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CCTV Script 28/2/13

This is the script of CNBC's news report for China's CCTV on February 28, 2013.

Welcome to CNBC business daily.

The rally continued on Wall Street, after Fed Chief Ben Bernanke reassured markets yet again that the central bank will continue to support the economy.

In his second testimony before a congressional committee, Bernanke defended the Fed's buying of bonds to keep interest rates low to boost growth.

Bernanke also said that he's not expecting unemployment to come down to the Fed's target range of 6% until 2016.

And some analysts say that it's still too soon to stop the flow of easy money.

[Sound on tape by Kumar Palghat, Founder & Director, Kapstream: I don't think that the Fed is contemplating on removing liquidity over the next 12 -18 months. I think it's too early.]

[Sound on tape by Dominic Schnider, Head of Commodity Research, UBS Wealth Management: Inflation is not about how much liquidity you've thrown in but how much you drain, and at what speed.]

Meantime in a note to investors, Bill Gross, Founder and Co-Chief Investment Officer of PIMCO, said that the Fed's ongoing quantitative easing has "somewhat exuberantly and irrationally priced" corporate credit and high-yield bond markets.

Speaking to CNBC earlier, Gross said that investors need to scale-back their expectations for big returns.

[Sound on tape by Bill Gross, Founder and Co-Chief Investment Officer of PIMCO:Those that are expecting double digit types of returns going forward are bound to be disappointed. So where can we expect the highest returns going forward with the relatively least amount of risk? I think in foreign countries to some extent. I think in emerging markets, I think in countries like Mexico, where their economy's growing at 4% and their interest rates are at 5.5% to 6%. I think in countries like Brazil.]

But one analyst told us that perhaps we should take Gross' advice with a pinch of salt.

[Sound on tape by Bill Smead, CEO & CIO, Smead Capital Management: His organization is maybe one of five or six of what we call "brilliant pessimists". And as a group, we say that they produce "rational despair". They're all looking at macro economic stuff, and they're trying to figure things out based on macro economics, and while they're worrying about that, outstanding companies are producing great results, raising dividends; and common stock investors in U.S. large caps are doing terrific.]

And over in the White House, President Barack Obama will hold last ditch talks with congressional leaders on Friday, the day that 85 billion dollars in automatic budget spending cuts are due to take effect.

Speaking to the U.S. business council, the President warned of the impact.

[Sound on tape by Barack Obama, President of the United States: This is going to be a big hit on the economy. And both private as well as public sector economists are estimating that we could lose as much as 6/10th of a point, maybe a little bit more of economic growth. And that means inevitably hundreds of thousands of people who are not going to get jobs that otherwise would get them.]

But are concerns of the sequester overblown?

[Sound on tape by Jon Burnham, Chairman and CEO, Burnham Asset Management Corporation: I think that we should assume that Mr. Obama's warnings are going to happen.]

[Sound on tape by Bob Baur, Chief Global Economist, Principal Global Investors: I think there are other dates to worry about besides March 1. There's a continuing resolution on March 27th that will end, and that gives the government the authority to continue spending money.]

[Sound on tape by Ralph Silva, Research Director, SRN Research: They can actually make it retroactive for as long as they want, they just have to sit down and vote on it.]

Li Sixuan, from CNBC's Asia headquarters.

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