Universitatea Petre Andrei din Ia i Facultatea de Economie Specializarea: Management i Opera iuni Bancare

How the growth of emerging markets will strain global finance

Coordonator stiintific:
Lect. univ.dr. Raluca Stoica

Student:
Sauciuc Andreea

Master, An II

Content

1. Identifying specialized words 2. Article : Assessing banks confidence after the crisis in Europe 3. Romanian translation and learning specific terminology

1. Identifying specialized words

1. GDP produsul intern brut 2. Inflation - inflatie 3. direct investment investitii directe 4. Cash balances solduri de numerar 5. The capital market - piata de capital 6. financial markets- piata financiara 7. stock market - bursa de valori 8. The highest saving rates rata de economisire 9. household investment rate rata de investitie 10. the global economy - economie globala 11. Capital flows - fluxuri de capital 12. investment boom Boom-ul de investitii

2. Article : Assessing banks confidence after the crisis in Europe

In tough times, people rely on change - not only in politics and leaders, but also in terms of their own pockets. The global economic crisis has not thrown trillions of dollars on headlines, but he emphasized how consumers have changed their attitude toward money. Apparently, coins, the smallest currency units are in great demand. According to Eurostat data, the Romanian GDP per capita stood at 46% of the EU average in 2010. Inflation in 2010 was 6.1%. Unemployment in Romania was at 7.6% in 2010, which is very low compared to other middle-sized or large European countries such as Poland, France and Spain. Since 2000, Romania has attracted increasing amounts of foreign investment, becoming the single largest investment destination in Southeastern and Central Europe. Foreign direct investment was valued at 8.3 billion in 2006. According to a 2011 World Bank report, Romania currently ranks 72nd out of 175 economies in the ease of doing business, scoring lower than other countries in the region such as the Czech Republic.

Cash balances means account balance that represents cash alone, as distinct from an account balance that includes money owed but as yet unpaid. The capital market includes the stock market (equity securities) and the bond market (debt). Money markets and capital markets are parts of financial markets. The highest saving rates were recorded in Switzerland, Germany, Slovenia, Austria and France. The lowest were observed in the Baltic countries and in the United Kingdom. In 2007, households invested, mainly in dwellings, a higher proportion of their disposable income in the euro area and EU than in the US. Among European countries, the highest household investment rate was recorded in Ireland and the lowest in Sweden. During the 2000-2007 period, the largest rises in the household investment rate were recorded in Ireland, Estonia, Latvia and Spain. A decrease was observed in Germany, Austria, Portugal and Slovakia. In the case of the United States, the household investment rate rose before 2005 and then fell. If the global economy is indeed "rebalancing", then relative to disposable income the big spenders (US, UK) raise saving, while the big savers (Germany) increase spending. In contrast, if the global economy is returning to the pre-crisis "status quo", then relative to disposable income household saving rate would: fall in the US and UK and rise in Germany. The end result of this drive to liberalise capital accounts in immature emerging economies was a series of booms and busts, culminating in financial crisis. Capital flows into emerging markets turn out to be less a diversification of assets, more another instance of investment herding, especially within regions, where market allocation was propelled less by differences between countries in their fundamentals (including good or bad policy) than by push factorsmacro push factors like the amount of excess liquidity in different parts of the core zone of the world economy; and micro push factors like the incentives on institutional money managers and the corresponding drive to match the benchmark weightings devised by pension fund consultants, many of knew nothing of the various underlying markets. Money managers tend to be evaluated relative to the median performance of money managers in the same asset class. This encourages them to move in and out of markets together, producing herding or trend chasing or positive feedback trading and the crisis of 1997/98 was a textbook illustration of that phenomenon.

The biggest investment boom of recent decades will help boost expansion worldwide about 4 percent this year and next, compared with a long-run average of just below 3 percent, according to Michael Saunders, Citigroup Inc.s chief European economist. International Monetary Fund data show investment will top 24 percent of global gross domestic product in 2012, the most in more than two decades, and then rise above 25 percent, the highest since records began 30 years ago.

