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CCTV Script 09/05/13

This is the script of CNBC's news report for China's CCTV on May 9, Thursday.

Welcome to the CNBC Business Daily.

Inflation picked up in China last month. April CPI jumped to 2.4 percent from 2.1 percent in March. Food prices rose 4 percent from a year earlier, quickening from a 2.7 percent rise in March.

And our next guest says that the reading is not too much of a concern for now.

[Sound on tape by Stephen Schwartz, Chief Economist for Asia, BBVA: We think the economy has slowed down, there's not a lot of pressure on the demand side; food prices have been quite volatile. We do think during the course of the year inflation will drift up, probably to 3 percent by the middle of the year and to around 3.5 percent to 3.8 percent by the end of the year, just skirting with the government's tolerance level - that's 3.5 percent.]

Meantime, deflationary pressures continue to build up at Chinese factories.

[Sound on tape by Jackson Wong, VP, Tanrich Securities: The PPI number was pretty worrisome that means that a lot of industries or manufacturers are not making any profits from this value chain of the GDP. Going forward, we might see lower inflation but for now a lot of companies are not making any money.]

[Sound on tape by Adrian Mowat, Chief Asian and Emerging Markets Equity Strategist, JP Morgan Securities (Asia Pacific) Limited: Heavy industry in China is struggling to get any pricing power, normally when CPI is above PPI that's actually quiet good for margins, if you're a consumer facing company, but the problem with the Chinese equity market it tends to be more heavy industries rather than consumer facing companies.

[Sound on tape by John Woods, Chief Investment Strategist, Citi Private Bank: The slowdown that we are seeing, is more structural in form and character than cyclical, to that extend if we look at the PMI, if we look at the PMIs all round Asia, we can see a gradual moderation.]

The weak PPI reading comes as the country's economic recovery continues to lose steam. First-quarter growth came in at 7.7 percent, down from a 7.9 percent gain in the final quarter of last year.

Speaking to CNBC earlier, Nouriel Roubini, Chairman at Roubini Global Economics warned that the slowdown could get worse.

Have a listen.

[Sound on tape Nouriel Roubini chairman, Roubini Global Economics: China's slowing down again. They've not rebalanced their way from fixed investment to consumption, they are going to do it too slowly. I'm worried by next year China's growth slows down to 6 percent. That's close to a hard landing.}

Li Sixuan, from CNBC's Asia headquarters.

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