The Business World in 2018 reading

Do you think 2018 will be a good year for business?

B Circle the options which you think are correct in these statements and then read the
first part of the article and check your ideas:
1 The International Monetary Fund (IMF) recently upgraded its forecast for global
growth to 1.7 / 3.7 / 5.7 %.
2 Manufacturing growth was at a standstill in 2014, as the US / China / Europe stemmed
the flow of unprofitable, cheap exports and the eurozone wrestled with the Portuguese
/ Greek / Irish debt crisis.
3 A record lowering of interest rates / dramatic rise in global trade / decrease in
commodity prices pushed factories across the world to
their highest output for decades during November 2017.
4 The effect of Donald Trump’s tax cuts is to raise
business / consumer / business and consumer
confidence levels over the next year.
5 Oil prices have risen sharply to more than $ 60 / 50 / 70
a barrel from a low point below $40 in 2016.
6 The IMF highlighted unemployment in the eurozone / Brexit / the weak dollar as a
possible drag on the prospects for growth, along with high levels of global debt.

The Observer January 2018

Our financial and economic world to their highest output

Some joy for the
business world in 2018
The consensus view among
economists is that the global
economy will put in a strong
performance in 2018, carrying
on its strong momentum
from 2017. However, that
does not mean that every
sector and every company
will have a trouble-free year.
specialists predict the big for decades during November.
stories in 2018. It is a trend that forecasters
expect to continue in 2018.
A good year overall … Donald Trump’s tax cuts,
which were pushed through
The International Monetary Congress at breakneck speed,
Fund (IMF) recently upgraded are another shot in the arm
its forecast for global growth – even if the only effect is to
to 3.7%, to reflect the return raise business and consumer
to health of manufacturing in confidence levels in 2018.
most of the developed world Oil prices have risen
and China. sharply to more than $60 a
Manufacturing growth barrel from a low point below
was at a standstill in 2014, as $40 in 2016, but analysts
China stemmed the flow of expect further rises to be
unprofitable, cheap exports muted, allowing growth to
and the eurozone wrestled continue without an increase
with the Greek debt crisis. in fuel costs putting on the
2017 was more buoyant. A brake.
dramatic rise in global trade The IMF highlighted Brexit
pushed factories across the as a possible drag on the

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prospects for growth, along debt. But with stock markets the year, the picture remains
with high levels of global hitting new highs at the end of quite rosy.

B How did stock markets fare in 2017 and how do you think they will fare in 2018?
Read the next part of the article and check your ideas.

…but shares might ease off
After a year of booming stock
markets around the globe,
commentators are virtually
unanimous in predicting that
returns in 2018 won’t match
those of 2017. The S&P 500
surged 20% last year to a new
record high, the Dax index in
Germany jumped 13% and, in
Paris, the market was up 10%.
The FTSE 100 also reached of the tech boom of 1999-00.
record territory, moving Wall Street, by contrast, has
above the 7,600 level for risen 75% since then.
the first time just before
Christmas. But its year-on-
year gain is only 7%, reflecting
widespread concerns over
Brexit, the economy and
feeble wage growth. It
remains only a few per cent
above its previous high of
nearly 7,000 in the final days

B Discuss these questions and then read the final part of the article and check your
ideas:
1 How much will US corporation tax be in 2018?
2 What will the US top tax rate be?
3 How much will the poorest Americans benefit annually from the tax cuts?
4 What percentage of the globe’s richest people are in the US?
5 How many Americans are officially in poverty?
6 The bottom 50% of the global population take 10% of the world’s income. How much
do the top 1% take?