3. Romanian translation and learning specific terminology

1. Global capital markets - Piata de capital reprezinta ansamblul relatiilor si mecanismelor prin intermediul carora capitalurile disponibile si dispersate din economie sunt dirijate catre agenti economici sau catre orice entitati publice si private solicitatoare de fonduri. Existenta pietei de capital este determinata de cererea de capital pentru necesitati curente de trezorerie si pentru investitii si, totodata, este conditionata de un proces real de economisire ca fundament al ofertei de capital. Piata de capital leaga emitentii hartiilor de valoare cu investitorii individuali si institutionali prin intermediul brokerilor. dealerilor si al societatilor de intermediere a tranzactiilor cu valori mobiliare. 2. The gross domestic product (GDP) - Produsul Intern Brut = Valoarea tuturor bunurilor si serviciilor finale, produse intr-o economie intr-o anumita perioada de timp. Acest indicator este folosit pentru a masura activitatea economica dintr-o tara. 3. capital flows = fluxuri de capital= Deplasarea, trecerea sub diferite forme a unor fonduri banesti dintr-o tara intr-alta ca o consecinta a efectuarii operatiunilor de decontare, imprumuturi, transferuri bancare etc. 4. direct investments = Investitiile directe sunt definite ca proprietatea directa sau indirecta a unei entitati straine de a detine cel putin 10% din actiunile cu drept de vot ale unei ntreprinderi. O investitie directa straina poate nsemna o achizitie, o fuziune, o noua fabrica, extinderea fabricii sau o absorbire. 5. Financial markets = pia a financiar , mai mult sau mai pu in dezvoltat , exista in orice economie de piata i reprezint locul unde se ntlne te oferta cu cererea de fonduri financiare. Pia a financiar este format din urmatoarele componente: piata bancara (sau pia a creditului), piata titlurilor financiare (sau pia a financiar n sens restrns)si piata asigur rilor. 6. stock market - bursa de valori Institutie publica cu personalitate juridica ce asigura conditii pentru efectuarea tranzactiilor de valori mobiliare (actiuni, obligatiuni, warante, optiuni, contracte futures). Bursa asigura intalnirea dintre cei ce au nevoie sa fie finantati si cei ce au capacitatea de a finanta sau au disponibilitati banesti. Atat cererea cat si oferta de capitaluri nu se

exprima direct direct la bursa de catre purtatorii lor, ci de catre intermediari - agenti de bursa sau societati bursiere, in exclusivitate. In fapt este o piata secundara. 7. Investment boom - n teoria i practica actual se au n vedere ca faze tradi ionale ale ciclului economic: expansiunea sau boom-ul economic, ce caracterizeaz tendin a general de cre tere a investi iilor, a produc iei, a gradului de ocupare a for ei de munc , a salariilor i profiturilor etc. i depresiunea ce se caracterizeaz prin tendin a general de ncetinire i sc dere a investi iilor, a ocup rii, a produc iei, a profiturilor i salariilor, a consumului etc 8. budget deficits - deficit bugetar - Suma baneasca cu care cheltuielile (platile) depasesc veniturile (incasarile). Deficitul poate fi: - deficit bugetar, adica suma cu care cheltuielile bugetare depasesc veniturile bugetului, - deficit al balantei comerciale (sold pasiv), atunci cand valoarea importului depaseste pe cea a exportului, - deficit al balantei de plati (sold pasiv), atunci cand platile depasesc incasarile valutare in relatiile unei tari cu celelalte la un moment dat. 9. public debt - datorie publica- Datoria publica reprezinta totalitatea sumelor imprumutate de catre autoritatile publice centrale si locale de la persoane fizice si juridice pe piata interna si in strainatate si ramase de rambursat la un moment dat.Aceasta se calculeaza si se gestioneaza separat pe cele doua forme ale sale, respectiv datoria publica interna si datoria publica externa. 10. national income - venit national - expresia baneasca a partii din venitul national destinat consumului individual si repartizata celor ce muncesc proportional cu cantitatea si calitatea muncii depuse.