Unit 2 Economy

1. Unit 2 Economy “Economy” is a general term for materials relating to, or based on, the production, distribution, and consumption of goods and services, including business, industry, employment, trade, and economic sectors such as finance, service, construction, housing, manufacturing, agriculture, forestry, commercial fishing, etc.

2. I. Warm-up activities Do you know…? • NYSE stands for a.New York Securities Estateb.National Years Stocks Exchangesc.New York Stock Exchanged.American Stock Exchange • New York's financial district is called • a.Stock Exchange Alleyb.New York Stock Exchangec.Dow Streetd.Wall Street

3. I. Warm-up activities Do you know…? • Every stock has a a.symbolb.valuec.company behind itd.all of the above • An owner of a share of stock is • a.a studentb.a stockholderc.a stock brokerd.a businessman

4. I. Warm-up activities Do you know…? • Commission is a.the amount that a stock increases in a day b.the total price of a stockc.a bonus you get for buying a stockd.a fee paid to a sales associate • We sometimes use the word "risk" in talking about stocks. What does that mean? • a.possibly driving too fastb.taking the chance of losing moneyc.taking the chance of buying too many stocks d.losing your wallet

5. I. Warm-up activities Do you know…? • What are produced by companies to provide information to all shareholders and other interested parties? • a.Annual Reportsb.Assetsc.Stocksd.Dividends • Payments made to stockholders based on a certain percent of the company's profits are called a.sharesb.stocksc.dividendsd.stock markets

6. I. Warm-up activities Do you know…? • A "bull market" is a market whichis a.Using bulls as its logob.Staying the samec.Droppingd.Doing well • A "bear market" is a market which is a.Risingb.Decliningc.Using bears as its logod.Staying the same

7. Part A: Fall in the UK Share Prices

8. II. Vocabulary preparation (Politics) hold a peace/protest rally (n.) rally /  / a notable rise in stock market prices and trading volume after a decline 跌停回升；降后复涨 股票价格在今天收市前略有回升。 Share prices had a late slight rally (n.) /had rallied (v.) by the close of trading today. rally (v.) a great deal of support for their presidential campaign index /  / a system by which prices, costs, etc. can be compared to those of a previous date 指数 a price index 物价指数 stock market indices 股市指数 the cost-of-living index 物价消费指数

9. II. Vocabulary preparation flagship /  / the best and most important product, building, etc. that a company owns or produces 王牌；头号；佼佼者 (~ store/train/company 旗舰店/头等列车／公司) the flagship of a newspaper chain 多家报社中的佼佼者 the flagship of a line of reference books 参考书系列中的王牌 pun /  / an amusing use of a word or phrase that has two meanings, or of words that have the same sound but different meanings 双关语 She made the following pun: Seven days without water make one weak/week.

10. v.execute a plan/a policy/one’s order II. Vocabulary preparation executive /  / relating to the job of managing a business or organization and making decisions 实行的；执行的；行政的 an executive committee 执行委员会 executive board 董事会; 理事会 executive responsibilities 行政责任 pension /  / sum of money paid regularly by the State to people above a certain age and to widowed or disabled people, or by an employer to a retired employee 养老金；退休金；抚恤金 draw one’s old-age pension live on one’s state pension

11. II. Vocabulary preparation shareholder /  / someone who owns shares in a company or business 股东 Our shareholders will be pleased with this year’s figures.公司的股东会对今年的业绩感到满意。 share capital the amount of money put into a company by its shareholders when they buy shares and used to buy the items it needs to carry on its activities 股本；股份资本 We need to increase our share capital if we want to expand.我们要扩展业务，就需增加股本。

12. III. Notes • Peter Sissons (1942-) a nationally known television news presenter in the United Kingdom. He has worked for ITN and BBC news and can currently be seen at the weekends on BBC News 24. 彼德·西森斯 • the FTSE 100 index an index containing the largest 100 companies by market capitalization listed on the London Stock Exchange 《金融时报》100指数,由英国金融界著名报纸《金融时报》编制。

13. III. Notes • Hamleys a London toyshop founded in 1760 by William Hamley. Today, with around 5 million visitors a year, Hamleys is established as one of London’s major tourist attractions. 哈姆利玩具公司 • bear market a situation in which the value of stocks is decreasing 空头市场；熊市 • bargain basement a basement floor or floors in a department store where goods and apparel(衣服)are sold at reduced or discounted prices 廉价商品部

