she talked about the customs agreement, to replace being in the customs union. movement of goods and services across the eu and you would hope that that is still retained in some way or other so businesses can make sure their supply chains work as they do now. without any further bureaucratic imposition on how they do their business. what would you say is the reaction of your federation to the speech, disappointment, pleased ? federation to the speech, disappointment, pleased? ithink federation to the speech, disappointment, pleased? i think at last we have the start of some clarity around this whole two a three—year process, whatever it comes out as at the end. we need access to the market but whatever that means we do not want increased ta riffs if that means we do not want increased tariffs if that can be avoided. we do want ambitious trade agreements with europe and other overseas markets. thank you. we can also talk to professor philip weimann from the lancashire business school. what are your thoughts on that speech today. but we will be leaving the single

i hope we leave the customs union. outside of the customs union can we sign free trade agreements with the large growing economies, and that is one of the great opportunities of brexit, and it can turbo charge our economy and we can cut the cost of goods that people buy. take back control — that was the winning slogan of the vote leave campaign. but what does that mean on immigration? it means it will be the uk and the british people and the british parliament that are in charge of designing our immigration policy. so it won't be brussels, it will be us here. and the nature of that policy is something we need to have a conversation about. we have to figure out what do we want to do? the brexit negotiations will follow two tracks. the divorce talks, and the negotiations on the uk's future relationship with the eu. the chancellor has said he would like to agree a transitional deal for the next stage if we fail to agree a new framework within the deadline. let's at how long it took the eu to deal with south korea that took

the european union. we will be coming out of the formal structures of the customs union and the single market, because that'she way we can really grasp the golden opportunities that brexit presents. the prime minister must not wave the white flag and give up on our membership of the single market. if she cares about britain's future and is going to fight our corner, then she's going to need to be fighting for britain to be in the single market. theresa may will set out her plans for brexit, including a pledge to leave the single market, but there will be no clarity on the customs union or curbing immigration. sorry for that technical hitch. a libyan man has won the right to sue the former foreign secretary, jack straw, over claims of kidnap and torture. an 18—year—old man has been arrested on suspicion of murdering a teenage girl in rotherham. three years after the malaysia airlines flight mh370 went missing, the search is called off, leaving families devastated. good morning. welcome to bbc newsroom live. theresa may is due to set out her strategy for brexit this lunchtime. in a speech in central london, th

under the customs union, members of the eu agree to scrap tariffs on each others goods, if we exit thereferendum. you can see it there because of fears we would export lessment the pound lost a fifth of its value and that started to drive up prices. with me to discuss this liam halligan, economist and co—author of the report, clean brexit and sam lowe from friends of the earth. welcome to both. liam you must be pleased with what you heard from theresa may today?” pleased with what you heard from theresa may today? i don't speak for the government. it was an imaginative and yet realistic speech, i thought, imaginative and yet realistic speech, ithought, it imaginative and yet realistic speech, i thought, it was quite tough, but emollient at the same time. i think it is a good thing that britain has ruled out staying in the single market. the economic benefits i think of which have been exaggerated over many years and discriminates against smaller firms and as for the customs union, being in the customs union has lots of drawbacks, the tariff makes a lot of our imports into the eu more e

you talked about tariffs, what about the idea that she floated the new customs agreement that perhaps we need the customs union you encouraged by that? it is all unanswered questions because there are huge risks of coming out of the customs union to oui’ coming out of the customs union to our businesses and especially manufacturing. the prime minister has said we're not quite coming out of anything that we want something different, possibly, ithink of anything that we want something different, possibly, i think she said associate membership. there is no clarity there. i think what is important is that perhaps understands that it would be damaging to simply have nothing and that she wants something in its place. but this is an area where there are gaps in what she has said. surely there are bound to be gaps because she said she cannot negotiate, she gave you the broad outlines but cannot go into every bit of detail. accept the negotiations are about to begin but i think that she should have made a statement in parliament today so mps could have asked these questions of her and she could have given her a nswe i’

under the customs union, members of the eu agree to scrap tariffs on each others goods, if we exit thethat's one reason the pound dropped shortly after the referendum. you can see it there because of fears we would export less. the pound lost a fifth of its value and that started to drive up prices. the entrepreneur richard tice is co—chair of leave means leave and is here with me now. a broad sense of the message today from the prime minister, for you what was notable. we were delighted with what she said. she used are strapline that no deal is better than a bad deal. she clarified what we asked for, that we will be leaving the single market. she listened to people about freedom of movement and she realised that we can leave the single market and still have access as most countries in the world had. she also talks about leaving the customs union but with some kind of agreement. sensibly she has left the door open forfriendly discussion sensibly she has left the door open for friendly discussion but she said it with a clear and firm, friendly tone. so we are delighted with everything s

