David Davis warned by MEPs that Brexit negotiations will be ‘hard’ Brexit Secretary David Davis has been warned that negotiations for leaving the European Union will be “tough” and “intense” as MEPs stressed that the UK would not be able to remain in the single market without accepting free movement of people. The Cabinet minister held talks with the European Parliament’s Brexit chief Guy Verhofstadt and other senior MEPs during his visit, but there was frustration in Strasbourg over the lack of clear information coming from the UK government. – The Scotsman …as Guy Verhofstadt agrees Brexit should occur before 2019 European elections… The European Union and the UK should begin negotiations quickly on the UK’s exit from the EU so that the departure can be concluded before mid-2019 when Europe holds its next legislative elections, according to Guy Verhofstadt, the European Parliament’s representative on Brexit matters. “We agreed on the need that this process needs to start as early as possible and needs to finish, in any case, before the next European elections,” Verhofstadt told reporters in Strasbourg, France, after meeting with British Brexit Secretary David Davis. – Bloomberg > WATCH: via BrexitCentral’s YouTube channel: David Davis says meeting with EU negotiator a “good start” …while attacking a ‘ring of autocrats’ trying to destroy Europe… The EU’s most senior Brexit negotiator has launched an extraordinary attack on Donald Trump, branding him an “autocrat” who wants to destroy Europe. Guy Verhofstadt said President-elect Trump was one of a “ring of autocrats” alongside Vladimir Putin and Recep Tayyip Erdogan who threatened to encircle the continent, during a debate on EU and Turkey relations. – The Independent …as a leading German MEP attacks Boris Johnson and David Davis Boris Johnson and David Davis, the cabinet ministers leading Brexit, have been accused of “unbelievable arrogance” and having no idea what leaving the European Union means. The attack by Manfred Weber, one of Germany’s most senior politicians and an ally of Angela Merkel, followed a bad-tempered meeting in Strasbourg with Mr Davis, secretary of state for exiting the EU. – The Times (£) Manfred Weber accused Mr Johnson of being “provocative” and “arrogant” after the Foreign Secretary said Britain will supporter Turkey’s bid to join the EU. In September the Foreign Secretary met with Turkish President Erdogan for his first official visit to the country. Mr Johnson said Britain will “help Turkey in any way” now that it is leaving the EU and claimed he wanted to build a “jumbo free trade deal” between the two nations. – Daily Express New study reveals that EU membership cost Britain £2 billion more last year than previously feared Calculations by leading thinktank Global Britain have highlighted why Britain needs to leave the EU as quickly as possible after the historic Brexit vote on 23 June. The findings, based on the latest figures from the Office of National Statistics (ONS), reveal that the UK’s net contribution in 2015 was £10.4 billion instead of the £8.5 billion previously claimed by the Government. They also make a mockery of claims by Remain supporters, including former deputy prime minister Nick Clegg and Labour leadership candidate Owen Smith, that the gross figure before deductions of £350 million a week (£18.2 billion a year) quoted by Vote Leave in the referendum was “a lie”. – Daily Express IBM invests in UK data centres as tech sector defies Brexit worries Global IT group IBM will triple the number of its cloud data centers in Britain, it said on Tuesday, joining Facebook and Google in investing in the UK after its vote to leave the European Union. IBM said it would build four new data centers to meet demand from its corporate and public sector clients who were increasingly storing data and managing their businesses in the cloud… IBM had evaluated its cloud capacity in Britain before the June “Brexit” vote, he said, but it saw no reason to change course as a result of the decision. – Reuters In the past week, some of the world’s biggest technology companies have seized the opportunity and confirmed their commitment to the UK – engadget.com Manufacturers did better than expected in November, despite Brexit fears Manufacturers have posted their best month for orders since before the UK’s vote to quit the European Union, beating economist expectations, and confounding Brexit slowdown fears. Optimism for coming months also increased with expectations for production over the next quarter reaching their highest level since February 2015. – City A.M. What Brexit fear? Shopping habits in Britain unaffected by vote to leave EU According to a survey of 2,000 people by Retail Economics, 82 per cent say their shopping habits have been unaffected by the historic Brexit vote on 23 June as Britain’s Brexit boom continues. The findings come despite claims by prominent Remain campaigners led by former Chancellor George Osborne, who was sacked after the referendum, that a Brexit vote would lead to a high street “slump”. – Daily Express Europe’s sluggish growth a bigger threat to world stability than Brexit, says IMF deputy chief Europe’s failure to break its anaemic economic growth cycle is of greater concern for global stability than Britain’s potentially “rocky road” to leaving the European Union, the deputy head of the International Monetary Fund has told The Telegraph. David Lipton, the First Managing Director of the IMF, added that Britain would need to embrace a global trading strategy if it wished to prosper in a post-Brexit environment, but more urgently Europe needed to resolve its deep divisions over fiscal and monetary policy. – Daily Telegraph ‘Realistic’ Brexit means UK must leave the single market, says John Redwood “We need to be realistic – we always said in the Vote Leave campaign that you can’t stay in the so-called single market or the customs union if you want to have free-trade agreements with the rest of the world and if you want to run your own borders and spend your own money, which is of course what she wants to do.” – John Redwood MP quoted in the Daily Express British expats set to be granted right to carry on living in EU with Theresa May ‘close to reciprocal rights deal’ Hundreds of thousands of British expats are set to be granted the right to carry on living on the Continent after Brexit after the majority of European Union countries signalled they were ready to do a “reciprocal rights” deal with the UK. Senior Government figures have told business leaders that only “a few” of the 27 EU member states are left