Part 1 Unit 1 Section 1 ECONOMICS. BUSINESS AND BUSINESSES
Text 1
July 2014
Economic recovery slow to benefit small and medium-sized firms as many struggle to find
finance
The economy may be improving but many small and medium sized enterprises remain teetering
on the brink of collapse.
This is the sobering news from a study by insurance firm Zurich, which finds today that one in
eight smaller firms has considered shutting up shop in the past few months, despite the generally
positive economic outlook.
Of some 500 SMEs polled, Zurich found that 15 per cent have laid off staff in the past three
months while one in four have been forced to lower their prices.
Many SMEs found it notoriously difficult to secure financing during the downturn with banks
refusing to lend. But according to new data from the Bank of England, lending to SMEs alone
edged up by £235million in June, sparking hope of an end to their financing woes.
But there was some cause for concern at the BoE's findings: lending to non-financial businesses
actually slumped by £3.4billion in June, its biggest fall since November last year, compared with
an increase of £2.3billion in May.
Richard Coleman of Zurich said: 'Our research demonstrates that while concern about risk
amongst SMEs is falling, the risks themselves are still very much there.
'That the number of companies considering closing down because of the economic climate has
remained consistent over the past 12 months, suggests that serious financial difficulties are still
on the agenda for many.
Howard Archer, chief UK and European economist with IHS Global Insight, was cautious about
the overall lending slump, pointing out that unfavourable bank rates and terms continue to
discourage some SMEs, but he acknowledges there are some reasons to be optimistic.
'There is evidence that many firms are now looking to step up their borrowing as markedly
improved economic activity lifts their confidence and need for capital.
'Indeed, the Bank of England’s quarterly survey for June reported that demand for credit had
picked up "significantly" across all company sizes in the second quarter and it is expected to rise
again in the third quarter.'
По материалам http://www.thisismoney.co.uk
Vocabulary:
1. (economic) recovery – оживление, восстановление (в экономике)
2. to struggle – переживать, испытывать проблемы (трудности); прикладывать усилия,
стараться из всех сил
struggling company – проблемная компания
3. to teeter on the brink of collapse=to teeter on the verge of collapse
4. collapse=bankruptcy – банкротство
5. to shut up shop=to go out of business=to close down
6. outlook – перспективы; прогноз
7. to lay off (staff) – увольнять персонал
8. to secure financing=to obtain financing
to finance=to fund – финансировать, предоставлять денежные средства
9. downturn=turndown=slowdown – замедление экономического роста, снижение темпов
экономического роста
10. to edge up – незначительно повышаться, увеличиваться (об экономических
показателях)
to edge up by – незначительно повышаться на к-л величину; предлог “by” может быть
опущен
to edge up to – незначительно повышаться до к-л отметки, уровня
11. woes=problems
12. lending – кредитование, предоставление кредитов (займов, ссуд); сумма выданных
кредитов, объем кредитования
13. slump – резкий спад (в экономике); to slump – резко снижаться (об экономических
показателях)
14. to suggest – (здесь) указывать на, свидетельствовать о ч-л
15. bank rate – банковская ставка процента по кредиту
Translation Notes:
1. “Economic recovery slow to benefit…” – см. Часть 3, стр. 391 «Перевод заголовков» и стр.
407 «Инфинитив в различных функциях»
2. “…as many struggle to find finance.” – см. Часть 3, стр. 421 «Служебные слова» (“as”)
3. “The economy may be improving…” – см. Часть 3, стр. 401 «Модальные глаголы»
(“may”)
4. “…with banks refusing to lend.” – см. Часть 3, стр. 415 «Абсолютная причастная
конструкция»
5. “…sparking hope…” – см. Часть 3, стр. 413 «Причастие»
6. “…it is expected to rise…” – см. Часть 3, стр. 408 «Инфинитивные конструкции»
Part 1 Unit 1 Section 2 INDUSTRIES AND SECTORS, PARENTS AND SISTERS
Text 2
August 2014
Coca-Cola pays $2.2 billion for a stake in Monster Beverage
NEW YORK - Coca-Cola said Thursday it is making cash payment of $2.15 billion for a 16.7
percent stake in Monster Beverage Corp as the world's largest soda maker seeks to expand into
faster-growing categories such as energy drinks.
Under the agreement, Coke will have two directors on Monster's board. Coke will transfer
ownership of its worldwide energy business including brands like Full Throttle and Burn, to
Monster. Monster will transfer its non-energy business, which includes Hansen's Natural Sodas
and Peace Tea, to Coke. Coke will become Monster's preferred distribution partner globally,
while Monster brands will be the only energy drinks distributed by Coke.
For Coke, the transaction represents an opportunity to increase its footprint in energy drinks, a
$27 billion market globally, according to Euromonitor International. It comes at a time when
people are drinking less soda in developed markets. Coke said last month that its quarterly
revenue in North America, its biggest market, was flat, partly driven by a decline in diet Coke
sales.
In turn, Monster will gain access to Coke's extensive global distribution system. The companies
have a distribution agreement in the U.S. and Canada and will amend it to expand into additional
territories.
A person familiar with the transaction said that the deal enables Monster to enter markets where
it doesn't have a presence, like China and Russia, and increase its footprint in places where the
company thinks it can gain share, like Brazil. Coca-Cola shares rose 1.2 percent in after-hours
trading, while Monster surged 22 percent.
On a conference call with media, Rodney Sacks, chief executive officer of Monster, said: "We
believe it will be a win-win transaction".
По материалам http://www.thedailyherald.com
Vocabulary:
1. to make/effect (cash) payment – осуществлять платеж (наличными)
2. to expand into (a market)=to increase one’s footprints in (a market/product) vs. to enter a
market=to penetrate a market=to break into a market
3. under an agreement=as per an agreement – в соответствие с соглашением
4. board=Board of Directors – Совет директоров
5. energy business – подразделение компании по производству энергетических напитков
a business=division=arm=branch=unit
6. preferred distribution partner – привилегированный дистрибьютер=дистрибьютер с
преимущественными правами на сбыт продукции данной компании
7. developed markets – рынки промышленно-развитых стран
developing countries – развивающиеся страны
emerging markets – наиболее динамично развивающиеся страны, рынки стран с быстро
развивающейся экономикой
8. revenue – выручка
9. to be flat=to be at the same level=to remain stable
10. sales – объем продаж
11. distribution system=channels of distribution – сбытовая сеть, каналы сбыта
12. to gain (market) share – увеличить долю рынка
13. after-hours trading – торги после официального закрытия биржевой сессии
14. to surge=to soar – резко повышаться, расти (об экономических показателях)
15. Chief Executive Officer (AmE)=CEO – (главный) исполнительный директор,
генеральный директор; (BrE) – Managing Director
Translation Notes:
1. “…as the world's largest soda maker seeks…” – см. Часть 3, стр. 421 «Служебные слова»
(“as”)
2. “… according to Euromonitor International.” – источник информации при переводе на
русский язык следует выносить в начало предложения
3. “…driven by a decline in diet Coke sales.” – см. Часть 3, стр. 413 «Причастие»
Part 1 Unit 1 Section 2 INDUSTRIES AND SECTORS, PARENTS AND SISTERS
Text 3
Aug 2014
Euro-Zone Manufacturers Cut Jobs in July
Euro-zone manufacturers cut jobs in July for the first time in seven months, underlying the
fragility of the currency area's economic recovery.