and what about the so—called customs union that mrs may referred to? h european governments impose no tariffs or import taxes on goods traded within the eu but they do agree to charge the same tariffs on goods being imported into any part of the union. now the prime minister said she didn't want britain to be bound by this anymore. she wants britain instead to be able to set its own tariffs and negotiate its own trade deals with the rest of the world. she said she would accept some kind of customs arrangement with the eu so trade was frictionless. and if there is no deal, british firms could end up paying tariffs they don't pay now. so this is what the prime minister wants. all she has to do now is get the rest of the eu to agree and that's far from certain. i havejust skated over the surface of what are some pretty important issues. you can read a lot more in detail on the bbc news website and the bbc reality check‘s assessment of how any deal might work. business leaders are still divided on the implications of brexit but most of them today seemed to

under the customs union, members of the eu agreed to scrap tariffs on each other‘s goods. the customs union, those tariffs might come back, making for example, our car exports less competitive. that's one reason the pound dropped so sharply here after the referendum, because of fears we'd export less, damaging our economy. the pound's lost about a fifth of its value and that's started to drive up prices. to this heathrow —based haulier, the effect is obvious, because the pound is weak and you need more pounds to buy the same goods in dollars. fuel had been falling in price but on today's inflation numbers it is up by 10%. today's inflation numbers it is up by io%. the company can absorb the cost but not for ever. the cost of the fuel starts to bite and eventually will have to put in a fuel surcharge like everybody else in the industry. when we go past a certain level. we cannot afford to keep the costs in house. the effect of the weaker pound is most obvious up of the weaker pound is most obvious up the of the weaker pound is most obvious he supply of the weaker pound is m

i would like to see us try to stay in the customs union at least for a time. ates china where we know that we have with the dumping of steel and those things are complicated. you trade with the udp union is real and present and almost half our exports so i think from my point of view, let's try and stay in the customs union and at least stay there until we have clear direction in terms of other trade arrangements that can compensate us and also lets make sure and theresa may given insurance on this that there would be a cliff edge for business. once that is an agreement that will be an ample mentation phase and if we have two years of negotiation is written in terms of leading the single market and the customs union, then what the business wants to hear is that there would then be an implementation phase for another two or three years on top of that so that people can adjust the arrangements. we need to have a business friendly government because otherwise we are going to lose some foreign investment and jobs. thank you very much a night baxter and nigel baxter

the customs union. the customs union is still 50-50, but customs union. n is still 50—50, but she has made it clear there will be no negotiation on the free movement of people, which means the single market is finished because angela merkel and francois hollande will not negotiate on that either. no, and as the daily mail says, its headline is we will regain control of our borders. that was one of the very big mantras of the brexit campaign, and breakfree from eu judges. let's open a ten second parenthesis. wait this is being viewed on the continent, the former prime minister of france, manuel valls, thank you, clive, is the president elect... we could do a bilingual show... the president elect has given a great psychological boost and that is very good and nice for the government, but the point is it is being viewed on the continent, notjust in germany, but also in france. france is already in the launching of its presidential campaign and general election and it is very much looking like it as if it is a war. those are the words manuel valls used. it is

the european union or its predecessors. the point is that britain are leaving the single market. the customs want to work for a hard now to arrive at the outcome of not having a return to the hardboard, not having a return to borders of the past, but having a seamless and frictionless and trouble—free situation as we can put together. that is the outcome that we want. and the discussions and negotiations in respect of the customs union are where that will take place. donald trump is very much in the news in the last 24 hours or so, prime ministerand the last 24 hours or so, prime minister and taoiseach, are there any circumstances in which you can't envisage his state visit to the uk would be cancelled or any circumstances in which you would cancel or postpone going to the white house for said patrick's day. the united states is a close ally of the united kingdom. we work together across many areas of mutual interest, and we have that special relationship between us. i issued that invitation for president trump to the united kingdom and that invitation stands. i spoke to the president very s

we're leaving the single market, we do not intend to be in it, nor in the customs union. ant to make trading arrangements, but we want to be co—operating and have free trade arrangement with the eu and have full access to services. that is exactly where we should be. that is not damaging, it benefits both sides. on tuesday, theresa may will the country to unite and get behind brexit. but many mps are concerned that her approach will damage the economy. vicki young said attention is turning very much to the speech on tuesday. we are trying to piece together the jigsaw exactly what the government will ask for. philip hammond has told us quite a bit today about all of this. immigration is the priority. theresa may says britain will leave the eu and the priority is to control our borders, control immigration. eu leaders have made it clear that in order to do that, britain would have to leave the single market. philip hammond suggested we would leave the single market because we want to control immigration and that he was looking for a special arrangement for the car industry,