14. III. Notes • Wall Street a street in New York which is the most important financial center in America 华尔街 • BBC the British Broadcasting Corporation, the British radio and television company that is paid for by the public 英国广播公司

15. IV. Exercise: Spot dictation Watch the news clip and get a general idea of what the news report is about. Peter Sissons: It was a tale of two very different stock markets on either side of the Atlantic today. Shares in London fell again, but America’s stock market put up a big rally. Here, the FTSE 100 index fell nearly 81 to 3777. The London market’s fallen almost 30% in the past three months. But what does that loss mean for British companies and (1)? Our Economics Editor, Evan Davis reports.

16. IV. Exercise: Spot dictation Evan Davis: Hamleys flagship toy store in London. Pardon the pun, but if any company understands life in a bear market, this should be it. A bear market is one where people want to sell, where prices are falling, where (2). The word ‘bear’ in this context comes from an old proverb actually; selling the bear’s skin before one’s caught the bear. But does a bear market, or stock markets (3), actually matter to real companies, like Hamleys? Simon Burke: You know, it’s still selling as well as ever today, and…

17. IV. Exercise: Spot dictation Evan Davis: Simon Burke is the Executive Chairman of Hamleys. As it happens, his company (4). Sales up. Share price all right. Confidence holding up. Simon Burke: I think in an economy like the UK, there isn’t a strong, direct connection between (5) of share prices and the stock market, and how consumers behave. It’s, it’s one or two steps removed. What can be dangerous is if there is a lot of talk in the newspapers about the destruction of wealth by falling stock markets and (6), which of course can begin to play on people’s minds.

18. IV. Exercise: Spot dictation Evan Davis: But shares matter (7)too. They say how much a company is worth. Hamleys has 21 million shares, each one gives the owner one-21 millionth share of the company. A share today costs ￡1.69. That makes Hamleys worth ￡35 million. Now, the company made about two-and-a-half million pounds for shareholders over the last year, so the company is worth 14 times (8). Man: Get set, go!

19. IV. Exercise: Spot dictation Evan Davis: That’s a good way of valuing shares. At the moment, they don’t look expensive, but not bargain basement either. And it matters that they’re not too cheap. Simon Burke: For (9), shares are one of the principal ways in which they raise new cash for investment. That’s part of the point of being on the stock market. So if shares go down, then it means that companies do find it harder to use share capital to invest, and therefore investment can become more difficult.

20. IV. Exercise: Spot dictation Evan Davis: Around the world, company spending on investment has followed the markets up, and then down again. (10) between what goes on in Hamleys, and what goes on in the City of London or Wall Street, are indirect and they’re slow to be felt. But ultimately stock markets do matter because even Toyland is a share-owning capitalist economy these days. Evan Davis, BBC News.

21. IV. Exercise: Spot dictation Now, watch again and fill in the blanks. Peter Sissons: It was a tale of two very different stock markets on either side of the Atlantic today. Shares in London fell again, but America’s stock market put up a big rally. Here, the FTSE 100 index fell nearly 81 to 3777. The London market’s fallen almost 30% in the past three months. But what does that loss mean for British companies and (1)? Our Economics Editor, Evan Davis reports. the wider economy

22. IV. Exercise: Spot dictation Evan Davis: Hamleys flagship toy store in London. Pardon the pun, but if any company understands life in a bear market, this should be it. A bear market is one where people want to sell, where prices are falling, where (2). The word ‘bear’ in this context comes from an old proverb actually; selling the bear’s skin before one’s caught the bear. But does a bear market, or stock markets (3), actually matter to real companies, like Hamleys? Simon Burke: You know, it’s still selling as well as ever today, and… pessimists rule in general

23. IV. Exercise: Spot dictation is doing well Evan Davis: Simon Burke is the Executive Chairman of Hamleys. As it happens, his company (4). Sales up. Share price all right. Confidence holding up. Simon Burke: I think in an economy like the UK, there isn’t a strong, direct connection between (5) of share prices and the stock market, and how consumers behave. It’s, it’s one or two steps removed. What can be dangerous is if there is a lot of talk in the newspapers about the destruction of wealth by falling stock markets and (6), which of course can begin to play on people’s minds. the performance risks to pensions

