GO
Loading...

CCTV Script 22/05/13

This is the script of CNBC's news report for China's CCTV on May 22, Wednesday.

Welcome to the CNBC Business Daily.

No surprises from the Bank of Japan as it keeps rates unchanged. The central bank upgraded its view of the economy for the 5th straight month amid signs of a pick-up. But one analyst told us that the whole exercise was pretty much a non-event.

[Sound on tape by Andrew Freris, Chief Investment Advisor for Asia, BNP Paribas Wealth Management: They are going to say exactly the same thing they said last time. I would be very surprised if they said something else. Whether the economy can continue to grow on a real footing basis, depends of course on the extent and degree of structural changes. Presumably, this will be seen after the July election and potentially after the next budget initiatives, which is likely to happen before the end of the third quarter.]

The yen remained in a tight trading range immediately after the BOJ decision. But could we see the Japanese currency weaken further? Here's one view.

[Sound on tape by Rob Ryan, Director of Asia-Pacific Market Strategy, RBS: I think at this stage dollar-yen, certainly in the medium term at least, is pretty much a story about US rates rather than domestic factors. It's going to be a while before we get data out of Japan that will confirm or deny the success of Abenomics.]

Meantime, the Aussie dollar softened after data showed that consumer confidence fell sharply in May. The AUD has been on a slide against greenback in recent weeks. So is the downward momentum here to stay?

Take a listen to some expert views.

[Sound on tape by Gareth Berry, FX Strategist, UBS Investment Bank: The Australian dollar has had an enormous fall over the last two weeks. We haven't seen anything like this in quite some time, we're back below parity for the first in a year or so. So although we have seen the USD advance right across the board, the Aussie has been particularly vulnerable to this.]

[Sound on tape by David Greene, Senior Corporate Foreign Exchange Dealer, Western Union Business Solutions: There's so much uncertainty at the moment, everyone's trying to grab at something to get some sort of idea as to where to next.]

[Sound on tape by Andrew Freris, Chief Investment Advisor for Asia, BNP Paribas Wealth Management: The Aussie has collapsed below one, and we collectively feel that this is a wild exaggeration.]

And of course all eyes will be glued to Ben Bernanke as he heads to the hill. Investors will be looking for clues on how soon QE could end. But our next guest says that the Fed's stimulus measure will likely be in place for some time to come.

Here's why.

[Sound on tape by Gareth Berry, FX Strategist, UBS Investment Bank: I think we've gotten ahead of ourselves, of course QE 3 tapering will happen eventually but we don't expect it to happen until Q1 of next year. The markets are about six months ahead of where they need to be.]

Chloe Cho, from CNBC's Asia headquarters.

Contact Business

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More*