but what exactly the european customs union. but what exa ctly d oes the european customs union. t what exactly does that mean? as you know, it is economically important because we sell more goods and services to the other 27 member countries in the european countries than anywhere else. it is our biggest trading partner because it is a trading —— closes trading partner. if you are a british exporter, it is very obvious what the single market means. whatever you make in the uk, you can sell anywhere in the eu, no member country can block you. you can also invest capital anywhere and any member country can invest in your country. member states, is member country can invest in your country. memberstates, is not member country can invest in your country. member states, is not to block that. you also have free movement of services and, more co ntroversially, movement of services and, more controversially, free movement of people. the fear is if we leave the single market, our exporters would be able to sell as much to our main trading partner is on the economy will grow more slowly. t

within come to the next bit, the customs union. surely a matter of the movement of goods.. again you have the rules, you have the common tariff for outside goods. you also have the situation where we cannot do trade deals elsewhere and by friday they should be a nice one with donald trump, bob. to the daily telegraph. talking about the amendments and the obstruction is the opposition parties and some tory backbenchers could put in the way of all this. nicola sturgeon, mr farren and jeremy corbyn, the suggestion from the paper is nicola sturgeon and mr corbyn are somehow striking a pact. it suggests they are plotting to undermine theresa may‘s plans. i would be very surprised if they were actually on the phone to each other trying to work on the way forward. some scottish mps have said they will table 50 amendments, which means they might notjust delay the process , means they might notjust delay the process, but also shifted considerably into their sort of brexit, which as we know they didn‘t wa nt brexit, which as we know they didn‘t want at all. so, one of these amendmen

and membership of the customs union are probably disappearing ?lic have voted and we‘ve got to live with that and get the best deal we can for the uk. i think of the list of things you have mentioned, i‘ve a lwa ys things you have mentioned, i‘ve always taken the view that the prime minister is right and there will be some restrictions on free movement in europe, but i don‘t say that is incompatible with keeping many of the key positive elements of the single market, which is freedom of trade, notjust on tariffs, but nontariff barriers having regulatory standards and i thinly customs union is crucial for standards and i thinly customs union is crucialfor our supply standards and i thinly customs union is crucial for our supply chain industries and if we lose that, i think there will be a lot of damage to some of our key manufacturers. so i take to some of our key manufacturers. so itakea to some of our key manufacturers. so i take a practical approach to it andi i take a practical approach to it and i do worry that the momentum towards a ha rd and

the prime minister says she wants a trade deal with the other 27 members of the european union, under what is called a customsshe is warning that the uk could walk away if it is a bad deal. here is what she had to say. not partial ownership of the european union, associate them to ship of the european union, or anything that leaves us half in, half out. i want to be clear. what i am proposing cannot mean membership of the single market. business leaders are still divided on the implications of brexit, but most of them seemed to welcome at least some clarity from the prime minister —— membership. our business editor has been talking to some of them in davos. there is nothing like a bit of mountain air to give you clarity. business leaders gathered in switzerland were watching the prime ministerfor exactly that. did they get it? clarity, first of all. really codify in what many of us are expecting around the result, particularly around the result, particularly around the result, particularly around the single market. we are also seeing the government's willingness to put a bit of edge into the negotiating dynam

when leaving the single market, we do not intend to be in it, nor in the customs union. ing arrangements, but we want to become operating and have free trade arrangement with the youth and have full access to services. that is exactly where we should be. so go with the eu. that is not damaging, it benefits both sides. on tuesday, theresa may will the country to unite and get behind brexit. many mps are concerned that her approach will damage the economy. and vicki's here with me. will damage the economy. how will damage the economy. much have we learned 6 goverment‘s how much have we learned about the goverment‘s brexit strategy? how much have we learned about the goverment's brexit strategy?m how much have we learned about the goverment's brexit strategy? it is like a jigsaw, trying to read between the lines, but philip hammond has told us quite a lot today. they are saying that controlling immigration is the priority. it is clear that means we will leave the single market. mr hammond suggested they will be seeking a special arrangement for the car industry and banking s

, and there is no trade barrier within the customs union. are negotiated by brussels and the european union. they cannot be negotiated by turkey, nor will it be the case for britain if it remains outside the customs union. turkey cannot sign a free—trade deal with britain. also heard the prime minister three times refusing to address the situation with the united states when it comes to refugees. but some big technology companies had making their voices heard. yes, the technology sector has been quite a gas that this, because quite a few of the big ones, ebay, amazon, google etc, rely on brainpower from throughout the world. they come into the united states courtesy of something called a hib visa, for highly paid and highly skilled workers. google discovered today that 100 of the staff have passports from the country is being referred to and they are overseas and cannot come back. they have recalled all those employees, lest they not be allowed to get on a plane, which we have heard is going to be a serious issue, even if you have a green car