A survey of 3,000 purchasing managers by data firm Markit also recorded a stabilization in the
growth of manufacturing activity, with Greece and France experiencing a decline, and Italy and
Spain slowdowns.
Markit said the new round of job cuts and lackluster growth likely reflected caution on the part
of businesses as they assess the impact of rising tensions between the European Union and
Russia over the future of Ukraine.
"The tensions with Russia are threatening to lead to a further retrenchment of spending and
investment by businesses and households," said Chris Williamson, Markit's chief economist.
Outside the euro zone, the performance of the manufacturing sector was mixed. The increase in
activity picked up in Hungary and the Czech Republic, but activity declined in Poland for the
first time in 13 months and slowed in the U.K.
The headline measure from Markit's monthly survey of purchasing managers at manufacturers
was unchanged at 51.8, and slightly below the preliminary estimate of 51.9. A reading above 50
indicates an increase in activity.
Those preliminary readings indicated growth in the services sector accelerated in July,
suggesting that the economy may have regained some momentum after what appears to have
been a disappointing second quarter.
Nevertheless, the decline in manufacturing employment underlines the scale of the challenge
faced by the currency area in reducing near-record levels of unemployment.
There was encouraging news on that front on Thursday, when the European Union's statistics
agency said the jobless rate fell to 11.5% in June to reach its lowest level since September 2012.
A total of 152,000 new jobs were created during the month, the second-highest number since
February 2007. But the manufacturing survey suggests that pace of new hiring wasn't sustained
in July.
По материалам The Wall Street Journal
Vocabulary:
1. purchasing managers – менеджеры по закупкам
Purchasing Managers Index – индекс менеджеров по закупкам
2. decline (in) – сокращение, уменьшение
ant. – increase (in)
3. lackluster/sluggish (growth) – медленный, вялый (рост)
ant. – robust, buoyant (growth) – быстрый, стремительный (рост)
4. performance – результаты (показатели) деятельности, функционирования (компании,
сектора экономики)
5. to gain/gather momentum – наращивать обороты, набирать ход; получать импульс
ant. – to lose momentum
6. sustained (growth) – устойчивый, продолжительный, непрерывный, стабильный рост
sustainable growth – 1) устойчивый, непрерывный рост; 2) приемлемый, допустимый для
экономики рост, т.е. рост, который не ведет к негативным для экономики последствиям
Translation Notes:
1. “…with Greece and France experiencing a decline…” - см. Часть 3, стр. 415 «Абсолютная
причастная конструкция»
2. “…the economy may have regained some momentum…” - см. Часть 3, стр. 401
«Модальные глаголы» (“may”)
3. “…what appears to have been a disappointing second quarter.” - см. Часть 3, стр. 408
«Инфинитивные конструкции»
4. “…faced by the currency area…” - см. Часть 3, стр. 413 «Причастие»
Part 1 Unit 1 Section 4 MERGERS AND ACQUISITIONS
Text 4
May 2014
AstraZeneca rejects Pfizer's 'final' offer
US pharma giant Pfizer's final sweetened takeover bid of £69.3bn is rejected by its British
rival AstraZeneca.
Just nine hours after Pfizer raised its offer from £53.50 a share on Friday, to £55 on Sunday,
AstraZeneca rejected the offer as the markets opened at 7am.
The offer valued AstraZeneca at nearly $120 billion and was a 45% premium over the
company’s share price in mid-April.
Shares in the British company plunged nearly 14% to £41.57 in early trading Monday.
The US group had said it would not enter into a hostile takeover, and would walk away if the
latest bid was not accepted. But it has not yet responded to AstraZeneca's rejection of the offer.
The latest bid, which comes after lengthy talks, was still viewed as falling short of properly
valuing AstraZeneca. Leif Johansson, chairman of AstraZeneca, said: "We have rejected Pfizer's
final proposal because it is inadequate and would present significant risks for shareholders, while
also having serious consequences for the company, our employees and the life-sciences sector in
the UK, Sweden and the US."
Mr Johansson said he had made clear in discussions with Pfizer that his board could only
recommend a bid that was at least 10 per cent above the offer of £53.50 made by Pfizer, or
£58.85. It remains to be seen whether AstraZeneca’s shareholders will try to convince the
company to reopen negotiations with Pfizer.
Pfizer wants to create the world's largest drugs company, with a headquarters in New York but a
tax base in Britain, where corporate tax rates are lower than in the United States.
However the plans have been met with entrenched opposition from AstraZeneca, as well as
many politicians and scientists who fear cuts to jobs and research. AstraZeneca alone accounts
for 2% of British exports, so Pfizer's proposed takeover would be the largest ever foreign
acquisition of a British firm.
In a statement on Monday, Mr Johansson added: "Pfizer's approach throughout its pursuit of
AstraZeneca appears to have been fundamentally driven by the corporate financial benefits to its
shareholders of cost savings and tax minimisation. From our first meeting in January to our latest
discussion yesterday Pfizer has failed to make a compelling strategic, business or value case."
По материалам CNN
Vocabulary:
1. premium – надбавка
2. share price – цена акции, курс акции
3. to plunge=to plummet=to tumble – резко падать, снижаться (об экономических
показателях)
4. life sciences – биология, медицина, антропология и т.д.; биотехнологии
5. tax base – налогооблагаемая база (о сумме, подлежащей обложению налогом); здесь –
место регистрации для целей налогообложения
6. corporate tax – корпоративный налог, налог на прибыль компании
7. exports (plural) – объем экспорта в стоимостном выражении
Translation Notes:
1. “… while also having serious consequences…” – см. Часть 3, стр.420 «Служебные слова»
(“while”)
2. “AstraZeneca alone accounts for 2% of British exports…” – “Доля компании в общем
объеме экспорта Великобритании составляет 2%.” или “На ее долю приходится...”
