CCTV Script 06/05/13
This is the script of CNBC's news report for China's CCTV on May 6, Monday.
Welcome to the CNBC Business Daily.
It will be a light week for data as the earnings season runs into home stretch.
Walt Disney is the only Dow component reporting this week, along with a string of notable S&P 500 firm's including Priceline.com and Tysons food.
Of the 404 companies that have reported earnings so far, 68% have beat analysts' expectations. That's above the 67 percent average for the past four quarters.
A positive jobs report last week sent U/S stocks to a record high, so can the rally continue?
[Sound on tape by Kingsley Jones, Founder & CIO, Jevons Global: We think that with this market strength, the right thing to do right now is to be rotating some within the sectors. There's room for this rally to continue, but we're probably into some seasonal softness going into the second half of the year.]
[Sound on tape by Paul Bloxham, Chief Economist for Australia and New Zealand: I think it's quite possible that equities have a overrun a little bit. I think that's not unreasonable, given we haven't seen it in the economic data but you've also got to keep in mind that equities of course, these prices are forward looking. The idea of it is to be discounting what's happening in the future. So it does really tell you that the markets still believe that an improvement likely to come.]
While the U/S job recovery races ahead, things are looking a lot bleaker in Europe.
On Friday, the European commission issued its spring economic forecast. And while normally Europe is quite passive in their approach to jobs- this time, E.U Economic and Monetary Affairs Commissioner Olli Rehn took a different tone.
Vowing to do "whatever it takes" to overcome the jobs crisis. But already the jobless rate is at a record - 12-point-1 percent. Meaning more that 19 million euro zone citizens are out of work.
So how much worse will things get across Europe?
[Sound on tape by Klaus Baader, Chief Economist, Asia Pacific, Société Générale: We think its probably going to get worse for quite a long time. The European Commission of course revised down its forecast and clearly with the negative growth this year, you can expect unemployment to continue to go up, and employment to continue to shrink. And even on the basis that the forecast that the European Commission has, which is growth of just over 1% in 2014, it's going to be very difficult to get growth.]
Staying in Europe, markets will be looking at the Bank of England's policy meeting on Thursday. A survey by Reuters shows that chances of a rate cut by the Bank of England is slim.
Closer to home the Reserve Bank of Australia meets for its policy setting meeting tomorrow. Analysts polled by Reuters expect the central bank to keep rates on hold at 3 percent.
Li Sixuan, from CNBC's Asia headquarters.