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• Angela Eagle is expected to launch a bid for the Labour leadership on Thursday as Jeremy Corbyn continues to resist intense pressure to resign, including from his deputy.

She is expected to pledge to reunify the fractured party, which has been locked in a vicious internal battle since the weekend, when Corbyn sacked his shadow foreign secretary, Hilary Benn, for plotting against him.

“We’ve got the numbers, we’ve got the big hitters, it will probably be tomorrow afternoon,” said an ally of Eagle, the former shadow business secretary.

• In the first hint that European leaders may be willing to discuss changes to the EU’s existing freedom of movement rules as part of a new relationship with the UK, the French finance minister Michel Sapin has said everything will be on the table in the future talks with the UK, including freedom of movement.

His softer line contrasted with the tone emerging from European leaders at the summit, including French president François Hollande who stressed the UK could not expect to have access to the single market if it did not accept freedom of movement.

• The first candidates have declared their hands for the Conservative leadership, with Stephen Crabb and Liam Fox both confirming they hope to replace David Cameron.

Stephen Crabb’s campaign got off to a slightly rocky start at a launch event when he had to defend his previous opposition to gay marriage and past links to a controversial Christian group.

The work and pensions secretary made his first public pitch to become prime minister with the business secretary, Sajid Javid, by his side

• Nicola Sturgeon’s hopes of gaining support for her bid to keep Scotland in the European Union despite the UK’s vote to leave have been dealt a blow after the Spanish prime minister warned: “If the United Kingdom leaves … Scotland leaves.”

Speaking in Brussels, where the Scottish first minister held a series of meetings to lobby for Scotland, Jean-Claude Juncker, the president of the European commission, said that although he would gladly hear Sturgeon’s case, he was not in a position to enter into talks on Scotland’s future separately from the UK.

• The Brexit campaign’s biggest financial donor has said he is considering backing a new political party taking in members of Ukip, Labour and the Conservatives.

In a sign that the referendum aftershocks already rocking the Conservative and Labour parties could be spreading to Ukip, the insurance multi-millionaire and Ukip funder Arron Banks criticised the party’s growth and proposed harnessing Brexit support in a new party. When asked if Farage would be in charge, he said the Ukip leader “may have had enough”.