CCTV Script 17/09/13
– This is the script of CNBC's news report for China's CCTV on September 17, Tuesday.
Welcome to the CNBC business daily.
FOMC officials will meet for two days to decide whether or not to start reducing their $85 billon a month quantitative easing program. This as US factory output surged to a six-year high last month - a further indication that the US economy is finally back on track.
So will we see the Fed dial down QE at this meeting? We asked our panel of experts, and this is what they had to say. Have a listen:
[Soundbite on tape by Peter Schiff, Euro Pacific Capital, CEO:The recovery that supposedly has laid the foundation for the tapering is built entirely on a foundation of housing and stock-related wealth, which is a function of cheap money. So when the Fed takes away that cheap money, or even threatens to, then all that phony wealthy disappears and we're right back in recession.]
[Soundbite on tape by Jack Ablin, ABN BMO Private Bank, Executive VP & Chief Investment Officer: I will say that the concern most related to Summers was the spectre of the unknown. Here was a man who likely wanted to leave his personal imprint on the Fed, and so perhaps would have taken an outsized policy, or turned the Fed in a different direction. And I think that tthat caused some concern amongst investors.]
[Soundbite on tape by Kenny Polcari, O'Neil Securities, Director: I do believe though, that equities are where they are because there's been so much QE. I don't think they should have done it the last time they launched it. I think housing is where it is because of easy money that's gone on. We've seen rates go up one percentage point to 4.5 or 4.75 and housing's already coming under pressure in some of the major areas. Areas where prices are still relatively high. ]
[Soundbite on tape by David Rodriguez, Quantitative Strategist, DailyFX: On the one had you have the ECB who is keeping monetary policy very accomodative, on the other, you have the Fed who's keeping the system pumped full of money. At the end of the day, what's really driving the currency? Well, not much, and that basically explains why the euro has remained unchanged in 2013. So the next step is going to be key. I think it's pretty clear that the Fed is first to tighten before the ECB basically on the same trajectory, that's a key reason to be bullish USD against the euro over the medium to long term. ]
Thanks for watching. I'm Adam Bakhtiar, reporting from CNBC's Asia Headquarters in Singapore.