Top story: MP expresses ‘regret’ to Maltby

Good morning to you all, Graham Russell here with the penultimate briefing of 2017.

Damian Green – the old Oxford friend brought in by Theresa May to help steady the boat after the disastrous general election result – has been sacked by the PM after lying about his knowledge of pornography found on his computer. We will bring you the latest developments in our politics live blog here.

In his resignation letter, the first secretary of state accepted he “should have been clear in my press statements” after an inquiry found his previous vociferous denials were “inaccurate and misleading”.

In her lengthy written response, the PM reflected on their friendship before tip-toeing to the bit where “I asked you to resign” – a decision made “with deep regret, and enduring gratitude for the contribution you have made over many years”. He is the third cabinet minister to step aside since early November.

Green also voiced his regret for the distress caused to Kate Maltby – following her claim that he behaved improperly towards her – but added “I do not recognise the events she described in her article”. “I clearly made her feel uncomfortable and I apologise,” he wrote. The investigation by the cabinet secretary Sir Jeremy Heywood was unable to reach a definitive conclusion on Maltby’s allegations, finding only that her account of a disputed meeting was “plausible”.

Hugh Muir writes that May cuts a lonely figure after the loss of an ally as she stumbles towards Brexit. Wednesday’s political demise was 10 years in the making: if you missed anything here’s a handy timeline.

Catalonia votes (again) – Catalans will have their say today in a poll that could determine the course of the bitterly contested issue of independence from Spain. It is broadly a competition between secessionists and unionists, who argue that Catalans are sick of the social unrest and economic uncertainty generated by deposed regional president Carles Puigdemont – who is campaigning from self-imposed exile in Belgium. The polls point to a hung parliament, so coalition talks loom. Here’s a handy Q&A with all you need to know about the election.

Jerusalem divides – The US president has threatened to withhold foreign aid from those countries who disagree with his decision to recognise Jerusalem as the capital of Israel. Speaking after all UN security council members except the US rejected Donald Trump’s call, the president said: “Let them vote against us. We’ll save a lot. We don’t care.” He added: “We’re not going to be taken advantage of any longer.” Nikki Haley, the US ambassador to the UN, has warned she will be “taking names” of countries that vote for a general assembly resolution on Thursday that criticises the US move.

The 24-year-old baby – A woman has given birth to a baby who developed from an embryo frozen in 1992, potentially setting a record length between embryo donation and delivery. “If the baby was born when it was supposed to be born, we could have been best friends,” said mother Tina Gibson, 25, from Tennessee. The National Embryo Donation Center, a faith-based organisation that carried out the procedure, encourages people to donate leftover embryos resulting from IVF.

Up she rises, eventually – A submarine that vanished 103 years ago with 35 Australian and British crew aboard has been found. The 800-tonne vessel, HMAS AE1, was discovered 300 metres down off Papua New Guinea, ending the Australian navy’s most enduring puzzle. The submarine had been sent from Sydney to capture what was then German New Guinea in 1914 before disappearing. Attention now turns to finding out why it sank and setting up a suitable commemoration site.

The casing of submarine HMAS AE1. Photograph: Fugro Survey/AAP

Billion-dollar brain drain – A pair of hedge funds are fighting to prevent a convicted Chinese analyst from being deported, fearing he will take memorised trading algorithms with him. A judge rejected their highly unusual case on Wednesday but the firms, Corbiere and Trenchant Ltd, are expected to appeal. Ke Xu was convicted in 2015 of stealing confidential intellectual property from his employers and sentenced to four years imprisonment, at the end of which the Home Office intends to remove him from the UK. Xu – nicknamed the billion-dollar brain – was accused of stealing computer codes said to be worth more than £30m.

Lunchtime read: Hinkley Point and the ‘dreadful’ deal

Photograph: Bloomberg/Bloomberg via Getty Images

The estimated total bill to build Hinkley Point C is £20.3bn, more than twice that of the London Olympics, making it – eventually – the most expensive power station in the world. The financing package puts the UK in hock for a generation to a Chinese state-run power company and another majority-owned by the French government. Progress has been glacial since its proposal almost 40 years ago and its controversial design has yet to start functioning anywhere in the world. Some experts believe it could actually prove impossible to build. Holly Watt explores how the UK government arrived at such a bad deal.

Sport

On a delirious night at Ashton Gate, Bristol City deservedly dispatched Manchester United for the first time since 1978, with a brilliant 93rd-minute winner teeing up a date with Manchester City in the Carabao Cup semi-finals. In the other quarter-final played last night, Chelsea left it late but Álvaro Morata’s injury-time winner sank Bournemouth. Swansea City are looking for their third manager in less than 12 months after Paul Clement was sacked.

In rugby union, Dylan Hartley has rounded on the former Northampton players who criticised the club after a woeful run of form that cost Jim Mallinder his job as director of rugby last week. Matt O’Connor, the Leicester head coach, wants the game’s authorities to be held to account after Manu Tuilagi’s citing for a dangerous tackle was dismissed. Venus Williams will not face any criminal charges in relation to a fatal traffic accident she was involved in near her Florida home in June. And the Australian rugby league player Angus Crichton has had his troublesome middle finger amputated to avoid further injury layoffs and ensure he is ready for the 2018 NRL season.

Business

Agency workers are collectively underpaid by £400m a year compared with their full-time counterparts, according to research by the Resolution Foundation. The pay gap costs temporary admin staff £990 a year on average, it says.

Asian share markets were subdued overnight after the euphoria about US tax cuts – which incidentally look set to benefit Donald Trump personally by $15m – wore off and investors fretted about more US rate rises next year.

The FTSE100 is expected to rise a fraction this morning, while the pound is buying £1.336 and €1.125.

The papers

No Christmas prizes for guessing what leads the front pages today. We get multiple takes on the ousting of the deputy prime minister, from Metro’s curt “Green out” to City AM’s careful “Theresa May ally Damian Green resigns amid pornography allegations”.

Photograph: The Guardian

The Guardian, the Daily Telegraph and the Sun agree that, despite the niceties exchanged in letters between May and Green, he was indeed sacked. The Times says he was “forced out over computer porn cover-up”, while the Mirror hits harder with: “May axes her deputy over porn lies.”

The Daily Mail is a lone lamenting voice, sighing: “What a sad way to go.”

The Financial Times has a nod to Green but leads on Bank of England promises of easy access for European banks in London post-Brexit. The i splashes on a report that the UK wants “total secrecy” for trade talks with the US. And the Daily Express says you can beat dementia by eating salad every day.

For more news: www.theguardian.com

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