Translate the article into Russian in writing. The march of the zombies
The march of the zombies
China’s huge exports of industrial goods are flooding markets everywhere, contributing to deflationary pressures and threatening producers worldwide.
China’s surplus capacity in steelmaking, for example, is bigger than the entire steel production of Japan, America and Germany combined. Rhodium Group, a consulting firm, calculates that global steel production rose by 57% in the decade to 2014, and Chinese mills accounted for 91% of this increase. In industry after industry, from paper to ships to glass, the picture is the same: China now has far too much supply in the face of shrinking internal demand. Yet still the expansion continues: China’s aluminium-smelting capacity is set to rise by another tenth this year and around two billion tonnes of gross new capacity in coal mining will open in China in the next two years.
China’s grotesque overinvestment in industrial goods is a very big problem. This binge has left many state-owned firms vulnerable to slowdown, turning them into profitless zombies.
Chinese industrial firms last year posted their first annual decline in aggregate profits since 2000. Returns on assets of state firms, which dominate heavy industry, are a third those seen at private firms, and half those of foreign-owned firms in China.
The roots of this mess lie in China’s response to the financial crisis in 2008. Officials subsidize money indiscriminately at state firms in infrastructure and heavy industry. The resulting overcapacity creates even bigger headaches for China than for the rest of the world.
The good news is that the Chinese have publicly recognized there is a problem. The bad news is that three of the tacks they are trying only make things worse.
One option is for China’s zombies to export their overcapacity. But even if the Chinese keep their promises not to devalue the yuan further, the flood of cheap goods onto foreign markets has already exacerbated trade frictions. Another approach is to keep stimulating domestic demand with credit. But borrowing more as profits dive will only worsen the eventual reckoning for zombie firms. A third policy is to encourage consolidation among state firms. Some mergers have happened—in areas such as shipping and rail equipment. But there is little evidence of capacity being taken out as a result.
Chinese leaders are dancing around the obvious solutions—stopping the flow of cheap credit and subsidized water and energy to state firms; making them pay proper dividends rather than using any spare cash to expand further; and, above all, closing down unviable firms.
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The Economist, February 27th, 2016
USEFUL TERMS AND EXPRESSIONS
· toflood –наводнить, захлестнуть, хлынуть потоком
· deflationary pressure –дефляционное давление
· surplus capacity –избыток производственных мощностей
· binge –бум, разгул, резкий рост
· aggregate profit –суммарная, совокупная прибыль
· returnonassets –рентабельность, доходность активов
· to subsidize -финансировать
· indiscriminately – беспорядочно, без разбора, все без исключения
· heavy industry –тяжелая промышленность
ant. light industry -легкая промышленность
· to devalue –обесценивать, девальвировать
· to exacerbate - усугубить, обострить
· trade frictions –торговые разногласия
· reckoning –расплата, расчет
· consolidation –объединение, консолидация
· unviable –нерентабельный, неэффективный, нежизнеспособный
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Translate the article into Russian in writing.
Less Growth Prompts First U.S. Services Job Cuts Since 2014
Growth in U.S. service industries slowed for a fourth straight month in February, prompting the first job cuts in two years.
The Institute for Supply Management’s non-manufacturing index eased to 53.4 from 53.5 in January, the Tempe, Arizona-based group’s report showed Thursday. While readings above 50 signal expansion, the gauge has posted slower growth since November.
Services industries, which range from construction to finance, account for the lion’s share of the economy, and a slowdown risks taking a bigger bite out of growth than the slump in manufacturing. Continued job growth and signs that the recovery remains on track despite market volatility will be needed to convince consumers to keep spending and provide a much-needed boost.
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The ISM’s factory survey released on March 1 indicated the decline in manufacturing had found a bottom. Details from the services survey showed the employment index declined to 49.7 from 52.1 in January, indicating companies last month started cutting staff, perhaps in response to the turmoil in financial markets.
While services are still outperforming manufacturing, momentum seems to have shifted to the latter as factories show nascent signs of recovery. It may simply be a matter of time before the pendulum swings in the right direction for service companies as well, according to Tom Simons, a money-market economist at Jefferies LLC in New York.
Services are “just sort of lagging the trends we saw in manufacturing,” Simons said before the report. “The cumulative weakness in manufacturing will probably still have a drag on the service sector for the next few months.”
A rebound in consumer spending would go a long way in supporting services, and there are signs the pickup may already be under way. Household purchases in January climbed by the most in eight months, fueled by faster earnings growth.
Yet, it’ll take sustained improvement in the labor market to persuade consumers that it’s still safe to spend.
http://www.bloomberg.com/news/articles, March 3rd, 2016
NOTES
ISM Non-manufacturing Index - an index based on surveys of more than 400 non-manufacturing firms' purchasing and supply executives, within 60 sectors across the nation, by the Institute of Supply Management (ISM) – индексделовойактивностивнепроизводственнойсфере, составленныйнаосновеопросовменеджеровпозакупкамипоставкам
USEFUL TERMS AND EXPRESSIONS
· topost –объявлять, предоставлять информацию
· take a bite –значительно уменьшать
· turmoil –кризис, паника, хаос
· momentum –импульс, динамика, сила, активность
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· nascent –зарождающийся, появляющийся, образующийся
· moneymarket – рынок краткосрочных долговых обязательств (краткосрочного ссудного капитала)
· cumulative –суммарный, совокупный, накопленный
· a drag –сдерживающий фактор, тормоз
· tobeunderway – происходить, проводиться
· togoalongway – принести большую пользу, добиться многого, значительно способствовать
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