CCTV Script 14/10/13
— This is the script of CNBC's news report for China's CCTV on October 14, Monday.
Welcome to the CNBC Business Daily.
The stalemate continues in Washington, with 4 days to go before the U.S. reaches its debt limit.The focus has shifted from the House, to Senate leaders who met to try to avert a default.
[Soundbyte on tape by Senate Majority Leader Harry Reid] I had a productive conversation with the Republican leader this afternoon. Our discussions were substantive, and we'll continue those discussions. I'm optimistic about the prospects for a positive conclusion to the issues before this country today.
Both the Senate and the House will be session Monday to work through the Columbus day holiday. Yet sticking points remains on spending levels and the amount of a debt limit extension. And the deadlock has global leaders worried.
The World Bank president says the U.S. is "days away from a very dangerous moment" that would be disastrous for the both the developing and developed economies.
And IMF head Christine Lagarde, speaking to NBC's Meet the Press, warned of dire consequences.
[Soundbyte on tape by IMF Managing Director Christine Lagarde] If there is that degree of disruption, that lack of certainty, that lack of trust in the U.S. signature, it would mean massive disruption the world over. And we would be at risk of tipping, yet again, into recession.
So we will see a deal get done before Thursday's deadline? Here are some views from our analysts:
[Soundbyte on tape by George Bourbouras, CIO, Equity Trustees] As with all politicians, they always use colourful language. At the end of the day, they will do the right thing because politicians in a democracies act on self interest, and that's why they'll do it. We've been here before. They did a deal going into the new year, they've done it before and that's the reality. It's unfortunate, but the IMF and all their peers globally, are putting the right pressure on the US, until they can work out some outcome that can create some certainty for markets to move forward.
[Soundbyte on tape by David Degaris, Director & Senior Economist, NAB Global Markets Research] What we've heard over the weekend is that maybe they're putting together a deal to put together a committee to look at long term budget outlook and the debt ceiling and how that might be addressed, and report back in January, which would see the debt ceiling extended through that time period. Hopefully we'll see something on that score or some other deal announced in the next 2-3 days I suspect.
[Soundbyte on tape by Lorraine Tan, Director of Equity Research, S&P Capital IQ] Obviously it buys time in turns of putting a bit more risk back into everyone's appetite. The only thing is that you're going to get more cautious comments in terms of corporate guidance in the upcoming earnings season because of that uncertainty, and that's going to cap confidence anyway. 101157 FLASH 101252 To some extent, because of what's going on with the debt ceiling, that's really taken a lot of the focus away from the underlying earnings story right now.
[Soundbyte on tape by Michael McCarthy, Chief Market Strategist, CMC Markets] The worst part of this for markets is that this is a purely manufactured crisis. This is not unfolding events, this is not a lack of action, this is not addressing structural issues. This is purely manufactured by the politics of the situation, and the frustration of investors is enormous and it's directly hitting US credibility.
Li Sixuan from CNBC's Singapore headquarters.