Sunday

THIS WEEK'S BUSINESS IDIOM : TO BOTTOM OUT


TO BOTTOM OUT refers to the lowest point in a trend, particularly in the context of the financial markets. It can be used when describing inflation, sales and prices. To bottom out means that a downward trend has come to an end and that the trend will soon start to rise. In most cases, to bottom out is used to indicate that the worst is over and that share prices, for example, will bounce back, recover, rebound, or at least start to pick up. Indeed, when equity markets have been falling steadily over a period of time, analysts and commentators often refer to 'the bottom' of the market and the term 'bottom fishing' refers to the practice of buying shares which appear to have been oversold and which are therefore cheap in the eyes of some investors. Before beginning an upward trend, prices or sales can be described as being in a trough or at a low point. The opposite of to bottom out is the verb to peak. In many countries, consumer spending tends to peak in mid-December, in the run-up to Christmas and subsequently falls-off in January.

VIDEO : UBS, CREDIT SUISSE & CITIGROUP

Watch this video while reading the transcript below. What do the words and expressions in bold mean ?



UBS made public a summary of an internal investigation into the mistakes that led it to write down a total of $38 billion, the most by any European bank hit by the subprime crisis. The company laid most of the blame on positions taken by its investment-banking arm. To rebuild its fortunes, the Swiss bank is reducing the size of its investment-banking business to refocus on its private-client base.

Other banks added to the list of woes stemming from the mortgage markets. Credit Suisse, UBS's rival, swung to a loss in the first quarter largely because it took SFr5.3 billion (around $5.0 billion) in writedowns. Bank of America said its first-quarter profit had fallen by 77% compared with a year ago, and that it would increase its provision for credit losses by $5 billion. Citigroup booked another $13 billion in writedowns and made a quarterly loss of $5.1 billion. And Royal Bank of Scotland said it needed to raise £12 billion ($24 billion), about a third of its market value, in a rights issue to help protect its core capital.

The Bank of England unveiled an initiative that will allow British banks over the next six months to swap high-quality mortgage-backed and other securities for Treasury bills for up to three years. The central bank estimated that around £50 billion ($100 billion) of such assets would be swapped at first.

Meanwhile, a survey from the British Bankers' Association found that the number of approvals for house purchases fell by 46% in the 12 months to March and was at its lowest since the series began in 1997.

In an effort to revive investor confidence, China reduced its stamp duty on share trading to 0.1% from 0.3%. The tax was increased in May 2007 to cool feverish stockmarkets. Since then the government has made fighting inflation its top priority, causing some to worry that economic growth will slow.

Thursday

LISTENING : LAUGHTER IN THE OFFICE

LISTEN TO THE FOLLOWING ECONOMIST AUDIO REPORT

IDIOMATIC EXPRESSIONS IN BUSINESS


Read the following text. What do the expressions in bold mean ? We'll tell you next week.

I was at a loose end last Sunday afternoon. I could have called Jim; if I had invited him out for a pint he’d have come at the drop of a hat. But my argument with my boss had left a bad taste in my mouth. His remarks had been totally below the belt and I had had to bite my tongue to avoid saying something that I would have later regretted. When I told my boss that I was getting cold feet about the new project he came down on me like a ton of bricks. As I had got the job by the skin of my teeth I didn’t want to play with fire so I had kept the bad news about the prototype under my hat. Even if I had told him about the problems, he’d have told me to put a sock in it. I felt on edge, but I kept a stiff upper lip and anyway I didn’t want
to rock the boat. So, if I had invited Jim out for a beer, I would have just talked shop and he’d have just told me to keep my chin up and would have probably added that I was making a mountain out of a mole-hill.

Finally, I realised how I could kill two birds with one stone. After picking the brains of a colleague who had already found himself in the same situation, I decided that I had to pull myself together and to take the bull by the horns. I arranged a meeting with my boss and our R & D team and I managed to twist their arms to bring along the Seldox reports, which they themselves had contributed to. The reports showed that the project was not exactly going like clockwork and it was clear that the company would go to the wall if we didn’t take steps to put things right. By taking this initiative I felt I was turning a new leaf - at last I was standing on my own two feet. Indeed, I had been sitting on the fence for too long, never daring to say what I really thought about the project or my boss’s unrealistic ambitions for the company. When he read the Seldox reports he put two and two together and realised that we would have to go back to square one. He was all ears when Jack Sebastian from the lab spoke about the risks that we would be running if we continued to stick our heads in the sand. The figures brought my boss down to earth, as it became apparent that we had a cat in hell’s chance of pulling the project off. Jack’s experience came in handy and it was his ability to call a spade a spade that won the day. I finally came to the point and told my boss that he was counting his chickens before they hatched by publishing over optimistic sales forecasts when we hadn’t even tested the product. Jack hit the nail on the head when he
pointed out that, in a nut-shell, it all came down to marketing. My boss had his hands tied and being forced to take advice from others, rather than to give orders, he must have felt like a fish out of water. I had finally turned the tables on him. Before that, he had ruled with a rod of iron, but when he finally saw the light he had to take a back seat. If we had succeeded in saving the company it was thanks to good timing - we had struck while the iron was hot, the Seldox reports having just been published.

My colleagues and I were on cloud nine, but we continued to put our shoulders to the wheel so as not to lose our grip. As for the boss, he has looked a bit under the weather recently and I’m sure I’m in his bad books now.

Tuesday

BUSINESS IDIOM : TO GET BOGGED DOWN


If you are getting bogged down in a meeting you are talking for too long and in too much detail about a particular subject or item on the agenda. The result is that you are wasting time and failing to make progress.
"We seem to be getting bogged down on this point. Let's move on to the next point before we run out of time."

VIDEO : BUSINESS NEWS

EXERCISE: TRANSCRIBE THE ECONOMIST'S BUSINESS NEWS