The language of financial reports

What is a financial report?

A financial report is a news report about the economy and business. A financial reporter will often speak about how well or badly companies are performing, and the effect of business performance on a country’s economy.

1. Read the following extracts by financial reporters. Identify which is ...
   
   1. a financial news report.
   2. an interview with a financial reporter.
   3. an introduction to a longer economic report.
   
   a) For a decade, the roar of the tiger economies* has mesmerised many in the West and terrified many more. While European economies lurched from anaemic growth to recession, Thailand, South Korea, Hong Kong and Singapore soared from strength to strength. But now, everything seems to be changing. Almost half of Thailand’s banks have gone bust. In Malaysia, the stock market has plunged by a quarter this year amidst fears that the economy could fall next.
   *The ‘tiger economies’ is the name given by Western countries to the strong economies in the East, such as Thailand and Singapore.
   
   b) It’s been another Black Monday on stock markets around the world and tonight the government is being asked to call off the sale of BP*. The price of BP shares has fallen so much that the companies which were underwriting the sale have gone to the government. In stock exchanges in Tokyo, Hong Kong, New York and London, billions have been wiped off the value of shares.
   *British Petroleum
   
   c) When we hear business reports, even if we don’t understand every term being used, the language is very exciting – things like ‘plummeting stocks’ and ‘rocketing stocks’. The language is very strong and exciting.
   
2. In extract a) is the news good or bad for the ‘tiger economies’?
3. In extract b) is the news good or bad for the world economy?
4. In all three extracts there are phrases which are used to talk about prices rising and falling.
   Identify two verbs in passages a) and c) for talking about increases and decreases in prices. Identify two adjectives in passage b) for talking about falling prices.
   

Answers

1. 1. b) 2. c) 3. a)
   
2. Bad news: The economies of these countries were successful but now things are changing.
3. Bad news: The price of BP shares has fallen very far. This means that stock markets in Tokyo, Hong Kong, New York and London have lost a lot of money.
4. a) soar / plunge
   b) shares have fallen / billions [of dollars] have been wiped off the value of shares
   c) plummeting / rocketing

The language of financial reports
In financial reports, many of the words and phrases used to describe a company’s success or failure are very dramatic.

Rising and falling: The rising and falling of prices is often described using verbs which relate to flying. Describing prices as soaring – extract a) – and rocketing – extract c) – gives the impression that prices are going up very quickly, like a bird or a plane. Similarly, verbs such as plunge and plummet give the impression of very rapid falling. These verbs are used to create a feeling of excitement and speed, and to reflect how quickly the economy of companies and countries can change.

Doing well or doing badly? When businesses or economies lose money, the losses are often reported using phrasal verbs (verb + preposition). This more informal language can be very dramatic. In these extracts, we hear that banks have gone bust – that is, they have lost all their money. In the same way, money is wiped off the value of shares. Often, we hear that companies are completely wiped out. Using these phrasal verbs gives the impression of a violent loss of success, and makes the listener feel that the developments are very dramatic.

Listening task
When you next listen to financial report on the radio, try to focus on the way the successes and failures of companies are being described. How many different ways can you identify of saying ‘Prices have risen’ or ‘Prices have fallen’?