CCTV Script 28/08/13
— This is the script of CNBC's news report for China's CCTV on August 28, Wednesday.
Welcome to the CNBC business daily.
Fears of a Syrian military intervention added to lingering concerns over QE tapering, hurting market sentiment. Western leaders came out in force to condemn last week's alleged chemical weapons attack in Syria.
(Sound on tape by Francois Hollande, French President: The chemical massacre in Damascus cannot be left without a response and France is ready to punish those who took the despicable decision to gas the innocent.
(Sound on tape by David Cameron, British Prime Minister: This is not about getting involved in a Middle Eastern war or changing our stance in Syria or going further into that conflict. It's nothing to do with that, it's about chemical weapons, their use is wrong and the world shouldn't stand idly by.)
So what impact will a potential Syrian intervention have on the price of oil and how would that play out in the stocks markets?
Here's what some analysts told us.
(Sound on tape by Hugh Johnson, Chairman & CIO, Hugh Johnson Advisors: There's so much uncertainty, and it's not just an abstract event. The rise of the price of oil may not be due to a change, or even the threat of a change in supply and demand conditions. Let's not forget, thre's a lot of speculation that goes on in the futures market, which can drive the price of oil. And as I say, that's not abstract, because that over time, will affect the economy of Europe and the economy of the United Sates.)
(Sound on tape by Vasu Menon, Vice President, Wealth Management Singapore, OCBC Bank: If oil prices go to $120 or $130, obviously it's going to hurt the developed world, it's going to hit the emerging markets, and stock prices will pull back even further.)
(Sound on tape by Tim Riddell, Head of Global Markets Research, Asia, ANZ: It depends on the impact thru Arab region. Syria isn't a key oil producer but the impact it might have if tension expands. We already had russia and iran saying that they are against any military action. If that then triggers, then reducing their flow of oil into the mkt. That's gonna have a big impact. The Russian side, i think, we need to give an eye on it, going into Sep. G20 meeting. So its a very trigger time for that meeting to be taken place.)
(Sound on tape by Adam Hewison, President & Chief Strategist, INO.com: Well certainly, $115-$120 is definitely on the horizon Bernie. Technically, we see that happening, we've been v bullish on oil and that's worked out well for us. We see no reason, now that we've broken the $109 level, why it can't go to $115 or $120. It just dpds on the unknown - that is Syria.)
Meantime, the Arab League is calling last week's chemical attack in Syria a "heinous crime", but hasn't yet thrown its support behind military intervention. Still, regional involvement is expected to be critical to any international response.
CNBC's Hadley Gamble spoked exclusively with influential Egyptian politician and businessman, Naguib Sawiris who weighed-in on the issue.
Have a listen.
(Sound on tape by Naguib Sawiris, Founder of Free Egyptians Party and Executive Chairman of Orascom Telecom:Yes, certainly. I think he crossed the line - he was just stupid to argue that. Look even if he didn't use the chemical weapons , 1,300 people dying in one day. What do you call that? Is it important whtehere they died by gas, chemicals or by govt forces being shot? Is that okay? 1,300 people died. The problem in Syria right now is actually just that - we want to help the people escape a dictatorship that is for sure, but for right now, but under no-way the fantatic, terroristic elements that operate right now in Syria should be given the reign. Either these forces go back to normality and understand that this is going to be a real democratic liberal society par western models because we are no less than the west and we deserve to have a real democracy too and we don't deserve to have a Taliban type of government.)
Q: But the west doesn't have a very good track record when it comes to dealing with sectarian disputes?
(Sound on tape by Naguib Sawiris, Founder of Free Egyptians Party and Executive Chairman of Orascom Telecom: Not only that, I agree with you totally. Look at Iraq, it is a mess today.We're casually living with news like 3 bombs in Baghdad 60 people died, 2 bombs in Baghdad 80 people died, one bomb in Baghdad 50 people died - daily news, so we have Iraq - a mess. Libya total mess. Benghazi is now the HQ for al queda and they're sympathisers, Libya is a mess. Egypt - actually Egypt stands up to be the best in terms of all this turmoil - so the next mess is in Syria for sure.)
Li Sixuan, CNBC