ENGLISH LESSONS
DIRECTION: Read the following and answer the questions?
The battle for the top job at the International Monetary Fund kicked into high gear Thursday, with Europeans staking their claim for the post as the continent grapples with economic problems and Asian and emerging nations arguing now is their time to lead the international institution.
World Bank President Robert Zoellick said global leaders have started the formal process to replace Dominique Strauss-Kahn, who early Thursday resigned following his weekend arrest on sexual-assault charges.
"There's a process that the countries will use, and the shareholders and you can see it starting to form now," Mr. Zoellick said after speaking at the Bretton Woods Committee annual conference in Washington. "It's up to the shareholders to decide the next process that they take in leadership and I'm sure they'll pick a very fine person
Asked whether the process would live up to promise by global leaders for a more transparent, merit-based process, Mr. Zoellick said, "I'm sure it will be."
The Group of 20 industrialized nations has promised to change the leadership selection process at both the IMF and World Bank, suggesting a move away from the automatic appointment of a European to the IMF and an American to the World Bank.
Mr. Zoellick spoke as European governments coalesced around Christine Lagarde, a corporate lawyer who has been France's finance minister since 2007 and who has emerged as the frontrunner for the IMF job in the days since Mr. Strauss-Kahn's arrest in New York.
1. Who is the world bank President?
A. Robert Zoellick.
B. Christine Lagarde
C. John Lake.
2. What does the IMF stand for?
A. International Money Fund.
B. International Music Foundation.
C. International Monetary Fund.
DIRECTIONS: Read the following and answer the questions?http://www.americanenglishconversation.com/
http://www.freeenglishconversation.blogspot.com/
http://grammar-help.blogspot.com/
NEW YORK (AP) -- People are paying more to fuel up these days -- on coffee.
Coffee price increases have outpaced even the hike in gasoline prices the past year. A one-pound can of ground coffee sold for $5.10 in April, up 40 percent from $3.64 the year before, according to the Department of Labor. By comparison, a gallon of regular gasoline cost $3.83 on average on Tuesday, up 37 percent from a year earlier.
And while fuel prices are expected to stabilize, coffee increases could continue for some time because the prices that coffee companies pay for unroasted beans are still climbing -- fast. Coffee futures were trading for $2.61 per pound Tuesday, roughly double a year earlier.
J.M. Smucker Co., the maker of grocery store stalwart Folgers and of packaged varieties of Dunkin' Donuts coffee, said Tuesday that it is raising prices of most of its U.S. coffee products by 11 percent, its fourth increase in a year. Kraft Foods Inc., Peet's Coffee and Tea Inc. and Green Mountain Coffee Roasters Inc. have also recently hiked their prices for coffee.
Starbucks Corp. also said Tuesday that it will raise prices on packaged coffee in its stores by an average of 17 percent in the U.S. and 6 percent in Canada. That follows a 4 percent increase in 2009. The company also raised prices in March for its packaged coffee sold in grocery stores and at other retailers.
But the drink remains essential to many.
Eboney and Tyson Owens say they've noticed higher coffee prices. The couple aren't about to give up their buzz, but they're buying different brands depending on what costs least among their top four preferred brands -- Starbucks, Dunkin' Donuts, Godiva and Seattle's Best.
"I'm a Starbucks fan, I swear by it," Eboney Owens, 32, said during a recent grocery trip in Portland, Ore.
However, if something else is on sale or has a coupon available, she'll switch.
"We won't go bottom of the barrel, though," Tyson Owens, 31, added.
Overall coffee crops increased 8 percent last year, according to the International Coffee Organization, helped by strong supplies from Ethiopia, the Ivory Coast and other countries. But this year, some major exporters, including Indonesia, are suffering from smaller crops because of drought, flooding or other inclement weather, which is affecting prices. The rise in coffee prices also has roots in the economic growth of China, where an upwardly mobile work force is fueling demand.
Unlike many other discretionary items, coffee usually emerges from a recession relatively unscathed, economists say. That's because when money is tight, people may buy cheaper brands of coffee, but they won't give it up completely. Americans consumed 21.7 million 60-kilogram bags of coffee in 2008, during the depths of the recession, up from 21 million the year before, according to the ICO. That's nearly 2.9 billion pounds of coffee.