3. “…approach…appears to have been fundamentally driven…” - см. Часть 3, стр. 408
«Инфинитивные конструкции»
Part 1 Unit 1 Section 4 MERGERS AND ACQUISITIONS
Text 5
2013
Netflix takes poison pill to ward off Icahn takeover
The board of film rental firm Netflix has adopted a "poison pill" strategy to ward off a potential
hostile takeover bid by investor Carl Icahn.
The shareholder rights plan will flood the market with newly issued shares if anyone buys more
than 10% of the firm.
Mr Icahn disclosed last Wednesday he had accumulated a 9.98% stake.
Netflix shares have lost three-quarters of their value since peaking in July 2011, after an up-to60% jump in its prices led to a drop in subscribers.
An aborted plan by management to spin off its DVD-rentals-by-post business in order to focus
on online streaming also backfired, as many customers balked at the resulting need for them to
create two separate accounts.
Although the price rise generated a short-term rise in profits last summer, in the first nine months
of this year profits fell by 95% from a year earlier as customers walked away, and as the
company bore the cost of an aggressive international expansion.
The "poison pill" is a strategy commonly used by management of a listed company to protect
themselves from investors they fear may oust them following a takeover, and Mr Icahn has been
on the sharp end more than once before.
However, the 10% trigger threshold - tailoured for Mr Icahn - is unusually low.
Netflix's board has set a higher 20% threshold if the shareholder is a financial institution rather
than an individual investor.
Mr Icahn called the management's move - which was not put to a shareholder vote - "an example
of poor corporate governance", and criticised the fact that only a third of the company's board is
up for election by shareholders each year.
The investor has said that he thinks Netflix is undervalued and would make an attractive
acquisition for other companies. Microsoft and Amazon have been speculated as possible buyers.
Mr Icahn has not indicated whether he would seek to make changes in management or company
policy - something he has done at other companies he has invested in.
Netflix's board said that the poison pill was "intended to protect Netflix and its stockholders from
efforts to obtain control of Netflix that the board of directors determines are not in the best
interests of Netflix and its stockholders".
По материалам BBC
Vocabulary:
1. shareholder rights plan – эмиссия прав=выпуск новых акций, предлагаемых акционерам
компании по более низкой цене, чем рыночная
2. to balk at – to not want to do or try something, because it seems difficult, unpleasant, or
frightening
3. online streaming – трансляция в режиме онлайн, потоковая трансляция
4. listed company=quoted company – котируемая компания=компания, акции которой
зарегистрированы на фондовой биреж
5. to be on the sharp end (of smth.) – to be involved in the most difficult or dangerous part of
smth.
6. trigger threshold – пороговый уровень
7. to tailor=to customize – изготавливать ч-л на заказ, т.е. с учетом индивидуальных
требований заказчика
8. to speculate – 1) спекулировать; 2) строить предположения, догадки, домыслы; см. Часть
3, стр. 389 «Ложные друзья переводчика»
Translation Notes:
1. “…threshold tailoured for…” – см. Часть 3, стр. 413 «Причастие»
Part 1 Unit 2 Section 1 PRODUCING THE GOODS
Text 6
July 2014
Volkswagen plans to expand China capacity
Volkswagen has announced plans to build two new factories in China, at a cost of
US$2.7bn, as it seeks to capitalise on growth in the world's largest car market
The German carmaker will team up with Chinese automaker FAW Group to build the plants in
the eastern Chinese city of Qingdao and the northern city of Tianjin.
Volkswagen says that the decision on their location was made on the basis of infrastructure,
which in the case of Tianjin, includes another new plant specializing in the manufacture of dualclutch gearboxes, which is set for inauguration at the end of this year.
As well as investing in plant construction, Volkswagen will spend €18.2bn (US$24.4bn) to
increase its annual production capacity in China from 3.3m units currently to 4m units by 2018.
Volkswagen's sales in China, which account for around a third of its global total, rose by 18%
during the first five months of this year, to 1.5m units. The company has joint ventures in China:
FAW-Volkswagen and Shanghai-Volkswagen.
In April this year, Martin Winterkorn, chairman of Volkswagen's management board, said he
expects Chinese deliveries to rise by 10% this year, to more than 3.5m units, putting the
company on the path towards production of 4m vehicles per year by 2018. Investment is
therefore crucial to Volkswagen's broader goal of overtaking Toyota as the world's biggest
carmaker.
However, Volkswagen's path to growth in the Chinese car market is far from smooth. Air quality
and congestion have prompted several cities to introduce licence auctions and other measures to
limit car sales. Other carmakers, such as General Motors (GM) and Ford, are also working hard
to expand their production capacity in the country, raising fears of overcapacity. Shanghai
Automotive (SAIC)—China's biggest carmaker and Volkswagen's other joint venture partner—
has also warned that price competition and rising labour costs could cause the country's auto
market to overheat, stifling future growth.
Growth in China's market was close to zero in 2011 and 2012, following the expiration of
government sales incentives. The market recovered last year, as sales grew by just under 14%
year on year. According to the China Association of Automobile Manufacturers (CAAM),
growth is expected to reach 8-10% this year.
По материалам https://globalconnections.hsbc.com
Vocabulary:
1. to capitalize on smth. – использовать преимущество ч-л, извлекать выгоду из ч-л
2. dual-clutch gearbox – коробка передач с двойным сцеплением
3. licence auction – аукцион по выдаче номерных знаков
Translation Notes:
1. rising labour costs – увеличение стоимости рабочей силы, рост затрат на оплату труда;
higher labour costs – прилагательное в сравнительной степени в данном случае также
следует перводить на русский язык с помощью существительного
2. “… following the expiration of government sales incentives…” – см. Часть 3, стр. 416
«Причастие в функции союзов и предлогов»
3. year on year – (о динамике экономических показателей) по сравнению с предыдущим
годом, по сравнению с аналогичным периодом предыдущего года
on an annualized basis – в годовом исчислении
Part 1 Unit 2 Section 3 SALES. THE BOTTOM LINE ON MARGINS
Text 7
May 2014
Sony slashes profit forecast again, raising pressure on CEO
(Reuters) - Sony Corp slashed its earnings guidance for the third time in a year on Thursday to
barely 10 percent of its initial outlook as further losses from its PC exit cast a pall over its
struggling electronics division.
The steep cut marks the failure of chief executive Kazuo Hirai to fulfill promises he made upon
taking the helm of the electronics giant two years ago to push electronics into the black and casts
further doubt over his financial management after five cuts to earnings guidance during his term.
Sony on Thursday cut its forecast for operating profit to 26 billion yen ($254.53 million) for the
business year ended in March from a previous estimate of 80 billion yen and down from an
initial forecast of 230 billion set last May.
