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Brexit 1) EU warned of consequences for its firms if a City of London trade deal is refused

“Officials have warned that EU companies will lose out if Britain fails to get a special deal for Britain has warned Brussels that thousands of European investment funds will be under threat if it refuses to bow to demands for a comprehensive trade deal with the City of London after Brexit. Officials have begun laying out the risks to the EU of following the hardline approach towards the City that is being encouraged by the French. The British “tit-for-tat” warning strategy is designed to highlight the damage that could be caused if Britain fails to get a special deal for the City….At a meeting in Brussels, British negotiators told their EU counterparts that unless rules were drawn up to allow British insurers and other UK financial services companies to sell to European clients, EU firms would also lose out. One vocal Tory Leaver said that the British lion had begun to roar at last.” – The Times

  • Relax – there’s no sign of London losing its euro clearing crown – Julian Harris, City AM
  • Power grab row – The Scotsman
  • Carmakers “are not ready” to leave the EU – The Guardian
  • Johnson quits grace-and-favour home – The Times

>Today: James Arnell on Comment: No Deal 2) Trade and regulations

>Yesterday: James Arnell on Comment: No Deal 1) The money

Brexit 2) May’s plan will fail warns Lord Owen

“On the Chequers deal, he is excoriating. “It’s a wishlist,” he snaps, “it’s not a negotiating position. A lot of sensible civil servants acquiesced to Chequers because they know it’s not going to last. They know it’s a wishlist and Mrs May knows it too. She’s not stupid. If she were here talking honestly, she would tell you exactly where she’s going to move and give in to Barnier. It’s been pretty well flagged up, [Philip] Hammond is already talking about special rights for immigrants from the EU. I’m sorry, but where she’s going is not acceptable. If she stopped now, I think most people could just about live with it, but it won’t stop there.” The failure to prepare for a WTO exit from the EU (reverting to World Trade Organisation terms) is a particular beef.” – Interview with Lord Owen, Daily Telegraph

Brexit 3) Brexiteers “hate foreigners” claims Mandelson

“Peter Mandelson today provoked outrage by labelling extreme Brexiteers ‘nationalists’ who ‘hate foreigners’ and are not ‘patriots’ like him. The former EU trade commissioner said the people leading the charge for quitting the EU were ‘Brextremists’ not motivated by the best interests of the country. Leave supporters immediately condemned the incendiary remarks as the row over what kind of Brexit Britain will have next year continued unabated into the summer. He told LBC Radio today: “Patriotism is love of your country. Wanting to stand up for your country, wanting to serve the best interests of your country. Nationalism, on the other hand, is a hatred of foreigners – and that’s what they are.” – Daily Mail

  • A clear plan for immigration post-Brexit is needed MPs warn – Daily Telegraph

>Today: Tom Bennett on Comment: A new, liberalised immigration system should free young people to travel the world

Brexit 4) Project Fear Season Two is no more convincing than the original – Wallace

“Embargos on food? Diabetics refused access to medicine? Refusing to co-operate on counter-terrorism? This is Project Fear Season Two: Apocalypse. Not only is this a return to a failed strategy, it actively harms the other arguments that more moderate voices are trying to put across.The milder, more practical concern about Brexit is the question of how we construct a continued alliance with our friends and neighbours once we have left. It’s obviously rather hard to make that case convincingly if at the same time voters are told that the friendly EU is going to blockade our ports and starve us out if we don’t do as we are told.” – Mark Wallace, The i paper

  • Brexit deniers are playing with fire with their campaign of outraged hysteria – The Sun Says
  • No 10 deny plan for Army role in ‘no deal’ Brexit – BBC

Brexit 5)  Barnier and Verhofstadt should be sacked as negotiators, says German MEP

“Michel Barnier and Guy Verhofstadt should be sacked and replaced with Brexit negotiators friendlier to Britain, a leading German MEP has said. Hans-Olaf Henkel told The Sun the pair were destroying the chances of a good trade deal by trying to punish the UK for leaving. The top Euro MP, who is a former head of the Federation of German Industries, also urged eurocrats to strike a pact with the UK on controlling immigration…Mr Henkel, who sits in the same European political grouping as the UK Conservatives, urged the bloc’s negotiators to accommodate Theresa May’s new plan for alignment on goods secured at Chequers.” – The Sun

Brexit 6) China offers to start negotiating trade deal

“China has offered to begin formal trade negotiations with Britain, paving the way for a broad agreement after Brexit. Jeremy Hunt, the foreign secretary, welcomed the offer in Beijing yesterday and promised to weigh up the benefits of talks with the world’s second-largest economy. China has been grappling with the impact of a fierce trade dispute with the US. President Trump has threatened to impose tariffs on up to $500 billion of its exports. Mr Hunt gave a joint press conference yesterday with Wang Yi, China’s most senior diplomat, who he said had offered “to open discussions about a possible free trade deal done between Britain and China post-Brexit . . . That’s something that we welcome and we said that we will explore”.” – The Times

