this is bbc news. i'm julian worricker. the headlines at apm. the european union and the uk remain far apart. that's the verdict of the eu's chief negotiator, at the end of a third round of talks over brexit. it's clear that the uk does not feel legally obliged to honour its obligations after departure. we remain committed to making as much progress as possible on these issues solely related to our withdrawal but discussions this week have exposed yet again the uk approach is substantially more flexible and pragmatic than that of the eu. theresa may dismisses criticism, of her plans to lead the conservatives at the next election, saying she is not a quitter. i'm simon mccoy live at kensington palace on the 20th anniversary of the death of diana princess of wales. as tributes and flowers are placed outside herformer home today
is not only about remembering a princess, but also a mother. princes william and harry will mark the anniversary privately. fire breaks out ina anniversary privately. fire breaks out in a chemical plant in houston flooded by tropical storm harvey. authorities evacuate the surrounding area as a precaution against fumes. a man appears in court charged with preparing acts of terrorism after allegedly brandishing a four—foot samurai sword at police outside buckingham palace. buying success in the premier league as the transfer window closes on more than £1 billion worth of business. good afternoon and welcome to bbc news. the european union's chief brexit negotiator says the eu and uk have made no substantial breakthroughs, at the end of a third round of talks.
speaking at a joint news conference, michel barnier said both sides remain far apart, and there's little chance of starting negotiations soon, on a possible future trade deal. but the brexit secretary david davis urged the eu to be "more imaginative and flexible," in its approach. our europe correspondent damian grammaticas reports from brussels. round three, and brexit talks are in trouble. the chief negotiator has emerged to say that on the biggest issues, things have stalled. translation: at the current state of progress, we are quite far from being able to say that sufficient progress has taken place. sufficient for me to be able to recommend to the european council that it engage in discussions on the future relationship between the uk and the eu at the same time. both sides frustrated with each other, thinking they are inflexible.
as i said at the start of the week, it's only through flexibility and imagination that we will achieve a deal that works truly for both sides. in some areas, we have found this from the commission side, which i welcome, but there remains some way to go. so the two big sticking point is are, first, the uk's financial obligations — money. the uk's questioning the legal basis for what the eu says it owes, and although it has obligations, it won't say what those are. and a transitional trade deal — the eu won't even discuss one. it says the uk must settle the separation first. anyway, tell me about the week? david davis himself hasn't been in brussels for most of the week. he returned last night, leaving the negotiations to his officials. he's hoping he can twist the arms of the eu's 27 member states so they agree to talk trade. they've insisted all along there must be sufficient progress on the separation first.
we certainly need progress on the divorce bill before we can say that sufficient progress has been made. so the uk's not going to get to move forward until it satisfies that demand 7 i think so. i think that's what the eu has been very consistent on this point. so, it's the money that's causing the biggest problems. the eu insisting obligations must be honoured, and the uk questioning them. the commission has set out its position. and we have a duty to our taxpayers to interrogate it rigorously. at this round, we presented our legal analysis. after this week, it is clear that the uk does not feel legally obliged to honour its obligations after departure. how can we build trust and start discussing a future relationship? we need to address together these issues seriously and rigorously. for now, the eu says it's not satisfied, decisive
progress has not been made, and the brexit countdown is ticking. damian grammaticas, bbc news, brussels. theresa may has attempted to dismiss criticism of her promise to fight the next general election, by insisting she's "not a quitter". some former ministers, including lord heseltine, say it would be difficult for her to continue as prime minister until 2022, following the recent disastrous election. speaking during her visit to japan, mrs may also said that the two countries would look to build the "closest, freest trading relationship" after brexit. ben wright is travelling with the prime minister, and sent us this report, which does contain, flash photography. steadying the ship. theresa may didn't come to japan to bolster her leadership back home. this visit is formally focused on trade and security. and this morning, the two countries marked their close defence cooperation at a naval base near tokyo. but theresa may, back
from her summer break, has faced speculation about her political sell—by—date since losing the tories‘ majority injune. her plan, revealed here injapan, to lead the tories into the next general election would see her stay in number 10 through brexit and beyond. if, of course, her party and mps agree. so, theresa may ploughs on with brexit, keen to reassure japan's political and business leaders she does have a plan for protecting their interests in britain. the uk, traditionally, has had very good economic relations with japan. but the uk of course has been a very important part of the european union, of the european single market. and for many japanese companies here in europe, the uk was actually almost like a gateway to the european market. the japanese government has
been public and frank in the past about its concerns. and, after talks with theresa may, japan's prime minister said he wanted the brexit negotiations to be as open as possible. translation: japan and the uk are mutually important countries. on brexit, our country would like to have the impact to companies minimised. we want predictability and transparency ensured during the negotiations. mrs may says she's listening, so that a smooth brexit transition is realised. if mr abe had learned more about the uk's negotiating aims, he wasn't letting on. but japan and the uk have agreed to start working on a new free trade agreement. and theresa may restated her determination to stay put. i said i wasn't a quitter. and there is a long—term job to do. there is an importantjob to be done in the united kingdom. we stand at a really critical time in the uk. it's the long—term issues of trade, the consequences of brexit, defence and security cooperation that have dominated theresa may's talks here. but it's her strikingly blunt, unplanned declaration about her own political future that this trip to japan will be remembered for.