It said it would have to write down a further 30 billion yen on its Vaio PC unit, reflecting a sharp
drop in sales as consumers shunned the brand following Sony's decision in February to get out of
the business.
That would also swell Sony's restructuring costs this year, which it said in February would reach
70 billion yen.
Sony widened its annual net loss estimate to 130 billion yen from the 110 billion it forecast in
February, when it reversed a previous profit outlook.
The company will also book 25 billion yen in impairment losses from its disc production unit
due to weak demand in Europe, as online streaming services like Neflix erode the DVD market.
Sony is struggling to recover after being undercut by nimbler Asian rivals in its key markets, in
contrast to Japanese peer Panasonic Corp, which has staged a revival from deep losses by
embracing industrial products and selling to businesses rather than consumers.
While Panasonic tends to beat its conservative forecasts - last week its full-year operating profit
came in 13 percent above its forecast - Sony has become known for missing overly optimistic
outlooks.
Before Thursday's cut, Sony had missed its forecasts in 10 of the prior 12 years, excluding gains
from asset sales, the worst among 30 Japanese consumer electronics makers, analysts at
brokerage firm Jefferies calculated in March.
Mr. Hirai has started selling key assets in a bid to restore profitability at the company's struggling
electronics division, where 10 years of losses on TVs have totaled $7.8 billion.
The selloffs included the sale of its U.S. headquarters building in New York for $1.1 billion,
which it used to boost its operating profit for 2012/13 to 230 billion yen. This year, it sold two
major buildings in Tokyo for $1.2 billion.
Sony now makes most of its operating profit from its financial and insurance arm. But the focus
is still on profitability within electronics, on which Hirai has pegged Sony's rebirth using a threeprong strategy around mobile, imaging and gaming.
Strong sales of the Playstation 4 console offer one bright spot, but development costs mean it
could take at least another year to turn a profit.
Sony's entertainment business, another reliable contributor of profit, came under pressure last
year from billionaire Daniel Loeb's proposal for a spinoff to create more value for shareholders.
Sony shares ended 1 percent higher on Thursday before the announcement. The stock is down 1
percent so far this year after surging 90 percent in 2013.
Vocabulary:
1. to cast pall over smth. – to influence negatively
2. to be at the helm of smth. – во главе, у руля
3. to be in the black – не иметь убытков; быть рентабельным, регистрировать прибыль
4. business year=fiscal year – финансовый год, отчетный год
5. to write down – списывать (частично)
6. net losses – чистые убытки
7. to book impairment losses – регистрировать (отражать) в бухгалтерской отчетности
убытки от обесценения материальных ценностей
8. industrial products - промышленная продукция, продукция производственнотехнического назначения
9. asset - актив
10. development costs – затраты на разработку (нового продукта)
Translation Notes:
1. “…Panasonic Corp, which has staged a revival from deep losses by embracing industrial
products and selling…” – см. Часть 3, стр. 410 «Герундий с предлогами»
Part 1 Unit 2 Section 3 SALES. THE BOTTOM LINE ON MARGINS
Text 8
July 2014
Poor, misunderstood Tim Cook is making all the right moves
Apple CEO Tim Cook is “uninspiring” and making Apple “more like most other companies,” or
so two recent profiles suggest. And Cook’s biggest challenge is to find a new product that can
“move the needle” and increase Apple’s $171 billion of revenue significantly, both articles
agree.
But although the two profiles contain a ton of fascinating detail and news tidbits (such as Cook’s
search for new board members), neither captures what Cook is actually doing – or needs to do to boost Apple’s business and share price.
In reality, Cook is taking Apple in new strategic directions, making it more difficult for
competitors to follow. He is also focusing on areas that will boost profits – the key to Apple’s
share price trends, both up and down – as much as revenue. And while new products may be
important, Cook is pursuing just the sort of steady improvements that have historically been the
key to Apple’s biggest gains.
It helps to start by analyzing just how Cook and his predecessor, Steve Jobs, got Apple’s
business booming – and its share price to the record high of $100.72. The key wasn’t a new
product at all. It was the fabulously profitable iterations of the iPhone, the 4 and the 4S, released
in 2010 and 2011.
Apple’s crazy iPhone-fueled stock rise – from $12 a share at the beginning of 2007 to over $100
five years later – came not from higher sales alone but from relentless improvements in the
iPhone and a resulting increase in profitability.
Apple’s gross profit margin, the difference between the cost of making products and the revenue
brought in from selling them, increased in each of those five years, from a starting point of 29%
to a peak of 44% in 2012. Such steady increases are extremely rare for a hardware maker. As a
point of comparison, Hewlett-Packard’s gross profit margin declined from 24% to 22% over the
same period, and Cisco Systems dropped from 65% to 60%.
But Apple’s stock price peak was also the profit margin peak. Revenue continued to grow in
2013 but Apple’s product mix changed. The iPhone 5 and iPad mini, particularly, carried lower
profit margins than older models whose sales they displaced. As a result, Apple’s gross profit
margin slumped to 37% in 2013, erasing three years of gains and marking the first actual decline
since 2006. The stock slumped to a low of $55 last April.
But Cook and his team were already hard at work on the answers Apple needed to fix the profit
margin shortfalls. New products arriving at the end of 2013, especially the iPad Air and iPhone
5S and 5C, were more profitable than the models they displaced. And Apple’s quarterly gross
profit margin has ticked up the past three quarters in a row. In the first quarter of 2014, the gross
margin exceeded 39% for the first time since the third quarter of 2012 – back when Apple’s
stock hit its all-time peak.
While most analysts were bemoaning the lack of exciting new products, Apple shares were set
up for a strong rally. Since reporting the stronger-than-expected first quarter results on April 23,
Apple shares have gained 27%.
Even higher margins could be on the horizon with upcoming iterations of the iPhone, according
to rumors leaking out of Apple’s Asian manufacturers. Apple may be planning an iPhone with a
slightly larger screen and a significantly higher price. And viewed through the lens of
profitability, a new product like the rumored iWatch could help Apple if it, too, carried high
profit margins.
Cook is also taking Apple in directions that will be hard for any of its rivals, including Google,
Microsoft and Samsung to follow. At the company’s recent developer conference, Apple focused
on improving integration among its various devices, with everything from photos to text
messages flowing seamlessly from iPhone to iPad to Mac. Health and home automation features
will link customers' lives even more deeply with Apple devices. And new software features and
tools will make it somewhat harder for app developers to replicate their offerings on other
platforms.
Even the $3 billion acquisition of Beats Electronics strengthens Apple’s efforts to differentiate
itself by warding off a threat to its industry-leading media ecosystem. The Beats acquisition
makes Apple quickly competitive in music streaming, which is displacing digital music sales and
threatening iTunes' hegemony. And those high-profit headphone sales don’t hurt either.
