CCTV Script 10/17/13
— This is the script of CNBC's news report for China's CCTV on October 17, Thursday.
Welcome to CNBC's business daily.
It came down to the final hours, and we now have a deal. Both chambers of Congress passed a bill that will keep the government funded till January 15th, and raise the nation's borrowing limit till February 7. But many Republicans are vowing that the fight against Obamacare isn't over so expect another deadlock early next year.
However, the real damage may already be done. Ratings agency S&P says the shutdown will shave at least 0.6 percent off fourth quarter U.S. GDP.
So how should investors weigh the balance between a deal done and weaker growth?
Take a listen to what the analysts had to say:
[Soundbyte on tape by Hamish Pepper, Forex Strategist, Barclays] I think the theme is, there is some question over whether the Fed will taper asset purchases in December. Our core view is that that will still happen, and that will support the USD into the end of the year. However, it's no surprise to be saying that the risks around that are now much higher.
[Soundbyte on tape by Barry Dawes, Head of Resources at Paradigm Securities] The USD is weakening at the moment, as it does not need to be a safe haven any more. And if you look at the flow of funds, there's money coming out of the bond market, which has been rallying for 30 years and is now very, very risky relative to the reward. So we don't need to be in the bond market anymore, we don't need to be in the USD anymore, we need to be in risk assets and in commodities.
[Soundbyte on tape by Brendan Brown, Head of Research, Mitsubishi UFJ Securities International] When we look forward, this Budget deal doesn't create certainty, it creates certainty because of the whole political aspect. There's going to be a growing spotlight on whether Obama and the Democrats gt control of the House and go ahead with their agenda.
[Soundbyte on tape by Jeffrey Cleveland, Senior Economist, Payden & Rygel] 120710 The optimist in me, wants to tell you that we've averted a default here in the US, that we're still the world's reserve currency, that we're improving slowly on the economic front. But the pessimist in me wants to tell you that this is just a delay. The battle may be over, the war is not and we are lurching from one fiscal crisis to another in this country. And right around maybe late January, early February, we'll be having this conversation again, and not much has really fundamentally changed.
So it looks like the fight on Capitol Hill is far from over.
For CNBC, I am Chloe Cho in Singapore.