CCTV Script 21/10/13
— This is the script of CNBC's news report for China's CCTV on October 21, Monday.
Welcome to the CNBC Business Daily.
With the debt ceiling out of the way, the market will now turn its attention to the US earnings season. Heavyweights McDonald's, Caterpillar and Amazon.com are all due to report this week. According to a Reuters poll, earnings growth on the S&P 500 is expected at 2.1% in third quarter, compared to July's 8.5%
Markets will also be watching out for a deluge of data, much of which was delayed as a result of the government shutdown. Job numbers due out tomorrow is expected to give some indication of when the Fed will start to taper. Analysts polled by Reuters expect the US economy to have added 180-thousand jobs in September, with the unemployment rate steady at 7.3%.
Meanwhile, US Treasury Secretary Jack Lew spoke to NBC's David Gregory about the impact of the Shutdown.
[Package on tape. NBC reporter David Gregory interviews US Treasury Secretary Jack Lew]
Lew: There are going to be people looking through the details of the economic data for weeks and months to come, both in government and out of government. We did see our borrowing costs go up in the short term. We know that from the shutdown, there was a loss of economic activity. I can't give you a number today of what is another direction. The direction is that it took an economy that was fighting hard to get good economic growth going, to create jobs for the American people, and it took it in the wrong direction. Our job in Washington is to move things in the right direction. This one was a little bit scary because it got so close to the edge. And I think that what I heard from them was that they have confidence in our economy. Much as the business people I talk to have confidence in our economy. I think what we need to do here in Washington is to go from the coming together on Wednesday night where we saw a strong bipartisan majority do the right thing, and make progress from there. Show that we can work together.
Gregory: So one more economic question. A lot of Republicans are crowing about the fact that whatever drama was here, whatever crisis atmosphere was here, that the sequester cuts have been locked in place, these automatic spending cuts that have kept spending down at an historic level. Do you think that that has hurt the economy, hurt economic growth, the fact that we've had this lower spending level?
Lew: You know, David, I think there's no question that the deep spending cuts that are part of sequestration are holding back the economy. There are competing ranges, whether it's a half percent or more, up to a percentage of GDP. The president's made clear that we think you should replace some of the sequestration cuts with sensible balance, entitlement, and tax reforms that put us in the right direction for the future.
Gregory: Look, the ObamaCare fight is not going away. It is law. Republicans say they will not stop fighting. And the rollout, the exchanges, getting people enrolled has been very, very difficult.
Lew: Well, David, first, let me say that the huge outpouring of interest shows how important it is that we get this right. There are millions of Americans who want health insurance. It's important for our economy for them to have health insurance. I think that there's no one more frustrated than the president at the difficulty in the website. I can tell you most people around me have been working full time on solving the more immediate challenges with getting the government open and dealing with making sure we didn't default. There are people working 24 hours a day, around the clock. And the H.H.S. has said it's going to be putting out information on a monthly basis. H.H.S. has got plans to fix this and it has to fix this. It has to be done right.
Gregory: Can ObamaCare survive in its current form if the systems are not improved for delivery of the care and the insured?
Lew: The test is going to be in January, how many people are enrolled and what the quality of service that they're getting. I think that if we get that right, everyone will regret that the early weeks were choppy on the website. But the test is are people getting coverage and are they getting the care that they need. And we're confident we're going to be on track to do that.
Li Sixuan from CNBC's Singapore headquarters.