ben wright, bbc news, tokyo. i can speak now to the conservative mp and chairman of the 1922 committee graham brady. good afternoon, what do you think of what the prime minister has had to say about her long—term future. what the prime minister has had to say about her long-term future. the conservative party has a firm, fixed view. we really don't want to have a leadership election or a change of leader, we recognise the mass theresa may was saying in the clip you played, that there are big, important and complex tasks that need to be done. we, as the party in government, have the obligation to do those. we're here to the national interest, and that is served by the kind of successful diplomacy that we have seen from theresa may injapan,
making progress on military cooperation, security, making progress towards a free—trade deal with the biggest economy in the world. and not by speculation about future changes in leadership. and i think probably the statement, the comment theresa may made was far more a rebuttal of an unfounded story put about in some of the tabloids last week, which suggested she had fixed a date in 2019 to resign as prime minister, which had no foundation whatsoever. but kept much of the british media chattering away for several days. number ten dismissed it as a silly season story, as you indicate. do you want theresa may to lead the conservatives into the next election in 2022? i want theresa may to carry on leading the conservative party, i have no plans to change that
position. i think she has a big and importantjob position. i think she has a big and important job to do, position. i think she has a big and importantjob to do, she's doing it well, and she deserves our support. it does mean leading your party into the next election in 2022. one would assume so. what would you say to those on your side who have expressed doubts already in light of what she is said injapan? expressed doubts already in light of what she is said in japan? the election campaign the conservative party ran was very far from the campaign most of us would have liked to have seen. there is a huge amount that we as a party have to learn from that about the way in which the campaign was conducted, about the messaging, about the use of social media. about the importance of deploying more of our strong performers during a campaign. there isa performers during a campaign. there is a great deal we need to learn to make sure the next general election in five years' time is a very different campaign. but i don't think that that process, that
imperative of making sure the conservative party wins the next general election, with a resounding majority, is served in any way by pointless and unhelpful speculation about the leadership. what may puzzle people about the observation is you talk almost as if the last general election campaign was the first one the conservatives have everfought, first one the conservatives have ever fought, and you fought a good many campaigns over the years, you've been involved in some of them. you know how to do it, the leader last time let you down at a key moment and surely it still matters. it was a very poor campaign in all sorts of ways but we have to focus first of all, having won that election, albeit not with a clear majority we would have wanted to have, we have an obligation to govern in the national interest, to do the bestjob we can for the country, to deliver that open,
outward looking free trade in global britain which we should see after our departure from the european union. so we have to focus on that most important job in union. so we have to focus on that most importantjob in hand. then we have to turn our attention to fighting a general election campaign next time in a rather different way from the way it was fought last time. spring 2019, how key is that deal, a deal you would regard and others would regard as being broadly successful. how key is that in keeping theresa may in number ten? theresa may set out exactly the right vision of britain after leaving the european union, when she made her lancaster house speech at the beginning of this year, which was a big, generous statement about a country that is outward looking, engaged with the world, going to have closer friendships with eu
partners. precisely because we are not always butting up against them when they want to go to a deeper integration politically and economically, than was ever going to be possible for the united kingdom, soi be possible for the united kingdom, so i think she set out exactly the right approach, the right framework. it's a warm, cooperative arrangement with the eu, and a big gesture to the rest of the world, the fast—growing markets of the world. the re—establishment and rekindling of some of those older friendships and trading relationships we've had around the world long before we were involved in the european union. pleasure, graham brady, conservative mp. 20 years ago today diana, princess of wales died in a car crash in paris after being pursued by photographers. a range of public events have been organised to remember her death and flowers, cards and other tributes are again being laid outside kensington palace. her sons, princes william and harry, will mark the anniversary privately. simon mccoy is at kensington palace. very different from 20 years ago,
where of course within days there was a sea of flowers across the lawns in front of kensington palace. today they have still been paying tribute, laying flowers at the gates of diana's former home. those who we re of diana's former home. those who were just passing you've been reading some of the tributes, those who come to spend a few private moment as they lay their own flowers in memory of diana. some of them here followed her in life, who's been more celebratory. there was a ca ke been more celebratory. there was a cake cutting ceremony, the champagne was flowing as well. 20 years ago today, after the shock of that announcement from paris that she'd been killed in that car crash, came the anger, directed initially at the paparazzi, at the press, then at the monarchy and the queen herself. over all that was an overwhelming feeling
