— This is the script of CNBC's news report for China's CCTV on December 18, Thursday.
After more than five decades of hostility, the U.S. and Cuba have announced to mend and restore economic ties. Following 18 months of secret exchanges facilitated by the Vatican and Canada, President Barack Obama and Cuban President Raul Castro agreed by a telephone conversation on prisoner exchanges and the opening of embassies in each other's country.
Boris Schlossberg, Managing Director at BK Asset management believes its a step forward for both countries economically.
[SOT: BORIS SCHLOSSBERG / Managing Director, BK Asset Management] "It is an incredibly historic day, and long over due, and hopefully this will move forward to a much more constructive cooperation between Cuba, U.S. and create much more dynamic growth on the island so i think ultimately it should be very very positive for both U.S., Cuba and for Latin America because it means that capitalism is slowly making its way towards the shores of Cuba.
But its not quite full steam ahead for commercial exchanges between the two nations as it would require Congress approval to lift the broader embargo.
[SOT: CHRISTIAN WHITON / Former U.S. State Department Senior Advisor & Principal, DC International Advisory] "It's important to understand there's no real economic consequence from this because the embargo on Cuba is established by law, Obama cannot wave that and wont wave that and frankly any weakening he does congress is likely to go back and strengthen."
It didn't stop some stocks from rallying on the news. Shares of mutual fund Herzfeld Caribbean Basin Fund rallied on the Wednesday trade, repeating another rally in 2005, on news that an ailing Fidel Castro could open up the Cuban Economy. Shares of cruise operators Carnival, Royal Caribbean and Norwegian Cruise Line Holdings also soared to near new highs for the year. Carnival, who spoke to CNBC, said the prospects of expanding the cruise industry to Cuba is exciting, and offers great potential for the largest country in the Caribbean. For now, we'll have to wait on what this revived relationship can bring in the near future.
Reporting from Singapore, I'm Qian Chen.