Coffee is part of a bigger story about rising prices for household staples as diverse as food, clothing, diapers and batteries. Food prices soared 5.5 percent in 2008, then ticked up a slower 1.8 percent in 2009 and 0.8 percent in 2010 as meat and produce prices steadied. But in recent months oil and grain prices have soared, sending global food prices to their highest point in 20 years, according to the UN's Food and Agriculture Organization.
Labor Department data showed that food prices in the U.S. increased 0.8 percent in March, the largest monthly increase in nearly three years. The pace slowed to a 0.4 percent increase in April.
U.S. Department of Agriculture economist Ricky Volpe notes that food price inflation was much higher in the '70s, when year-over-year increases averaged 8.1 percent. While food price increases are far below that, more are expected. In the most recent quarter, 89 percent of consumer product makers tracked by FactSet said they have raised some prices or have plans to do so.
Sara Lee Corp., which sells Maison du Cafe, L'Or and Cafe Pilao, said this winter that rising green coffee costs led it to raise its prices. Kraft, which sells Maxwell House coffee, cited rising coffee prices in a broad price hike it levied this winter. Peet's Coffee and Tea Inc. has raised its retail prices twice recently in response to raw material costs.
Starbucks said Tuesday that it has been continually monitoring the costs of green coffee, fuel and other operational costs and has made price adjustments as needed. A one-pound bag of coffee currently goes for $9.95 to $13.95 in stores. After it puts the latest price changes in place, the price will jump to between $11.95 and $14.95 a pound.
Smucker said that its latest price increase includes Smucker's Millstone and Folgers Gourmet Selections packaged coffees. For the Dunkin' Donuts brand, the increase affects only packaged coffee sold in grocery, club, drug and general-merchandise stores. Items sold at Dunkin' Donuts shops are not Smucker products.
The company also raised coffee prices by 10 percent in February, 9 percent in August 2010 and 4 percent last May.
The cost increases haven't deterred Smucker from expanding its U.S. coffee portfolio. It announced last week that it purchased privately held Rowland Coffee Roasters Inc. for $360 million in cash. Rowland, based in Miami, sells Cafe Bustelo and Cafe Pilon, which are sold primarily in the Northeastern U.S. and South Florida and target Latino shoppers. Rowland is a leading producer of espresso coffee in the U.S.
Sarah Skidmore in Portland and Michelle Chapman in New York contributed to this report.
How much is the stock up?
A. 37 percent from a year earlier.
B. 87 percent from a year earlier.
C. 67 percent from a year earlier.
Whot did they purchase?
A. Rowland Coffee Roasters Inc
B. Coffee Bean
C. Starbucks
English Lesson to help and instruct with English conversation. English lesson are concentrated around our student individual needs. English lesson will help you improve your spoken English. Our English Lessons can help you achieve a great knowledge of the English language. With our English lessons you will see your self improve greatly. English Lessons, English Lessons.
ENGLISH LESSONS :
High gas prices are driving a wider wedge between the wealthy and everybody else.
The rich are back to pre-recession-style splurging: Saks Fifth Avenue and Nordstrom customers are treating themselves to luxury items like $5,000 Hermes handbags and $700 Jimmy Choo shoes, and they're paying full price.
At Target and Walmart, shoppers are concentrating on groceries and skipping even little luxuries. BJ's Wholesale Corp. said Wednesday that its customers are buying more hamburger and chicken and less steak and buying smaller packs to save money.
"The average shopper isn't in the game, except for necessities," said Faith Hope Consolo, chairman of retail leasing and marketing at Prudential Douglas Elliman. At the same time, among the rich, "Luxury products are selling like bread."
J.C. Penney, Wal-Mart and home-improvement retailer Lowe's Cos. all said they're noticing their customers are consolidating shopping trips to save money on gas as the average price hovers near $4 a gallon.
More than a half-dozen corporate earnings reports this week show that, for the affluent, rising prices are merely a nuisance. For others, they can mean scrimping to put food on the table.
1. Are the rich only buyinmg what they need?
A. TRUE.
B. FALSE.
2. What type of luxury items are the rich buying?
A. Hermes handbags.
B. Jimmy Choo shoes.
C. All of the above.
DIRECTIONS: Read the following and answer the questions?
http://www.americanenglishconversation.com
http://www.grammar-help.blogspot.com
Private debtholders, including euro zone banks, should accept a debt extension or other form of "soft default" to alleviate the debt burden for countries such as Greece if Europe wants a solution to the sovereign debt crisis, Bill Gross, Co-CIO of PIMCO told CNBC on Tuesday."We wouldn't go so far as to suggest that Greece or any other country leave the euro," Gross said. "What I think needs to be done....is for private debtholders and Euroland banks...to take a debt extension or some kind of soft default that alleviates the burden for these countries."