of greece, grief at the loss of a woman who tony blair, you'd only beenin woman who tony blair, you'd only been in office for four months, described as the people's princess. this report from nicholas witchell. the news had come in the early hours of the morning. diana, princess of wales had been involved in a serious car accident in paris. as the world waited for news, the then british ambassador to france, lord michaeljay, was at the hospital with france's interior minister, jean—pierre chevenement. as time moved on, it became clear it was more serious than we thought, and then chevenement was taken out by one of the nurses and he came back in tears, really. he came up to me and said, "i'm afraid she's dead." later in the day, the prince of wales arrived at the hospital to bring diana's body back to britain. it had been charles who'd had to break the news to william and harry that their mother had been killed. 20 years on, lord jay recalls the conversations with charles very clearly. he was clearly deeply moved by what had happened and talked
a little bit about what it had been like in balmoral that morning. he said how prince william had wanted to go to church that morning — which was not, he said, something prince william always wanted to do on a sunday morning — so they had been to church. but throughout that day, that morning, he had wanted to do what he thought was in the best interests of two children who had lost their mother rather brutally. it was a week when many people struggled, not least, says lord jay, the monarchy itself. the nation wanted to share their grief, it seems to me, with someone, and the person they wanted to share their grief with was the queen. lessons were learned at the palaces, but most importantly it's diana's sons, now in adulthood, who appear to embody the style of monarchy people want for the future. yesterday they looked at the tributes to their mother which had been placed outside kensington palace. 20 years on, diana's
impact is still very real. nicholas witchell, bbc news. ken worf, diana's personal protection officer for seven years, the first protection officer for prince william for a year as well. 20 years ago today a car crash in paris, a crash where having dispensed with her personal protection officers, a car crash you don't think should have happened anyway. i don't, when i first heard of the accident i couldn't believe diana had died in something as mundane as a car crash. there were some very rudimentary mistakes made in that protection and as i said repeatedly, i don't derive any satisfaction from criticising the protection that night in paris, but one thing is for certain, at scotla nd one thing is for certain, at scotland yard been in charge of her protection, we wouldn't be having this discussion. that is what it
was. despite numerous conspiracy theories that followed that evening, it concluded both in the inquest in paris and the inquest in london that diana did die in a car crash in paris primarily because of the inability of the driver, who was under the influence... drugs and drink... to drive, you know, correctly. plus, of course, you know, the speed at which the car was driven. and diana was not wearing her seat belt. on the seat belt issue what is interesting is her sister recently acknowledged the fa ct sister recently acknowledged the fact that she always wore it. if that single element alone had been... diana would have been here today. here we are 20 years since her death, you saw a side of her very few did. when you think of her, do you smile, what are the memories
of her you try to keep... you keep private, i'm sure. my memories, i can only echo what william and harry have said these last two or three weeks in the documentaries and state m e nts weeks in the documentaries and statements they've given. clearly there is nothing more to be said, she was fun, she was happy, she was a great month and was entertaining, herjokes, risque and otherwise. —— a great mum. she put her children before royal duty. when i see these gardens, one particular winter we had snow for here and she brought william and harry to that bank over their and played with other kids, they haven't got a clue who they were. my memory was always the fun things we had with diana. a story i remember once here at kensington palace about to go out one evening, harry came to my office and said, where you going? i said i'm going out with your mother, leave me alone, i'd run a bath. next time i
saw diana she had gone to the chef who produces and gets to carry a bottle of cochineal and emptied it into my bath so they were in fits of laughter as my bath has now turned bright red. it was a simple thing but that was what she was like, and incredibly fun character. you saw her in the good times and bad times as well. what is her legacy 20 years on? it was a loss because of a life that promised so much. the legacy is this... diana in the mid—80s having ticked all the boxes for all the work she did was loyal to the queen 100% and more. she ticked those boxes of opening fates, shopping moors, hospices, she wanted to do something different so in the mid—80s she took up that aids challenge. a backdrop of negative publicity, she decided she wanted to
do something positive. she had a big influence in the aids campaign to find a cure for that and championed other causes. what we see now 20 yea rs on other causes. what we see now 20 years on is william and harry doing exactly the same thing. i said so many times recently, they've reached a point where they've ticked all their boxes, don the military thing, what we do next? the best template they have got is the one with their mother provided. william and his centrepoint, the charity to the homeless, the dispossessed and so forth, harry with his charity in south africa, this is what loyalty is all about. it might be mundane to them, but that is their role in life. that's what people acknowledge. thank you very much. ifi if i has broken out at a chemical works in taxes which was badly flooded by tropical storm harvey. the owner of the planned near