>Yesterday: Rami Ranger and Jay Singh-Sohal on Comment: Britain needs a dedicated trade envoy to India

Hinds attacks “scandal” of parents who don’t teach children to talk properly

“Children being sent to school unable to speak in sentences is a “persistent scandal”, the Education Secretary is to tell parents. In his first major speech on social mobility, Damian Hinds will promise to tackle the “last taboo” in education by highlighting the fact that many mothers and fathers are failing to teach their children how to talk. Speaking at the Resolution Foundation in Westminster on Tuesday, he will say that he has no desire to “lecture” parents about how to raise their children. But he will warn that children who start school at age four behind their peers rarely catch up and instead “the gap just widens”.” – Daily Telegraph

Tories withdraw Love Island water bottle promotion

“The Conservative Party rowed back on a “Love Island” themed water bottle giveaway today after accusations it had ripped off the hit show’s brand ahead of tonight’s series finale. The Tories launched a competition today offering a chance to win a free Love Island water bottle for those who filled in their details online. “Yeah that’s right – we’re giving away Love Island water bottles for the final (obviously),” the page said. However, all references to Love Island were later removed from the webpage and Love Island was deleted from the page’s URL after questions were asked online as to whether the Tories were breaking copyright law. Kenneth Mullen an intellectual property partner at law firm Withers said the promotion did appear to infringe ITV’s Love Island trademark.” – City AM

Tebbit: Amidst the mess Javid stands out as a man of action

“The new Home Secretary Sajid Javid has seized control of his notoriously bloody minded department. He shocked his own officials by simply commanding that the medicinal cannabis resin seized by customs officials as a boy and his mother returned home from America should be immediately returned. Then, despite woolly minded protests, Javid moved to clear the way for the trial of two of the brutal gang of Isil terrorist known as The Beatles, by telling the US government that the UK would not seek  any assurances that would prevent their execution if found guilty in the USA. Unhappily a judicial review has been launched in a bid to frustrate Javid’s move to ensure these men are brought to trial in America.” – Norman Tebbit, Daily Telegraph

>Today: ToryDiary: Our survey finds a record fall of confidence in May. Over two in five Party members want her out now.

Legal change planned to curb rail union disruption

“Laws which could stop rail unions holding the country to ransom during strikes are to be proposed by ministers in the wake of a Daily Mail investigation. Yesterday we revealed that train operators depend on drivers working on their days off to run full timetables. This is because rail unions Aslef and the RMT secured a four-day working week following the privatisation of British Rail more than 20 years ago. Half of the country’s 20 largest operators do not even require drivers to work Sundays and they can earn up to £340-a-day for agreeing to do a fifth day as overtime, despite some already on base salaries of more than £65,000 a year. Last night a Government source said the Department for Transport is due to propose legislation for a ‘minimum service requirement’. ” – Daily Mail

Conservatives drop rhetoric about “burning injustices”

“Theresa May’s rhetoric about “burning injustices” has been quietly dropped by the Conservatives after being told that it risked boosting support for Labour. Two years ago Mrs May used her first speech as prime minister on the steps of Downing Street to vow to tackle the injustices which meant that the poor, working class, state educated and women struggled to get on in life. However, the language is understood to have been ditched, with Tory MPs discouraged from using it in their campaign leaflets after internal party polling suggested that Mrs May was not trusted to fulfil the promises. Instead Labour was winning “hands down” on dealing with issues such as poverty, housing and discrimination, Tory insiders indicated.” – The Times

Labour pledges to spend £1.6 billion on boosting broadband speeds

“The opposition Labour party has pledged to spend £1.6bn over four years to boost the UK’s broadband speeds, as it warned of a worsening “digital divide” in the event of a “no-deal” Brexit. Internet connection speeds vary greatly around Britain. The current average is measured at 46 megabits per second, according to Ofcom, the regulator, but many parts of the country still struggle to get even a 10 Mbps connection. Planning restrictions, an unwillingness to invest on the part of government and the private sector, and consumers’ failure to upgrade to faster broadband have all been blamed for the disparities.” – Financial Times

Corbyn ally dismisses Jewish critics are “Trump fanatics”

“A key Jeremy Corbyn ally declared Labour’s anti-Semitism scandal was “false” and invented by “Jewish Trump fanatics” in an incendiary recording revealed last night. MPs called for NEC member Peter Willsman to be suspended after his furious rant demanded “evidence” from 68 rabbis who have warned hatred towards Jews has become “severe and widespread” within the party. Mr Willsman made the extraordinary claims during the NEC meeting to decide to approve a new party code of conduct on anti-Semitism.” – The Sun