It appears to be true that Cook has made Apple a friendlier place to work, along with being more
in touch with its community. To that extent, Apple is becoming more like other companies, and
rightly so.
But in the highly competitive market of smartphones, tablets and whatever wearable devices
come next, Cook is taking Apple down a more solitary path than ever. And that’s just what
Apple’s stock needs.
По материалам http://finance.yahoo.com/
Vocabulary:
1. to move the needle - to shift the situation in some area, activity, sphere etc. to a noticeable
degree
2. tidbit – пикантная деталь
3. iteration of a product – последовательное улучшение, усовершенствование
4. product mix/line/range – ассортимент (номенклатура) изделий
5. all-time peak/high – наивысшее значение за весь период наблюдений
6. rally – оживление, восстановление после снижения
7. Beats Electronics - производитель популярных наушников, акустических систем и
аудиопрограмм и провайдер музыкального онлайн-сервиса Beats Music
Translation Notes:
1. “…Apple’s crazy iPhone-fueled stock rise…”/ “…the stronger-than-expected first quarter
results…” – сложные атрибутивные конструкции, где перед определяемым словом стоит
цепочка определений. Перевод следует начинать с определяемого слова, двигаясь в
обратном порядке к первому определению. см. Часть 3, стр. 390 «Перевод сложных
атрибутивных конструкций»
2. “…viewed through the lens of profitability…” – см. Часть 3, стр. 413 «Причастие»
Part 1 Unit 2 Section 3 SALES. THE BOTTOM LINE ON MARGINS
Text 9
July 2014
Samsung Warns of Profit Drop on Weaker Demand
Smartphone Maker Says Its Second-Quarter Operating Profit Likely Fell 22.3% to 26.5%
SEOUL— Samsung Electronics Co.'s warning of a third-straight quarter of profit decline
highlights the pitfalls of the South Korean technology giant's reliance on smartphone sales.
While strong smartphone sales have propelled the company's growth over the last two and a half
years, the reliance on them is a double-edged sword. When sales are good, the benefits trickle
down to its other businesses, including components.
But Samsung said Tuesday that its operating earnings in the latest quarter likely fell by 22.3% to
26.5% from a year earlier, hit by a glut of unsold smartphones, which also hurt the performance
of the businesses that make microprocessors and displays used in its mobile devices.
In the first quarter of the year, Samsung's mobile unit accounted for about 76% of company
profit, compared with just 25% for the same quarter four years ago when Samsung derived the
bulk of its earnings from the sale of semiconductors.
Though Samsung forecast better results in the traditionally strong third quarter, the company, the
world's biggest maker of TVs, mobile phones and memory chips, isn't likely to be able to snap its
quarterly string of declines anytime soon, analysts say.
That is because smartphone penetration in developed markets is nearing saturation. In emerging
markets, Samsung is facing stiff price competition from Asian handset makers including Xiaomi
Inc. and Lenovo Group Ltd.
Samsung said that in the second quarter, the company had to boost marketing to unload older and
lower-end smartphones. In China, where consumers are waiting for the rollout of next-generation
4G LTE networks, Samsung suffered from a pileup of older 3G phones.
In addition, the company said that its sales of tablets were hit by the success of its own
smartphone-tablet hybrids, dubbed phablets.
The company's admitted trouble in managing its inventory highlights the flip side of the
company's vaunted reach into more than 100 markets: It is difficult to accurately gauge demand
among fickle consumers in a fast-moving industry like the smartphone business.
Another major risk is the fluctuations in the foreign-exchange market, which have pushed the
South Korean won to six-year highs. In the past year, the won has gained 13% against the U.S.
dollar, a trend that traders expect to continue in the longer term—bad news to a Korean company
that relies on exports for a major part of its revenue.
Even though there are high expectations for new product launches in the second half, including
its flagship large-screen Galaxy Note device, Samsung's main rival in the high-end
market, Apple Inc., is expected to launch bigger screen iPhones, according to people familiar
with the matter.
C.W. Chung, an analyst with Nomura, said that given the increased pressure from rivals, and the
difficulty of differentiating its products, Samsung would likely see the operating profit margin at
its mobile unit, which was 19.8% in the first quarter, whittled down over the next few years,
perhaps faster than the market had previously thought.
Investors had been bracing for Tuesday's weak numbers. In the past month, they had sent
Samsung shares down by about 11%, wiping about $25 billion off its market value, as
management issued worrying signs about earnings. The stock closed Tuesday's session up 0.2%
after closing at a three-month low on Monday.
По материалам The Wall Street Journal
Vocabulary:
1. saturation (of the market)=glut
2. rollout (of a product)=launch
3. low-end market – нижние эшелоны (сегменты) рынка=рынок бюджетных товаров
ant. – high-end market – верхние эшелоны рынка=рынок товаров премиум класса, рынок
элитных товаров
4. to gauge – to measure; a gauge – an indicator
5. foreign exchange market (FOREX) – мировой валютный рынок
6. six-year high – наивысшее значение показателя за шесть лет
7. flagship (device) –ведущий, лидирующий
8. to be wiped off – (об акциях) быть обесцененными
Translation Notes:
1. “…given the increased pressure…” – см. Часть 3, стр.416 «Причастие в функции союзов и
предлогов»
2. “…Samsung would likely see its operating margin…” – прием персонификации
Part 1 Unit 3 Section 1 KEY ECONOMIC INDICATORS
Text 10
May 2014
Current account deficit narrows to 1.7 % of GDP
India’s current account deficit (CAD) for the January-March period narrowed sharply to $1.2
billion (0.2 per cent of GDP) from $18.1 billion (3.6 per cent of GDP) in the same period last
year, which was also lower than $4.2 billion (0.9 per cent of GDP) in the October-December
quarter of 2013-14.
“The lower CAD was primarily on account of a decline in the trade deficit as decline in imports
was sharper than that in exports,” the Reserve Bank of India (RBI) said on Monday.
As per preliminary data on India’s balance of payments (BoP), released by the RBI, merchandise
exports declined by 1.3 per cent to $ 83.7 billion for the fourth quarter of 2013-14, as against an
increase of 5.9 per cent in the fourth quarter of 2012-13.
On the other hand, the declining trend in merchandise imports continued in the fourth quarter of
2013-14. Imports, at $114.30 billion, moderated by 12.3 per cent in the fourth quarter. The
decline in imports was primarily led by a steep drop in gold imports, which amounted to $ 5.30
billion, lower than $15.80 billion in the fourth quarter of 2012-13, the RBI said.