houston warned a loss of power meant volatile chemicals could overheat. the surrounding area has been evacuated and this report contains some flashing images. two suspected explosions already reported with a warning there could be more to come. the arkema plant in crosby is flooded, has lost power, the volatile chemicals can't be kept cool the volatile chemicals can't be kept cool, the owner warned this was inevitable. we do modelling, we base a lot of the evacuations on that. the plume is incredibly dangerous. bus—load of residents had already been moved out. the authorities say rather than explosions what people may have heard was the sound of small container ruptures. on behalf of all of the employees at arkema i wa nt to of all of the employees at arkema i want to apologise for the impact this is having on the local community, we appreciate all the
work the responders are doing to help protect the safety of those in the area, that is our primary objective and we'll continue to do that. hundreds of thousands of people have been displaced by harvey, some have paid with their lives. the bodies of four children and their great—grandpa rents were discovered in this van which had been swept away by floodwaters. the mexican foreign minister on a visit to washington has offered to help with the relief effort. to washington has offered to help with the relief effortlj to washington has offered to help with the relief effort. i want to thank the governor of mexico for his assistants. they've offered a wide range of assistance, coordinated with the governor down in texas. the lieutenant governor of texas has praised the way people have come to the aid of their neighbours. dan patrick said hundreds of ordinary people turning up with their boats to search for survivors reminded him of the rescue operation at dunkirk during world war ii and said the reconstruction in the city could
cost u p reconstruction in the city could cost up to $200 billion, and many still need urgent help. this is a nursing home in port arthur. they we re nursing home in port arthur. they were at high level when i came into this facility. from the relatives and the volunteers who have come to ta ke and the volunteers who have come to take these people out. authorities warn the worst is not yet over with flooding expected to continue for many more days. we can speak to laura trevelyan in richmond in texas. bring us up—to—date with the situation where you are and beyond, laura. look behind me, you can see the flooding people here have already experienced, they had to evacuate their homes. the worst is yet to come because they live quite close to the banks of the river, which is going to peak at 56 feet tomorrow. the water levels are going tomorrow. the water levels are going to rise even more. if you look at the wider picture which we can see
from some of the live pictures, that is close to crosby in texas where the chemical plant has experienced explosions because they lost power and the chemicals had to be refrigerated. without that the company warned there would be explosions and there have been. you can see the scale of the flooding that houston and the wider area are experiencing. where we are 170 square miles have flooded but if you look at the houston area, an area that combined is the size of new york and chicago, 30% of it has been flooded, so just york and chicago, 30% of it has been flooded, sojust imagine york and chicago, 30% of it has been flooded, so just imagine the scale of what is happening, absolutely mind—boggling. we've seen on an individual level talking to people whose homes have been flooded, if had to be rescued, every single family that has been evacuated is going to experience the same thing. going back to ruinous flooding, contamination, months of arguing with insurance companies, if you had
insurance, or were waiting for federal money to come. not to mention the loss of life here is probably going to be far greater than that reported. once the waters recede and those areas can be reached. the sheer impact of what is not even a week of hurricane harvey, six days since it blew through. we are still experiencing here in richmond texas, people are bracing themselves for worse flooding. they are expected to tomorrow. bespoke about the scale of what has happened, so the scale of the help needed is enormous, including medical help, is enough coming into the region? it's an emergency situation, the federal emergency management agency sent 2 million bottles of water to texas just yesterday alone. it is mind—boggling, the number of cot beds arriving every day, thousands and thousands of them. more than
32,000 people are in the shelters in texas. there have been more than 17,000 rescues carried out. more than 195,000 people as of yesterday asked forfederal than 195,000 people as of yesterday asked for federal help. these numbers are only going to increase because we're still seeing worse flooding. here in richmond county where 170 flooding. here in richmond county where17o square miles... they've experienced 170 square miles of flooding. there was still mandatory evacuation orders issued this morning. people who thought they'd escaped the worst of it because the storm has gone, left texas, they thought they'd got through it, but now they have to leave their homes and they know flooding is coming. it's an emergency situation still here on the ground. thank you for that, laura trevelyan in richmond, texas. a man who allegedly brandished a sword outside buckingham palace has appeared in court. the 26 year old from luton was charged under the terrorism act 2006.
