CCTV Script 08/10/13
— This is the script of CNBC's news report for China's CCTV on October 8, Tuesday.
Welcome to the CNBC Business Daily.
America's fiscal deadlock continues into its 7th day. Investors now a lot more worried about the impasse. Triple digit losses on the dow overnight. The dollar slumped to multi-month lows and the VIX fear gauge index jumping to its highest level since June. Republicans vowed not to raise the debt ceiling unless discussions are held on what is driving debt. Meanwhile, Democrats say that not increasing the debt ceiling was irresponsible and reckless.
The last big confrontation over the debt issue was in August 2011. That standoff ended with an 11th hour deal. So we will see history repeat itself? And what does all this mean for markets? Here are some views from our analysts:
[Soundbyte on tape by David Dietze, President, Point View Wealth Management: We're urging our clients to take a long term view because defaulting on the debt is so unthinkable, the consequences would be so severe that it just cannot happen, so it won't happen. Remember this is a situation where it can be resolved by just two politicians, maybe just Mr. Obama and Mr. Boehner picking up the phone and talking to one another This is not a meltdown of a nuclear facility or bombs from overseas. This is something that can be resolved by political will and it will be resolved. Earnings need to come through to sustain this mkt. That's the bad news. The gd news is that you're talking about the fourth quarter being very strong, but I am worried about some anciliary fallout from this government shutdown. What will companies be saying about the fourth quarter?
[Soundbyte on tape by Clay Carter, Head of International Equities, Perennial Investment Partners: We're sort of holding our fire. If mkts do trade down on headline risks, i suspect we'd be tempted to add - take it as a buying opportunity rather than running the other way. That's how we're positioned 100734
[Soundbyte on tape by David Zier, CEO, Convergent Wealth Advisors: The market is basically telling us that it will be resolved quickly. You would want to be buying. This is a buying opportunity. The market is only down about 4% since the shutdown. That is telling you that the market is expecting this to be resolved quickly. And I think when it does, the markets are really going to take off.
Li Sixuan, CNBC's Singapore headquarters.