24. IV. Exercise: Spot dictation for another reason Evan Davis: But shares matter (7)too. They say how much a company is worth. Hamleys has 21 million shares, each one gives the owner one-21 millionth share of the company. A share today costs ￡1.69. That makes Hamleys worth ￡35 million. Now, the company made about two-and-a-half million pounds for shareholders over the last year, so the company is worth 14 times (8). Man: Get set, go! its annual earnings

25. IV. Exercise: Spot dictation Evan Davis: That’s a good way of valuing shares. At the moment, they don’t look expensive, but not bargain basement either. And it matters that they’re not too cheap. Simon Burke: For (9), shares are one of the principal ways in which they raise new cash for investment. That’s part of the point of being on the stock market. So if shares go down, then it means that companies do find it harder to use share capital to invest, and therefore investment can become more difficult. a public company

26. IV. Exercise: Spot dictation Evan Davis: Around the world, company spending on investment has followed the markets up, and then down again. (10) between what goes on in Hamleys, and what goes on in the City of London or Wall Street, are indirect and they’re slow to be felt. But ultimately stock markets do matter because even Toyland is a share-owning capitalist economy these days. Evan Davis, BBC News. The connections

27. V. Useful expressions • but America’s stock market put up a big rally …而美国股市却重振雄风 • Here, the FTSE 100 index fell nearly 81 to 3777. 在此，金融时报100指数跌了近81点，降至3777点。 • But what does that loss mean for British companies and the wider economy? 但这些损失对于英国公司和经济大气候意味着什么呢？

28. V. Useful expressions • A bear market is one where people want to sell, where prices are falling, where pessimists rule.熊市中人们都急于抛售股票，股价一路下滑，悲观情绪一统天下。 • Simon Burke is the Executive Chairman of Hamleys. 西蒙·伯克是哈姆利的执行总裁。 • As it happens, his company is doing well. Sales up. Share price all right. Confidence holding up. 熊市来临时，其公司的销售状况良好。销量增长，股价稳定，一直令人信心十足。

29. V. Useful expressions • I think in an economy like the UK, there isn’t a strong, direct connection between the performance of share prices and the stock market, and how consumers behave. 我认为，像英国这样的经济实体，股价的涨跌、股市状况以及消费者的行为方式之间并无牢固的直接联系

30. V. Useful expressions • What can be dangerous is if there is a lot of talk in the newspapers about the destruction of wealth by falling stock markets and risks to pension, which of course can begin to play on people’s minds. 而可能造成危险的是，如果报纸上充斥着大量有关因股市下跌而破财和危及退休金的报道，这势必会开始影响民众情绪。 • At the moment, they don’t look expensive, but not bargain basement either. 目前看来，它们并不昂贵，但也不是触底廉价。

31. V. Useful expressions • For a public company, shares are one of the principal ways in which they raise new cash for investment. That’s part of the point of being on the stock market. 对于一个股份公开公司而言，股票是其筹备现金进行投资的主要途径之一。这是公司上市的部分原因。 • So if shares go down, then it means that companies do find it harder to use share capital to invest, and therefore investment can become more difficult. 如果股价下跌，那就意味着，公司的确感到难以运用股份资本投资，因此，投资会变得愈加艰难。

32. V. Useful expressions • The connections between what goes on in Hamleys, and what goes on in the City of London or Wall Street, are indirect and they’re slow to be felt. 哈姆利所发生的一切和伦敦或华尔街所发生的一切并非直接关联，它们之间的联系需要时日才会被察觉。

33. VII. Additional listening Hong Kong Stock Market (Part B, Unit 17, A Multi-media English course for Graduate Students) Vocabulary preparation rebound /  /反弹；回弹；回升 telecommunication /  /电讯；无线电通讯 credit-rating有关信誉评价的，信用等级的 start-up /  /新兴行业；创业企业 closure /  /关闭,停业，截止 fluctuation /  /波动; 变化 plunge /  /骤降，猛跌 benchmark 基准点 turnover /  /成交额；营业额

34. VII. Additional listening blue chip the stock or investment that is considered to be safe and certain to make a profit　蓝筹股（稳而值钱的股票） gloom /  /使…变黑，变暗 merger /  /合并；兼并；归并 acquisition /  /收购；获得 avenue /  /途径；渠道 repay /  /偿还；归还 track record a record of actual performance or accomplishment 业绩表

35. VII. Additional listening Script:Hong Kong Stock Market Good evening. Share prices around Asia rebounded today following an over-night recovery on the US market. There were gains in both telecommunications and technology stocks. But credit-rating agency Standard & Pours has warned that some local Internet start-ups may face funding difficultiesand closure because of the stock market fluctuations.

