Business Channel 2006-09-29&10-02

For the second day in a row, the Dow Industrials setting record highs, a triple-digit rally sent the Dows surging past the 11,800 mark for the very first time. This is the NASDAQ Composite rose to a 5-month high. And the S&P 500, it’s surged to its highest level since 2001. So let’s take a look at these historic closing numbers. As you can see, the Dow Industrials jumped 123 points, closing at the record level of 11,850.53. The NASDAQ Composite gained more than 2 percent. Meanwhile, crude oil prices were volatile¹, ending 73 cents higher to settle at $59.41 a barrel, rebounding² from a nearly 16-month intraday low. How about that?

Well, that big day was an understatement on my part. (Hehe…) You know, we were talking a few moments ago about on Pipe 3 we were bringing in this General Motors’ briefing on what happened to all these discussions going on about this potential transatlantic auto³ alliance with GM?

Well, in a word, terminated. General Motors, Nissan and Renault have terminated talks about forming that broad alliance. After 2 months, a very high-stakes discussion. The companies could not agree on the terms of the value of the potential deal. The move comes ahead of the mid-October deadline that both sides had set for a decision.

So do you really know, you know, the dirty details behind this? Why it failed? Why the talks broke down?

Well, I can tell you at least one reason. And that was the size of the payment that GM sought. GM had demanded that Nissan-Renault pay it a so-called control premium⁴ if the three companies had linked up. Executives at GM were reportedly asking for as much as 10 billion dollars in compensation to essentially⁵ make up the difference in what they believed were greater savings⁶ for Nissan-Renault. Talks between GM, and Nissan-Renault had been going on since July 14th. GM was pushed into the talks by its largest shareholder⁷ Kerkorian. He wants Carlos Ghosn, the head of both Nissan and Renault to help restructure GM. GM, which by the way, lost more than 10 billion dollars last year, will now keep working on its own turnaround plan, the one that is favored by its CEO Richard Wagoner. So that’s the best answer I can give you on that one.

And that was a great answer too. But let’s move along now to the chairman of the Federal Reserve. I know he spoke⁸ today. What did he have to say?

Oh, yes. Fed Chief Ben Bernanke, he spoke about the aging US population. And he had a stern warning for Congress and for the President. The warning was, unless social security and Medicare are revamped, the massive burden from retiring baby boomers, some 79 million of them, will place major strains on future generations and the economy.

The decisions we make over the next few decades will matter greatly for the living standards of our children and our grandchildren. If we don’t begin soon to provide for the coming demographic transition, the relative burden on future generations may be significantly greater than it otherwise would have been.

Bernanke did not offer recommendations on how Medicare and social security should be reformed. He also did not comment on the Fed’s policy on interest rates or the stock market rally. The Federal Reserve meets again on October 24th and most economists⁹ believe that policy makers¹⁰ will leave rates unchanged for the third meeting in a row.

1 volatile   

adj.反复无常的，挥发性的，稍纵即逝的，脾气火爆的；n.挥发性物质

参考例句：

• With the markets being so volatile,investments are at great risk.由于市场那么变化不定，投资冒着很大的风险。
• His character was weak and volatile.他这个人意志薄弱，喜怒无常。

2 rebounding   

蹦跳运动

参考例句：

• The strength of negative temperature concrete is tested with supersonic-rebounding method. 本文将超声回弹综合法用于负温混凝土强度检测。
• The fundamental of basketball includes shooting, passing and catching, rebounding, etc. 篮球运动中最基本的东西包括投篮，传接球，篮板球等。

3 auto   

n.(=automobile)(口语)汽车

参考例句：

• Don't park your auto here.别把你的汽车停在这儿。
• The auto industry has brought many people to Detroit.汽车工业把许多人吸引到了底特律。

4 premium   

n.加付款；赠品；adj.高级的；售价高的

参考例句：

• You have to pay a premium for express delivery.寄快递你得付额外费用。
• Fresh water was at a premium after the reservoir was contaminated.在水库被污染之后，清水便因稀而贵了。

5 essentially   

adv.本质上，实质上，基本上

参考例句：

• Really great men are essentially modest.真正的伟人大都很谦虚。
• She is an essentially selfish person.她本质上是个自私自利的人。

6 savings   

n.存款，储蓄

参考例句：

• I can't afford the vacation,for it would eat up my savings.我度不起假，那样会把我的积蓄用光的。
• By this time he had used up all his savings.到这时，他的存款已全部用完。

7 shareholder   

n.股东，股票持有人

参考例句：

• The account department have prepare a financial statement for the shareholder.财务部为股东准备了一份财务报表。
• A shareholder may transfer his shares in accordance with the law.股东持有的股份可以依法转让。

8 spoke   

n.（车轮的）辐条；轮辐；破坏某人的计划；阻挠某人的行动 v.讲，谈（speak的过去式）；说；演说；从某种观点来说

参考例句：

• They sourced the spoke nuts from our company.他们的轮辐螺帽是从我们公司获得的。
• The spokes of a wheel are the bars that connect the outer ring to the centre.辐条是轮子上连接外圈与中心的条棒。

9 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

10 makers   

n.制造者，制造商（maker的复数形式）

参考例句：

• The makers of the product assured us that there had been no sacrifice of quality. 这一产品的制造商向我们保证说他们没有牺牲质量。
• The makers are about to launch out a new product. 制造商们马上要生产一种新产品。 来自《简明英汉词典》