Gross admitted it was difficult to suggest that countries such as Germany, which have been more forthright and fiscally conservative, should help peripheral nations."But if they want a consolidated solution, that's really the way to go," he said.
"Countries like Greece and Ireland are subject to the euro currency and can't lower their high debt to GDP ratio by offering interest rates in the low to negative range such that a country can pay for its debt by real growth," Gross said.
That might have provided a solution, he said. "It's a rather surreptitious and sneaky way to do it, but it's quite effective."
Despite concerns that European banks have taken on too much risk and will not be able to withstand future shocks to the economy, Gross believes they are an attractive investment.
"Lloyds [LLOY-LN 49.74 -1.13 (-2.22%)] and Royal Bank of Scotland [RBS-LN 40.44 -0.44 (-1.08%)]and Rabobank all have cocos (contingent convertible bonds) which provide yields of 300-400 basis points more than typical senior bank capital, and we think it's attractive. Admittedly there is a risk and if these banks move down to a certain equity as a percentage of capital level then the price has to be paid, but ultimately we think banks such as those are in the process of recapitalizing... and that going forward they will be much more careful in terms of riskiness," he said.
Bond investors needed to look for opportunities from the standpoint of currencies where real interest rates are high as opposed to low or negative, Gross said.
"We're looking currencies and bonds in those currencies which offer high real interest rates. Brazil does that at 6-7 percent real. Canada... basically offers a half to 1 percent higher real interest rate. Same thing for Mexico," he said.
Bill Gross, Co-CIO of PIMCO told CNBC on Tuesday."We wouldn't go so far as to suggest that Greece or any other country leave the euro," Gross said?
A. TRUE
B. FALSE
Despite concerns that European banks have taken on too much risk and will not be able to withstand future shocks to the economy, Gross believes they are an attractive investment?
A. TRUE
B. FALSE
DIRECTIONS: Read the following and answer the questions?
http://www.americanenglishconversation.com
http://www.freeenglishconversation.blogspot.com/
http://grammar-help.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/
At a Berlin meeting on Friday German and French leaders appear to have come to a compromise that would ultimately lay the groundwork for the next round of emergency IMF loans to Greece. Prime Minister Papandreou shuffled his cabinet Friday appointing a new finance minister along the way. Two pieces of news drove currency trading on Friday with a former Fed official predicting a U.S. recession resulting from an inevitable Greek default, while the news conference in Berlin took precedence and sent the euro surging.
Euro Alan Greenspan talking on Bloombergs Charlie Rose show warned that a default by Greece was almost certain and as such would likely drag the U.S. economy into recession. His prediction, while likely accurate, has been diluted on Friday on account of the positive words flowing from Berlin. German Chancellor Merkel said shes willing to compromise on demands for bondholders to carry the burden and asks instead for purely a voluntary participation by private creditors. French leader Sarkozy said that such agreement requires the approval of the European Central Bank. Indeed the attitude of its President Trichet and company will be key here although investors have seized the opportunity to drive the single currency sharply higher. Earlier the unit slumped to $1.4127 before a moonshot lifted it to $1.4289. With the entire market watching and reacting to headlines, its important to understand that the end game for the ECB here is to avoid any situation under which any ratings agency would claim a default. The bid behind the euro following the Berlin conference is a market attempt to put words in the mouth of the central banks mouth.
U.S. Dollar Of course a surging euro is at this point positive for risk appetite and is surrounded at the end of a choppy week for trading by a reversal in stock indices from Europe to North America as investors hope for a longer-lasting resolution to the crisis. The dollar basket has slumped by 0.5% with the greenback taking slingshots left and right from every other major unit. Data due for release Friday may show a rebound for economic activity over the coming three-to-six months. The Conference Boards leading indicator for June should reverse last months dip as fears over supply bottlenecks resulting from the Japanese earthquake events unwind, while a welcome slide in fuel costs may also boost both sentiment and activity. A University of Michigan confidence index is expected to show little change in consumers mood.
