CCTV Script 05/05/14


—This is the script of CNBC's news report for China's CCTV on May 5, Monday.

Welcome to the CNBC Business Daily.

The dollar index is off its highs.

But concerns about Ukraine, as well as certain niggling aspects about the jobs report, including the number of people dropping out of the labor force -- is keeping a lid on the greenback.

CNBC's Susan Li spoke to BOJ governor Haruhiko Kuroda and asked him where he thinks the U.S. economy is at.

I think at this stage it could be upside risk because in the first quarter, the U.S. economy grew very marginally. That is because they had extremely cold weather, which disrupted economic activities in the U.S. But many indicators now show that the U.S. economy is recovering in a very robust way. So that the economy will grow by 3 percent, around 3 percent, this year or next year, leading the global economic recovery. So, if anything there may be upside risks in the U.S.

Meanwhile, the resilience of Japan's economy has been a conundrum for many economists.

One month after Japan's sales tax hike, all eyes are on its impact on the recovery.

Here's what the BOJ governor Haruhiko Kuroda has to say about those concerns.

A: Yes, just before the consumption tax hike, consumption on expenditures on non-durables like automobiles et cetera, they soared, now they are declining quite sharply. But on balance, the decline after the tax hike had been as we expected or even less than we expected. So the decline appears to be not so large. So we don't think the negative impact on consumption of consumption tax hike would be contained and the economy would start to recover in the third quarter, July-September quarter.

Q: Why are you so optimistic? Because again economists predict you could even be in recession.

A: But you see (laughter) I don't want to criticize economists in the private sector. But you may know that in the past 12 months, they have been consistently wrong. One year ago they predicted that the deflation would continue. But now, when we start new monetary policy framework, inflation rate was negative 0.5 percent. Now it's positive 1.3 percent. So in twelve months, the inflationary situation has significantly changed.

And will it continue to change?

We'll see.

That wraps up this edition of the Business Daily.

I'm Sri Jegarajah, reporting from CNBC's Asian headquarters

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