of the 20th century – will calculates that 62% of the

Global wealth gap to widen
The gap between the super-
rich and everyone else –
which is already at the widest
it has been since the turn
continue to widen in 2018
as rich Americans benefit
from Donald Trump’s “big,
beautiful Christmas present”
tax cuts. This month, the
US president celebrated
achieving Congress’s approval
for “the largest tax cut in our
history”.
Corporation tax will be
slashed from 35% to 21%,
and the top tax rate cut from
39.6% to 37%.
The Tax Policy Center
benefits of the tax changes
would go to the richest 1%
of Americans. The poorest
Americans, who don’t earn
enough to benefit from the
tax cuts, will benefit by about
$60 a year – a 0.4% income
boost. The top 0.1% can
get their annual incomes to
increase by about $190,000
on average – or a 2.7%
increase.
The US is already the
world’s most unequal society,

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with four out of five of the
globe’s richest people and 41
million officially in poverty,
according to the US Census
Bureau.
The World Inequality
Report, produced by French
economist Thomas Piketty,
warned this month that
unless there is globally
coordinated political action to
increase taxes on the super- the global bottom 50% share
wealthy, the richest-of-the- could fall from 10% to less
rich will continue to “capture” than 9%.”
more and more of the world’s
income at the expense of the
poor.
“The global top 1% income
share could increase from
nearly 20% today to more
than 24% by 2050,” the
report said. “In which case,

b Which of the predictions do you think will happen?

V Discuss the meaning of these words from the article and then use them to complete
the extracts below:
tax cut wage growth returns global debt
stock markets exports output sector

1 However, that does not mean that every _______________ and every company will
have a trouble-free year.
2…as China stemmed the flow of unprofitable, cheap _____________ and the eurozone
wrestled with the Greek debt crisis.
3 A dramatic rise in global trade pushed factories across the world to their highest
__________________ for decades during November.
4 The IMF highlighted Brexit as a possible drag on the prospects for growth, along with
high levels of ________________________.
5 But with _____________________ hitting new highs at the end of the year, the picture
remains quite rosy.
6 …commentators are virtually unanimous in predicting that _____________ in 2018
won’t match those of 2017.
7…reflecting widespread concerns over Brexit, the economy and feeble __________
______________.
8 This month, the US president celebrated achieving Congress’s approval for “the
largest _________________ in our history”.

V Write sentences of your own with the words.

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E What does the highlighted expression in this extract from the article mean?

The Observer January 2018

...allowing growth to continue without an increase in fuel costs putting on the brake.

There are a number of car-related idioms in English. What do you think these mean?

1 run out of gas

2 blow a gasket
3 test drive
4 down the road
5 shift gears
6 be in the driver’s seat

V Now match them to these definitions:

___ lose one’s energy, enthusiasm, etc. / falter for lack of impetus, ideas, capital, etc.
___ some time in the future
___ try (something) in order to determine its qualities
___ change pace
___ be in control
___ explode with anger

V Complete these sentences with the idioms above:

1 They decided to ___________________________ the project when they saw that the
government planned to introduce new regulations.
2 When we told him we didn’t like his suggestions, he ________________________.
3 We need to ________________ the new system before we know if it will work for us.
4 James works well when he is _______________________, but not when other people
are giving the orders.
5 One day I will be able to play tennis every day, but that’s a long way _______________.
6 The economic recovery seems to be _________________________________, which is
not good news.
7 The film is slow in the beginning, but then ___________________ and there is a lot of
action.
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week of 15.01.18
Teacher’s notes 1 student pages 4 mid-intermediate+ (B2+)
V Discuss the meaning of these words from the article and then use them to complete
the extracts below:
1 sector
2 exports
3 output
4 global debt
5 stock markets
6 returns
7 wage growth
8 tax cut

E What does the highlighted expression in this extract from the article mean?
put the brakes on (something) = stop or slow something down

V Now match them to these definitions:

1 lose one’s energy, enthusiasm, etc. / falter for lack of impetus, ideas, capital, etc.
4 some time in the future
3 try (something) in order to determine its qualities
5 change pace
6 be in control
2 explode with anger

V Complete these sentences with the idioms above:

1 put the brakes on

2 blew a gasket
3 test drive
4 in the driver’s seat
5 down the road
6 running out of gas
7 shifts gears