our home affairs correspondent danny shaw gave us the latest. this was the first court appearance from choudary, the 26—year—old man, and tuber driver from luton, from choudary, the 26—year—old man, and tuber driverfrom luton, charged with one offence under the 2006 terrorism act, preparation of acts of terrorism. it relates to an incident last saturday when he was arrested. the incident occurred outside buckingham palace, when a car was driven towards a police vehicle when officers approached the car, they saw a man reach and hold a samurai sword. it was for foot in length. he shouted repeatedly allahu akbar. mr chaudhry spoke to confirm his name, date of birth, and his address, during this year which lasted only a few minutes. he was
remanded in custody to appear next in court at the old bailey in three weeks. danny shaw reporting. let's bring you up—to—date with the weather prospects. nick miller has the forecast. in the sunshine it feels really nice, wind is light, temperature is not high but it still feels very pleasant. many western coastal parts of the uk have blue sky, showers fading in northern ireland, more so across western scotland. still some really heavy downpours in eastern scotland, north—east england, still some across other parts of england and wales, but the tendency is for them to become few and far between deep into the evening and after dark they will fade quickly. another clear, chilly night to come from august into september. away from town and city centres, easily down into single figures. a few spots flirting with freezing. loads of sunshine as we welcome in friday in september. cloud is going to build but the show won't be as widespread
or evenly distributed. some developing here or there. more especially south—east the pennines, and to east anglia, where there could be slow—moving thundery downpours. more of us tomorrow get those warm, sunny spells. saturday is great, sunday says it all. hello. this is bbc news. the headlines: europe's chief brexit negotiator michel barnier says that "no decisive progress" has been made on key issues in talks with uk team. the prime minister has repeated her statement that she's "not a quitter" after backbench mps and some former senior conservatives questioned her intention to lead them into the next general election. residents have been evacuated as a precautionary move in the town of crosby in texas following explosions at a chemical plant flooded
after tropical storm harvey. a doctorfrom romford has appeared in court charged with 118 sexual offences. dr manish shah was granted conditional bail at barkingside magistrates‘ court. and tributes are being paid to princess diana, who died in a car crash in paris 20 years ago today. a busy day in the world of sport. here is mike bushell to bring you up to date. we are rapidly approaching the end of this summer's domestic tra nsfer the end of this summer's domestic transfer windows. things are beginning to hot up as premier league clubs add to the record amount they have already spent this summer. our sports reporter david ornstein is one of the busiest men in the land. let's talk about the alexis sanchez saga. it seems arsenal have had a second bid from manchester city and they have upped
the money. yes, a fee in the region of £60 million. that would be rejected by arsenal, but it doesn't mean this story is over. the negotiations are ongoing. city are pushing to get a man they have wanted all summer, a man who has wanted all summer, a man who has wanted to come to them all summer and be reunited with pep guardiola, who he was managed by at barcelona. this seems on a knife edge. my latest information is that the chances of this deal happening were receding because arsenal were struggling to get a replacement, and that replacement would be thomas lemar of monaco. it is purely down to time. can they get the deal done by 11 o'clock, when the mahrez playing against the netherlands for france, with no time for a medical? and sanchez is playing for chile tonight. another player whose future is undecided is philippe coutinho of liverpool. liverpool are keen to keep him, but it has gone quiet from
barcelona. and it liverpool have stood firm and it looks like they will until the 11th pm deadline. but the window for barcelona doesn't shut for another 24 hours, so they could get him later. but i think liverpool will resist all temptation to sell coutinho. we don't think there has beena coutinho. we don't think there has been a fourth bid. but they have got alex oxlade—chamberlain. he has been posting on social media as a liverpool player. yes, we saw that coming. he turned down a move to chelsea despite arsenal are agreeing a fee with them. liverpool became his preferred option. he was going to be given the central role there, whereas at chelsea, he had played as right wingback, which he wanted to leave. arsenal, the same reason. liverpool have got him the £35 million. he has undergone a medical
and they seem happy. arsenal seemed pleased with the fee. so alex oxlade—chamberlain is the biggest deal of the day so far. players are arriving in tottenham who could be busyin arriving in tottenham who could be busy in the next few hours. yeah, fernando luna rent a underwent a medical —— llorente. tottenham are in top position to seal the deal. they have also signed serge aurier, the ivory coast player. there was speculation over whether he would be granted a work permit because he faced charges for assaulting a police officer in france, but he did get granted a work permit and has now signed. swansea have lost one player, but they have had a two with someone they have recruited on loan. yeah, coming in is renato sanches bayern munich, on loan, a great piece of business, possibly one of the best deals of the summer so far.