we've still got to pursue a subsidiary in the eu for post—brexit world, meaning that we can still serve our customers and policyholders in those european union, no buts, no single market. clarity, yes. desired outcome? not for everyone. and with the continuing question mark over whether we are a partial member of the customs union, many companies will say, for example, it takes a continent to build a car and if there are hold—ups at the border that could be bad news. and the car industry gave mps its version of clarity on the consequences of not getting a good trade deal. the cars that we import, and remember we import about 80% of the vehicles we sell in the uk, that would add about £2.7 billion, or about £1,500 per car sold. financial markets were watching closely, too. suddenly the pound rocketed against the dollar at the very moment the prime minister offered mps a chance to vote on any final deal. markets making one last bet that brexit could still be derailed. but even some of the business world's staunchest remainers weren't fooled and are now resigned to knuckling down to the political reality. most businesses are trying to move forw

again signal that she's ready to take britain out of the european single market and perhaps the customs unionhly likely we will be coming out of the formal structures of the customs union and the single market, because that's the way to grasp the golden opportunities that brexit presents, not just for controlling immigration but for free trade opportunities. she will tell eu leaders... ..but she will say she wants a new and equal partnership, declaring... donald trump's offer of a quick, fair trade deal with the uk got the thumbs up from leading brexiteers, but whilst the president—elect said the uk was so smart to vote for brexit, those who disagree want britain to fight to stay in the single market. i think the prime minister must not wave the white flag and give up on our membership of the single market if she cares about britain's future, if she's going to fight for britain and fight for our corner, then she needs to fight to be in the single market even if we leave the eu. she also needs to indicate that the final deal will be put to the british people. theresa may will set out 12 priori

the european union. we will be coming out of the formal structures of the customs union and the single market, because that's brexit, including a

in asia and elsewhere, then it would need a new arrangement with the european union because currently if you are part of the eu customsl of those 28, current 28 countries, they all have the same ta riffs countries, they all have the same tariffs with the rest of the world and deals tween the eu members of the eu and other countries like india, for example, or the united states, or canada, that is negotiated as an eu level. so what theresa may is saying is that britain, and again, this is part of her overall rhetoric, is that britain would need something, guess what, uniquely british. not in the single market, not in the customs union, but maybe something that sort of looks a bit like it. some reaction from people inside the european union. article 50 has to pitch triggered by the uk before formal negotiations can begin. damian grammaticas is in strasbourg where the european parliament is based some of the time. here's more on the reaction inside the eu. the view here looking at this speed is that the first of all this has given a little bit more clarity, at not very much, from the eu side. what they say is that they u

brexit today, but if she's going to announce we will leave the eu, leave the single market, leave the customs unionre going to bea the customs union, is there going to be a void? in one speech she surely can't say what will fill that and that will give investors another reason to worry, we may see further downside for the pound but the ftse, which has done well since the vote, could worry on the back of that as well. including those running businesses, big exporters, those trading with europe all the time, 50% of exports go to europe, does this give them time to prepare whether they think it's a good or bad idea to get ready for the possibility of us being completely out? it depends if they have a transition deal, that is what they hoped for, to see us through the period of negotiation. that's what the big businesses will do but if the big businesses will do but if the pound takes a dip significantly below $1 20 then she will do those exporters a favour. for the city of london, i would assume it has so many ramifications and for financial centres in europe, they will look for a special arrangement

also, i think, shows that perhaps boris johnson is winning the argument about britain leaving the customs unionto secure control of immigration. but, you know, it will be interesting to see what the effective, on the financial markets. do you think it could be shaky even in the leader? they call it a market correction. darling street staff expect her words to create a market correction. she is down to she doesn't damned if she doesn't. there has been a growing call for her to be far more clear about what it means and we are waiting for the supreme courtjudgement means and we are waiting for the supreme court judgement any means and we are waiting for the supreme courtjudgement any minute now. we are. we are waiting for mp5 to get a vote on it which will be interesting to see if they want to fiddle around with what is going on. for instance, jeremy corbyn says he is the bottomline is that we in the single market. how do you do that? does he then vote against article 50? he said no. at some point, if it returns to parliament you can bet your life that mps will be trying to find a vehicle to hold

and probably outside the customs union so that we can negotiate our own trade deals with the rest of. this is the most crucial set of choices any prime minister has made for years. and although the fundamentals were clear before she moved in, there's been precious little detail in public. but theresa may's opponents fear she'll disappoint because she's juggling her party as well as the public. partly because she's had to overcompensate, as a former remainer, to prove herself to her own party. partly because she has no mandate of her own, she has not been elected by anybody, so she's not in a very strong position. but partly because she's chosen, really, only to listen to the 52% of people who voted for brexit, and not the almost half of the remaining part of the voting public voted for a different future. some people might say that people on your side of the argument haven't listened to people on the other side for too long and that's why the vote went the way it did. i accept that unless something dramatic happens or there's a huge change in public opinion brexit is likely to occur.

