Theresa May rebukes David Davis over warning that UK could leave the single market Theresa May has slapped down one of her most senior Cabinet ministers after he said it is “very improbable” that the UK will remain a member of the single market if the country is to regain control of its borders. The Prime Minister’s spokesman said it is not right to be “putting all your cards on the table” and claimed David Davis was setting out “his opinion”, not government policy, when he spoke in Parliament. – Daily Telegraph In the first public acknowledgment by Downing Street of the divisions within the cabinet over defining Britain’s negotiating stance, Mrs May’s spokeswoman said that she recognised that people had differing views on what form Brexit should take. – The Times (£) 78% of Tory members back Hard Brexit option favour by Davis – ConservativeHome Farage says May has buckled over Brexit and will not secure control of borders Nigel Farage says he has lost faith in Theresa May’s ability to secure Britain’s borders during Brexit negotiations. The former Ukip boss says he was willing to give Mrs May the benefit of the doubt but now thinks she has crumbled under the pressure of EU bureaucrats and will only deliver a watered down immigration policy. – Daily Express Liam Fox announces working group with Australian counterpart to explore trade deal Officials will meet twice a year to discuss the parameters of what both sides said they hoped would be an “ambitious and comprehensive” deal. Australia has been earmarked by the UK as its first post-Brexit trade partner. International Trade Secretary Liam Fox and his counterpart Steven Ciobo said they shared a “strong political commitment” to trade liberalisation. – BBC It will take years for Britain to complete the process of leaving the European Union so Australia will pursue a trade deal with the bloc first, Trade Minister Steve Ciobo says… Ciobo, in London for ‘exploratory discussions’ with the government over a potential future trade deal, said while there was aspiration on both sides to do a deal as soon as possible, in reality it would not be quick. – Sky News Australia Wall Street banks eat their words on Brexit: Humiliating U-turn as they admit recession forecasts were wrong The Wall Street banking giants that helped fund the Remain campaign have torn up their forecasts for a UK recession in the wake of the Brexit vote. Goldman Sachs, JP Morgan and Morgan Stanley warned of an economic slump after the EU referendum in June, but the powerful US investment banks, which donated a total of £1.25million to Remain, now believe the UK will avoid recession. Leave campaigners accused bankers who signed up to the so-called ‘Project Fear’ of peddling ‘hysteria’. – Daily Mail Economists from Credit Suisse and Morgan Stanley lifted growth predictions for 2016 and 2017, removing the expectation of a recession – FT (£) Chancellor opens Brexit talks with the City City heavyweights will meet with chancellor Philip Hammond today to discuss Brexit, the first in a series of industry roundtables due to take place over the coming months. It will involve several members of the newly-created trade body European Financial Services Chairman’s Advisory Committee, including Baroness Vadera, the chairwoman of Santander UK and a former Treasury minister. – City A.M. Szu Ping Chan: Why London will be an economic powerhouse after Brexit – Daily Telegraph Daniel Mahoney: How The City will be just fine after Brexit – CapX Centre for Policy Studies: City passporting rights must be at the top of the government agenda on Brexit talks A paper from the Margaret Thatcher founded Centre for Policy Studies today argues that while Brexit will bring challenges for the UK’s financial services industry, it also create opportunities. In particular, the CPS said the UK is now able to look at withdrawing from unpopular policy measures, such as the cap on bankers’ bonuses, which it said has only forced fixed salaries in the City ever higher. – City A.M. Mark Carney faces Brexit showdown with MPs Mark Carney will be accused today of being too quick to cut interest rates after the Brexit vote as he faces further questions about his impartiality. Jacob Rees-Mogg, a Conservative MP and Brexiteer who clashed repeatedly with the Bank of England governor during the referendum campaign, will lead the attack when Mr Carney appears before the Treasury select committee today. – The Times (£) Europe forges ahead with plans for ‘EU army’ Senior officials in Brussels are urging EU member states to capitalise on the “political space” left by Britain’s decision to vote to leave. The military plan foresees countries