Online Class Notes (Nicholas)

Review the grammar corrections and review the pronunciation.

Grammar

Apple’s sales is not as well as before in China / Apple’s sales are not doing as well as before in China

They cannot sell more their products / They cannot sell more of their products

They don’t like to loan money from bank / They don’t like to borrow money from the bank / The bank loans money to them.

Working and life balance is very important / Work-life balance is very important to me.

…just save money for your children, the life will be boring / If you just save money for your children, your life will be boring.

I’ve traveled to several place / I’ve traveled to several places

I liked there / I liked it there / [I enjoyed my time there]

When I go there (Paris) / When I went there

Vocabulary

ripples / little waves in water after a stone is thrown into the water / the effects of something

e.g. When Apple said they were doing poorly in China, this had ripples (effects) in the world economy.

to amplify / to make louder / to make more serious 

e.g. If you speak into a microphone then your voice is amplified.

e.g. If all of the news organizations and all of the news reporters start talking about Apple’s problems, the problems become amplified.

sank / slumped / fell / dropped / these all mean “to go down”

credit card / bank card from the bank where they loan you money that you have to pay back with interest

e.g. Americans are addicted to credit cards and it’s a very bad habit.

you’ve been to a lot of places “it seems” / it looks like / it sounds like

e.g. If you tell me something, and “it sounds like” something or I am drawing a conclusion based on what you are saying…it’s like I’m putting 1 and 1 together…then I can say: “Oh it seems like you are saying this…”. You are saying something and I am trying to understand the real meaning.

the speed of life / the pace of life

Pronunciation

dropped / DROPPED / not DROPP-ED

fell / F-ELLE / not FEEL

world / WURL-D / not WORD

“Apple’s slowdown in China ripples through global financial markets”

Global markets shuddered Thursday after Apple said China is buying fewer iPhones, amplifying fears that the world’s second-biggest economy is fading.

Apple chief executive Tim Cook pointed to the unforeseen “magnitude of the economic deterioration” in China, the world’s largest smartphone market.

Apple shares sank 10 percent, and the Dow Jones industrial average dropped 660 points, or 2.8 percent, to close at 22,686.

The Standard & Poor’s 500-stock index slumped 2.5 percent, and the technology-heavy Nasdaq composite fell 3 percent. The Nasdaq dipped into bear territory, which is at least 20 percent below its most recent peak.

Stocks steered lower after a disappointing manufacturing report from the Institute for Supply Management — with the largest one-month drop since 2008.

Nine of 11 S&P 500 sectors were in the red, with technology leading the way down. Real estate and utilities hung on to positive territory.

Apple was the biggest drag on the Dow — 29 of 30 components were down. Microsoft, Intel and Cisco were all hit hard on their exposure to China. Boeing, Caterpillar and United Technology were down. Only Verizon ended in positive territory.

Asian and European markets were reeling from the Apple announcement, down across the board. The German Dax and the benchmark index in France both traded more than 1.5 percent lower.

Kevin Hassett, chairman of the White House Council of Economic Advisers, said there is more pain in store until the United States and China resolve their trade differences.

“It’s not going to be just Apple,” Hassett said in an interview on CNN. “There are a heck of a lot of U.S. companies that have sales in China that are going to be watching their earnings being downgraded next year until we get a deal with China.”

China’s weakening economy gives President Trump the upper hand in trade negotiations and “puts a lot of pressure on China to make a deal,” Hassett said.

“If we have a successful negotiation with China, then Apple’s sales and everybody else’s sales will recover,” he said.

Gold hit a six-month high, signaling that investors were heading to safe havens in anticipation of difficult times ahead. Oil prices were rallying on indications that Saudi Arabia is making good on production cuts promised last month.

The 10-year treasury yield has fallen to 2.55 percent, down from 3.24 percent less than two months ago, another sign that investors are piling into safe assets.

“This is certainly a confirmation of a slowdown in global growth,” said Sam Stovall, chief investment strategist for CFRA. “But it does not answer the question whether it will lead to a global recession.”