Business News

CCTV Script 21/03/13


This is the script of CNBC's news report for China's CCTV on March 21, Thursday.

Welcome to the CNBC business daily.

Cyprus banks will remain closed until next week as Cypriot leaders hammer out a deal to meet EU bailout requirements.

CNBC's Christine Tan sat down with Peter Sands, CEO of Standard Chartered, and asked about his views on the developments on the island.

[Sound of tape: Sands: Well I think they're good reminders that the problems in the Eurozone - despite the positive moves in the markets - haven't really gone away. There are still some fundamental and quite big issues of competitiveness and financial sustainability in the weaker countries in the Eurozone. Cyprus is the most dramatic example, but I think it's is a salutary reminder that the world hasn't suddenly got massively better. Yes, the tone and momentum seem to be encouraging but these issues still remain.

Tan: Do you see the situation in Eurozone getting worse before it gets better?

Sands: I think it's difficult to know. In some way, it has already got better and not least due to the actions of European Central Bank. And in a way, Cyprus isn't new news. The fact that Cyprus needed to be resolved is something that was well-known. The precise dynamics of how it is resolved are clearly new news. Cyprus in the scheme of the Eurozone is maybe quite big symbolically but actually very small from an economic scale point of view. I think the bigger issues will be around the progress of Italy, Spain, and have they address the issues they face.

Tan: What do you make of this move to impose a bank levy on depositors in Cyprus?

Sands: Well I think we're in unchartered territory with some of the measures that are being taken in the same way that we've been in unchartered territory with a lot of monetary policy initiatives of different central banks around the world. And the full consequences of these actions - the unintended consequences are quite difficult to work out.]

Li Sixuan, from CNBC's Asia headquarters.