FreeEnglishLessons

Monday, August 1, 2011

English Lessons

Asian shares fell on Tuesday on concerns about a downgrade of the United States credit rating and economic worries after sluggish manufacturing data, while the yen gave some gains on jitters over the possibility of intervention by Bank of Japan.

An 11th hour deal to raise the U.S. debt ceiling cleared its biggest hurdle in the House of Representatives, staving off the prospect of a calamitous default but failing to allay fears Washington could still lose its coveted triple-A credit rating.

The FTSE CNBC Asia 100 Index [.FTFCNBCA Loading... ()] , which measures markets across Asia, fell 1.3 percent.

Japan's Nikkei benchmark fell 1 percent, hurt by weak U.S. manufacturing data and worries about a possible cut to the United States' credit rating but heightened risks of intervention in currency markets by Japanese authorities lent support.

The benchmark Nikkei [.N225 Loading... ()] shed 1.1 percent to 9,855.21 after hitting an intraday low of 9,830.12, erasing gains made the previous day. The broader Topix fell 0.8 percent to 845.25.

Shares of Tokyo Electron fell 6.2 percent after the world's No.2 supplier of chipmaking equipment cut its annual forecast by half on Monday, hit by slowing investment by makers of chips used in PCs, smartphones and tablets.

Seoul shares lost ground following a weak finish on Wall Street. The Korea Composite Stock Price Index (KOSPI) [.KS11 Loading... ()] was down 1.4 percent at 2,141.81.

Shares in STX Group companies gained after a media report on possible limits to foreign investment in the bid for a $2.3 billion stake sale in Hynix Semiconductor. STX Corp jumped 6 percent and STX Offshore & Shipbuilding surged 6.5 percent.

Imarketkorea dropped by the intraday limit of 15 percent after its parent Samsung Group announced it would sell a combined 58.7 percent stake in the firm.

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Australian shares fell 1 percent by mid-day after data showed a slowdown in manufacturing growth in emerging and developed economies alike, and local building approvals took and unexpected fall in June.

Global miners BHP Billiton dropped 1.9 percent, Rio Tinto fell 1.5 percent as metal prices fell. Copper posted its biggest one-day loss in two months on Monday.

Coal miner Macarthur Coal was flat at A$15.85. The firm stoked the fires of takeover speculation on Tuesday, saying it remained in "positive" talks with bidders Peabody Energy [BTU Loading... () ] and ArcelorMittal as well as unnamed rival suitors.

The benchmark S&P/ASX 200 index [.AXJO Loading... ()] fell 47.6 points to 4,450, reversing part of Monday's 1.7 percent gain. New Zealand's benchmark NZX 50 index slipped 10.3 points to 3,403.57.

Hong Kong shares opened lower, weighed by Industrial and Commercial Bank of China (ICBC) [1398.HK Loading... ()

] after Goldman Sachs [GS Loading... () ] offered up to $486 million of shares to help a client hedge its position in the bank.

The Hang Seng Index [.HSI Loading... () ] dropped 0.6 percent at 22,532.8 points.

China shares fell, tracking losses on Wall Street overnight, with sentiment hurt by nagging worries about a slowing domestic economy and high inflation. The Shanghai Composite [.SSEC Loading... ()] slid 1.3 percent at 2,670.09.

Finally, in Southeast Asia, Singapore's STI [.FTSTI Loading... ()] slipped 0.9 percent.

Did the Seoul shares lost ground following a weak finish on Wall Street. The Korea Composite Stock Price Index (KOSPI) [.KS11Loading...()] was down 1.4 percent at 2,141.81?

A. TRUE.
B. FALSE.

Did the Hang Seng Index [.HSILoading...()] dropped 0.6 percent at 22,532.8 points.

A. TRUE.
B. FALSE.

English Lessons

DIRECTIONS: Read the following and answer all the questions?http://www.americanenglishconversation.com/
http://www.freeenglishconversation.blogspot.com/
http://www.grammar-help.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/

Traders work on the main trading floor of the New York Stock Exchange July 29, 2011. …

NEW YORK (Reuters) - Stocks are likely to face more selling pressure next week as the Tuesday deadline draws near for raising the U.S. debt ceiling and Washington remains paralyzed by political brinkmanship.

Anxiety over the debt crisis sent the S&P 500 lower for five straight days, resulting in the worst week and month for the benchmark index since August. The CBOE Volatility index, Wall Street's "fear index," rose more than 40 percent for the week, its biggest jump since early May.

With four days before the United States loses its ability to borrow, U.S. President Barack Obama on Friday told Republicans and Democrats to stop bickering and find a way "out of this mess.