As a result, the merchandise trade deficit contracted by about 33 per cent to $30.70 billion in the
fourth quarter of 2013-14 from $ 45.60 billion in the corresponding quarter a year ago.
As far as BoP during 2013-14 is concerned, export recovery and moderation in imports led to a
sharp drop in the trade deficit to $147.60 billion in 2013-14 from $195.70 billion in 2012-13.
Contraction in the trade deficit, coupled with a rise in net invisibles receipts, resulted in a
reduction of CAD to $32.40 billion (1.7 per cent of GDP) in 2013-14 from $87.80 billion (4.7
per cent of GDP) in 2012-13.
The RBI said that net inflows under the capital account (excluding change in foreign exchange
reserves) declined to $48.80 billion in 2013-14 from $89 billion in corresponding period of
2012-13 owing to lower net FDI and portfolio flows, net repayment of loans and trade credit.
По материалам www.thehindu.com
Vocabulary:
1. merchandise exports=exports of goods
2. receipts=inflows – поступления
3. FDI=foreign direct investment
4. portfolio=portfolio investment
5. foreign exchange reserves – золото-валютные резервы
Translation Notes:
1. “…coupled with a rise…” - см. Часть 3, стр. 413 «Причастие»
Part 1 Unit 3 Section 1 KEY ECONOMIC INDICATORS
Text 11
Feb 2014
Japan’s monthly trade gap more than doubles to new record
Japan's monthly trade deficit has more than doubled to a new record after a weakened currency
drove up the cost of fuel imports while exports slowed.
Japan's trade gap rose by 71% to 2.79tn yen ($27.3bn; £16.4bn) in January from a deficit of 1.3tn
yen in December.
This comes after imports rose by 25%, outweighing a 9.5% rise in exports.
Japan has posted large trade deficits for 19 straight months, raising concerns the government's
stimulus policy may be having a counter effect.
Prime Minister Shinzo Abe has been looking to weaken the value of Japan's currency to
stimulate economic growth and end nearly two decades of deflation.
His measures - which have come to be known as "Abenomics" - include increasing the money
supply in the country to drive down the value of the currency.
Theoretically, a weak yen should boost exports by making them cheaper for foreign buyers, and
increase the profits of exporters when they repatriate overseas earnings.
The Japanese yen has lost nearly 20% of its value against the US dollar over the past year, but
the weak currency has also made imports more expensive and affected the country's trade
balance.
The world's third-largest economy has had to import most of its energy needs after it shut all of
its nuclear reactors in the aftermath of the tsunami and earthquake in 2011.
Japan posted a record annual trade deficit last year, and some economists say that this may widen
further following a controversial sales tax increase in April.
По материалам BBC
Vocabulary:
1. stimulus/loose/easy policy – мягкая экономическая политика
2. money supply – денежная масса (количество денег) в обращении
3. sales tax – налог с продаж, налог с оборота
Translation Notes:
1. “…a weak yen should boost…” – см. Часть 3, стр. 403 «Модальные глаголы» (“should”)
2. “…sales tax increase…” – см. Часть 3, стр. 390 «Перевод сложных атрибутивных
констукций»
Part 1 Unit 3 Section 1 KEY ECONOMIC INDICATORS
Text 12
July 2014
Eurozone inflation falls to lowest level in almost five years
The overall inflation rate of 0.4% in June was lower than economists had expected, and
indicated the threat of eurozone deflation would continue
Eurozone inflation fell to its lowest level in almost five years in July, bringing the threat of a
dangerous deflationary spiral closer.
The annual rate of inflation fell unexpectedly to 0.4% from 0.5% in June, dragged lower by
accelerating falls in food, alcohol and tobacco prices. Energy prices also fell sharply, by 1%,
compared with a 0.1% rise in June. Core inflation, which strips out energy, food, alcohol and
tobacco, fell to 0.7% from 1% in April.
It was the lowest level of annual inflation since October 2009, when prices were in negative
territory. Economists had expected the annual rate to remain unchanged at 0.5%.
Peter Vanden Houte, chief eurozone economist at ING, said the threat of eurozone deflation was
likely to persist.
The fear is that weak price pressures could ultimately trigger a dangerous deflationary spiral,
where consumers and businesses damage their domestic economies by putting off spending amid
expectations that prices will fall further still.
Policymakers at the European Central Bank (ECB) took action in June to stave off the threat of
deflation and breathe some life into the currency bloc's flagging economy. The main interest rate
was cut to a record low of 0.15% and a €400bn (£317bn) package of cheap funding for banks
was announced, with the condition that the money be used to lend to companies outside
the financial sector, and not for mortgages.
The ECB also announced it would in effect charge banks to deposit money, by imposing a
negative rate of interest of -0.1% on deposits. The hope is that it will encourage banks to lend
more to consumers and businesses, boosting the wider economy. However, the central bank
stopped short of introducing quantitative easing, where the bank would pump money into the
markets by acquiring sovereign bonds directly from financial institutions.
Vanden Houte said the ECB was unlikely to announce further measures to stimulate the
economy in the short term, despite July's drop in inflation. This was partly because of a recent
fall in the value of the euro, which makes imports more expensive and could therefore push
prices higher.
In a better sign for the eurozone economy, the region's unemployment rate edged lower to 11.5%
in June from 11.6% in May. It was the lowest rate since September 2012, according to Eurostat,
the EU's statistics office. The lowest rate was Austria's 5%, followed by Germany's 5.1%.
At the other end of the scale, unemployment stands at 27.3% in Greece and 24.5% in Spain.
The number of people out of work in the 18-member bloc fell by 152,000 over the month, to
18.4 million.
Christian Schulz, senior economist at Berenberg, said there was still a long way to go on getting
the labour market back on track.
"Make no mistake, the rate of improvement remains modest. At this pace, it would take six years
to reduce unemployment from the current 18.4m to pre-crisis boom levels just above 12m."
По материалам The Guardian
Vocabulary:
1. policymakers – лица, ответственные за выработку и проведение экономической
политики; экономические власти (Правительство+Министерство Финансов+Центральный
Банк)
2. flagging - becoming tired of losing strength
3. the main interest rate=policy rate=benchmark rate=base rate=discount rate – учетная ставка;
ставка рефинансирования
4. mortgage – ипотечный кредит=кредит на покупку недвижимости
5. quantitative easing (QE) – политика количественного смягчения, практикуемая ЦБ ряда
стран (в первую очередь, Федеральной резервной системой США), предусматривающая
покупку ими государственных облигаций у финансовых организаций с целью насыщения
экономики большим количеством денежных стредств и, как следствие, стимулирования
экономического роста в условиях, когда другие инструменты мягкой денежно-кредитной
политики уже исчерпали себя.
