CCTV Script 6/11/2013
— This is the script of CNBC's news report for China's CCTV on November 6, Wednesday.
Welcome to the CNBC Business Daily.
Latest forecasts out of the European Comission show that while the 18-member Eurozone economy has narrowly avoided a recession, it is set to grow at a paltry 1.1 percent next year.
Public debt is expected to peak at 95.9 percent of GDP next year before falling slightly in 2015, while the unemployment rate is set to remain at a record high of 12 percent.
The weaker forecasts come on the back of poor private sector demand and investment, and will raise the stakes on the ECB as it prepares to meet on Thursday to decide whether or not to lower interest rates.
And European Commission President Jose Manuel Barroso says he's looking to Europe's heartland for help:
[Soundbyte on tape by European Comission President Jose Manuel Barroso]
Stronger economies paying for the weaker economies is not the answer. What we do need, in contrast, is the correction of existing macro-economic imbalances, notably in the Euro area. This is where Germany by its own legitimate interest can give a contribution.
While interest rates are currently at a record low of 0.5 percent, a Reuters poll of 23 traders concluded that the ECB was unlikely to act.
So where is Europe headed? Here's what the analysts had to say:
[Soundbyte on tape by Jonathan Pain, Author, 'The Pain Report']
I think we're seeing some genuine recovery in the manufacturing sector. We're seeing that for example in Spain, and other of the more adversely affected peripheral Eurozone economies. So in essence, what we saw in 2011 and 2012 was really devastating right across the Eurozone - unemployment at stratospheric levels, and we're now beginning to see some recovery into 2014.
[Soundbyte on tape by Brendan Brown, Head of Research, Mitsubishi UFJ Securities International]
There has been a degree of Euro irrational exuberence in the last few months. European stock markets have been where a lot of hot money has been going, and you've seen the German stock market persistently out perform both the Japanese and US stock markets. So yes, in terms of global asset price inflation, Europe is very much in the forefront. But interestingly, because of this new speculation that the ECB might cut rates or ease policy, the German stock market has been staying up. So we haven't actually seen any sobering of expectations reflected in the stock markets as yet.
[Soundbyte on tape by Sean Callow, Senior Currency Strategist, Westpac Bank]
The ECB tends to take a very long time to get moving, to agree on a rate cut. It's already half a percent, so really, you're asking, do they have one more for this entire cycle? And I think Draghi would prefer to rely on guidance that rates will remain low for an extended period, and there will not be any rate hike any time soon. I don't think it will come as soon as this meeting.
Li Sixuan, from CNBC's Singapore headquarters.