outcome of the know the outcome of the leadership challenge in london. damien in strasberg, thank you very much. the british government in a state of more crisis, the leadership challenge will be held this evening at 6pm local time, 6pm until eight p:m.. 48 letters have been sent to sirgraham p:m.. 48 letters have been sent to sir graham brady, chairman of the 1922 committee as it is known here in great britain, the governing body of the tory party. 48 letters needed to trigger the no—confidence vote. she needs a majority of 158 to vote for her this evening to survive that. if she does survive that, then she would not be challenged for another year. you are looking at live pictures from downing street. the lector and has been put there. some very famous members of that

lectern in the last few years. david cameron coming out and giving an announcement to say he was standing down, the predecessor to theresa may in the end, got the leadership unchallenged. also a statement by gordon brown, having lost the election. so a moment of great drama, and moments of great crisis here for the british government is once again, a prime minister konz or is due to come to the podium in downing street to make a statement. what will she say? she has always said she would fight a leadership challenge. if she only won a vote of no—confidence by one vote, she would continue. but she said she would the meaningful vote in the house of

commons, scheduled for yesterday, but in the end at the last minute, she withdrew after five days of debate because the numbers were overwhelmingly stacked against her. talking about numbers, sally bunged up, our business presenter alongside be now as we wait for the statement, market reaction to the latest crisis in this whole brexit crisis? we first heard this vote of no confidence was coming later today at 7:50am so in the last half an hour we haven't seen a huge reaction and i think that is because mainly this has already been priced in. there has already been priced in. there has been conversations and speculation about a possible vote of no confidence for the last 24 hours. in that time, any negativity has been priced into financial markets.

the one to watch is the ftse 250 and thatis the one to watch is the ftse 250 and that is the indexed most exposed to the domestic economy. british companies that rely on the british economy to do well where as the ftse 100 is a global index. we are watching the ftse 250 at the moment. it is pretty flat. it is up just slightly. the euro is down slightly, not a big swing in any direction and the pound is up versus the dollar. but the pound has been hammered in the last 24 hours. this is coming from a very low base. very sensitive, but i would imagine today, this vote of no confidence takes place between 6pm and 8pm this evening and trading in london finishes at 4:30pm so today, investors, traders will be treading water because you don't know which direction to go in. in the past,

warnings of the consequences of brexit immediately after the referendum and also warnings from mark carney, the governor of the bank of england recently, is that backed up by the business leaders you are speaking to if there were a hard, no—deal brexit? you are speaking to if there were a hard, no-deal brexit? in terms of their expectations, as i have said before, the business leaders i talk to, the ceos of companies, confederation of businesses are warning that are hard brexit for business in their view, for the uk economy, is the worst outcome and they want business as usual. something as close to our current relationship with the european union. that is the view of most business leaders. there are others out there pushing for brexit. the chief executive ofjd wetherspoon

who have said actually, we don't feel that way but the vast majority of business leaders and the cbi and the small business federation, they are saying we want frictionless trade, we want things to remain as close as possible to what they are 110w. close as possible to what they are now. worth putting out that the consequences of no—deal brexit are pretty serious for europe as well? absolutely, absolutely. we have talked to company leaders who are european based in france, in germany and some of the key economies in europe and they are very concerned about what this means for them as well. we export lot, we import a lot and it is notjust finished goods, it isa and it is notjust finished goods, it is a supply chain. the supply chains are extremely complicated and have been in place for decades. there has been a free flow of goods and services across these borders for a long time. so these companies

based in the united kingdom, this level of uncertainty, they have experienced since the referendum of june 2016, has been one of the key problems. but now they are in a period of time where march 29, 2019 is not far away and companies who rely on the export and import of goods, they are making decisions now that will affect them for the next six, nine months. they had to make investment decisions, expenditure decisions, the amount of goods they will stop, infantry decisions. that process , will stop, infantry decisions. that process, is always six to nine months ahead. so they are in a period they have planned for, probably the worst case scenario in many cases. but the immediate concern 110w many cases. but the immediate concern now for business leaders, politicians, europe and the world, is what will happen to theresa may, the british prime minister. if you