"Right now, overall the market is being totally driven by the debt situation, whether it is in Europe or the U.S.," said Rick Bensignor, chief market strategist at Dahlman Rose in New York.

The deadline for raising the U.S. debt ceiling has investors on edge. Volatility, currently at its highest since the earthquake in Japan, can be expected to increase as time runs out.

"You've got individual stocks that can make significant moves but the market itself collectively is being pushed and pulled by every headline and how the wind is blowing out of Washington at any given moment."

The recent slide has also put stocks in a precarious position from a technical perspective as the S&P 500 index moves closer to its 200-day moving average, a level which could bring about additional selling if the index breaks below it.

The benchmark index successfully bounced off the level on Friday after the early morning decline.
"That is the line in the sand that really divides things going maybe bad -- to things really turning bad," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
"If we take that out next week -- man, I'm not neutral, I'm short."

Even if a deal is struck, the possibility remains the United States could lose its prized triple-A credit rating if the terms are not stringent enough to satisfy credit rating agencies.

"You are definitely going to get the downgrade by S&P," said Ken Polcari, managing director at ICAP Equities in New York.

"You are still waiting on what the ultimate deal is going to be and it's just not going to be what everybody expects, so you are going to see disappointment in the markets."

Investors can still find some solace in corporate earnings. According to Thomson Reuters data through Friday, of the 327 S&P 500 companies that have posted earnings, 73 percent have reported results higher than analysts' expectations.

Companies expected to report earnings next week include Kraft Foods Inc, Clorox Co, Pfizer Inc and Prudential Financial Inc.

"Individual stocks, especially after earnings are trading on their own accord and you are seeing moves of 5 to 10 percent sometimes after earnings come out," said Bensignor.

But added pressure is coming from economic data, with the latest revision of gross domestic product showing the U.S. economy stumbled badly in the first half of 2011 and came close to contracting in the January-March period.

The flagging data offers little hope next week's data -- including July's employment report -- can turn the tide of the pressure.

"I don't think the market is pricing in very much for the possibility we don't get a debt deal done, given how bad the economic data has been," said Michael Marrale, managing director and head of sales trading at RBC Capital Markets in New York.

"Put it this way, putting all the debt deal concerns aside, the market would probably be here anyway."

As investors asses the debt ceiling debate, slowing economic data and corporate earnings, they must remain prepared for any developments from the simmering debt crisis in the euro zone, which could further heighten investor angst.

"There are two things I keep my eye on -- one on Washington and one on Brussels, because between the two of them you never know which headline risk is going to hit you over the head next," said Mendelsohn.

English Lessons

Can Obama Really Use The 14th Amendment To Raise The Debt Limit?

Here is the scenario that is becoming all too possible-

It is Tuesday morning, August 2^nd 2011. The Boehner Bill to raise the debt limit has gone down to instant defeat in the Senate. In turn, the Reid Bill, assuming it was not filibustered out of existence in the Senate, has been defeated in the House.

Meanwhile, Minority Leader McConnell, who has refused to negotiate a resolution with Senate Majority Leader, Harry Reid, meets with the president but nothing is going anywhere.

It is do or die day.

The President appears to have two choices – he can allow the nation to default and then instruct the Treasury Department to pick and choose which of the nation’s bills we will pay, or he can raise the debt ceiling on his own relying on Section 4 of the 14^th Amendment.

While the Supreme Court has yet to rule on what the President’s power might be when it comes to usurping the powers of Congress so as to avoid the catastrophe of defaulting on our credit obligations, the highest court in the land has ruled on whether or not the executive branch can pick and choose which bills it will pay and which bills they will not.

According to SCOTUS, the President does not have the power to make these choices.

Writes UCLA Law Professor Jonathan Zasloff, an expert in this area of the law,

In Clinton v. New York, the Supreme Court struck down the line-item veto, arguing that the President is not allowed to pick and choose among provisions of a duly enacted piece of budget legislation even if Congress has given him to power to do so.

Keep in mind that raising the debt ceiling is about allowing for the payment of obligations already authorized by Congress. It’s not about having more money to spend on future government expenditures or programs. Rather, it is permitting the President to borrow enough money to pay the bills created when Congress authorized certain payments, thus requiring the President, by law, to make those payments.

As a result of Clinton v. New York, the Treasury not only does not have the Constitutional right to decide which of the bills previously authorized by Congress it will or will not pay, even the Congress is not permitted to tell the President what bills he should and shouldn’t pay or give him a general authorization to make those choices.

Thus, it would appear clear that were the President to instruct the Treasury Secretary to start picking the winners and the losers, he would be acting in direct contravention of the Supreme Court’s ruling and, as such, would be using his powers in an unconstitutional manner.