to agree the outline of a reciprocal rights agreement for Britons in the EU, and EU nationals living in this country for when Britain leaves the EU. – Daily Telegraph Amber Rudd forced to rethink work visa plans for foreign students In October Ms Rudd suggested that only the “best universities” would be allowed to offer students the chance to stay on and work in Britain, as well as those with the best records of ensuring that their graduates didn’t overstay their visas. She is looking to widen the entitlement as she seeks a compromise with universities, many of which are deeply worried about a crackdown. One option includes allowing students on “strategically important” courses — even if they aren’t attending elite universities — to be granted work visas after graduation. – The Times (£) Sturgeon’s Brexit minister in Brussels pushes case for special Brexit deal for Scotland… The Scottish government is pushing for Britain and the European Union to give Scotland special terms in any Brexit deal to keep it closer than England to EU markets, its lead negotiator said in Brussels… Telling an audience that included EU officials and diplomats that only the “softest” break with the EU would suit Scotland, Edinburgh’s Brexit minister Michael Russell said that if that were not possible, then Scotland should vote again on independence. – EurActiv …as he is caught making inaccurate claims to EU diplomats Nicola Sturgeon’s Brexit Minister has been caught out making inaccurate claims to Brussels diplomats about the level of Scottish support for the EU and suggestions of non-existent talks with the Spanish government. Mike Russell used a speech to EU officials to portray Scotland as separate from the rest of the UK, claiming that five million Scots had demonstrated in the EU referendum that “they do not want to give up their European citizenship.” – Daily Telegraph Iain Duncan Smith MP: Continuity Remain are fighting a desperate rearguard action to undermine the Leave vote The Remainers have tried to seize on the idea that the UK would have to have an interim arrangement, as it is all so complicated and difficult that we couldn’t hope to achieve anything before the two years are up. Of course this has nothing to do with practicality and everything to do with ideology. I know of no negotiation that starts with one side admitting they won’t succeed and immediately demanding an interim arrangement. Yet, ridiculous as this sounds, this is what Remain propose. – Iain Duncan Smith MP on ConservativeHome Ingrid Detter de Frankopan: Don’t trigger Article 50 – just leave Second rate lawyers are misleading everyone in the country by insisting that, in order to leave the European Union it is essential to “trigger” Article 50 in its entirety. This line has been swallowed whole by the government, the media and commentators. It is, however, absolute nonsense. Under international law and under Article 50 (1) itself, only notice to leave is necessary. The horror that I feel about this misdirection is compounded by that the fact that if Article 50(2) is ‘triggered’ it implies that the UK government accepts that the EU will decide the conditions of UK’s withdrawal. This has serious consequences. – Ingrid Detter de Frankopan, Professor of International Law, in MoneyWeek Ben Kelly: The Revenge of Remain – The Resurgent Europhiles hoping to stop Brexit The biggest democratic exercise in British history resulted in a vote to leave the European Union, but the anti-democratic paternal instinct of the Europhiles has kicked in; the British people must be saved from themselves… Open Britain, the successor to Stronger In, will partner with a new campaign set up by Blairite former ministers to form a refreshed Remain campaign with a two-year timeline to stop Brexit. – Ben Kelly of Conservatives for Liberty Richard Harpin: Why Britain remains the best place in the world to run an international business Britain has become a happy home for international business. Today the top 100 UK-listed companies generate three quarters of their revenue overseas. More overseas companies set up their European base in the UK than anywhere else. English is the lingua franca of international trade. The OECD rates the UK as the country with the fewest barriers to entrepreneurship in the world. – Richard Harpin in City A.M. Barnabas Reynolds: The UK’s natural advantages mean the City can continue its dominance post-Brexit The UK leads the world in financial services, with London rivalled only by New York. The big question for ministers and the industry is how, after Brexit, can we ensure that the UK’s financial services sector continues to be a leading player globally and in the European Union? Can the UK do even better, freed from the burdens of unnecessary EU regulation? The priority will be to facilitate the continued delivery cross-border of financial services and the full range of products to EU-based customers. On some estimates this amounts to around 20pc of the City’s business, for which there is a feeling that the passport system is needed. – Barnabas Reynolds for the Daily Telegraph Brexit comment in brief The missed opportunities that led to Brexit – Lee Rotherham for CapX The soft power of the British brand and making Brexit work – Iain Martin for Reaction Brexit news in brief The Government’s official Brexit FAQ – Gov.uk UK no longer ‘at back of queue’ for trade deal with US, admits top Foreign Office mandarin – PoliticsHome CBI handed more than £1 million by the European Commission since 2009 – Guido Fawkes Drop legal challenge and let MPs vote on Article 50, urges Zac Goldsmith – The Times (£) The Lib Dem trying to beat Zac Goldsmith in Richmond Park has vowed to vote against Brexit, no matter what – City A.M. The soft power of the British brand and making Brexit work – Reaction German car chief Matthias Wissmann warns over Brexit – BBC News Ryanair boss Michael O’Leary accuses British government of “lunatic optimism” over Brexit – Irish Independent And finally… Sex toy retailer Lovehoney in the pink despite Brexit worries Profits at sex toy retailer Lovehoney have continued to shoot up, with its owners insisting that Brexit has not put Britons off fun in the bedroom. The Bath-based online firm saw pre-tax profit rise 68% to £5.1 million in the year to March, with turnover growing 29% to £58 million – helped by a surge in sales of its Fifty Shades of Grey range. On the group’s performance since the EU referendum, co-owner Richard Longhurst told the Press Association that “people were having sex before Brexit, and people are having sex after Brexit”. – News & Star