36. VII. Additional listening Optimism appeared to have returned to the local stock market today following yesterday’s plunge. The benchmark, Hang Seng Index closed at 15,278, up 515.95 points. Total turnover was more than 12.5 billion dollars.

37. VII. Additional listening Much of the buying was in blue chips, telecommunication stocks. Leading the rebound was China Telecom (中国电信集团公司), which gained nearly 8% and there was also buying in Hutchinson Whampoa (和记黄埔有限公司). Technology stocks also stablized at a relatively low level. Pacific Centric Cyber Works went up by more than 3%.

38. VII. Additional listening The credit-rating agency Standard & Poor’s warns of doom and gloom for local Internet start-ups. A spokesman says many of them may face mergers and acquisitions because of funding difficulties.

39. VII. Additional listening “We think that some of the companies may have to postpone their listings and they have to seek alternative avenues to raise funds like, for example, they may approach banks or raise debts, well, in foreign market or maybe raise funds through, you know, from some direct investment companies.”

40. VII. Additional listening Standard & Poor says investors will take a high risk if they put their money on these Internet firms because they have little guarantee in their ability to repay debts and it’s hard to estimate when they may become profitable.

41. VII. Additional listening The Chief Executive officer of Hang Seng Bank Vincent Chang says banks may be reluctant to lend to Internet start-ups because of their lack of track record and the banking industry is not familiar with their mode of operation.

42. VIII. More about stock market EVERY BUSINESS has its own language. To understand the stock market, let’s read one family’s breakfast conversation. Soon you’ll be “talking the talk”!

43. JAMIE: (teenager) Did you hear that the new model of the cell phone I got last year has a built-in MP3 player? DAD: It sure sounds like Talk2Me knows teens. JAMIE: Don’t you own stock in Talk2Me? You should call your stockbroker to buy more. They make so many cool products! MOM: We bought stock when the company had its initial public offering a few years ago. VIII. More about stock market

44. JAMIE: What does that mean? MOM: Talk2Me went public so they could raise money, or capital, to expand and create new products like the MP3 phone. DAD: At the time, we only owned bonds, which are loans that investors make to corporations and governments. The lenders earn interest, and the borrowers get the money they need. VIII. More about stock market

45. MOM: We thought the value of communications industry stocks would grow over the long term. The stock market moves in cycles from a period when stock prices are generally rising, known as a bull market, to times when stock prices on the whole are falling, called a bear market. JAMIE: What makes stock prices rise or fall? DAD: Stock prices go up or down depending on supply and demand. VIII. More about stock market

46. JAMIE: What else influenced your choice in buying this stock? MOM: From our research, we also learned that Talk2Me pays its shareholders dividends,or money from it’s profits. You’re catching on... JAMIE: So does that mean I get a new MP3 phone? VIII. More about stock market

47. VIII. More about stock market Do you know…? Answers: 1. T (市盈率) 2. F (蓝筹股) 3. T • P/E stands for price/earnings ratio. • A blue chip stock is one that not many people have heard of. • Stock prices are determined by demand.

48. VIII. More about stock market Do you know…? Answers: 4. F (diversify=多样性投资) 5. T (speculation=投机) 6. F (revenue=收入) • Diversifying your investments means to buy all your stocks in one type of company. • Speculation means taking a risk. • The amount by which the costs exceed the revenue is called the profit.

49. VIII. More about stock market Do you know…? Answers: 7. F (The Dow Jones Industrial Average =道琼斯工业平均指数) 8. T (the New York Stock Exchange =纽约证券交易所) • The Dow Jones Industrial Average is the only average to serve as an indicator of movement in the market. • There are more than 1000 stocks listed on the New York Stock Exchange.

50. VIII. More about stock market Do you know…? • What are three considerations you must make when deciding which stocks to buy? - Economic Outlook (what does the news say? ) - Industrial Outlook (competition, availability of resources? ) - Company outlook (how is it managed, does it keep on latest technology, life cycle, merger or acquisition)