And finally, a reminder of why a no-deal Brexit is worrying businesses, investors, politicians, and many members of the public:

Government plans for customs checks at Dover in a no-deal scenario are so impractical it would take eight hours to clear an average lorry carrying food and goods from Calais, the Road Haulage Association has warned.

It said plans for no-deal Brexit were “dire” and the sector faced a catastrophe on 30 March.

“The government is in denial about the scale of this,” said Rod McKenzie, director of policy at the RHA, which represents major hauliers including Eddie Stobart and DHL.

Goodnight! GW

Not exactly a breakthrough, but maybe a glimmer of light?

The pound is sliding close to Monday’s 20-month low, following reports that the EU is stepping up its plans for a no-deal Brexit.

Here’s our latest news story:

The EU is moving into full no-deal mode after Michel Barnier privately warned of a sudden escalation of risk, and France advised its fellow member states that planning for a cliff-edge Brexit now had to be their priority.

As Theresa May embarked on a whistle-stop tour of EU capitals on Tuesday, Barnier, the bloc’s chief negotiator, is understood to have given a stark analysis of the situation in a meeting with Jean-Claude Juncker and his fellow commissioners, suggesting that the danger of a complete breakdown had significantly increased.

The European commission is to publish fresh no-deal warnings next week. During a visit to Berlin, May was reportedly told by Angela Merkel that there could be no renegotiation and that any appeals for help should be made in Brussels rather than brought to the capitals.

In a sign of the heightened concerns, Ireland’s taoiseach, Leo Varadkar, took the unusual step of suggesting to his parliament that it was still in Downing Street’s gift to prevent a no-deal by revoking article 50 and turning its back on Brexit.

More here:

Optimism over a possible breakthrough in US-China trade negotiations helped the FTSE 100 to close 85 points higher at 6,806, up 1.27%.

Germany’s Dax gained 1.5%, with France’s CAC up 1.35%.

David Madden of CMC Markets says there may be some desperation behind the rally, as there’s nothing official yet.....

Markets are booming today as traders hold on to some hope that China and the US will strike a deal in relation to trade. There has been much detail around it, but it was confirmed that delegates from both sides are still in discussions.

Perhaps, it’s a sign that traders are desperate to cling on to any belief that an agreement can be reached. Mining companies like BHP Billiton, Rio Tinto, and Glencore are all helping the FTSE 100 today.

More from sources close to the House of Commons postroom......

The pound is dipping, amid talk that Theresa May could face a leadership battle soon.

Sky News’s Beth Rigby has heard that at least 48 Conservative MPs have submitted letters of no confidence, enough to trigger a contest.

This has knocked the pound down to $1.2539, a dip of 0.2% today.

However, May’s critics in the European Reform Group, who dislike her deal, have struggled to mobilise support before.....

Over in the eurozone, the Italian government has launched a new bid to avoid being sanctioned over its budget -- by point out that France is also breaking the rules.

Italian deputy PM Luigi Di Maio has argued that the French government should also face EU disciplinary action, after promising wage rises and tax cuts to address the anger of the Gilets Jaunes protests.

Di Maio declared:

“If the deficit/GDP rules are valid for Italy, then I expect them to be valid for Macron.”

Rome is still hoping to persuade Brussels to sign off its 2019 budget, which show a deficit of around 2.4%.

Britain’s FTSE 100 is now 130 points higher, meaning that around £33bn has been added to the value of its blue-chip members today.

That will be welcomed by investors, who saw £55bn wiped off the Footsie last Thursday.

Wall Street has joined the rally, as shares rise at the start of trading in New York.

The Dow Jones industrial average has risen by 330 points, or 1.4%, in early deals.

That report that China may cut US car tariffs is cheering investors, who are racing to buy shares in car makers and technology companies.

The US president has dropped a hint that China is making concessions on trade.....

After a few very rough weeks, investors are grasping onto the prospect that China will soon cut tariffs on US cars.

The London stock market has jumped by 1.7%, and there are even stronger gains in Frankfurt and Paris too.

But there’s still plenty of anxiety in the markets, as Craig Erlam of trading firm OANDA explains:

A Santa rally is looking increasingly unlikely, with risk appetite becoming more depressed by the day and the outlook for the global economy looking more challenging.

We’re now seeing daily commentary it seems about the progress of talks between the US and China but the reality is that this is going to be a process that moves at a glacial pace but the fact that talks are happening are a reason to be optimistic.

Theresa May has now arrived in Berlin for talks with German chancellor Angela Merkel.

The visit hit a small hitch, though, as the PM was briefly unable to unilaterally exit her own car.

Here are some more interesting nuggets from today’s UK unemployment report:

The pound is just clinging onto its earlier gains against the dollar, and still trading up half a cent at $1.261.

But that’s partly due to dollar weakness.

Against the euro, sterling is basically flat at €1.1065.

Jamie McGeever of Reuters points out that sterling had one of its worst days in the last decade yesterday:

There are plenty of reports that UK wage growth has hit a 10-year high.