he has not been at bayern munich for long. but he is a star player, and thatis long. but he is a star player, and that is down to the link that the swansea manager paul clement has with bayern, where he was assistant manager to carlo ancelotti. they are also still trying to get wilfried bony from manchester city, formerly of swansea. david, we have to leave it there. it is who you know as well is what you know. a couple more deals. striker nahki wells has moved from huddersfield the burnley for an undisclosed fee and liverpool's divock origi is going to german club wolfsburg. full details on all those stories and the rest of the sport on the bbc sport website. there is a special transfers they sportsday at 6:30 p:m.. more now on our main story, and the latest round of brexit negotiations have come to an end in brussels. during the joint news conference
michel barnier and david davis suggested that they had disagreed over the uk's financial settlement when it leaves the eu. as i've said before, time is pressing if we want to get what we want, which is a global agreement. at the current state of progress... we are quite far from being able to say that sufficient progress has taken place, sufficient for me to be able to recommend to the european council that it engage in discussions on the future relationship between the uk and the eu at the same time as we would during the course of 2018 go on working on finalising withdrawal agreement. we remain committed to making as much progress as possible on these issues related to our withdrawal, but discussions this week have exposed once again that the uk approach is more flexible and pragmatic than that of the eu, as it avoids unnecessary disruption
for businesses and consumers. we propose pragmatic solutions to prevent disruption and we urge the eu to be flexible in their approach to withdrawal on this point. however, i remain of the view that on this, as in many other areas, there is an unavoidable overlap between withdrawal and the future, and they can't be compartmentalised. let's get more reaction now with matthew holehouse, a journalist for the global newswire mlex — he was at that news conference earlier. he's in our brussels studio. the michel barnier clip was making reference to what has become known as the divorce bill. explain why the sides seem so far apart on this? well, they are both starting from their maximalist position. the eu issued a paper where they set out what they see as the uk's obligations. they say the commitment
the uk has made to various eu programmes has to be honoured for you can move into discussions about trade. the uk has set out its position in this week's round of talks, and they had heated three—hour session in which they presented a rival legal analysis and they aggressively challenged those claims. what we heard from the eu officials today is that they said the uk officials had said that if the uk officials had said that if the uk officials had said that if the uk leaves the block without a deal, there are no legal obligations. however, the uk is willing to talk about a financial settle m e nt willing to talk about a financial settlement as a gesture, because they have the political will for a deal. but it seems from what we were hearing from the eu officials that they were taken aback by what they heard from the uk. so both sides are setting up a hardball stands to start with, and we need to see how quickly we can move to somewhere in the middle. and is that the biggest
area of disagreementjust now? there area of disagreementjust now? there are disagreements in lots of areas. the budget is the most high profile area. they are both happy to ever publicly. but there are disagreements in other areas. they are looking at northern ireland and how you can preserve the nonexistent border while the uk exits the eu single market and its customs union. there are also disagreements over citizens‘ rights, and there is a huge issue about whether that should fall under the oversight of the european court of justice. fall under the oversight of the european court ofjustice. that has been discussed at the highest level between the eu highest official and olly robinson, the highest british official working on this issue. that gets to the heart of issues of sovereignty which the leave campaign
was all about. you have been at many press co nfe re nces was all about. you have been at many press conferences like this. did you sense something different today? michel barnier was very public. they are happy to repeatedly remind the british side that there are two ticking clocks here. the immediate one is the deadline of october that they have set if the uk wants to move on to discussions about a future trade relationship. then there was the ultimate deadline of march 2019, when the uk leaves the eu if it can‘t get a deal. mr barnier referred to these because they know that one of the biggest assets for the eu side to drive these talks forward is to remind british negotiators and the british public that unless they see progress on these issues, the uk is at risk of exiting without a deal. they are happy to wield that sort of cattle prod to push the british along. matthew, thank you. we can now speak to the liberal democrat brexit
spokesman tom brake in westminster. are you frustrated that the eu is not being more flexible, as david davies puts it? well, the uk government is digging a deeper hole for itself and sinking deeper into a quagmire of their own making. on the issue of eu citizens, had the prime minister been willing some months ago to unilaterally grant them rights in the uk, that would have set the scene and would have been a positive start negotiations. but even on that, there are still disagreements, let alone the question of the financial settlement, which is the major sticking point. but if the prime minister had made the gesture you allude to, there was no guarantee that she would get anything back. there was of course a guarantee. the guarantee was that for the other 27 eu countries which have over 3
million of their citizens in the uk, they would clearly want to reciprocate any arrangement the uk government had set out because the number of uk citizens living in their countries is far smaller. so i think they would have been generous in response and it would have set the scene for more positive negotiations. we now face the risk that the uk could crash out of the european union. the prime minister was saying that no deal is better than a bad deal, but we believe the economic consequences of that would be horrendous, although we don‘t know precisely because the government are not willing to state exactly what the financial consequences of crashing out of the eu would be. a word on this figure of 60 billion euros, the divorce bill, which is almost £60 billion. how much do you think the uk i was here? i can't put a figure on it because there needs to be a
discussion about the basis on which that will be calculated. once the discussion has started, a possible figure becomes clearer. at that point, i would want the european union to show some flexibility about being willing to engage in discussions at an early stage about the future trading relationship. but they will not do that until the uk has been willing to engage in discussions about the basis on which that settlement is going to be negotiated. but david davis spoke today about looking rigorously at the divorce bill as the eu has laid it out, which you would expect the government to do, because there are tagged players‘ and consumers‘ concerns to think about. so there does not seem to be much difference between you and the government on that. except that the government has not set out the basis on which it should be calculated. this is an area where there has not been a
position paper. with the other position paper. with the other position papers, all too often what has happened is that the uk government have set out a list of options, but have not set out which of those options they would prefer. and in some of those papers, they have said, these are some of the options, but we might think of another one. tom brake of the liberal democrats, thank you. in a moment, a summary of the business news this hour but first, the headlines on bbc news: the european union and the uk remain far apart. that‘s the verdict of the eu‘s chief negotiator, at the end of a third round of talks over brexit. theresa may dismisses criticism of her plans to lead the conservatives at the next election, saying she‘s not a quitter. a man appears in court charged with preparing acts of terrorism after allegedly brandishing a four—foot samurai sword at police outside buckingham palace. now a look at how the markets in europe have ended
the trading session... britain‘s top share index rose today, the ftse1oo extending gains from yesterday. financial and commodity related stocks kept the blue—chip index on course for a second consecutive monthly gain. mining stocks were the real standout performers today, with anglo american, glencore and rio tinto among the top gainers as the price of copper strengthened. in the retail sector, shares in paris—listed carrefour slumped to a five—year low after the world‘s second—largest retailer issued a profit warning, highlighting the scale of the challenges the firm faces in the competitive highly french retail market. and there‘s been another slide in sterling on the currency markets. we‘ve also been keeping an eye on the exchange rates charged at uk airports. some travellers are being offered as little as 86 euro cents to the pound.
