'But how does all this relate to Sarah vines letter yesterday?'
Possibly a leak to signal to Tory MPs that Dacre and Murdoch preferred Boris, so no point backing Boris.
'Gove as PM, Leadsom as Chancellor.'
Yes, I think that is what will happen. Leadsom is excellent. Gove is also good friends with Osborne, I think, so Osborne may even survive as Chancellor, we will have to wait and see.