So, if the President wishes not to run afoul of Clinton v. New York, his only remaining choice would be to claim the Constitutional power to act in order to forestall a national catastrophe and choose to raise the debt ceiling on his own.

I can hear some of you wondering who gets to decide what is and what is not a catastrophe? You're thinking that just because Obama says it is a catastrophe doesn't mean it actually is a disaster. Indeed, according to Rep. Michele Bachmann and others, nothing bad is going to happen if we default come Tuesday night.

However, there are enough economists out there, not to mention a majority of the nation if the polls are to be believed, to support the notion that default would, indeed, be catastrophic. Thus, the President would likely not be nailed for improperly deeming the situation a catastrophic event just to grab some Constitutional power away from Congress.

Where Obama is more likely to get into trouble is dealing with the question of whether or not a unilateral raising of the debt ceiling is Constitutional- catastrophe or not.

So - is it Constitutional?

Your guess is as good as mine as the Supreme Court has never addressed the question.

But here is what we do know - or think we know.
Section 4 of the 14^th Amendment reads-

Section 4. The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned. But neither the United States nor any State shall assume or pay any debt or obligation incurred in aid of insurrection or rebellion against the United States, or any claim for the loss or emancipation of any slave; but all such debts, obligations and claims shall be held illegal and void.

In order to attempt to work out whether or not this grants the President the power to act without Congress in this regard, let’s look at the history behind this Amendment.

Section 4 of the 14^th Amendment was the direct result of a concern, following the Civil War, that members of Congress from states that previously formed the Confederacy would attempt to block the country from paying the bills incurred by the North during the war. After all, the Congress wasn't about to pay for the Confederacy's war bills leaving the Southern states to face their obligations on their own. This did not make the Southern caucus very happy. To insure that this would not be a problem, Congress passed the 14th Amendment and put it out to the states for ratification, making it clear that the North's bills would be paid by Constitutional requirement while the South's would expressly not be covered by the government.

While the situation then is not clearly on point with now, there are some similarities.

What you had following the Civil War was the introduction of new Congressmen from what had been the Confederacy. Obviously, they had not been a part of Congress when the appropriations were made to pay the bills of the Northern army. When they arrived, they took the position that they were not interested in honoring those commitments of a previous Congress because it was not in their interest to do so-especially when Congress was unwilling to pay the war debts incurred by these Confederate States.

That is somewhat analogous to what we have happening today in the Congress.

The debts incurred that we will need to borrow more money to pay for were authorized and appropriated by prior Congresses. Now, we have an influx of Tea Party members who do not wish to honor those obligations because they don’t like that these prior Congresses ran up these debts - just as the members of Congress arriving from what was once the Confederacy didn’t like that previous Congresses authorized payment of the costs of the Civil War for the North- but had, obviously, not authorized payment for their one-time enemy.

Thus, there would appear to be some historical precedent -if not legal precedent - that says that the debt ceiling must be raised because the Constitution requires we pay those bills that Congress has already authorized and commanded the President to pay.

So, what happens if President Obama should take this road?

The first question is whether or not the Administration caneven be sued in court, thus setting up the opportunity for the Supreme Court to review the action.

In law, there is something called having ‘standing’ to sue. Nobody can get help from any court of law if they do not have standing to bring an action in the first place.

While you might imagine that Congress and/or American taxpayers who disagree with the President’s actions would be in such a position, it is nowhere nearly as clear as you would think.

1. In order to have standing in a federal court, a plaintiff must -

(a) be able to show that the plaintiff has suffered an injury and that the injury must be actual or imminent, distinct and palpable and not distract;

(b) have a causal connection between the injury and the conduct complained of so that the injury can be traced to the actions of the defendant; and

Can anyone really say that they have been injured by the President’s deciding to pay the debts our elected officials, past or present, have already authorized and ordered him to pay?

Wouldn’t that be like saying that you have been injured by your bank when they have the nerve to ask you to pay your mortgage pursuant to a contract you previously signed but now have decided that you don’t care to pay going forward?

If you think that, by being a taxpayer, you have standing to sue the President for spending your money, think again.

The Supreme Court has consistently ruled that- except in cases where taxpayers have challenged that the government has allocated funds in a way that violates the Establishment Clause of the First Amendment-the conduct of the federal government, when it comes to spending your tax dollars, is too far removed from the taxpayer to constitute an ‘injury’ for purposes of determining standing.

Oh well. Surely, Congress can sue for us, right?

Not so much. Congressional Members have typically failed in efforts to sue an Administration as Courts have ruled that Members of Congress lack the standing to do so just as taxpayers do as discussed above.