foreign exchange broker fairfx, which carried out a survey for the bbc, said this rate, from moneycorp at southampton airport, was the worst at any airport bureau de change. let‘s get detailed analysis of all of this with james hughes, chief market analyst at gkfx. we have heard about those rates at the airport, pretty poor. sterling has fallen again. what has driven that? there are two sides to it. you have just been hearing about these brexit discussions. you have this issue that the euro versus the sterling is going towards parity, which means they will be valued the same, one the issue with that is that at the moment, we have these
ongoing brexit talks, which continuously hit the pound. they drag the pound lower because of the disastrous way they are going. we have just been hearing that there was pretty much no agreement on anything. so whenever we hear negative news on the lack of progress of these talks, this is negative for sterling. it drags on the pound. there has been another side, which is the euro side, where you are seeing a recovery and a strong set of numbers from the eurozone economy. we have also had comments today where some eurozone officials have been talking about the euro being a bit too strong, so we have seen some movement today. but still, the strength is only one way. the euro is strong and the pound is particularly weak, and that is causing the euro versus the pound to go towards this one for one
parity level. a member of the monetary policy committee at the bank of england, michael saunders, said there should be an increase in the base rate of interest, which would ordinarily see sterling recover slightly, but that has not happened today. why is that? that is because when you look at the data coming out of the uk, not much of it points to the fact that the uk is in a strong enough position to be able to manage a rate hike at the moment. when we talk about putting interest rates higher, we talk about putting debt higher, but we already know that wages are stagnant and inflation is high in the uk, so if you have low wages and high inflation, it doesn‘t bode well for making people‘s interest payments more expensive. james hughes, thank you. let‘s take a quick snapshot of the markets now.
there are continued concerns over the volatility with north korea, but concerns have waned a little in that area. all eyes tomorrow will be on some keyjobs area. all eyes tomorrow will be on some key jobs numbers area. all eyes tomorrow will be on some keyjobs numbers in the united states. that‘s all from me. let‘s return to events being held to remember the 20th anniversary of the death of princess diana. flowers, cards and other tributes are again being laid outside kensington palace. her sons, princes william and harry, will mark the anniversary privately. throughout the day, people have been passing by. some have stopped, read the tributes and walked on. others have spent a little longer in private thought. some have brought
flowers in memory of diana, princess of wales. the shock for them never really went away, the shock of the moment 20 years ago, the call from paris to say she had been killed in that car crash and then the remarkable scenes of grief in this country and the days that followed. with me now is mark phillips, senior foreign correspondent with cbs, the american network. the phrase british stiff upper lip... when did you see that quivering? everybody attributes the end of the stiff upper lip and the end of the stiff upper lip and the beginning of the quivering lip and tiafoe i which i have seen since to the events of 20 years ago. the big issue i am still struggling with is whether diana was the cause of it orjust a is whether diana was the cause of it or just a symptom is whether diana was the cause of it orjust a symptom of it, the convenient fulcrum upon which society seemed to tip. we know americans shared the passionate
interest of the brits in diana, but did the pressure on you at the time increase as they realise how big a story this was? is was as big in the united states as it was around the world and certainly here. what was a surprise was the way the story grew, and not in ways that were predictable. it moved from just about diana and what she had meant to what was obviously something of a mini constitutional crisis involving the royals and their relationship to the royals and their relationship to the people and the where are you, ma‘am stuff and everything in between which became a more interesting story as it developed through the week. and the crowds have a mass collective psychotic episode, if you will, that seems to ta ke episode, if you will, that seems to take place in britain and elsewhere.