are joining the british prime minister. if you arejoining us, this is the scene live at downing street. the podium is up in front of the famous black door at number ten. we are expecting a statement from theresa may, the prime minister, we're not sure when, but presumably imminently since the podium is erected. it follows the news in the last hour that tory mps have triggered a vote of no confidence in their leader. 48 letters written to sir graham brady, the chairman of the 1922 committee, as it is known, the governing body, the party with the house rules of the party with the house rules of the tory party. graham brady, having received 48 letters, which means a leadership contest and a vote of no confidence could be triggered, well a vote of no—confidence will be triggered at 6pm this evening. so all of this happening very very

quickly indeed. this, in the middle of theresa may's attempts to try and get some sort of concessions from europe over her brexit deal. but, as she travelled around brussels and met european leaders yesterday, the doors were resolutely closed. in fa ct, doors were resolutely closed. in fact, literally so when it came to angela merkel‘s meeting with theresa may. theresa may going for lunch with the german chancellor. the back door of her limousine temporarily jammed, so she couldn't even get out of the carfor a jammed, so she couldn't even get out of the car for a few moments to see the german chancellor. a moment of great crisis, and moments of great drama in the middle of a moment of great upheaval, as britain tries to heal itself and forge together some sort of consensus over the brexit

deal following the referendum two yea rs deal following the referendum two years ago. this is the scene live at number ten, just a few hundred meters away near the palace of westminster at college green as joanna gosling, who is there for us now live. joanna, over to you, what an morning? what a morning indeed and the atmosphere continues to build, the number of people wandering around, excited at the prospect of the day unfolding. this isa prospect of the day unfolding. this is a leadership contest that has been speculated around for a long time. even last night when it was said the 48 letters have gone into graham brady. some have said we have been here before, but let's wait and see. but this morning it was confirmed those letters have gone in. isay confirmed those letters have gone in. i say the word excitement in the senseit in. i say the word excitement in the sense it is a dramatic, political story and nobody knows where the day

will end. there is the door of number ten and we are expecting the prime minister to emerge to make a statement. graham brady said when he spoke to her last night, she was keen to press on with the process, saying it was typical she wanted to get back on with the business of government and further speculation and time being taken around this, stops her in the business of getting on with thejob stops her in the business of getting on with the job in hand. stops her in the business of getting on with thejob in hand. we stops her in the business of getting on with the job in hand. we will stay across those pictures. let me bring in here 0wen paterson, the former environment secretary. he was among those last night saying theresa may had to go. he said she had failed to prepare for a no—deal brexit and tried to bounce negotiators in voting for her like a feeble and unworthy supplicant. you wa nt feeble and unworthy supplicant. you want her to go? morning. sadly, it has takena want her to go? morning. sadly, it has taken a long time to write this

letter but she is not the person to see brexit through. we had a manifesto commitments and we promise the british people we would lead the single market, leave the customs market and leave the ecj. her deal is appalling. we don't leave the customs union and i was in washington recently and we cannot do trade deals. the backstop is unnecessary. we don't have to hive of pa rt of unnecessary. we don't have to hive of part of the united kingdom in complete breach of the belfast agreement. i have been to rotterdam and talk to dutch experts and introduce them to michel barnier, i have had meetings with the prime ministerand her have had meetings with the prime minister and her senior civil servants and i have tried to get them to see we have technical solutions. it is the existing processes that could solve this. but she is still talking about the backstop. i knew leader at this stage will change nothing, in fact it takes us closer to the two

extremes which are no—deal brexit or no brexit? at the moment she is on track to get some concessions. the europeans... it is clear it will not happen? it will not get to the house of commons, this deal. isn't any successor to theresa may stuck with this deal? no, you drop it completely. we should have gone back to the europeans and said the steel is unacceptable and a breach of our democracy to have a law imposed of us democracy to have a law imposed of us by people when we're not even in the room. we should go back to donald tusk's offer of march the 7th, a wide—ranging free—trade deal. michel barnier said that was still on the table. then in parallel prepare for what you call no deal, i call prepare for what you call no deal, i ca ll world prepare for what you call no deal, i call world trade terms. it is caricatured at the moment as leaping off a cliff, a catastrophe. it is