So, what happens?

Probably nothing happens.

While there is a chance that a loud cry will arise in the House of Representatives calling for the impeachment of the President for violating the Constitution, a cry that might lead to a vote of impeachment in that body, the Senate will never convict as a 2/3 vote is required to do so and there aren’t enough Republicans to make that happen.

Either way, if the Congress fails to reach an agreement on raising the debt ceiling that the President is willing to sign, the President will find himself in the position of having to choose between two actions, each presenting difficult questions of Constitutionality.

Talk about being stuck between a Ba-rack and a hard place.

Clearly, anyone who wants to be President of this country in the times we live in should have his or her head examined.

Did a trucker who stepped outside his tractor trailer to urinate was killed when the vehicle lurched forward and struck him alongside a Vermont highway on Friday, police said?
A. TRUE
B. FALSE

Was there Either way, if the Congress fails to reach an agreement on raising the debt ceiling that the President is willing to sign, the President will find himself in the position of having to choose between two actions, each presenting difficult questions of Constitutionality?
A. TRUE
B. FALSE

English Lessons

Monday, July 25, 2011

English Lessons

DIRECTIONS: Read the following and answer all the questions?
http://www.americanenglishconversation.com/
http://www.freeenglishconversation.blogspot.com/
http://www.grammar-help.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/
WASHINGTON (Reuters) - French Finance Minister Christine Lagarde is set to be named the IMF's new chief on Tuesday after the United States and leading emerging markets endorsed her, maintaining Europe's grasp on the top job.
The International Monetary Fund's 24-strong board was meeting to go through the formalities of picking a successor to former IMF Managing Director Dominique Strauss-Kahn, who resigned in May to defend himself against charges of sexual assault against a New York hotel maid.
Lagarde, 55, is expected to get the majority of support from IMF member countries guaranteeing her win over Mexico's Central Bank Governor Agustin Carstens and making her the first woman to lead the global institution.
Assuming she gets the official nod, Lagarde will have to immediately deal with an IMF-EU effort to keep debt-stricken Greece afloat and focus on potentially thorny IMF "spillover reports" that analyze the economic and policy actions of the world's major economies.
Brazil said on Tuesday it would back Lagarde, a surprising decision given most countries in Latin America support Carstens.
With support from major emerging powers Brazil, China and Russia already clear, the United States moved to cement Lagarde's victory with an early morning statement.
"Minister Lagarde's exceptional talent and broad experience will provide invaluable leadership for this indispensable institution at a critical time for the global economy," U.S. Treasury Secretary Timothy Geithner said in a statement.
"EXCEPTIONAL TALENT"
The race has been one of the most hotly contested succession battles in IMF history as emerging market nations expressed displeasure with the 64-year tradition of having a European head the IMF and an American lead its sister institution, the World Bank.
In the end, the lack of backing from major emerging nations sunk Carstens despite his support from Latin America, Canada and Australia.
Geithner nodded to the unhappiness among developing countries at European-U.S. dominance of the two pre-eminent international financial institutions, but noted Lagarde had won broad support. The United States, which holds the most voting power at the IMF, had refused until the final stage of the process to say who it was supporting.
"The only reason the outcome didn't match what (developing nations) wanted was because emerging market countries did not grab the opportunity," said Arvind Subramanian, a senior fellow at the Peterson Institute and the Center for Global Development think tanks in Washington.
"If China, Brazil, India and some others had thrown their weight behind Carstens, the U.S. would have been in a very difficult situation," he added.
SEARCHING FOR CONSENSUS
IMF board directors, who represent the fund's 187 member countries, want to reach a consensus decision that would let them avoid a formal vote. With Washington and major emerging markets backing Lagarde, a formal vote looked unlikely.
In a convention dating back to the creation of the IMF and World Bank after World War Two, Europe has always held the top IMF job, while the World Bank's top post has always gone to an American.
Developing countries had warned against another U.S.-European stitch-up, but some potential candidates from emerging markets decided not to step up because they did not feel they had a fair chance at the job.
Although a long-shot candidate, Carstens vigorously campaigned on his experience as a former IMF official who had first-hand knowledge of developing world economic crises.
Washington holds close to 17 percent of the vote at the IMF, while votes by Europe and other countries that have declared support for Lagarde stack up close to 50 percent.
Countries such as Egypt, Saudi Arabia, Indonesia, South Korea and French-speaking African nations early on declared their support for Lagarde.
Fears of contagion over an escalating debt crisis in Greece have played in Lagarde's favor over the last several weeks because of her political punch across Europe, IMF board officials said.
A few board directors quietly have expressed concern over an unresolved legal investigation into Lagarde's role in a 2008 arbitration payout to a French business. A top French court has put off a decision on the matter until July 8.
One way of dealing with the issue is not to offer Lagarde an IMF contract until the court has made a final decision, a board source suggested.
Lingering resentment over Europe's hold on the top job will require the new managing director to act quickly to reassure developing nations they have a stake in decision-making at the IMF.
(Additional reporting by Glenn Somerville in Washington and Luciana Lopez in Brasilia)
(Editing by Paul Simao, Jan Paschal and Andrew Hay)