and the single market. soi customs uniongle market. so i agree, after today's speech it isn't hard brexit, it is full brexit. in the first part of her speech the pm made a commitment to enhance and protect workers' rights of art enhance and protect workers' rights ofart in enhance and protect workers' rights of art in the end was threatening to ta ke of art in the end was threatening to take them away and to undercut the re st of take them away and to undercut the rest of europe and rip up the british economic model, if we don't get what we want. can he now withdraw that brett and be clear that britain will not do that? otherwise, if the government is willing to rip up workers' rights, as soofi as willing to rip up workers' rights, as soon as negotiations get difficult how can we trust them to ensure that the rest of britain was like interests are protected if the negotiations get difficult as well? i will say to her what i said to —— a couple of weeks ago, there is no circumstance under which we would whip up workers' right

not want britain to be part of the commercial policy, and external terrorists and elements of the customs union. and comprehensive trade agreements. do want us to have a customs agreement with the eu. whether that means completely new customs agreement, associate member of the customs union, i hold no position. i have an open mind on how they do it. it is not the means that matter but the end and those ends a clear. i want to remove as many barriers to trade as possible and britain to be free for its own schedule. we can reach new trade agreements, with new allies outside europe. global britain, also a country that looks to the country, one of the best places in the world for science and innovation. one of our great strengths in the nation is the breadth and depth of academic and scientific community backed up by the world's best universities and we have a proud history of leading and supporting cutting-edge innovation. and an agreement to collaborate for european partners, from space exploration to clean energy to medical technology, britain will remain at reflective endeavors to better unders

what she said was we are out of the european union, out of the single market, out of the customs uniont ofjustice. and then maybe we could have this european programme that interest us — that will not work naturally. why doesn't it work? why not? it is in your interest to let us cooperate with you. why wouldn't you ? my idea was totally different was against brexit. i thought that even the best solution should be that britain is still part of the single market. not only for us, but in the main interests of the british industry, british economy and the british workers. let's take a very specific one, the customs union, she said we'll leave the customs union but we would like to have, for example, a particular deal for the car industry, so that supply chains. will that work or not? i don't think that you can do that. why not? that is what i call pick and choose policy, they're saying 0k we go out of every european corporation and then i take the very interesting parts for us, without taking also the obligations, without also the payments that are necessary for that. i don't think that wi

the european union for a generation. i don't want that. i want us to say, we are going to be outside the single market and customs union, we are going to spendat in terms of getting our house in order. ports will need to be reorganised. in the paper i've written, a lot of this stuff is laid out there. rather than trying to go for some kind of cliff edge deal in a two—year window which will end up with horrible rhetoric, finger—pointing, more nationalism, doing serious damage to our relations with the european union, our nearest geographic neighbours. at the same time we have do assert that we are going to cut trade deals with the rest of the world. after we've left, 88% of the world will be outside the european union. thank you. the headlines on bbc news. donald trump has promised a trade deal between britain and the united states will be a priority when he takes office on friday. northern ireland's power sharing government looks set to collapse today, sparking fresh elections. an inquest has heard that a gunman who shot and killed 38 tourists on a beach in tunisia in 2015, could have been stopped sooner. in sport, andy murray is through to

they think we will pull out of the single market and the customs union. stunning 17% of their voters are tried to save the stricken nhs. good morning. what did you find in the papers when you had a look through? the first story was this issue of the nhs. no foreign aid. it was interesting because there was a german person who was on dateline london, the bbc show, yesterday that is on every saturday, hosted by gavin esler. excellent programme with foreign journalists. she said that in germany there are eight beds per person so they have surplus of beds but the issue she raised is that in germany, the average citizen pays 60% of their earnings into what they call insurance is so it isn'tjust insurance. its best version of the nhs, their pensions, and all public services so that she said the medical service in germany never gets into the news because it is so well run, there are never problems, she said that if they are nhs were to offer massage or acupuncture, that would be headline and also the german state pension is infinitely higher than ours. so tired o

and what about the so—called customs union? er which eu countries impose the same tariffs on goods and services imported from outside of the eu? theresa may said she did not want britain to be bound by this common external tariff. instead she wants britain to be able to set its own tariffs and negotiate its own trade deals with the rest of the world. but she said she would accept some kind of customs arrangement with the eu, not spelling out what that would mean. this is what the prime minister wa nts, this is what the prime minister wants, now all she has to do is get the rest of the eu to agree and that is farfrom certain. i'vejust skated over the surface of what are some pretty important issues, you can read a lot more in detail on the bbc website that will take you through the options and what they might mean. james langdale, our diplomatic correspondent. we can get reaction now from davos. kamal ahmed is there for us. i'm sure they were all following the speech closely, what has been the reaction was yellow absolutely so. i

