HOPE springs eternal for the two candidates vying to become Britain's next prime minister, and lead UK out of the European Union.

Boris Johnson, the favourite, believes that a threat that Britain is prepared to leave the Union without a deal will encourage all 27 EU leaders to renegotiate Theresa May's withdrawal agreement. Foreign Secretary Jeremy Hunt claims to have such good relations with German, French and other prime ministers that he'll be able to negotiate a deal.

Indications from the EU, however, are that such hopes are fantasy. Indeed, the weakness of the pound illustrates that foreign exchange participants also fear a negative outcome. Michel Barnier and other EU negotiators, who forged the Brexit deal with Mrs May, have stated firmly that the withdrawal agreement will not be renegotiated. Their tenure ends on October 31, but unfortunately for the UK's PM hopefuls, their successors appear to be even more uncompromising.