such as France, Germany, Italy, Spain and Poland creating permanent military structures to act on behalf of the EU and for the deployment of the EU’s battle groups and 18 national battalions. – Daily Telegraph The Sun campaigns for the return of the iconic blue British passport A Tory MP has challenged Theresa May to mark her pledge to regain control of Britain’s borders by bringing back our “iconic” blue passport. Senior backbencher Michael Fabricant yesterday leaped on The Sun’s campaign as the perfect way for the PM to demonstrate she is ready to deliver. For a month now, we have called on No10 to reintroduce the true blue document, ditched in 1988 for an EU-approved burgundy-coloured one. – The Sun Brexit ushers in art of the possible Ever since the foundation of Sotheby’s and Christie’s auction houses in the 18th century, London has had a claim to be the centre of the global art market. Neither wars nor financial crises have toppled the capital from its leading position in Europe, but the surprise vote for Brexit on June 23 caused a sudden wave of anxiety. The threat appears to have been exaggerated, however, as three international galleries have chosen to press ahead with opening new branches and experts suggest that Brexit may even bring a competitive advantage. – The Times (£) Tim Farron argues for second EU referendum on Brexit deal In a speech later, Mr Farron will present the Liberal Democrats as the “real opposition” to the Government’s plan to get the UK out of the EU, and the only party with a “comprehensive plan” for the UK’s relationship with the bloc. He will stress, however, that he is not pushing for a “re-run” of June’s vote – and would only support another referendum once the negotiations are done. – PoliticsHome Frank Field: Brexit will be the most transformative event in Britain since World War Two The Prime Minister’s first move is correct. A major reason for voting Leave was immigration. Others so voted because they believe our borders encapsulated the loss of British sovereignty that needed to be brought back to British institutions. How the borders are controlled is a crucial question and it sets the temper for the whole of the Brexit negotiations. There is no point at all in slamming the brakes on. The electorate wishes to see Brexit being implemented as a crucial staged part of bringing the total numbers of new arrivals down. – Labour MP Frank Field writing for The Times (£) Red Box website Pippa Malmgren: Wake up, Britain: Your post-Brexit future is brighter than you realise As a person who worked in the City for many years and who advised the US President on financial services, I know this: money will go wherever it finds the lowest tax rates and the least red tape and the most economic growth. The EU is pretty easy to beat on all these fronts. I think the City may be on the verge of a massive expansion. – Pippa Malmgren for City A.M. Gerald Warner: Theresa May must deliver full-blooded Brexit Every sensible political instinct for restoring national unity, stabilising markets and forging a great future prescribes immediate withdrawal from the European Union, followed by negotiation of free trade agreements, on equal terms as a sovereign state, with our former political partners. Only the formidable resistance of politicians and civil servants, for whom the national interest is not a serious consideration, is obstructing the path to that common-sense solution. – Gerald Warner for Reaction Michael Toner: Remainers want a glitch in Brexit negotiations so they can claim they were right all along The pattern is absolutely consistent. Consumer confidence is up. Retail sales are up. The shares market has recovered. Manufacturing performed strong in August too, according to Malkit/CIPS figures. In fact, Britain’s industrial output grew at its fastest rate in 17 years in April to June – a trend that seems to be continuing – Michael Toner for the International Business Times Allison Pearson: The BBC’s approach to reporting Brexit – wrestle a dark cloud from a silver lining – Daily Telegraph Peter Hill: Brexit has created a call to return to imperial measurements – Daily Express News in brief Another split is opening among Labour MPs – over whether to accept the referendum result – Mark Wallace on ConservativeHome Cambridge Vice-Chancellor seeks reassurance over funding and EU students – The Times (£) Scotland food and drink industry ‘bullish’ about Brexit despite SNP warnings – Daily Telegraph Britain to build “Great Wall of Calais” – Daily Mail Housebuilder Barratt says sales rise post-Brexit – Reuters Hargreaves Lansdown posts record results after Brexit boost – City A.M.