and what about the so—called customs union, the deal under which eu countries impose the same tariffsfrom outside the eu? theresa may said she didn't want that uk to be bound by this any more and instead wanted britain to be able to set its own tariffs and negotiate its own trade deals with the rest of the world. but, she said she would accept some kind of new customs arrangement with the eu but didn't spell out what that might be. so, this is what the prime minister wa nts. so, this is what the prime minister wants. now, all she has to do is get the eu members to agree, and that's farfrom certain. i have skated over the surface of what are some important issues, so you can read more detail on the bbc website, that will take you through all the options and what that might be. george. it didn't take long for eu leaders to react. the president of the eu council called the speech realistic, but the european parliament's negotiator called theresa may's goals an illusion. the pound strengthened after the prime minister's speech. more on that from our business editor simonjack, who is at th

realistically, we are out of the customs union. s being able to change paris and rules. this might mean tariffs, admin and eu border has awful lots of uk goods entering the eu. —— for lots of uk goods. companies are likely to aim for an agreement which would ease the burden in particular. those sectors might get particularly low tariffs, particularly few border checks and less form filling. a much harder issue is northern ireland. an open border with the republicans regarded as important to the peace. 0fficials regarded as important to the peace. officials are being considering the norway— sweden border solution, a ha rd norway— sweden border solution, a hard border, but where clever use of technology allows goods to move back and forth without hitting too much red tape. being out of the customs union lets us pursue an independent trade policy. but it doesn't come without a few complications. let's speak to jacob kirkegaard, an economist and european specialist at the peterson institute for international economics. hejoins us from o

it creates an illusion that you can go out of the single market, that you can go out of the customs union, that you can cherry pick. that you can have a number of advantages. i think this will not happen. minister the german said that at least the british position was more clear, a sentiment echoed in the irish parliament. >> i welcome this statement today as it brings clarity and a number of areas. this is the start of the process. europe is going to have to respond to the statement made by the prime minister today. reporter: that response is only beginning. the tough negotiations will take many years. bbc news. katty: for more on theresa may's comments, i spoke with a former u.s. state department official now at the center for strategic and international studies. it seems that theresa may has made the calculation it is worth sacrificing everything else to give britain control of its borders and immigration levels. heather: she has made it clear that sacrifice is worth it. that the belief that brexit can bring new opportunities when the control is taken. lots of questions in between, wer

sol that a logical leave and the same thing the customs union. ink it will be quite easy to piece together what she once and it won't please everybody but i think the interesting narrative is the government trying to move this away from how britain will suffer, how the economy might be damaged and trying now to look at what we do bring to the table. we are a big economy, we are a growing economy, we have the city of london, we are an outward looking nation. they see these as positives and we have a lot to contribute in the area of security, for example. all of these things are useful notjust to spread to the eu as well, so they are trying to change the story, you like, to say it is not about us being losers, it is about the partnership we can have the eu and what we can bring to the table and they feel they have a strong set of cards in their hand. thank you for that. and we'll find out how this story — and many others — are covered in tomorrow's front pages at 10:40 this evening in the papers — our guestsjoining me tonight are broadcaster david d

world itself, with no reference to the european union, and those that want a softer brexit, still having preferential access to the single market, possibly still in the customs. that is a tension on one side. 0n the european side, the 27 other member states, there are tensions between those who want to ensure that britain doesn't get a better deal by coming out of the european union, politically unpalatable as that is. but also, britain is the second—largest economy in europe. they don't want to set up trade barriers such that the european economy itself suffers by losing the british market. and of course, london, the city, is one of the global leading financial centres. europe needs the city to fund its own businesses. indeed it does. talking of financials, let's bring up the board, because i want to talk about that. we can bring it up, because i want to talk about the ftse and the pound. this is how they ended as of the 21st of december. everyone talked about how, if there was a vote for brexit, we would see that pound plunge. exactly, investors would think that assets in the uk may be less valuable in the future, so that money would be better employed on

legally, can she remove the customs union, article 127, our membership of the single market?l review going to court led by a pr chap and i believe another. one is a remain and one is a lever. they are trying to argue that it needs another bit of parliamentary scrutiny. have we got the patience? the sunday times, same story. i want to move onto donald trump who is obviously going to be not just the trump who is obviously going to be notjust the biggest newsmaker this week but probably this year and the sunday times says he wants a summit in rhetoric. what do you make of this? traditionally, in recent yea rs, this? traditionally, in recent years, the president's first international visit has been to canada, fairly innocuous. the best possible way! donald trump is discussing going to russia, or took recce a third—party location, to meet with putin —— to iceland. this seems to have got footage officials quite worried. what exactly it will mean in terms of sanctions on russia. —— british officials. and tromp—— and donald trump's intentions. the more recent ones about hacking and c