British pound An attempt to match Thursdays weakest moment for the pound against the dollar just failed before rebounding European sentiment dragged the pound up by its shirttails. Attitude to the unit remained grim with investors remaining concerned over the vigor behind the British economic recovery. Just how resistant the central bank is to raising interest rates to tackle inflation running at twice its target pace was embodied in Governor Kings Mansion House speech earlier in the week. Tightening monetary policy would have meant a weaker recovery, or even further falls in output and a risk of inflation falling well below the target in the medium term. The pound bounced from its session floor at $1.6093 to a high at $1.6194.
Aussie dollar The Aussie was perhaps the biggest beneficiary of the rebound in confidence Friday turning from a session low against the dollar at $1.0506 to $1.0635. The unit was subject to losses after the Greenspan view further dampened risk appetite and invited a test of Thursdays lows. Like the pound, the Aussie remained above its weekly lows and remains buoyant as evidence of short-covering continues to offer support.
Japanese yen The rise in risk appetite has taken the shine off the dollar and cast the spotlight back on the yen, which rallied from ¥80.65 to ¥80.25 against the dollar as European tensions eased. There was also more concern for the health of the domestic economy with May store sales declining 2.4% on a year-over-year basis indicating a further weakening in consumer confidence. Rising economic tensions maintain the spotlight on a rising yen as investors look to the government to find ways to further tackle an already challenging economy. The political straightjacket ensures that the yen is bound to maintain a positive bias when economic bellwethers sound glum.
Canadian dollar The turnaround for risk appetite reversed an intraday loss for the Canadian dollar as it traded losses for gains against the dollar by rising to $1.0207. Thats more than a penny above Thursdays panic-driven low for the week at $1.0101 U.S. cents. Later this morning the latest piece of the jigsaw for the Canadian economy will be released and is expected to show a dip in wholesale manufacturing sales of 0.3%.
Did the Prime Minister Papandreou shuffled his cabinet Friday appointing a new finance minister along the way?
A. TRUE
B. FALSE
The turnaround for risk appetite reversed an intraday loss for the Canadian dollar as it traded losses for gains against the dollar by rising to $1.0207?
A. TRUE
B. FALSE
DIRECTION: Read the following and answer the questions?
The battle for the top job at the International Monetary Fund kicked into high gear Thursday, with Europeans staking their claim for the post as the continent grapples with economic problems and Asian and emerging nations arguing now is their time to lead the international institution.
World Bank President Robert Zoellick said global leaders have started the formal process to replace Dominique Strauss-Kahn, who early Thursday resigned following his weekend arrest on sexual-assault charges.
"There's a process that the countries will use, and the shareholders and you can see it starting to form now," Mr. Zoellick said after speaking at the Bretton Woods Committee annual conference in Washington. "It's up to the shareholders to decide the next process that they take in leadership and I'm sure they'll pick a very fine person
Asked whether the process would live up to promise by global leaders for a more transparent, merit-based process, Mr. Zoellick said, "I'm sure it will be."
The Group of 20 industrialized nations has promised to change the leadership selection process at both the IMF and World Bank, suggesting a move away from the automatic appointment of a European to the IMF and an American to the World Bank.
Mr. Zoellick spoke as European governments coalesced around Christine Lagarde, a corporate lawyer who has been France's finance minister since 2007 and who has emerged as the frontrunner for the IMF job in the days since Mr. Strauss-Kahn's arrest in New York.
1. Who is the world bank President?
A. Robert Zoellick.
B. Christine Lagarde
C. John Lake.
2. What does the IMF stand for?
A. International Money Fund.
B. International Music Foundation.
C. International Monetary Fund.
DIRECTIONS: Read the following and answer the questions?http://www.americanenglishconversation.com/
http://www.freeenglishconversation.blogspot.com/
http://grammar-help.blogspot.com/
NEW YORK (AP) -- People are paying more to fuel up these days -- on coffee.
Coffee price increases have outpaced even the hike in gasoline prices the past year. A one-pound can of ground coffee sold for $5.10 in April, up 40 percent from $3.64 the year before, according to the Department of Labor. By comparison, a gallon of regular gasoline cost $3.83 on average on Tuesday, up 37 percent from a year earlier.
