GO
Loading...

CCTV Script 15/10/13

This is the script of CNBC's news report for China's CCTV on October 15, Tuesday.

Welcome to the CNBC Business Daily.

As the US Government shutdown enters its 14th day.

CNBC's John Harwood looks at ongoing attempts to negotiate a debt settlement.

All the eyes of Wall Street, the White House, and House of Reps have been on the Senate today, where Democrat leader Harry Reid and his Republican counterpart Mitch O'Connell have been negotiating a deal to re-open the government and lift the threat of default which Treasury said could come as early as the end of this week. Both men went on to the Senate floor this afternoon and said their talks are looking good.

[Soundbyte on tape by Senate Majority Leader Harry Reid] Constructive good faith negotiations continue bet the Republican leader and me. I'm optimistic we will reach an agreement that's reasonable in nature this week.

[Soundbyte on tape by Senate Minority Leader Mitch O'Connell] We've had opportunity over the last couple of days to have constructive exchanges of views on how to move forward. Those discussions continue and I share his optimism.

Here's the way Reid and O'Connell are closing the gap. They're talking about re-opening the government with a spending bill that will last through mid-January.

That's not as long as the Republicans wanted. They wanted lower spending levels to last for a longer period of time while Democrats want to raise those levels in Budget talk that will occur right after that agreement's been passed.

On the debt limit, there will be an extension through the middle of February.

Democrats wanted longer to provide more of a cushion for government before the debt ceiling but again, Republicans wanted the pressure on. They want a shorter one.

There will not be major changes to ObamaCare. The idea of delaying the medical device tax is now off the table. There will be strengthened income verification provisions for those who receiving ObamaCare subsidies, and a delay in the tax that labor unions rejected in ObamaCare. Both of those are minor provisions.

The real question is going to be once Mitch O'Connell lays that out for his members on Tuesday morning US time, it's going to be how quickly the Senate passes it, and what does the House do.

The real question is: "Does John Boeher, the House Speaker, who's got tremendous pressure to resist from Tea Party members on a potential deal like this - does he put it on the floor or allow it to pass?" The bets are on.

House Republicans I spoke to tonight said that John Boeher would put it on the floor because Mitch O'Connell wouldn't send him something that enough Republicans couldn't support.

So there is a rising optimism here about a deal that would avert a potential US default? That would be a relief for markets not only in the US, but also around the world. Back to you. We'll continue to monitor the situation.

Li Sixuan from CNBC's Singapore headquarters.

Contact Business

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More