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Those Brexit clichés explained

Ever since February 2016, when David Cameron, the British prime minister, called a referendum on the UK leaving the EU, the debate has been clouded by catchphrases, similes and confusing metaphors. If you haven’t followed the debate religiously, or you are unfamiliar with British idioms, these may be mysterious. So as the negotiations reach a critical stage, here is your cut-out-and-keep guide to some of the most notable.

Project Fear

This was how the Leave campaign dubbed the economic forecasts made by the Treasury and bodies like the OECD and IMF about the potential adverse impact of a Brexit vote. George Osborne, the chancellor, certainly went over the top with his threats of a “punishment Budget” after a Leave vote. So far, the UK has not fallen into recession, a fact that Brexiters cite when pooh-poohing negative forecasts of the longer-term impact. But the Continue reading

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The markets deliver a shock to complacent investors

EVERY good horror-film director knows the secret of the “jump scare”. Just when the hero or heroine feels safe, the monster appears from nowhere to startle them. The latest stockmarket shock could have been directed by Alfred Hitchcock. The sharp falls that took place on February 2nd and 5th followed a long period where the only direction for share prices appeared to be upwards.

In fact the American market had risen so far, so fast that the decline only took share prices back to where they were at the start of the year (see chart). And although a 1,175-point fall in the Dow Jones Industrial Average on February 5th was the biggest ever in absolute terms, it was still smallish beer in proportionate terms, at just 4.6%. The 508-point fall in the Dow in October 1987 knocked nearly 23% off the market.

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