And while fuel prices are expected to stabilize, coffee increases could continue for some time because the prices that coffee companies pay for unroasted beans are still climbing -- fast. Coffee futures were trading for $2.61 per pound Tuesday, roughly double a year earlier.
J.M. Smucker Co., the maker of grocery store stalwart Folgers and of packaged varieties of Dunkin' Donuts coffee, said Tuesday that it is raising prices of most of its U.S. coffee products by 11 percent, its fourth increase in a year. Kraft Foods Inc., Peet's Coffee and Tea Inc. and Green Mountain Coffee Roasters Inc. have also recently hiked their prices for coffee.
Starbucks Corp. also said Tuesday that it will raise prices on packaged coffee in its stores by an average of 17 percent in the U.S. and 6 percent in Canada. That follows a 4 percent increase in 2009. The company also raised prices in March for its packaged coffee sold in grocery stores and at other retailers.
But the drink remains essential to many.
Eboney and Tyson Owens say they've noticed higher coffee prices. The couple aren't about to give up their buzz, but they're buying different brands depending on what costs least among their top four preferred brands -- Starbucks, Dunkin' Donuts, Godiva and Seattle's Best.
"I'm a Starbucks fan, I swear by it," Eboney Owens, 32, said during a recent grocery trip in Portland, Ore.
However, if something else is on sale or has a coupon available, she'll switch.
"We won't go bottom of the barrel, though," Tyson Owens, 31, added.
Overall coffee crops increased 8 percent last year, according to the International Coffee Organization, helped by strong supplies from Ethiopia, the Ivory Coast and other countries. But this year, some major exporters, including Indonesia, are suffering from smaller crops because of drought, flooding or other inclement weather, which is affecting prices. The rise in coffee prices also has roots in the economic growth of China, where an upwardly mobile work force is fueling demand.
Unlike many other discretionary items, coffee usually emerges from a recession relatively unscathed, economists say. That's because when money is tight, people may buy cheaper brands of coffee, but they won't give it up completely. Americans consumed 21.7 million 60-kilogram bags of coffee in 2008, during the depths of the recession, up from 21 million the year before, according to the ICO. That's nearly 2.9 billion pounds of coffee.
Coffee is part of a bigger story about rising prices for household staples as diverse as food, clothing, diapers and batteries. Food prices soared 5.5 percent in 2008, then ticked up a slower 1.8 percent in 2009 and 0.8 percent in 2010 as meat and produce prices steadied. But in recent months oil and grain prices have soared, sending global food prices to their highest point in 20 years, according to the UN's Food and Agriculture Organization.
Labor Department data showed that food prices in the U.S. increased 0.8 percent in March, the largest monthly increase in nearly three years. The pace slowed to a 0.4 percent increase in April.
U.S. Department of Agriculture economist Ricky Volpe notes that food price inflation was much higher in the '70s, when year-over-year increases averaged 8.1 percent. While food price increases are far below that, more are expected. In the most recent quarter, 89 percent of consumer product makers tracked by FactSet said they have raised some prices or have plans to do so.
Sara Lee Corp., which sells Maison du Cafe, L'Or and Cafe Pilao, said this winter that rising green coffee costs led it to raise its prices. Kraft, which sells Maxwell House coffee, cited rising coffee prices in a broad price hike it levied this winter. Peet's Coffee and Tea Inc. has raised its retail prices twice recently in response to raw material costs.
Starbucks said Tuesday that it has been continually monitoring the costs of green coffee, fuel and other operational costs and has made price adjustments as needed. A one-pound bag of coffee currently goes for $9.95 to $13.95 in stores. After it puts the latest price changes in place, the price will jump to between $11.95 and $14.95 a pound.
Smucker said that its latest price increase includes Smucker's Millstone and Folgers Gourmet Selections packaged coffees. For the Dunkin' Donuts brand, the increase affects only packaged coffee sold in grocery, club, drug and general-merchandise stores. Items sold at Dunkin' Donuts shops are not Smucker products.
The company also raised coffee prices by 10 percent in February, 9 percent in August 2010 and 4 percent last May.
The cost increases haven't deterred Smucker from expanding its U.S. coffee portfolio. It announced last week that it purchased privately held Rowland Coffee Roasters Inc. for $360 million in cash. Rowland, based in Miami, sells Cafe Bustelo and Cafe Pilon, which are sold primarily in the Northeastern U.S. and South Florida and target Latino shoppers. Rowland is a leading producer of espresso coffee in the U.S.