French Finance Minister Christine Lagarde is set to be named the IMF's new chief on Tuesday after the United States and leading emerging markets endorsed her, maintaining Europe's grasp on the top job?
A. TRUE
B. FALSE

Lingering resentment over Europe's hold on the top job will require the new managing director to act quickly to reassure developing nations they have a stake in decision-making at the IMF?
A. TRUE
B. FALSE

DIRECTIONS: Read the following and answer the questions?
http://www.americanenglishconversation.com
http://www.freeenglishconversation.blogspot.com
U.S. consumer confidence slid in May as consumers turned more pessimistic on the outlook for the labor market and inflation worries rose, according to a private sector report released on Tuesday.The Conference Board, an industry group, said its index of consumer attitudes fell to 60.8 from a revised 66.0 in April. The reading was below economists' forecasts for 66.5.

April was originally reported as 65.4. The expectations index tumbled to 75.2 from 83.2, while the present situation index edged down to 39.3 from 40.2.

Consumers' labor market assessment was less favorable. The proportion of those who said jobs were hard to get rose to 43.9 percent from 42.4 percent the month before, although the "jobs plentiful" category also rose to 5.6 percent from 5.1 percent.

Consumers were also more negative on their view of the labor market for the next six months. Those expecting more jobs in the coming months decreased to 15.9 percent from 17.8 percent, and those expecting fewer jobs rose to 20.8 percent from 18.7 percent.

Consumers' expectations for inflation in the coming 12 months rose to 6.6 from 6.3 percent.

Consumers turned more pessimistic on the outlook for the labor market?

A. TRUE

B. FALSE

Consumers were also more negative on their view of the labor market for the next six months?

A. TRUE

B. FALSE

English Lessons

DIRECTIONS: Read the following and answer the questions?
http://www.americanenglishconversation.com/
http://www.freeenglishconversation.blogspot.com/
http://grammar-help.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/

Most Asian markets ended in the red after euro zone finance ministers delayed a final decision on extending emergency loans to debt-stricken Greece, dashing hopes for a quick solution to the political impasse.
The FTSE CNBC Asia 100 Index [.FTFCNBCA 6455.52    -48.37 (-0.74%)], which measures markets across Asia, fell 0.7 percent.
The Nikkei average ended flat, with investor caution before the Federal Open Market Committee meeting this week offsetting gains in power companies, which rose on a government official's comment to restart nuclear reactors.
Shares in power companies Chubu Electric and Kansai Electric jumped after Trade Minister Banri Kaieda said on Saturday that government inspections showed all nuclear power plants in Japan had adequate safety measures against severe accidents and called on local governments to give the green light to restarting nuclear reactors.
But, shares of Japanese game developer Sega Sammy tumbled after the firm said information belonging to 1.3 million customers had been stolen from its database, the latest in a rash of global cyber attacks against video game companies.
The benchmark Nikkei average [.N225 9354.32    2.92 (+0.03%)   ] closed at 9,354.32, while the broader Topix gained 0.2 percent to 806.83.
Seoul shares dipped as foreign investor selling continued for a third straight session, with technology issues and crude oil refiners including Samsung Electronics and S-Oil losing ground.
The Korea Composite Stock Price Index [.KS11 2019.65    -12.28 (-0.6%)   ] ended down 0.6 percent at 2,019.65 points.
Australian stocks suffered another reversal as morning gains evaporated to send the market to a fresh nine-and-a-half-month low, with doubts about the Australian economy adding to worries about a Greek debt default.
Shares in oil refiner Caltex slumped 6.9 percent after it said refining margins have dropped sharply and its first-half profit would fall by up to 39 percent.
The benchmark S&P/ASX 200 index [.AXJO 4451.70    -33.20 (-0.74%)   ] dropped 33.2 points or 0.7 percent to 4,451.7, having reached as high as 4,520 in morning trade.
China's main stock index ended down 0.8 percent in thin trade near a nine-month low on dampened by tight liquidity in the interbank market, while banks prepared to meet Monday's deadline for a hike in requirement reserve ratio.
The liquidity squeeze in China's money market makes brokerages, fund managers and wealthy personal investors unable to obtain sufficient cash for investments in stocks.
The benchmark Shanghai Composite Index [.SSEC 2621.25    -21.57 (-0.82%)   ] finished down at 2,622.6 points, the lowest level since late September 2010 and extending a 2.3 percent loss over the week last week.
Hong Kong shares gave up earlier gains to end lower as property issues floundered and a sluggish market, which looks poised to hit a nine-month low, weighed.
The benchmark Hang Seng Index [.HSI Loading...      ()   ] fell 0.4 percent to 21,599.5 with the property sub-index slipping 2.2 percent to its lowest level in a year.
Cheung Kong [0001.HK 109.20    -4.30 (-3.8%)   ] fell 3.8 percent, leading a broad decline in property counters in Hong Kong after a top government official warned of the growing risks of a property bubble in the territory.
In Southeast Asia, Singapore's STI [.FTSTI 3013.60    8.32 (+0.28%)   ] rose 0.3 percent at the finish line, while Malaysia's KLCI [.KLSE 1559.19    -4.24 (-0.27%)   ] ended 0.3 percent lower.

