Donald Trump could meet Boris Johnson, says U.S. ambassador

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"We see a good chance of Brussels accepting this document as the basis for restarting Brexit negotiations. resulting in a period of out-performance for the pound", said analysts at MUFG.

In a policy paper, the government will outline proposals for a free trade area and a "common rule book" with the European Union in goods after pressure from businesses to allow cross-border trade to continue as normal.

They are rallying to her side precisely because the resignations of Davis and Johnson have recast the Remainers as her friends and turned the spotlight on a different enemy within - namely the True Brexiters and the European Research Group, led by Jacob Rees-Mogg. With the threat of more to follow, it could be game over for Theresa May and Britain's entire moderate Brexit plans. Against such a disorganised attack the EU's defence will certainly feel increasingly confident'.

David Davis said he "wouldn't have done a good job" of delivering May's Brexit plan, with Tory MP Marcus Fysh saying the plan is paramount to breaking manifesto pledges, which "has consequences". Nonetheless, rather like most of the Cabinet, a compromise on the issue seemed the best deal available.

A long-awaited blueprint for the UK's relations with the European Union will be published later, with ministers vowing to deliver a "practical and principled" Brexit.

"Meanwhile, Ms Caulfield wrote: 'I cannot support the direction of travel in the Brexit negotiations which, in my view, do not fully embrace the opportunities that Brexit can provide".

He said as much in a damning resignation letter, lamenting that the Brexit Dream was "dying, suffocated by needless self-doubt".

Mr Coveney also urged the EU to "accommodate" Britain in so far as is possible; without threatening the Single Market or the Customs Union.

Despite a series of diplomatic spats between Britain and Trump, the British government is hoping for a quick trade deal with the United States after it leaves the European Union.

Lord Hague told BBC Radio 4's Today programme: "When it comes to a vote sometime around the end of this year, let us say that Theresa May has done a deal that bears some resemblance to what was put forward at Chequers with the EU".

The UK has spoken of boosting the Commonwealth and forging a free trade pact with India after Brexit, but that will not be easy if Britain refuses to budge from its tough position on movement of people and visas.

"Stunned that this was all one of the main architects of Brexit had to offer, all I could say was 'you know what Boris, I'd noticed".

Trump suggested that his upcoming meeting with Russian president Vladimir Putin could be easier than his trip to Europe to see North Atlantic Treaty Organisation leaders and Mrs May.

On Friday, May and Trump will hold talks on Brexit, relations with Russian Federation and trade ties at the prime minister's Chequers country residence followed by a press conference.

One take is that Davis leaving clears the way for a softer Brexit and that might be the right call but something has been brewing before this latest whipsaw.

They "didn't represent the majority of opinion in the conservative party or house of commons", he said.