nonsense. 164 countries... theresa may's balancing act has been balancing the result the country put forward and the knowledge there is no majority in the commons for this sort of thing you are talking about. the numbers don't change with a new leader? that was the basis of her failure because there was a clear mandate in the general election. it's notjust the mandate in the general election. it's not just the tory party that stood on the platform leaving the customs union and the ecj, the labour party did. with the dup we have a majority and that should have been done. what the mistake has been is to try to triangulate to come up with a botched compromise. that is never going to work and we have ended up with this model we are in now. to drop the deal completely, does the whole process have to be

delayed? go back to michel barnier. when i saw him it was clear donald tusk's offer was there and then say we will take that offer and we have a solution to the northern ireland border using existing techniques. you'll immediately prepare for world trade terms. what is the solution to the northern ireland border?” raised a paper with. .. the northern ireland border?” raised a paper with... everyone knows what the problem is and they have been for the link is process for months, so if there is a solution, tell us. there is a security border, a currency board and it uses modern technology, no infrastructure. you do not need any new infrastructure on the border. you use existing, modern techniques. that has been discussed again and again and it has been ruled out. no it hasn't. we are talking about border between europe and the uk and

that doesn't happen anywhere else in the way you are describing. has picked holes in this. i have had meetings with the prime minister, and michel barnier and they have picked no holes on this. there has been this pig—headed determination to keep the uk in the customs union and that is what it is all about. you are making it sound incredibly simple? it is simple. correct. it is not a solution, which is what we are repeatedly told. i saw dutch experts la st repeatedly told. i saw dutch experts last night and these people handle millions of customer transactions throughout the year and they know more about customs than our civil servants. they are appalled the withdrawal agreement used antiquated ideas as paper and stamps. nobody has used these in customs for 20 years. you would use existing techniques. but they don't do it the way you are talking about? the proposals are to go to what we are

talking about, that is the proposal to go further down the road. all the customs experts we have talked to cannot understand why there has not been the political will to look at this and this looks up the whole issue, get rid of the backstop, have a seamless border. we have had senior civil servants coming to us asking for advice. even if the issues around the backstop could be resolved in the way you are talking about, the projections on the impact on our economy as a result of going to the world trade organisation rules would be the economy being £200 million a year smaller than it would under the existing rules? keep asking why. because of tariffs and the deals we have got. these treasury forecasts have been wrong, comically, laughably wrong. if we voted to leave... it is notjust the

treasury. the obr, they have been laughably wrong. all the financial organisations around the world looking at this have been saying similar. they are wrong, if you trigger article 24 and establish you have serious intent between the two parties, the eu and the uk to work towards a free—trade deal, you can keep zero tariffs and zero quotas forup to ten keep zero tariffs and zero quotas for up to ten years. no need to have any tariffs. why are we going to stop trucks bringing in goods that conform to the day before? why will the french be delinquent and not keep sending goods to their customers in the uk? why is the eu going to suddenly, start acting illegally in breach of wt0 rules world custom rules, nobody asks why. why is the mayor of calais going to be wrong? why is the president of the french region who want to keep

traffic moving, why are they wrong? keep asking why and then you see this is yet another hysterical project fear. we are expecting the prime minister and i would like to ask you who you are backing in the leadership contest? let's see who puts their name in the ring. what i hopeis puts their name in the ring. what i hope is there will be a person who supports leaving and sees it as an exciting opportunity for this country. it would mean mode divisive in the commons? the house of commons said they would give the people of the decision, you decide. we will then deliver what you decide, the people voted to leave. theresa may is coming out. said graham brady has confirmed he has received 48 letters from conservative mps so there will be a