6. sovereign bonds – государственные облигации
Translation Notes:
1. “…the threat …was likely to persist…” - см. Часть 3, стр. 408 «Инфинитивные
конструкции»
2. “…stopped short of introducing quantitative easing…” – см. Часть 3, стр. 410 «Герундий»
3. “…pre-crisis boom levels…” – см. Часть 3, стр. 390 «Перевод сложных атрибутивных
конструкций»
Part 1 Unit 3 Section 2 BOOM AND BUST
Text 13
August 2014
German economic slowdown poses risk for EU recovery
BRUSSELS - Fears that the eurozone’s recovery could stall have heightened after new German
data indicated the bloc’s economic powerhouse is performing at its weakest level since 2012.
Published on Tuesday (12 August) the ZEW think-tank’s index of financial market confidence, a
trusted indicator of German economic sentiment, hit its lowest level since December 2012,
falling to 8.6 points in August - an 18.5 point fall from July.
The decline is the sharpest since July 2012, when the eurozone slipped back into a double dip
recession.
The euro also fell to a near nine-month low against the dollar on the news.
In a statement accompanying the data, ZEW warned that it suggested “markedly reduced
investment activities on the part of German firms against the backdrop of uncertain sales
prospects.”
“Since the economy in the eurozone is not gaining momentum either, the signs are that economic
growth in Germany will be weaker in 2014 than expected”, it said.
It added that its Index of Economic Sentiment for the Eurozone also saw a sharp decline in
August. The indicator has lost 24.4 points since July, now standing at 23.7 points.
The decline was “likely connected to the ongoing geopolitical tensions that have affected the
German economy,” ZEW noted.
As the currency bloc’s largest economy and manufacturer, the eurozone is reliant on Germany
driving its economic recovery.
The French economy is also stagnant, while figures from Rome last week suggest that Italy has
slipped back into recession.
“Fear is back,” said Carsten Brzeski, economist with the Benelux-based bank ING.
“Today’s ZEW sends a worrying signal that the growth performance in the second quarter could
suddenly morph from a one-off into an undesired trend,” he added.
По материалам http://euobserver.com/
Vocabulary:
1. index of financial market confidence – индекс доверия (уверенности, оптимизма) со
стороны участников финансовых рынков
Index of Economic Sentiment – общий индекс доверия к экономике, индекс ожиданий
производителей и потребителей, индекс делового и потребительского оптимизма
consumer confidence – потребительское доверие, ожидания потребителей
Consumer Confidence Index – индекс потребительского доверия
business confidence – уверенность, доверие со стороны предпринимателей
Business Confidence Index – индекс предпринимательской уверенности
2. nine-month low – рекордно низкое значение за 9 месяцев
3. one-off – единичный случай
Translation Notes:
1. “…Index of Economic Sentiment for the Eurozone also saw a sharp decline…” – прием
персонификации
2. “…the eurozone is reliant on Germany driving its economic recovery…” – см. Часть 3,
стр.411 «Герундиальный комплекс»
3. “…the growth performance…could suddenly morph…” - см. Часть 3, стр. 406 «Модальные
глаголы» (“could”)
Part 1 Unit 3 Section 2 BOOM AND BUST
Text 14
July 2014
Spain on road to economic recovery amid rise in emigration
Spain's manufacturing sector ahead of Germany, France and Italy and its economy is
outperforming the eurozone
Spain’s economic recovery was underlined as its manufacturing sector recorded its greatest
activity in seven years, but the financial crisis has left its mark with separate figures showing a
sharp rise in people leaving the country.
A snapshot of the state of Spanish factories combining output, orders and employment showed
activity rose to a seven-year high in June. The Markit PMI increased to 54.6 from 52.9 in July –
with a reading above 50 indicating expansion.
That puts growth in Spain's manufacturing sector ahead of Germany, France and Italy and is
further evidence that its economy is outperforming the eurozone.
The struggling Spanish car industry in particular is showing signs of recovery thanks in part to a
government incentive scheme, now in its sixth year, for people to upgrade their vehicles.
Christian Schulz, senior economist at Berenberg bank, said Spain was benefiting from the
reforms that it put in place in response to the financial crisis. "If we add similarly impressive
readings for the Spanish services sector, we can safely conclude that Spain is reaping the rewards
of its tough labour market reforms of 2012 and is becoming a mainstay of eurozone growth," he
said.
When the eurozone crisis hit Spain was one of the most affected countries, with a burst property
bubble prompting fears of a banking sector collapse. Unemployment soared, and remains high at
25%.
A separate report from the country's National Statistics Institute shows Spain is still paying the
price as hundreds of thousands abandon the beleaguered economy.
In 2013, 547,980 people left the country, the majority of them immigrants but also 79,306
Spanish nationals. The figure is an 80% increase on that of 2012.
По материалам The Guardian
Vocabulary:
1. PMI=Purchasing Managers Index
2. reading – значение показателя
3. incentive – льгота, стимул
4. property bubble – «пузырь» на рынке недвижимости=ситуация, когда цены на
недвижимость необоснованно завышены, чрезмерно перегретый рынок недвижимости
5. beleaguered economy=struggling economy
Part 1 Unit 3 Section 3 RECORD HIGHS AND RECORD LOWS; UPS AND DOWNS
Text 15
March 2014
Asian markets tumble on weak Chinese economic data
Asian shares fell on Monday after both China and Japan released disappointing economic data,
worrying investors about a slowdown in the region.
Both Hong Kong's Hang Seng index and the Shanghai Composite fell by 2%, while Japan's
benchmark Nikkei 225 closed down 1%.
On Monday, Japan revised down its 2013 growth estimates and reported a record trade deficit
since 1985.
Over the weekend, China said exports plunged 18.1%, surprising analysts.
That data led to a broad Asian sell-off, with China's CSI 300 Index falling to its lowest since
2009.
Australian shares shed 1% of their value following the data release, dragged down by losses in
mining and other resource stocks, which are heavily dependent on China's commodities demand.
BHP Billiton fell 3.2%, Rio Tinto dropped 4.6% and Fortescue Metals tumbled 10% in Sydney
trading.
Concerns about China's economy also caused copper to drop to its lowest level in more than
seven months.
China is the biggest buyer of the red metal, which is used both in electronics production and
other manufacturing industries.
The price of Chinese steel and iron ore futures dipped about 6% on Monday after publication of
Chinese export data.
Lower demand from the domestic construction industry has added to a slide in commodities
prices.
China also reported a $22.98bn trade deficit in February, compared with a surplus during the
same period last year.
It also reported a slowdown in inflation, to 2% in February from 2.5% in January - the slowest
rate in 13 months.