serious issues which were not addressed in the referendum and have been touched on, the single market and customs uniond. it is absurd to say that every elector knew what the difference was between the customs union and the single market and had taken a careful and studied view on the basis of our future trade relations with europe. the fact is, i admire the prime ministerand her the fact is, i admire the prime minister and her colleagues for their constant propounding of the principles of free trade. my party has not changed that, we are believers in free trade, it is a win—win situation, we were leading advocate of liberal economic policies in the european powers and are free traders. it seems to me that it are free traders. it seems to me thatitis are free traders. it seems to me that it is an arguable that if you put between us and the biggest free market in the world new tariffs, new regulatory barriers, new customs procedures, certificates of origin and so on, you are bound to be weakening your economic position thanit weakening your economic position than it would otherwise have been, other thin

or deciding on reflection, we should remain in the customs union. depends on how the negotiations go. that is important to businesses who rely and have gotten used to withoutflow of goods too much paperwork and obstacles. jeremy corbyn says you ife to vote for the bill and a vote against the bill, could the labour party imploding to this question mark >> no. look, we have clear views of party. we have to respect the outcome. therefore, you have to give effect that the court case was not about whether we are leaving. say members of parliament feel strongly about this. new labour party's position is clear. theve no doubt at all hall's will vote to trigger article 50 because this is essentially about whether you respect the outcome or not. johnson -- over one million signatures saying trump should not be invited from coming to the u.k. this year. four shots and saying it is come.y right for him to vonnie: i think the main question here is if people had .ny trouble traveling he says that there will be no .ifference to passport holders whether you want t

from european lawli think it's highly likely we'll be coming out of the formal structures of the customs union and single market because that's the way we can illegal the global opportunities brexit presents, notjust controlling immigration but free trade opportunities. shield tell eu leaders: but she'll say she wants a new and equal partnership, declaring: donald trump's offer of a quick, fair trade deal with the uk got the thumbs up from leading brexiteers, but while the president—elect said the uk was so smart to vote for brexit, those who disagreed want britain to fight to stay in the single market. i think the prime minister must not wave the white flag and give up on our membership of the single market. if she cares about britain's future, if she's going to fight for britain and fight oui’ corner, going to fight for britain and fight our corner, then she needs to be fighting for britain to be in the single market even if we leave the european union. she also needs to indicate the final deal will be put to the british people. theresa may will set out 12 priorities for a deal and she sets

again signal that she's ready to take britain out of the european single market, and perhaps the customs unionder to gain control of immigration and freedom from european law. i think it's highly likely we'll be coming out of the formal structures of the customs union and the single market, just because that's the way we can really grasp the golden opportunities that brexit presents, not just for controlling immigration but also free trade opportunities. she'll tell eu leaders... ..but she'll say she wants a new and equal partnership, declaring... donald trump's offer of a quick, fair trade deal with the uk got the thumbs up from leading brexiteers, but whilst the president—elect said the uk was so smart to vote for brexit, those who disagree want britain to fight to stay in the single market. i think the prime minister must not wave the white flag and give up on our membership of the single market if she cares about britain's future. if she's going to fight for britain and fight our corner, then she needs to fight to be in the single market even if we leave the european union. she also needs

not want britain to be part of the commercial policy, and external terrorists and elements of the customs union. they prevent us from starting our own agreements, but i do want us to have a customs agreement with the eu. whether that means completely new customs agreement, associate member of the customs union, i hold no position. i have an open mind on how they do it. it is not the means that matter but the end and those ends a re clear. i want to remove as many barriers to trade as possible and britain to be free for its own tariff schedule of the world trade organization, meaning we can reach new trade agreements. not just with the eu but new allies outside europe. global britain must also a country that looks at the future. that means being one of the best places in the world for science and innovation. one of our great strengths in the nation is the breadth and depth of academic and scientific community backed up by the world's best universities and we have a proud history of leading and supporting cutting-edge innovation. you will also welcome an agreement to collaborate for european part

we're leaving the single market, we do not intend to be in it, nor in the customs union. t to make trading arrangements, but we want to be co—operating and have free trade arrangement with the eu and have full access to services. that is exactly where we should be. that is not damaging, it benefits both sides. on tuesday, theresa may will the country to unite and get behind brexit. but many mps are concerned that her approach will damage the economy. earlier i spoke to our chief political correspondent vicki young. she began by expanding on the comments made by the chancellor. we are really trying to piece together the picture of exactly what the government is going to be asking for in those negotiations. theresa may is going to make a significant speech on tuesday about all of this, but philip hammond has told us quite a bit i think really today about all of this. immigration is the priority for theresa may. she says that britain is going to leave the european union and the priority for her is to control our borders, to control immigration. now, eu leaders have made it ve