Most Asian markets ended in the red after euro zone finance ministers delayed a final decision on extending emergency loans to debt-stricken Greece, dashing hopes for a quick solution to the political impasse?
A. TRUE
B. FALSE

Did the benchmark Hang Seng Index fell 0.4 percent to 21,599.5 with the property sub-index slipping 2.2 percent to its lowest level in a year?
A. TRUE
B. FALSE
DIRECTIONS: Read the following and answer the questions?
http://www.americanenglishconversation.com/
http://www.freeenglishconversation.blogspot.com/
http://grammar-help.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/
NEW YORK (Reuters) Stocks edged higher on Wednesday after an upbeat outlook from FedEx as investors awaited the Federal Reserve's assessment of the economy and any clues about plans for dealing with recent weakness.
Economic bellwether FedEx Corp (FDX.N) rose 2.4 percent to $91.31, lending support to the market after the shipping group reported strong fourth-quarter profit and forecast robust 2012 earnings.
"The new news there is FedEx made noise about how the cost of doing business is going down as opposed to up. So are we starting to see some slowdown in inflation here?" said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.
The Dow Jones Transportation average (.DJT) gained 0.8 percent.
The Dow Jones industrial average (.DJI) gained 4.39 points, or 0.04 percent, to 12,194.40. The Standard & Poor's 500 Index (.SPX) put on 1.74 points, or 0.13 percent, to 1,297.26. The Nasdaq Composite Index (.IXIC) added 2.13 points, or 0.08 percent, to 2,689.39.
The Fed is likely to acknowledge weakness in the economy and reiterate its commitment to keeping interest rates low for an extended period, according to analysts.
Investors will look for clues on new measures to support the economy as the Fed's second quantitative easing program ends this month.
"(Bernanke) could surprise you, but he's certainly not looking at inflation or looking at an overheating economy. He's not looking at an economy that is so dire that he has to fire a bullet he really doesn't want to fire right now. So it's going to be the bullet is in the gun, it's ready to go if I need it, and everyone is expecting that," said Massocca.
Adobe Systems Inc (ADBE.O) slumped 6.4 percent to $29.96 a day after the software maker reported a 54 percent jump in quarterly profit but warned of weakness in European demand.
U.S. stocks advanced for the fourth straight day on Tuesday on expectations the Greek prime minister would survive a confidence vote, a key hurdle to avoiding a debt default, adding momentum to a recent rebound.
The Nasdaq posted its biggest percentage gain since October on Tuesday, while the S&P 500 marked its best day in two months in what traders see as continued short-term buying from deeply oversold levels.
Net short positions by hedge funds on the S&P 500 have recently increased, according to Societe Generale cross-asset research.
A statement from the Federal Open Market Committee is due at 12:30 p.m. EDT, followed by Bernanke's press conference at 2:15 p.m. EDT?
A. TRUE
B.FALSE
The new news there is FedEx made noise about how the cost of doing business is going down as opposed to up. So are we starting to see some slowdown in inflation here?
A. TRUE
B.FALSE
DIRECTIONS: Read the following and answer the questions?
http://www.americanenglishconversation.com/
http://www.freeenglishconversation.blogspot.com/
http://grammar-help.blogspot.com/
http://freeenglishlessons-denise.blogspot.com/
Shares of major Chinese lenders China Construction Bank and Agricultural Bank of China fell to multi-month lows on Tuesday, hit by potentially souring loans, an economic slowdown and tighter capital requirements.