Sarah Skidmore in Portland and Michelle Chapman in New York contributed to this report.
How much is the stock up?
A. 37 percent from a year earlier.
B. 87 percent from a year earlier.
C. 67 percent from a year earlier.
Whot did they purchase?
A. Rowland Coffee Roasters Inc
B. Coffee Bean
C. Starbucks
English Lesson to help and instruct with English conversation. English lesson are concentrated around our student individual needs. English lesson will help you improve your spoken English. Our English Lessons can help you achieve a great knowledge of the English language. With our English lessons you will see your self improve greatly. English Lessons, English Lessons.
ENGLISH LESSONS :
High gas prices are driving a wider wedge between the wealthy and everybody else.
The rich are back to pre-recession-style splurging: Saks Fifth Avenue and Nordstrom customers are treating themselves to luxury items like $5,000 Hermes handbags and $700 Jimmy Choo shoes, and they're paying full price.
At Target and Walmart, shoppers are concentrating on groceries and skipping even little luxuries. BJ's Wholesale Corp. said Wednesday that its customers are buying more hamburger and chicken and less steak and buying smaller packs to save money.
"The average shopper isn't in the game, except for necessities," said Faith Hope Consolo, chairman of retail leasing and marketing at Prudential Douglas Elliman. At the same time, among the rich, "Luxury products are selling like bread."
J.C. Penney, Wal-Mart and home-improvement retailer Lowe's Cos. all said they're noticing their customers are consolidating shopping trips to save money on gas as the average price hovers near $4 a gallon.
More than a half-dozen corporate earnings reports this week show that, for the affluent, rising prices are merely a nuisance. For others, they can mean scrimping to put food on the table.
1. Are the rich only buyinmg what they need?
A. TRUE.
B. FALSE.
2. What type of luxury items are the rich buying?
A. Hermes handbags.
B. Jimmy Choo shoes.
C. All of the above.
DIRECTIONS: Read the following and answer the questions?
http://www.americanenglishconversation.com
http://www.grammar-help.blogspot.com
Private debtholders, including euro zone banks, should accept a debt extension or other form of "soft default" to alleviate the debt burden for countries such as Greece if Europe wants a solution to the sovereign debt crisis, Bill Gross, Co-CIO of PIMCO told CNBC on Tuesday."We wouldn't go so far as to suggest that Greece or any other country leave the euro," Gross said. "What I think needs to be done....is for private debtholders and Euroland banks...to take a debt extension or some kind of soft default that alleviates the burden for these countries."
Gross admitted it was difficult to suggest that countries such as Germany, which have been more forthright and fiscally conservative, should help peripheral nations."But if they want a consolidated solution, that's really the way to go," he said.
"Countries like Greece and Ireland are subject to the euro currency and can't lower their high debt to GDP ratio by offering interest rates in the low to negative range such that a country can pay for its debt by real growth," Gross said.
That might have provided a solution, he said. "It's a rather surreptitious and sneaky way to do it, but it's quite effective."
Despite concerns that European banks have taken on too much risk and will not be able to withstand future shocks to the economy, Gross believes they are an attractive investment.
"Lloyds [LLOY-LN 49.74 -1.13 (-2.22%)] and Royal Bank of Scotland [RBS-LN 40.44 -0.44 (-1.08%)]and Rabobank all have cocos (contingent convertible bonds) which provide yields of 300-400 basis points more than typical senior bank capital, and we think it's attractive. Admittedly there is a risk and if these banks move down to a certain equity as a percentage of capital level then the price has to be paid, but ultimately we think banks such as those are in the process of recapitalizing... and that going forward they will be much more careful in terms of riskiness," he said.
Bond investors needed to look for opportunities from the standpoint of currencies where real interest rates are high as opposed to low or negative, Gross said.
"We're looking currencies and bonds in those currencies which offer high real interest rates. Brazil does that at 6-7 percent real. Canada... basically offers a half to 1 percent higher real interest rate. Same thing for Mexico," he said.
Bill Gross, Co-CIO of PIMCO told CNBC on Tuesday."We wouldn't go so far as to suggest that Greece or any other country leave the euro," Gross said?
A. TRUE
B. FALSE
Despite concerns that European banks have taken on too much risk and will not be able to withstand future shocks to the economy, Gross believes they are an attractive investment?
