Emergency services gather at the entrance to the Grenoble factory. Image: Getty.
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Police have opened a terror investigation into an attack on a French factory

One person is dead and several are reported wounded at the site of a suspected terrorist attack near Lyon.

A decapitated man has been found near a gas factory near Lyon following an attack on the factory itself. 

Police sources told Agence France-Presse that an attacker or attackers drove into the Air Products factory and set off several small explosives, which then set off a gas explosion. It's unclear whether the decapitated body was brought to the factory, or was killed as part of the attack. The source also said that a "flag with Arabic writing on it" was  found at the scene. 

French police have now opened a terrorism investigation into the attack, according to Associated Press. France's anti-terror prosecutor is saying that the attack was carried out by "a terrorist group". There are reports that François Hollande has left an EU summit in Brussels early in order to return to Paris. 

Update 12:06: President Hollande has given a statement from Brussels. Here's a translation of part of it, courtesy of The Guardian

We have no doubt the attack was intended to explode the building. The attack bears the hallmarks of a terrorist attack. A decapitated body was found with inscriptions written on it. There was one dead and two injured. There interior minister went to the scene immediately. The suspect who carried out this attack was arrested and identified.”

He also said that European leaders have all expressed their solidarity with France, and that he will now travel back to Paris.  

Barbara Speed is comment editor at the i, and was technology and digital culture writer at the New Statesman, and a staff writer at CityMetric.

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The Brexit elite want to make trade great again – but there’s a catch

The most likely trade partners will want something in return. And it could be awkward. 

Make trade great again! That's an often overlooked priority of Britain's Brexit elite, who believe that by freeing the United Kingdom from the desiccated hand of the European bureaucracy they can strike trade deals with the rest of the world.

That's why Liam Fox, the Trade Secretary, is feeling particularly proud of himself this morning, and has written an article for the Telegraph about all the deals that he is doing the preparatory work for. "Britain embarks on trade crusade" is that paper's splash.

The informal talks involve Norway, New Zealand, and the Gulf Cooperation Council, a political and economic alliance of Middle Eastern countries, including Kuwait, the UAE and our friends the Saudis.

Elsewhere, much symbolic importance has been added to a quick deal with the United States, with Theresa May saying that we were "front of the queue" with President-Elect Donald Trump in her speech this week. 

As far as Trump is concerned, the incoming administration seems to see it differently: Wilbur Ross, his Commerce Secretary, yesterday told Congress that the first priority is to re-negotiate the Nafta deal with their nearest neighbours, Canada and Mexico.

In terms of judging whether or not Brexit is a success or not, let's be clear: if the metric for success is striking a trade deal with a Trump administration that believes that every trade deal the United States has struck has been too good on the other party to the deal, Brexit will be a failure.

There is much more potential for a genuine post-Brexit deal with the other nations of the English-speaking world. But there's something to watch here, too: there is plenty of scope for trade deals with the emerging powers in the Brics - Brazil, India, etc. etc.

But what there isn't is scope for a deal that won't involve the handing out of many more visas to those countries, particularly India, than we do currently.

Downing Street sees the success of Brexit on hinging on trade and immigration. But political success on the latter may hobble any hope of making a decent go of the former. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.