AFP | Getty Images
--------------------------------------------------------------------------------

CCB [1288.HK 3.94    -0.05 (-1.25%)   ] was down 2.7 percent to a nine-month low of HK$6.43, while AgBank [3988.HK 3.79    -0.03 (-0.79%)   ] was down 3.8 percent to a four-month low of HK$3.84, versus the benchmark Hang Seng Index's [.HSI 21850.59    251.08 (+1.16%)   ] 0.4 percent rise.
"The risk of a hard landing for the Chinese economy is increasing," said Alexander Lee, a Hong Kong-based analyst at DBS Vickers. "The Japanese earthquake, a slow U.S. economy, the Eurozone problems and a slowing Chinese economy are all building up on the banking sector."
CCB is China's largest mortgage lender at a time when the government is taking increasingly heavy-handed measures to cool real estate prices, prompting Standard & Poor's to lower its outlook on the country's property sector to negative.
AgBank is the biggest lender to rural causes and has the highest non-performing loan ratio and lowest capital adequacy ratio among the big four lenders, raising worries that it may need fresh capital if the government tightens capital requirements.
Further weighing on the two stocks is the impending expiry of their cornerstone investors' lock-up period, with Bank of America [BAC 10.695    0.095 (+0.9%)   ] able to sell CCB shares from late August. Bloomberg reported on Monday that Bank of America may sell half its stake in the lender to comply with new industry capital rules.
The lock-up period for AgBank will begin expiring in July, which could lead to a large number of its shares flooding the market if cornerstone investors including Singapore's Temasek and the Qatar Investment Authority choose to sell.
"This is a known risk factor that most investors should know about," said Patrick Pong, an analyst at Mirae Asset Securities.
"These cornerstone investors may choose to sell down some of their holdings, and that may weigh on the shares in the short term."

Slowdown and Tightening
The total amount China's banks have lent compared to the country's GDP size has risen to "alarming levels", and off-balance sheet financing could lead to future asset quality problems, Credit Suisse wrote in a research report on Monday.
Much of the off-balance sheet financing is likely to have gone to local government financing vehicles companies set up by provincial or city authorities who are forbidden from borrowing directly from banks.
The country's top banks provided many of the loans as part of a giant economic stimulus programme launched by Beijing in late 2008 to counter the global financial crisis.
"There are signs of an economic slowdown in China, and we believe that this may not be just a transient problem as the situation is much more complex with structural problems," Credit Suisse analysts Vincent Chan and Peggy Chan wrote in a note on Monday.
Monetary tightening in China could further pressure the sector, with the central bank raising bank reserve ratios last week for the ninth time since October to curb inflation, which is running at its fastest pace in almost three years.
The People's Bank of China is also likely to raise its benchmark interest rate at least once more and reserve requirements at least three more times this year, a Reuters poll showed in April.
"There's an increasing number of short-term risks in the horizon, and that's something investors need to look out for," said Lee at DBS Vickers.

The lock-up period for AgBank will begin expiring in July, which could lead to a large number of its shares flooding the market if cornerstone investors including Singapore's Temasek and the Qatar Investment Authority choose to sell?
A. TRUE
B.FALSE

The People's Bank of China is also likely to raise its benchmark interest rate at least once more and reserve requirements at least three more times this year, a Reuters poll showed in April?
A. TRUE
B.FALSE
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The nations two biggest providers of reverse mortgages are no longer offering the loans, as the economics of the business have come under pressure.