And that’s true.... if you ignore the impact of inflation.

But once that’s factored in, wage growth drops from 3.3% to around 1%.

You can see the impact of Britain’s austerity cutbacks in today’s data.

Thanks to pay caps, public sector wages are lagging behind those in the private sector, with the gap widening last month:

The Resolution Foundation have spotted that workers in hospitality, real estate, ICT, wholesale and health and social work are getting the chunkiest pay rises.

Stephen Clarke, their senior economic analyst, adds:

“While Brexit uncertainty and political paralysis are having a cooling effect on the wider economy, the labour market is proving more resilient....

“2019 looks set to be a far better year for pay than this one. But after a pretty appalling decade, Britain remains some way off a return to the levels of real pay we enjoyed before the crash.”

The jump in wages last month suggests firms are struggling to find enough workers -- which would be a real problem if you’re trying to finalise your Brexit contingency plan.

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), confirms that recruitment is a problem:

Businesses report that the political and economic turbulence, together with significant difficulties finding the right staff, are diminishing recruitment intentions, which is likely to increasingly weigh on the UK labour market over the near term.

“More must be done to support firms looking to recruit. Businesses are still waiting for the government’s long-delayed Immigration White Paper to shed light on how they will be able to plug local shortages in the future and find the skills they need to grow.”

Economist Shaun Richards points out that wages seem to have accelerated strongly in October:

Geraint Johnes, Professor of Economics at Lancaster University Management School, has swiftly analysed today’s jobs data.

His conclusion: pay growth is gathering pace as the UK economy continues to heal the wounds from the financial crisis a decade ago:

“The latest labour force statistics indicate a rise in unemployment of 20000 over the quarter to August-October this year, the unemployment rate now standing at 4.1%. Employment, however, has continued to rise at a healthy pace, with an increase in the numbers of full-time employees of some 100000. Moreover, the gradual shift from part-time to full-time employment has continued, as has the shift of activity from self-employment to employee status. Particularly notable is a decline of 40000 in the numbers of part-time self-employed workers. These trends all align with a narrative of continued adjustment to normality following the severe labour market disruption of the recession and slow recovery.

“The data on pay continue to be encouraging. On the preferred three month measure, total pay rose at an annual rate of 3.3% in October, up from 3.1% the previous month. The less reliable single month estimate indicates growth of 3.9% - though this should be treated with caution because the base figure in October 2017 appears low.

Nonetheless there does now seem to be some momentum building behind pay growth, and, real pay is now consistently growing – albeit still at a rate slower than the historical trend. This is likely to factor into Bank of England decisions on interest rates over the coming months, alongside the uncertainties surrounding Brexit.”

Despite all the political uncertainty, around 396,000 more jobs have been created in the UK in the last year.

Many were in IT, healthcare and social work, as this chart shows:

The government will surely be pleased that UK firms are still creating jobs, despite uncertainty over Britain’s exit from the EU.

This chart shows how UK wages are rising at a 10-year high.

However, once you adjust for inflation, earnings are only rising at the fastest rate since the end of 2016:

Here’s Connor Campbell of City firm SpreadEx on the markets this morning.

It’s the day of the big vote! Oh, wait a minute...

After Monday’s political pummelling, following zombie PM Theresa May’s decision to delay Parliament’s vote on her Brexit deal in favour of another trip to the continent, the pound got off to an uneasily positive start on Tuesday.

Against the dollar it rose 0.4%, just about lifting cable above $1.26, a smidge higher than yesterday’s 20 month nadir. Against the euro, meanwhile, it could only reclaim 0.1%, sterling languishing at €1.107.

After an edgy start, the pound is clawing back a little ground.

Sterling has just risen back over $1.26 against the US dollar, half a cent higher than last night’s close.

The mini-recovery comes as the Leader of the House of Commons, Andrea Leadsom, told BBC Radio 4 that the EU might give some last-minute concessions.....

Theresa May will have a busy day, Reuters reports:

The chairman of European Union summits Donald Tusk is scheduled to meet British Prime Minister Theresa May at 1600 GMT on Tuesday, his spokesman said.

May is on a tour of EU capitals to seek last minute changes to the already agreed deal on Britain’s withdrawal from the EU in order to push the agreement through British parliament.

She is to meet Dutch Prime Minister Mark Rutte, German Chancellor Angela Merkel and finish with a meeting with Tusk and European Commission President Jean-Claude Juncker.

Not the cheeriest breakfast meeting....

Theresa May is now in the Hague for talks with Dutch prime minister Mark Rutte (usually a UK ally).

Rutte, though, wouldn’t say whether May will get anything more than breakfast out of him....

Brussels is sticking to its guns this morning.

European Commission president Jean-Claude Juncker has insisted the Brexit Withdrawal Agreement will not be reopened. That won’t give the pound much of a lift.

Here’s a handy guide to what on earth’s going on....

And here’s what Fleet Street’s finest makes of it all: