London doesn’t need EU membership to keep investment industry booming The UK’s booming investment industry does not require EU membership to keep motoring, the head of the Financial Conduct Authority has said. The City has a “well established” model of cross-border cooperation, which needs no intervention as a result of Brexit, Andrew Bailey said during the annual Investment Association dinner at Mansion House tonight “Let’s not beat about the bush, this model works – it works well for investors and for investment managers. So, why disrupt it, or put another way, must it be disrupted?” he asked. “What we have done is to help to put into effect, with firms, a system that serves the public interest. Does it require membership of the EU to make this system work? No it does not.” – City A.M. Verhofstadt condemns ‘witch hunt’ by Davis against British MEPs The European Parliament’s Brexit coordinator, Guy Verhofstadt, criticized David Davis for conducting a “witch hunt” against British MEPs who voted to delay trade talks. Davis has called for 18 Labour MEPs and one from the Liberal Democrats to be sacked “in the national interest” for supporting a European Parliament resolution critical of the British government’s approach to the negotiations.The Conservative Party suspended two of its MEPs, Julie Girling and Richard Ashworth, for supporting the same resolution, which said Brexit talks should not move on to the next phase because “sufficient progress” had not been made on the divorce issues. – Politico > Previously on BrexitCentral: Fury as British MEPs vote against UK starting post-Brexit trade talks Asa Bennett: EU leaders must give Theresa May more than scraps from Jean-Claude Juncker’s table When Theresa May and David Davis hosted Jean-Claude Juncker for dinner, a well-informed account of their evening – which put the British in a singularly bad light – ended up in the German press. The Commission chief apologised for the “grave mistake”, but his public regret was undermined by European officials seething in private that the dinner had to be briefed out to show that the British were “in a different galaxy”. In light of her dinner guests’ mischievous indiscretion, the Prime Minister would have been forgiven for feeling wary of being hosted by them in Brussels last night. – Asa Bennett for the Telegraph (£) Giles Kenningham: Britain is on the back foot in spin game with the EU At the moment the media narrative is focussed on what happens to the UK if we walk away without a deal. But what about the fallout for the EU? It’s not a zero-sum game. The EU has skin in the game and lots at stake. Yet in the spin war it feels like Britain is on the back foot. Whether you voted to leave or remain, it’s in everyone’s interests to get a good deal. So what should the UK do? – Giles Kenningham for The Times (£) Tom Goodenough: Hate crime is up – but it’s not fair to blame Brexit Hate crime is up – and Brexit is to blame. It’s a familiar story and one doing the rounds again today following the publication of Home Office statistics on the level of hate crimes last year. The numbers do seem troubling: these offences rose by a third last year, and there was a spike in hate crimes around the time of the EU referendum, as this graph shows:But can this rise really be blamed on Brexit? Did people really turn on each other in the heady days after the referendum? There are a number of reasons to think not.Firstly, a rise in hate crime wasn’t isolated to last year.- Tom Goodenough for The Spectator Daniel Finkelstein: We need to play for time on Brexit You have built an extension and you need to add some guttering to your house. Only a little bit but it needs to be custom made. You know exactly who you need to ask. And it’s not good news. A few years back you had the rest of your house done and the contractor you used is the only one who would find it worthwhile bidding for the job. For anyone else, the costs of making a custom mould wouldn’t be worth it for such a small job. So you call up and ask them to bid. They ask for a fortune. I mean they would, wouldn’t they. So what do you do now? – Daniel Finkelstein for The Times (£) John Redwood: Was this the undercurrent conversation at the EU dinner? Prime Minister: It is a pleasure to be here with you today for dinner… Mr Juncker: Thank you for coming. I do hope you have brought your cheque book. You must understand that we cannot keep on meeting like this unless the UK pays the bills for the dinners and much else. The EU is getting cross with the UK for not being realistic, so I hope this evening we can make some progress on the divorce settlement. – John Redwood’s Diary Brexit in brief Why leaving the Single Market will make Britain richer – Sebastian Handley for The Blue Anchor It’s not Brexit but wage stagnation which is the biggest problem in economics today – Jeremy Warner for the Telegraph On Brexit talks It’s the economy, stupid – Guardian editorial Bill Clinton mocks Brexit voters – Express Airlines may not guarantee flights after exit from EU – The Times (£)