prepared to extract itself from those formal structures of the eu, to do with the single market, the customs unionnd so single market, the customs union and so on, and to go for bespoke trade deals instead, in certain industries like manufacturing, the car industry and financial services. the chancellor, philip hammond, has taken a chancellor, philip hammond, has ta ken a slightly chancellor, philip hammond, has taken a slightly different tack in germany in an interview. that has led to the reaction ofjeremy corbyn. it is intriguing. i am led to the reaction ofjeremy corbyn. it is intriguing. lam not sure if this was by accident or design this morning. earlier last week, philip hammond was talking to his german counterpart. he gave an interview to one of the big sunday newspapers which has been published this morning. the chancellor talks about the way in which he sees these negotiations developing. it is a ha rd ball negotiations developing. it is a hardball message. he was asked about britain wanting to lower corporation tax, two of the lowest rate in the 620 tax, two of the lowest rate in the g

and probably outside the customs union so that we can negotiate our own trade deals with the rest ofhis is the most crucial set of choices any prime minister has made for years. and although the fundamentals were clear before she moved in, there's been precious little detail in public. but theresa may's opponents fear she'll disappoint because she's juggling her party as well as the public. partly because she's had to overcompensate, as a former remainer, to prove herself to her own party. partly because she has no mandate of her own, she has not been elected by anybody, so she's not in a very strong position. but partly because she's chosen, really, only to listen to the 52% of people who voted for brexit, and not the almost half of the remaining part of the voting public voted for a different future. some people might say that people on your side of the argument haven't listened to people on the other side for too long and that's why the vote went the way it did. i accept that unless something dramatic happens or there's a huge change in public opinion, brexit is likely to occur. w

some sort of relationship with the customs union. change it makes. 1.1% lowerterling is against the dollar. today we have seen a monster may'sd because of announcement. deal is what a big that, we will have to see if they voted down anyway. is it political posturing? investors love it. biggest gain since 2008 after all and to the lowest level since the mid-1980's. this is to show you how other assets fared today. interesting to see the ftse down, obviously pound rises, stocks fall. in worst -- inverse correlation. the ftse is down. the small cap index is lower as well. focus, not too long ago it was at a record high. this is the entirety of the gilt market, the bloomberg british bond index is what it is. it is off a high post-brexit because of rising inflation expectations. finishing off with the subject of inflation because we have cti data today. for thehe cpi number month of december, stronger-than-expected, 1.2%. economists were expecting 1.4%. import costs are increasing. core inflation rising. the fastest pace since august 2014

we've heard from big is less about what leaving the single market and the customs union could mean foris? they import about places like this? they import a lot of their rugs from europe but also places like india. so leaving the single market could make it more expensive for them to import things here. this sort of stuff is also more expensive. it costs more to import because of the fall in the value of the pound. we will talk this morning about what impact that could mean for small businesses, what they will do to respond and how they can react to what they've heard from theresa may this week. so we will talk more about that in a little while. before that, it's get the news, travel and weather where you are this morning. good morning from bbc london news. i'm sonja jessup. there are calls for the capital's congestion charge to be reformed, so that drivers would pay more at rush hour. the london assembly says trafficjams are so serious that drivers who spend the longest time in the most heavily congested areas should be charged more. the mayor's office says there are already moves to t

we're leaving the single market, we do not intend to be in it, nor in the customs union. to make trading arrangements, but we want to be co—operating and have free trade arrangement with the eu and have full access to services. that is exactly where we should be. that is not damaging, it benefits both sides. on tuesday, theresa may will ask the country to unite and get behind brexit. but many mps are concerned that her approach will damage the economy. and we'll find out how this story is covered in tomorrow's front pages at 10:15 and 11:30pm in the papers. our guests joining me tonight are rowena mason from the guardian and jim waterson from buzzfeed. doctors say cancer operations are being cancelled because of the growing pressures on the nhs. the royal college of surgeons says they used to be protected because of their urgent nature, but for the past couple of weeks that hasn't been the case in some uk hospitals struggling to cope with demand. here's our health editor, hugh pym. he got the news by e—mail and at one day's notice. andrew's operation for prostate cancer ha

own will be outside the single market so we can control our own borders and probably outside the customs unionunion so we can negotiate their own trade deals but the rest of the world. this is the most crucial set of choices that any pie minister has made four years and although the fundamentals were clear before she moved in, there has been precious little detail in public about and theresa may's opponents fear she will disappoint because she's juggfing will disappoint because she's juggling her party as well as the public. she has had to ove i’cott‘i pensate public. she has had to overcompensate as a former remainer to prove herself to her own party and also she has no mandate of rome, she has not been elected and is not ina she has not been elected and is not in a strong position and also she has really chosen only to listen to the 52% of people who voted for brexit and not the almost half of them remaining part of the voting public who voted for a different future. tomorrow matters, theresa may will tell us and them, the other european countries, more about her decisions that will shape bri