there is only one story in the european press this week – the 1 that has 2 world markets.
a few weeks ago everyone was talking about the credit 3. this rather 4 term has now been replaced in the press by ‘financial crisis’, reflecting the broadening and deepening of the emergency.
as stock markets opened on monday, shares 5 across the world. on tuesday, us stocks hit their lowest levels in five years, while japan's nikkei closed down 952.58 points, or 9.4%. hong kong's hang seng index closed 6.2% lower and markets in australia, china and taiwan all fell.
the sharp downturn in the markets has continued despite massive government 6 in the 7 system.
on saturday, the us congress finally passed a $700bn (4.7 trillion yuan) bail-out plan. the us government will buy the bad mortgage debts which triggered the crisis in exchange for a stake in the banks they rescue.
on monday, the entire economy of iceland came 8 close to 9. the government introduced emergency legislation to allow them to effectively run banks’ operations.
today it was the british government’s turn, offering banks that are interested a slice of £50bn (596 billion yuan) in exchange for a stake. it is also offering loans of up to £250bn (2.98 trillion yuan) which banks can use for a fee. banks won’t lend to one another at the moment, so the hope is that this measure will increase 10 – get money flowing again.
this is vital since the 11 of the credit crisis are already reaching smaller businesses, who have seen their interest rates on loans increase. consumer confidence is also down, affecting sales on the high street.
if the plans work and banks in the uk and us recover, tax-payers in both countries could make a profit from their governments’ interventions. if the plans fail, the banking system will simply 12.
either way, we should be prepared for another 13 in language, as the ‘financial crisis’ perhaps becomes a ‘severe economic recession’.
glossary 词汇表
turmoil
动荡
engulfed
吞没/把…卷入旋涡
cosy
舒适的/容易的
financial crisis
金融危机
plummeted
暴跌
stocks
股价
downturn
下滑
interventions
干预
bail-out
应急措施
triggered
引发
stake
股份/股本
precariously
危险的
bankruptcy
破产
emergency legislation
紧急立法
effectively
有效地
ripples
震荡/波及
consumer confidence
消费者信心
the high street
商业街,销售行业
escalation
加剧
recession
萧条