Wells Fargo, the largest provider, said on Thursday that it was leaving the business, following the departure in February of Bank of America [BAC 10.68    0.08 (+0.75%)   ] , the second-largest lender. With the two biggest players gone together, they accounted for 43 percent of the business, according to Reverse Market Insight prospective borrowers may find it more difficult to access the mortgages.
Reverse mortgages allow people age 62 and older to tap what may be their biggest asset, their home equity, without having to make any payments. Instead, the bank pays the borrowers, though they continue to be responsible for paying property taxes and homeowners insurance.
But the loans have increasingly become a riskier proposition. Banks are not allowed to assess borrowers ability to keep up with all their payments, and more borrowers do not have the wherewithal to stay current on their homeowners insurance and property taxes, both of which have risen in many parts of the country. At the same time, borrowers have been taking the maximum amount of money available, often using it to pay off any remaining money owed on the home. Yet home prices continue to slide.
We are on new ground here, said Franklin Codel, head of national consumer lending at Wells Fargo [WFC 27.33    0.53 (+1.98%)   ] . With house prices falling, you reach a crossover point where they owe more than the house is worth and it creates risk for us as mortgage servicers and for HUD. He was referring to the Department of Housing and Urban Development, whose Federal Housing Administration arm insures the vast majority of these loans through its Home Equity Conversion Mortgage program.
As a result, banks are seeing a rise in what are known as technical defaults, when homeowners fall behind on their taxes or homeowners insurance, both of which are required to avoid foreclosure. According to Reverse Market Insight, about 4 to 5 percent of active reverse mortgages, or 25,000 to 30,000 borrowers, are in default on at least one of those items.
Bank of America, meanwhile, said that declining home values made fewer people eligible for reverse mortgages. So it decided to redeploy at least half of those working on the mortgages to its loan modification division, which has been criticized for failing to help enough homeowners on the brink of foreclosure.
For Wells Fargo, however, the inability to assess borrowers financial health was the biggest factor for exiting the business. Anyone over the age of 62 with enough home equity can take out a reverse mortgage, regardless of their other income. The amount of money received is determined by the borrowers age, the amount of equity in the home and prevailing interest rates.
We are not allowed, as an originator, to decline anyone, added Mr. Codel of Wells Fargo. We worked closely with HUD to find an alternative solution and we were unable to find one with them, which led to this outcome.
Reverse mortgage borrowers are required to pay premiums for mortgage insurance, which protects the lender if the homes are ultimately sold for less than the mortgage value, since the government is required to pay the difference to the lender. The premium rates were increased last October to account for declining home values (though one sizable upfront mortgage premium was eliminated to make the loans more attractive to certain borrowers).
But lenders are responsible for making tax and insurance payments on behalf of delinquent borrowers until they submit an insurance claim to HUD, at which point the agency would be responsible since it provided the insurance against default.
In January, HUD sent a letter to lenders and reverse mortgage counselors that provided guidance on how to report delinquent loans to the agency, and what steps the lenders could take to get borrowers back on track, like establishing a realistic repayment plan that could be completed in two years or less, or getting a HUD-approved mortgage counselor involved to help come up with a solution. If one cannot be reached, the lenders must begin foreclosure proceedings.
Both Wells Fargo and Bank of America have said they have not foreclosed on any borrowers to date.
The National Reverse Mortgage Lenders Association, the industry group, said it has been working with HUD to come up with procedures that would allow lenders to assess a prospective borrowers income and expenses, or at least require homeowners to set aside money to pay for taxes and insurance. A spokeswoman for HUD said the guidance is still being drafted.
As it stands now, borrowers are required to see a HUD-approved lender before they can apply for a reverse mortgage. As part of that process, consumers are educated on the nuts and bolts of how the loans work and what their responsibilities are, including that they need to be able to continue to pay taxes, insurance and keep the property in good repair.
We dont tell consumers what decision to make, but we do try to give them the tools to make a decision, said Sue Hunt, director of reverse mortgage counseling at CredAbility, a nonprofit consumer credit counseling agency. She added that their sessions last about an hour and 15 minutes, on average. The counselors also look at the consumers budget to see if it is sustainable with the mortgage, as well as what circumstances might arise that could throw the borrower off track.
Outside factors are affecting people who thought five or six years ago that they were in pretty good shape, she added. The world has changed a bit around them.
In days past, the borrower would get the reverse mortgage, and equity would continue to build, experts said, which would provide borrowers with more options like refinancing should they fall on hard times. Declining home values have changed that calculus for both bankers and consumers. Borrowers have not been able to pull out as much money. At the same time, the government has also tightened its withdrawal limits.
There were a total of more than 50,000 reverse mortgages, totaling $12.66 billion, made industrywide since last October, according to HUD.
Both Wells Fargo and Bank of America will continue to service their existing reverse mortgages. And the reverse mortgage association has said it will work with its members to ensure that senior citizens who need the loans can get them, though some experts said that less competition could increase certain fees.
There is a certain amount of the business done by Wells and Bank of America that happens because of their bank branches, brand names and large sales forces, said John K. Lunde, president of Reverse Market Insight. We would expect something more than half of their volume to be absorbed by the rest of the industry, with something less than half not happening.
Wells Fargo, which said that reverse mortgages represented 2.2 percent of its retail mortgage business, employs about 1,000 reverse mortgage workers. They are being given a chance to find other positions at the bank. Bank of America said that about half of its 600 workers have been reassigned within the bank. MetLife, the third-largest provider of reverse mortgages, declined to comment on its business.

Wells Fargo, the largest provider, said on Thursday that it was leaving the business, following the departure in February of Bank of America?
A. TRUE
B.FALSE

Wells Fargo, which said that reverse mortgages represented 2.2 percent of its retail mortgage business, employs about 1,000 reverse mortgage workers?
A. TRUE
B.FALSE