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CCTV Script 03/02/16

– This is the script of CNBC's news report for China's CCTV on February 3, Wednesday.

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

Both WTI and Brent slided more than 5% overnight, and continue falling during today's Asian trade.

Extended losses came after data from the American Petroleum Institute showed a 3.8 million inventory build.

In pre-settlement trade, oil fell sharply for the second straight day on Tuesday as hopes of a deal to curb one of the worst supply gluts in history continue to fade and concerns about weak demand amid a mild winter deepen the rout.

The oil markets erased most of last week's four-day rally, during which prices soared almost 20 percent from the lows touched in mid-January after Russia's Energy Minister said OPEC kingpin Saudi Arabia suggested a production cut.

This week though, those hopes have dimmed as no deal has emerged and talks between Russia's energy minister and Venezuela's oil minister on Monday failed to produce any clear plan to reduce output.

Goldman Sachs said it was "highly unlikely" the Organization of the Petroleum Exporting Countries would cooperate with Russia to cut output, saying such a move would also be self-defeating as stronger prices would bring previously shelved production back to the market.

Exxon Mobil Corp, the world's largest publicly traded oil company, reported its smallest quarterly profit in more than a decade and said it will cut

2016 spending by one-quarter, while BP reported to its biggest annual loss and announced thousands more job cuts.

CLN STREET SIGNS 02_03_2016 1100

[ANDY (t) LIPOW (LEE +POW) Lipow Oil Associates President ] "112313 Well, I think the pictures for the oil producers are pretty grim for the first part of 2016, as you mention, Exxon Mobile is the best of the lot, you are seeing significant losses from other major producers like Chevron and BP, and continued job losses are gonna occur in the oil patch. 112333"

Analyst Andy Lipow says small- and mid-size oil companies are facing tougher challenges, as they are more leveraged than major producers.

CLN STREET SIGNS 02_03_2016 1100

[ANDY (t) LIPOW (LEE +POW) Lipow Oil Associates President] "112457 A lot of these companies are really borrowing money to pay off the dividend, and of course with a lower bond-rating, the cost of borrowing is gonna go up. 112507 "

CNBC's Qian Chen, reporting from Singapore.

============

(ON CAM)

Australia has long been an international destination favoured by tourists from Asia - it's relatively close and offers experiences not found anywhere else in the world!

But it's the emergence of the Chinese market that's got everyone talking - with more and more mainland visitors making the trip downunder - and that number is expected to grow - as CNBC's Matt Taylor found out.

- PKG STARTS ON MUSIC -

search keyword: matt=cny package

PLEASE BURN IN COURTESY BUG (in bold)

141619 Bungle Bungles : Tourism WA

141622 Camels on the beach: Tourism Australia

141625 Sydney Harbour: Destination NSW

141627 Aerial over bondi beach: Tourism NSW

141629 Sydney opera house: Destination NSW

141632 Whitehaven Beach aerial: Tourism Australia

START

(Uluru, beaches, Sydney and Melbourne )

Australia.... renowned for its monumental landmarks.... white sandy beaches..... and bustling cities like Sydney and Melbourne.

(Chinese tourists exploring Sydney)

And... for the first time ever - more than 1 million Chinese tourists hit Australian shores last year - making these visitors the country's most lucrative market.

LT: JOHN O'SULLIVAN CEO, TOURISM AUSTRALIA

13:00:16

Last year lone they spent $7 bn. the nearest market behind that is the UK just over $3.4 bn

Traditional markets for inbound tourism have been Japan, the United States and Europe... but China's rapidly growing middle class and improving airlinks between China and Australian cities ARE helping spur demand.

LT: JOHN O'SULLIVAN CEO, TOURISM AUSTRALIA

We are seeing more independent, self sufficient Chinese visitors coming to Aus. More inquisitive looking for self drive experiences in particular.

(Sea-Link corporate video)

One company that is leveraging the growing demand is Sealink.

The ASX listed company operates cruising and charter operations across the country... in Queensland and South Australia as well as the iconic Captain Cook brand on Sydney Harbour.

Sealink says mature markets like Japan and the USA are still important - but believes Australia provides an experience that's right up China's alley...

LT: ANDREW MCEVOY CHAIRMAN, SEA-LINK

Big sky, an optimistic, youthful place, beautiful weather, space, great air.

So they're really basic things.

MATTHEW TAYLOR

STAND UP: Sealink owned Captain Cook cruises operates as many as 4 harbour cruises each day just like this one - each year the operator carries 2-million visitors on Sydney Harbour alone - and 100-thousand of those are Chinese.

And as the market evolves - so too are the demands of Chinese tourists.

LT: ANDREW MCEVOY CHAIRMAN, SEA-LINK

Very much China up until now has been a volume visitor at the mid-low end of the budget. They're now moving upt hat budget chain. So we're seeing many more premium Chinese travellers who are wanting better experiences and who are willing to pay more for it.

The local industry isn't worried about the recent SLOWDOWN in the Chinese ECONOMY. Last year during lunar new year celebrations tourist numbers were up 57%.

LT: JOHN O'SULLIVAN

CEO, TOURISM AUSTRALIA

In this current CNY we anticipate that will be a quarter of a million Chinese coming to Australia.

And that's music to the ears of Australian tour operators.

In Sydney, Matthew Taylor, CNBC.

Follow us on Twitter: @CNBCWorld

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