Would you ever take out a loan?

What are the pros and cons of borrowing money from: family and friends? your bank? a venture capital group?

Advantages Bank loan

- Fixed interest rates for a fixed number of years - No surprises - Prepared to lend to small start-up companies

Disadvantages
- Not always prepared to lend money to new or small companies - Loan may have to be secured - Want 2% for management fee + 20% of the profits

Venture capital

- No interest to pay

- Can be taken over - Listed companies have to pay a lot to meet financial reporting standards

Shares

Dealing with figures Before you listen, check you know what these words mean. 1 surplus (n) a) change frequently b) not growing or developing

2 fluctuate (v)
3 stagnant (adj) 4 productivity (n)

c) the situation where some people do not have work d) more of something than is necessary e) the rate at which goods are produced

5 unemployment (n)

USA

What do you know about the current economic conditions in these countries? Germany

Japan UK

America
The Federal Reserve announced it would 0.25% drop its key interest rate by (1) _________ 4.25% to (2) __________. This is the second drop in interest rates in the last six months. 2.1% Productivity grew by (3) __________ 3.9% in the third quarter, with (4) ________ in the first six months. Employers reported 123,000 (5) __________ new jobs had been created in July.

Germany
Germanys job growth was stronger than expected in March. Unemployment fell by 183,000 (6) _________ to 4,370,000. Its trade surplus grew again in the first quarter to (7) 18.4 billion up 0.4% over the previous __________ quarter. The German car industry reported 750,000 that a record (8) ________ vehicles were exported in the first three months.

Japan
Japanese industrial production increased 0.7% slightly by (9) _________ and employment fell by (10) ________ to 2,890,000 last 195,000 year. The yen remains strong at 111 (11) __________ yen to the dollar. Bank lending rose by 2.4% in the year to April, the fastest increase in the last 5 (12) __________ years.

The UK
2.1 million Jobs in the service industry rose to (13) _________ last year while jobs in manufacturing fell by 315,000 (14) _______. The National Statistical Office reported that the number of jobs paid below the national minimum wage has increased to approx. 57,000 338,000 (15) _______. It also reported that (16) ______ jobs, 18-21 3.2% held by those aged (17) _______ were paid 4.10 below (18) ________ an hour.

First conditional

Match the beginning on the left with the correct ending on the right.
1 If you decide today 2 Unless you can guarantee delivery by Friday 3 They wont be able to fulfil our order

a) unless we pay in advance.

b) if she requires in-house training.

c) Ill have to go to another supplier.

4 Itll cost her another 2,000, d) well give you a good discount.

First conditional

Match the beginning on the left with the correct ending on the right.
5 Well upgrade your phone,

e) I wont be prepared to sell to you.

6 If you pay the asking price,

f) if we open an office in Hong Kong.

7 We will need to employ Chinese speakers 8 Unless you can pay in cash

g) if you sign up for another 12 months.

h) Ill take the house off the market.

Look at the topics below and discuss your options.

An aunt of yours has died and left you luxury villa in the Bahamas.

You are planning a fourweek holiday to the USA.

You are both unemployed and want to set up a company together.

Look at the topics below and discuss your options.

You are going to live on a desert island for three months. Decide what to take with you. You run an organization which helps families who live in poor parts of the world. You have a monthly budget of 10,000 for a new project.

You have been asked to organize a one-day festival / event for teenagers in your area.

Contrastive stress Read the sentences below with the correct word stressed.
1 a) Sorry, but I ordered a glass of red wine. (not white wine) b) Sorry, but I ordered a glass of red wine. (not a whole bottle) 2 a) Mario doesnt want to talk about the problem, Pete. (he wants to talk about the solution) b) Mario doesnt want to talk about the problem, Pete. (Julia is the person who wants to talk) 3 a) I dont think their turnover will fall. (but maybe our turnover will) b) I dont think their turnover will fall. (but their profits might fall) 4 a) I didnt ask you to finish the report by Friday. (Tom asked you)

b) I didnt ask you to finish the report by Friday. (I asked you to finish the accounts)

Causes and effects Match the effects on the left with the causes on the right. EFFECT CAUSE a) as a result of the stronger euro Euro.

1 Sales of soft drinks increased by 1 Sales of soft drinks increased by 22% last month 22% last month
2 EU exports to the USA fell 2 EU exports to the USA fell slightly last month slightly last month 3 Production fell by 150,000 units 3 Production fell by 150,000 units to 700,000 in June to 700,000 in June 4 Heating costs rose by 10% in 4 Heating costs rose by 10% in the last quarter the last quarter 5 House prices went up slightly last month last month 6 Telecoms profits fell by 18.4% last year

b) due to a strike at the Toulouse plant. plant

c) because of shortages in the oil. supply of oil d) because of a heat wave. d) because of a heat wave e) as a result of increasing competition and internet telephony Internet telephony. f) due to the fall in interest rates. rates

Discussion

Imagine you and your partner have 50,000 to invest. Discuss the best ways of investing this money and present your ideas to the class.