Hard Brexit, soft sterling and a glimpse of the Night Manager across the water

This column comes from Puerto Pollensa in Majorca, my favourite off-season watering-hole. The hotel is full of elderly Daily Mail readers intent on making their gin-and-tonics last longer as they contemplate the news from home. Brexit is highly likely to mean ‘hard Brexit’ — departure without residual access to the single market or meaningful new trade deals with the EU or anyone else — and HM Treasury thinks that could cost £66 billion a year in tax revenues. The FTSE’s new all-time intra-day high was consoling for those with a portfolio tucked away, but an uptick in bond yields suggests equities are due for a sharp sell-off soon. And petrol prices are about to jump thanks to the weak pound and a belated Opec move to limit production.

But most painful of all for this middle-England holiday cohort is the thought that their Leave votes have delivered near-parity between the tourist pound and the euro — though that was always likely to be sterling’s trajectory, and as former Bank of England governor Mervyn King has pointed out, a more competitive exchange rate is a welcome stimulus at a moment of uncertainty.