CCTV Script 09/10/13
— This is the script of CNBC's news report for China's CCTV on October 9, Wednesday.
Welcome to the CNBC Business Daily.
The White House says U.S. President Obama plans to nominate Janet Yellen as the next Fed Chair to succeed Ben Bernanke. Yellen, of course, is the Fed's current Vice-Chairwoman, and if the Senate confirms her nomination, she'll be first female Fed chief ever. She's also been a strong supporter of easy-money policies. So already there's plenty of speculation on whether this could mean further delays to taper the central bank's bond-buying program.
Her appointment comes as politicians in the Washington DC continue to bicker over the US debt ceiling. Republican House Speaker John Boehner has called for the White House to come to the table, but President Barack Obama has said that he will not negotiate while the US economy is being held to ransom.
So what impact will Yellen's appointment have on the debt debate? Here's some views from our analysts:
[Soundbyte on tape by Keith Fitz-Gerald, Chief Investment Strategist, Money Map Press] Clones don't tend to do a lot of original thinking. Futures are reacting positively, their reaction is somewhat muted to this point, but tomorrow could be quite an interesting day on the US markets if Yellen is received as well as I think she may be. Washington et al are acting like a bunch of petulant children and it's really a shame because they're playing chicken in a game of currencies that's really got global implications at this point. Yellen I expect to step up, to continue, maybe even to accelerate the QE because somebody's going to have to clean up this mess, and right now, the Fed's the only one that's potentially got the power.
[Soundbyte on tape by Anantha Nageswaran, CEO, Vansight Pte] You guys were discussing Janet Yellen's assured candidature. She is somebody who doesn't worry about bubbles, but focuses on output and employment. But bubbles do eventually create adverse consequences for output and employment too. So I think the US Fed Reserve has created monster that it cannot really put back into the bottle.
[Soundbyte on tape by Nick Verdi, Director, FX Strategy Asia Pacific ex-Japan, Barclays] I don't think there is a big Yellen trade but a good demarcation line to trade is the run up to the debt ceiling resolution on October 17th. I think that in the run up to that, the dollar could strengthen so it could continue with the trend that we've seen today. Currencies that are leveraged to the USD, like the MXN, the BRL, the CAD, and the KRW will underperform. But once we do get a resolution, I think that once we get that positive news, together with a dovish Fed, could give risk assets a positive run into year's end.
Li Sixuan, from CNBC's Singapore headquarters.