vote of confidence in my leadership of the conservative party. i will contest the vote with everything i have got. i have been a member of the conservative party for over 40 years and i have served it as an activist, councillor, mp, shadow minister, home secretary and now as prime minister. i stood to be leader because i believe in the conservative vision for a better future. a thriving economy with nowhere and nobody left behind. a stronger society, where everyone can make the most of their talents. always serving the national interest. and at this crucial moment in our history, that means securing a brexit deal that delivers on the results of the eu referendum. taking back control of our borders, laws and money but protecting jobs, security and our precious union as we do so. through good times and bad

over the last two years, my passionate belief that such a deal is attainable, that a bright future lies ahead for our country has not wavered. it is now within our grasp. i spent yesterday meeting chancellor angela merkel, the judge prime minister, president donald tusk and jean—claude juncker, to express concerns mps have with the backstop and we are making progress. i was due to travel to dublin this afternoon to continue that work, but will now remain in london to make the case for the leadership with my parliamentary colleagues. a change of leadership in the conservative party now will put our country's future at risk and create uncertainty when we can least afford it. a new leader wouldn't be in place by the 21st ofjanuary legal deadline so in risks and in control of the brexit negotiations to opposition mps in parliament. the new leader wouldn't have time to negotiate a withdrawal agreement and

get the legislation through parliament by the 29th of march so one of their first acts would be extending are sending article 50, delaying or even stopping brexit. when people want us to get on with it. a leadership election would not change the fundamentals of the negotiation or the parliamentary arithmetic. week spent tearing ourselves apart will only create more divisionjust as ourselves apart will only create more division just as we should ourselves apart will only create more divisionjust as we should be standing together to serve our country. none of that would be in the national interest. the only people whose interests would be served ourjeremy corbyn and john mcdonnell. the british people want us mcdonnell. the british people want us to get on with it and they want to focus on the other vital issues that matter to them as well. building a stronger economy, delivering first—class public services and the homes that families need. these are the public's priorities and they must be the conservative party's priorities

also. we must and we shall deliver on the referendum vote and seize the opportunities that lie ahead. but the conservatives must not be a single issue party, we are a party of the whole nation. moderate, pragmatic, mainstream. committed to reuniting our country and building a country that works for everyone. the agenda i set out in my first speech outside this front door. delivering the brexit people voted for, building a country that works for everyone. i have devoted myself unsparingly to these tasks ever since i became prime ministerand i stand ready to finish the job. theresa may with the brief statement of defiance. i will contest this vote with everything i've got, she said. she said if a leadership

contest said. she said if a leadership co ntest d oes said. she said if a leadership contest does go ahead and just to remind you of the process, there will be that vote, the secret ballot by tory mps between 6pm and 8pm this evening and the result will be published shortly afterwards. if theresa may wins that, 50% plus one, she is in position for another year. u nless she is in position for another year. unless she decided her position was untenable, but what we are hearing from her there is complete defiance. she said she wants to fight on and continue down the part she is on. she said to do otherwise would risk parliament not being able to go ahead with the legal deadline for the vote on the withdrawal agreement on the 21st of january. that is a big question around how long the timing ofa big question around how long the timing of a leadership election would take because if theresa may lost the vote tonight, it goes into rounds of voting with the tory party and result in a postal ballot, which would take we don't know how long.

to put it in context in 2016 when there was a leadership campaign, it took 16 days. the personal aspect would have taken longer but it didn't happen because it went down to two candidates and one of them dropped out. owen paterson, this is not in the interest of the country? yes, that is why people like me for long and hard and i really try to help on the issue of the irish border. help in a practical manner but it led to exasperation in the end that she was determined to follow the wrong course. she is sadly, determined to stick to her deal which will not get to the house of commons. if it did get through, it would mean she would lose the support of the dup which triggers a general election. 21st ofjanuary is the legal deadline for there to be a vote on the withdrawal agreement?

