Business News

CCTV Script 21/01/2016

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

Welcome to CNBC Business Daily, I'm Qian Chen.

On Thursday, Asian markets were mostly traded lower, following another selloff on Wall Street overnight on global growth concerns, uncertainty in China and fresh lows in oil prices.

Just to show you how much the stock market has lost since the beginning of this year...

You can see the number on the WALL... 2 trillion USD, which marked the worst market opening in history.

Stock markets around the world have had a soggy start to 2016 as concerns over an economic slowdown in China, as well as the country's botched response to temper market volatility, were exacerbated by a slump in oil prices to the lowest level in more than a decade.

CLN SQ BOX 0700 01_21_2016

[PETER (t)TUZ Chase Investment Counsel President & Director] "071944 That is causing tremendous fall off in earnings and energy sector, the material sector and some of the industrial sector as well. And its causing fears of bankrupcy among a lot of small oil and gas companies in the US, has put the high-yeild bond market in quiet a rout, and thats affecting equitys substantially. 072006"

Iran to return to the global oil markets has obviously brought more fear to the market.

Let's take a look at how much can Iran produce and export...

Once the second-biggest producer in the Organization of Petroleum Exporting Countries, Iran is producing 3.1 million barrels a day.

Oil exports fell to an average of 1.1 million barrels a day at this moment, but is expected to surge to 2.1 million b/d by 2017.

The Iran factor might continue weighing on the market, but some analysts see it as a bottom opportunity.

CLN RUN DOWN 0600 01_21_2016

[FRANK (t)HOLMES U.S. Global Investors CEO & Chief Investment Officer] "060945 Well, there's two thoughts here. One is, they are really over-sold on a mathmedic model. They call it S.D. It's dramatically over-sold, when you look at 20 years old of data. Seasonally, oil bottoms in Jan and Feb, but the 3rd factor thats important to look at is that these stocks are all going to have write-downs coming this quarter, and it might be the bottom of the oil stocks, those who dont have a huge debt level. 061012"

Elsewhere, the global currency fluctuation has also brought downward pressure to the equity markets.

Take a look at this WALL, which shows big American companies with large international exposure.

Now, with the dollar continue to strengthen, we are seeing negative effects brought by currencies to corporation earnings.

Emerging markets faced a whopping net $735 billion in capital outflows in 2015, including unrecorded flows from net errors and admissions, the IIF, a global financial industry association said Wednesday.

The 2015 outflows largely reflected efforts by Chinese corporates to reduce dollar exposure after years of heavy dollar borrowing, as expectations of persistent renminbi appreciation were replaced by rising concerns about a weakening currency, according to the report

Another thing investors are watching out for ... is a stronger YEN, which has been seen as a safety heaven asset in current volatile global markets. However, it's not good for the Japanese equity and not something the BOJ would like to see.

CLN STREET SIGNS 1100 01_21_2016

[MITUL (t)KOTECHA Barclays Head of Asia FX and Rates Strategy] "104910 The problem for the yen is that, again for the moment, is still a safe-heaven currency. If we were in the risk averse environment, the yen continues to strengthen, and I think this is what the BOJ has to fight against to prevent the yen strengthening. 4104925"

CNBC's Qian Chen, reporting from Singapore.

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