  • Hoey and Field must go – Owen Jones, The Guardian
  • Labour councillor quits in row over facilities for trans people – The Times
  • Corbyn’s intolerance makes him unfit to lead – Rachel Sylvester, The Times
  • I fear my party could be out of power for decades – Austin Mitchell, Daily Mail
  • McDonnell criticises Corbyn – The Times
  • Momentum defeated in Bermondsey and Old Southwark – The Times

MPs accuse aid charities of failing to stop sexual abuse

“Charities have shown “complacency verging on complicity” in responding to sexual abuse that is endemic across the sector, according to a damning report by MPs. In the report, the international development committee (IDC) said the aid sector had a record of “abject failure” in dealing with longstanding concerns about exploitation by its own personnel and appeared more concerned for their reputations than for victims. The response to abuse claims has been reactionary and superficial, it added. MPs called for the establishment of an independent aid ombudsman to support survivors and for a global register of aid workers to prevent abusers moving through the system.” – The Guardian

Council leaders call for tax rises for over 40s to help pay for social care

“Over-40s could be asked to pay a £33 annual premium to help meet the spiralling costs of social care under plans put forward by town hall bosses. The yearly payment would raise £1 billion, though that will be only a fraction of the extra money that will be needed in years to come, they warn. Other methods of raising money for social care being suggested by council chiefs include a 1p rise on the basic rate of income tax or national insurance and means-testing pensioner benefits such as the winter fuel allowance and free TV licences.” – Daily Telegraph

>Today: Gary Porter on Local Government: The Government is listening to Conservative councillors

Ulster moves closer to direct rule

“The political crisis in Northern Ireland worsened yesterday after senior officials accepted that they cannot make big decisions without ministers even though the Stormont assembly is suspended. The Northern Ireland executive has decided not to appeal against a legal ruling that found civil servants were making “radical and antidemocratic” decisions. It raises questions about who should govern the province while the devolved administration is out of action. Arlene Foster, leader of the Democratic Unionist Party, called on Westminster to end decision- making “limbo” in Northern Ireland. However ministers are likely to resist, believing that direct rule could have unintended consequences.” – The Times

Huge turnout for Zimbabwe election

“Counting has begun in Zimbabwe’s first election since the removal of Robert Mugabe, with the result determining the former British colony’s future for decades. Millions of people voted peacefully across the county on Monday and turnout appeared extremely high, with long lines of voters forming outside polling stations across the country when they opened at 7am (0600 BST). By early afternoon, polling officials in the capital, Harare, and surrounding towns were reporting that between 75% and 85% of registered voters had cast their ballots. Full results are not due until much later in the week, and possibly as late as the weekend.” – The Guardian

North Korea “breaking pledge” over new weapons

“North Korea appears to be building new ballistic missiles despite recent warming ties with the Trump administration, media reports say. Unnamed US officials told the Washington Post that spy satellites had spotted continuing activity at a site that has produced ballistic missiles. Reuters news agency quotes an official as saying it is unclear how far the work has gone. President Donald Trump met North Korean leader Kim Jong-un in June. After the first meeting between sitting leaders from the two countries, the two men pledged to work towards denuclearisation. Mr Trump later said North Korea was “no longer a nuclear threat”.” – BBC

  • Trump willing to meet Iran’s President Rouhani – BBC

Hague: To combat fake news ban political ads on social media

“Democracy will not survive being turned into a system of hidden falsehoods or “fake news”, transmitted from unknown sources to selected people to inflame or reinforce their bitterness or their apathy. The learning, challenging and debating in the open that are at the heart of free and collective decisions are being lost. Polarisation is becoming so severe that people on the winning side of recent elections, like President Trump, deny that all this is a problem. But to many others it is blindingly obvious that something has to change, and fast. Technology is developing so quickly that you can now be shown totally convincing footage of someone saying words they have never actually uttered. Any free society needs rules of behaviour designed to preserve it from such abuse.” – William Hague, Daily Telegraph

News in brief

  • Why won’t the left speak up for Sarah Champion? – Brendan O’Neill, The Spectator
  • Why does ‘moderate’ Labour tolerate Corbyn and the anti-Semitism he refuses to tackle? – Graeme Archer, CapX
  • The Brexit dilemma facing Theresa May – Nick Hargrave, Reaction
  • British Medical Association calls for a second referendum – Independent
  • How the Chequers plan would still leave UK judges subservient to the ECJ – Martin Howe, Brexit Central

And finally…Hunt mistakenly says his wife is Japanese

“New foreign secretary Jeremy Hunt has made a major gaffe after he described his Chinese wife as “Japanese” on his first official trip to China. An embarrassed foreign foreign secretary admitted to it was “terrible mistake” during a diplomatic mission to Beijing in a country where historic and current relations with Japan are extremely tense.” – Daily Express

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