A. TRUE
B. FALSE
DIRECTIONS: Read the following and answer the questions?
http://www.americanenglishconversation.com
http://www.freeenglishconversation.blogspot.com/
http://grammar-help.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/
At a Berlin meeting on Friday German and French leaders appear to have come to a compromise that would ultimately lay the groundwork for the next round of emergency IMF loans to Greece. Prime Minister Papandreou shuffled his cabinet Friday appointing a new finance minister along the way. Two pieces of news drove currency trading on Friday with a former Fed official predicting a U.S. recession resulting from an inevitable Greek default, while the news conference in Berlin took precedence and sent the euro surging.
Euro Alan Greenspan talking on Bloombergs Charlie Rose show warned that a default by Greece was almost certain and as such would likely drag the U.S. economy into recession. His prediction, while likely accurate, has been diluted on Friday on account of the positive words flowing from Berlin. German Chancellor Merkel said shes willing to compromise on demands for bondholders to carry the burden and asks instead for purely a voluntary participation by private creditors. French leader Sarkozy said that such agreement requires the approval of the European Central Bank. Indeed the attitude of its President Trichet and company will be key here although investors have seized the opportunity to drive the single currency sharply higher. Earlier the unit slumped to $1.4127 before a moonshot lifted it to $1.4289. With the entire market watching and reacting to headlines, its important to understand that the end game for the ECB here is to avoid any situation under which any ratings agency would claim a default. The bid behind the euro following the Berlin conference is a market attempt to put words in the mouth of the central banks mouth.
U.S. Dollar Of course a surging euro is at this point positive for risk appetite and is surrounded at the end of a choppy week for trading by a reversal in stock indices from Europe to North America as investors hope for a longer-lasting resolution to the crisis. The dollar basket has slumped by 0.5% with the greenback taking slingshots left and right from every other major unit. Data due for release Friday may show a rebound for economic activity over the coming three-to-six months. The Conference Boards leading indicator for June should reverse last months dip as fears over supply bottlenecks resulting from the Japanese earthquake events unwind, while a welcome slide in fuel costs may also boost both sentiment and activity. A University of Michigan confidence index is expected to show little change in consumers mood.
British pound An attempt to match Thursdays weakest moment for the pound against the dollar just failed before rebounding European sentiment dragged the pound up by its shirttails. Attitude to the unit remained grim with investors remaining concerned over the vigor behind the British economic recovery. Just how resistant the central bank is to raising interest rates to tackle inflation running at twice its target pace was embodied in Governor Kings Mansion House speech earlier in the week. Tightening monetary policy would have meant a weaker recovery, or even further falls in output and a risk of inflation falling well below the target in the medium term. The pound bounced from its session floor at $1.6093 to a high at $1.6194.
Aussie dollar The Aussie was perhaps the biggest beneficiary of the rebound in confidence Friday turning from a session low against the dollar at $1.0506 to $1.0635. The unit was subject to losses after the Greenspan view further dampened risk appetite and invited a test of Thursdays lows. Like the pound, the Aussie remained above its weekly lows and remains buoyant as evidence of short-covering continues to offer support.
Japanese yen The rise in risk appetite has taken the shine off the dollar and cast the spotlight back on the yen, which rallied from ¥80.65 to ¥80.25 against the dollar as European tensions eased. There was also more concern for the health of the domestic economy with May store sales declining 2.4% on a year-over-year basis indicating a further weakening in consumer confidence. Rising economic tensions maintain the spotlight on a rising yen as investors look to the government to find ways to further tackle an already challenging economy. The political straightjacket ensures that the yen is bound to maintain a positive bias when economic bellwethers sound glum.
Canadian dollar The turnaround for risk appetite reversed an intraday loss for the Canadian dollar as it traded losses for gains against the dollar by rising to $1.0207. Thats more than a penny above Thursdays panic-driven low for the week at $1.0101 U.S. cents. Later this morning the latest piece of the jigsaw for the Canadian economy will be released and is expected to show a dip in wholesale manufacturing sales of 0.3%.
Did the Prime Minister Papandreou shuffled his cabinet Friday appointing a new finance minister along the way?
A. TRUE
B. FALSE
The turnaround for risk appetite reversed an intraday loss for the Canadian dollar as it traded losses for gains against the dollar by rising to $1.0207?
A. TRUE
B. FALSE
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