The sluggish economic data come as the Chinese government said during its annual meeting that
it was targeting a growth rate of 7.5% in 2014.
However, China's finance minister Lou Jiwei later said that it would be acceptable if the
government slightly missed this target.
"Whether GDP growth is to the left or to the right of 7.5%, that is not very important," said Mr
Lou, according to Reuters.
He added that what was most important was job creation.
По материалам BBС
Vocabulary:
1. Hang Seng Index, Shanghai Composite, Nikkei 225, CSI 300 Index – названия биржевых
индексов
composite index – сводный (составной) индекс
2. to revise down(wards) – пересматривать (прогноз) в сторону понижения
3. mining stocks – акции компаний горно-добывающей промышленности
4. commodities – сырьевые товары
5. steel and iron ore futures – фьючерсы на сталь и железную руду
6. growth rate=growth pace
7. target – целевой показатель, ориентир
Translation Notes:
1. “…following the data release…” – см. Часть 3, стр. 416 «Причастие в функции союзов и
предлогов»
Part 1 Unit 3 Section 4 MONEY MANAGEMENT
Text 16
July 2014
US economy growing across nation: Fed Beige Book
WASHINGTON: The US economy has continued to shake off its winter sluggishness with all
regions of the country seeing expansion, the Federal Reserve said in a report on Wednesday.
Seven of the 12 regions surveyed recorded only "modest" growth, while five notched "moderate"
growth, the Fed said in its latest Beige Book report, based on economic conditions in the sixweek stretch before July 7.
The report is the second Beige Book in a row to find growth across the country and is the latest
evidence the US economy is picking up steam after unusually cold weather depressed activity in
the first quarter.
Auto sales, which have been on the upswing for more than a year, continued to stand out as
particularly brisk support for the economy.
"Vehicle sales expanded in most districts, and auto contacts were optimistic about auto sales in
the months ahead," the report said.
But the report's assessment of consumer spending, a key lifeblood of the US economy, was more
subdued about the broader retail performance.
Non-auto retailers garnered "generally modest growth," with wet weather restraining activity in
Chicago, but New York seeing a rise "due to pent-up demand as the negative effects from earlier
adverse weather abated."
The labour market tightened exceptionally in some pockets of the economy.
Several districts reported "some difficulty" finding staff for skilled positions, the report said,
citing a shortage of truck drivers in Atlanta, Cleveland, Kansas City and Richmond.
Skilled construction workers were also in short supply in some parts of the country, while the
energy boom kept labor markets tight in the Cleveland and Dallas regions.
But the pace of growth for the labour market at large was more tortoise than hare.
Wage pressures "remained modest" across most sectors, aside from a few skilled-labor
categories, the report said.
The overall labour market "continued to improve," with all districts "reporting slight to moderate
employment growth," the report said.
The report gave a mixed appraisal of the US housing market. Conditions "varied" across the
country, with some regions suffering from weak demand.
Boston, New York, Chicago and St. Louis all reported that residential sales activity softened, the
report said.
"We see a modest economy, which is modestly getting better," JPMorgan Chase chief executive
Jamie Dimon told a conference call this week.
Economic growth has been strong enough for the Fed to scale back its stimulus measures even as
it continues to keep benchmark interest rates near zero.
http://www.channelnewsasia.com/
Vocabulary:
1. Beige Book – «Бежевая книга» - Доклад об экономической ситуации в США, который
выпускается 8 раз в год и готовится банками Федеральной Резервной Системы по
округами ФРС и отраслям экономики. Официальное название – «Сводка комментариев о
современном экономическом положении в округах Федеральной Резервной Системы»
(Summary of Commentary on Current Economic Conditions by Federal Reserve District)
2. retail trade – розничная торговля
wholesale trade – оптовая торговля
retailer – предприятие розничной торговли
3.tight labour market – состояние рынка труда, характеризующееся высоким спросом на
рабочую силу
4. wage pressures – требования повышения заработной платы
5. residential sales – продажи жилой недвижимости
6. stimulus measures=stimulus/stimulating/loose/easy policy
Part 1 Unit 3 Section 4 MONEY MANAGEMENT
Text 17
March 2014
US Federal Reserve hints at interest rate rise in 2015
The US Federal Reserve Chair Janet Yellen has hinted that interest rates in the US could
start to rise in early 2015
Ms Yellen said the Fed could begin raising rates six months after it halts its monthly bondbuying programme.
She made the remarks after the Fed said it will scale back bond purchases by a further $10bn
(£6bn) per month.
This is the third time in a row that the central bank has tightened its stimulus efforts.
The latest reduction brings the Fed's monthly bond-buying down to $55bn from $85bn last year.
If bond purchases end - as expected - later this year, this would imply rate increases around April
2015.
The Fed lowered its overnight interest rate to 0% in December 2008 as part of the steps it took to
trigger growth in the economy amid the global financial crisis.
That crisis hurt the US economic growth and resulted in high levels of unemployment.
Along with lowering the interest rates, the central bank also started buying bonds in an attempt to
keep long-term borrowing costs low.
The idea was to encourage businesses to borrow and spend more, to try and spur growth in the
economy and create more jobs.
The stimulus efforts appear to have had an impact, with the US economy showing signs of
recovery of late.
That has seen the central bank scale back its key stimulus measure - the bond-buying programme
also known as quantitative easing - for three months in a row.
However in its latest policy decision, the Fed said it would look at multiple factors before
approving any rise in interest rates.
It had previously hinted at doing so once the jobless rate fell to 6.5%.
"This assessment will take into account a wide range of information, including measures of
labour market conditions, indicators of inflation pressures and inflation expectations, and
readings on financial developments," it said.
US stock markets fell on the news.
Some analysts are saying the change in the Fed's guidance led to worries that interest rates may
rise sooner than expected.
"The Fed moved the goal post again," said David Molar, managing director at Hightower.
"It goes from a 6.5% unemployment threshold to a qualitative approach which is nebulous for
the market.
"No one knows what will trigger further tapering, a pause in tapering or an increase in asset
purchase. It's a major change in policy."
Mark Grant, managing director at Southwest Securities added: "What seems to be troubling the
market is that even though it reiterated that it wouldn't be raising rates this year, people were put
on notice that a hike is coming."
"We'll likely see some rise in short rates as a result of this, if not out across the whole curve."
По материалам BBC
Vocabulary:
1. tapering – термин используется ФРС для обозначения процеса сворачивания программы
количественного смягчения, т.е. сокращения объемов покупаемых ФРС активов
2. overnight interest rate – ставка процента по однодневным кредитам
3. stimulus effort/measure=loose monetary policy