that is questionable now whether it can be achieved? that is one of the things that swung me when i decided to write the letter. we drivel on to the 21st of january with these inconsequential meetings with the europeans who will not budge an inch and then she loses. so back to my earlier conversation, ditch this deal, which will not get to the commons and go straight back to donald tusk's open offer of a free—trade deal and in parallel, begin immediately preparing for world trade terms. this was secondary legislation in parliament which should have gone through last week, which have not been triggered yet for world trade tariffs. we must do that. we cannot go after this chimera that somehow the commons is going to turn round and accept a deal which is unacceptable. we are going into a leadership contest with the tory party which is in the minority in that party, in your

view. it is possible, obviously it is theresa may in a difficult political situation but it is possible everyone rallies round and the train keeps going? perfectly possible yes. then where does that leave your party you have taken to the brink of chaos at this point and it looks completely divided ? the brink of chaos at this point and it looks completely divided? 70.4 million people voted to leave. the general election and the manifesto was clear. —— 17.4 million. we would leave the customs union and the remit of the ecj, that is what we we re remit of the ecj, that is what we were elected on, that is what our supporters in the country still support. 10,000 people at the weekend, a poll showed remaining in the eu is the most unpopular option. the second most unpopular is the prime minister's deal. we are in june with the mainstream of our party, we are manifesto conservatives. just wait for the

sirens to go. lots of activity behind us. lots of people coming out as they died just the statement we have just had from the prime minister. i don't take this caricature we are the hard brexiteers. we are mainstream, ma nifesto brexiteers. we are mainstream, manifesto conservatives. we want to see the manifesto delivered and keep the promise we made. david cameron said you get a referendum. it happened. we had the referendum. then the manifesto commitment in the last general election, three big, public votes and we must deliver them. we are not extremists or hard brexiteers, just mainstream tories who want to see the manifesto delivered. we will have the vote between 6pm and 8pm tonight and theresa may will address the commons of five theresa may will address the commons offive p:m.. theresa may will address the commons of five p: m.. the theresa may will address the commons of five p:m.. the result from the ballot is expected as soon as is possible after the votes have been

cast. the secret ballot so whether people will vote in line with what they have been saying publicly, we will have to wait and see. you are watching bbc news special with me, joanna gosling and i will hand you back to studio. studio: theresa may has been giving her reaction to the vote of no confidence with absolute defiance. i will contest this vote with everything i have got. the 48 letters which triggered that vote of no confidence was sent by tory mps to the chairman of the 1922 committee, sirgraham to the chairman of the 1922 committee, sir graham brady. effectively the governing body of the tory party. he has been speaking a few moments ago about those letters a nd a few moments ago about those letters and what happened. we received inaccurate speculation, people suggesting the threshold had been reached when it happened. i have read in countless newspapers the threshold was reached a long time ago when it hadn't been. so i

don't suppose it was a surprise. obviously it was important to wait for confirmation that the process was triggered. sir graham brady, chairman of the 1922 committee. that vote of no—confidence will be held at six local time. in the house of commons. it is scheduled to last from 6pm until 8pm and if the prime minister survives, she cannot, according to the conservative tory party rules, be challenged for another year. if so, there is a majority of people who vote against her, there will be a leadership contest her, there will be a leadership co ntest a nd her, there will be a leadership contest and she will be replaced. it does not automatically mean a new general election, but a new leader of the tory party. of course, something theresa may inherited without a contest when she took over

eventually from david cameron. you are watching bbc world news. you're watching a bbc news special with me, joanna gosling, live at westminster. the headlines. the prime minister says she will fight a leadership challenge after enough mps back a vote of no confidence. sirgraham sir graham brady has confirmed that he has received 48 letters from conservative mps so there will now bea conservative mps so there will now be a vote of confidence in my leadership of the conservative party. i will contest that vote with everything i've got. it comes after the chairman of the backbench1922 committee confirmed that the required 48 letters calling for a contest had been received. the prime minister will come and address conservative colleagues at the 1922 committee meeting at 5pm this afternoon and immediately after that meeting, a ballot will be held between 6pm and 8pm