i was amazed notjust at what happened here, but at the continuing interest even to this day. the switch of anger from the paparazzi to the monarchy itself and even the queen, you say you were surprised. do you think there was an element of the media trying to make that happen to ta ke the media trying to make that happen to take the pressure off them? that is the argument that endures to this day, weather was the tabloid headlines or whether that was an accurate reflection of what was going on. i think it was a kind of classic mutual feeding frenzy between the press and the people. i think it was legit. the sense you got from people who gathered here in their thousands for days was of growing anger and a growing sense that however much they appreciated that however much they appreciated that the queen had stayed at balmoralfor the that the queen had stayed at balmoral for the boys and that the boys need their family around them and all of that legitimate stuff,
there was also a sense that they needed her too and she had not picked that up. she did in the end, but for several days it was a problem. 20 years on, do you sense as far as the american audience is concerned that that is probably it? the boys have said they will not be talking about her again. do you think we now move on from what people still think is an obsession? iam people still think is an obsession? i am tempted to say, we can only hope! but that might be glib. yes, i think this is probably the closure that the princes want. i have yet to meet an editor who would not put a diana story on tv, given the chance. but i suspect that this may be the point at which the tide starts to turn. great to talk to you, mark phillips of cbs. i am joined now by nic richard k, daily mailjournalist
and a friend of diana. you had a phone call with her from the ritz the day before she died. that's right, she died on saturday evening a few hours before she was due to leave. it was not unexpected, we have spoken often throughout that summer, but obviously, i didn‘t know it would be the last call i had from her. what was her mood? was she happy? i think she was happy. i think the stars had come together for her. it had been a fraught year, just 12 months since her divorce from the prince of wales, and she was getting her ducks in a row. obviously, she had entered into this late summer romance with dodi fayed which have provoked a huge amount of interest all around the world. but she was very conscious about what
she was very conscious about what she should do and what she wanted to do next. i can‘t make it clearer and i have said it over the years — she was pretty fed up with the treatment she felt she received at the media, and she wanted to do something that could give her more control. and that meant that she was going to cease doing those official engagements. i know you and she spoke often. you were photographed once chatting to her in a car and a headline appeared which reflected how angry she was about how she was being treated. looking back, do you think she thought she could still manipulate the media at that point? manipulation was the word she hated. she felt she had every right to speak to a journalist as the head of
scotla nd speak to a journalist as the head of scotland yard or the prime minister orany scotland yard or the prime minister or any other department of state, if you like. she was a major representative of the royal family, certainly up until her divorce. she had a significant role on the international and national stage, and she often felt that her ambitions were misinterpreted deliberately or otherwise by the press and other sections of the media. but she was the most popular person for many in this country. the press adored her. and if you followed her around the world, as you and i did, she would hold these receptions for the media where she was relaxed and enjoying it and seemed to get on with everybody. so there is a disconnect. there was an ambivalent attitude. i can‘t really explain it. i think she read too much into what we wrote and said. had she been able to rise above it in the way the prince of wales has
risen above it over the years, she would have been in a happier place, but that was the way she was. she took criticism very personally. she tried to be hands and deal with it herself. she invited journalists here to kensington palace regularly to meet them and get them to understand her to see if that would make a difference. that was diana. it was one of the flaws that we all loved. it was what made her such a compelling story. i am sure you can‘t believe it was 20 years ago. i know i can‘t. richard kay, thank you. just ahead of the weather, news coming from the oval cricket ground in london. it is apparently in lockdown after reports that a metal tipped arrow was fired from outside the ground onto the pitch. there is the ground onto the pitch. there is the umpire holding this arrow. there was a county championship game going on at the time between surrey and middlesex and spectators were told to ta ke middlesex and spectators were told
to take cover. if you know that area of london, there is a road around pa rt of london, there is a road around part of the perimeter of the oval, but that is all the details we have at the moment. we will bring you more as and when. now the weather. some places are sunnl now the weather. some places are sunni, others have heavy showers as we go towards the evening. very few showers left in northern ireland and western scotland. look how quickly they fade away after dark. the bulk of the night is dry and clear and the temperatures dip away. most rural spots will get close to freezing. tomorrow, after that
chilly start, loads of sunshine and not as many showers. you are more likely to get one in south—east scotland, the east midlands and east anglia. you are more likely to stay dry and get pleasantly warm and sunny spells. but clearly, things change by sunday as another weather system change by sunday as another weather syste m co m es change by sunday as another weather system comes in. today at five — "no decisive progress" in the brexit talks after a third round of bargaining today. the brexit secretary, david davis, says some progress has been made made but michel barnier, leading the eu team,
says the two sides are far apart on the key issues. we need to address together these issues seriously and rigorously. the commission set out it's position and we have a duty to our taxpayers we‘ll have the latest on the talks and we‘ll be talking to a former head of the foreign office. the other main stories on bbc news at five: on a visit tojapan, the prime minister theresa may repeats her claim that she has no intention of standing down