Business News

CCTV Script 27/05/16

– This is the script of CNBC's news report for China's CCTV on May 27, Friday.

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

While the G7 summit is ongoing on Japan, the G20 summit, which will be hosted by China this year, is just 100 days away.

If we do a simple comparison here --

The G7 states make up about one tenth of the world population, in year 2015 they were responsible for 47% of global GDP and for approximately 33% of the worldwide exports in goods and services according to most recent data (2014).

Since then this group of states regularly organises summits to discuss key economic and financial issues.

The G20 represents approximately two thirds of the world's population, accounts for 90% of the global GDP and 80% of total external trade.

Both summits have been focusing on the outlook of the global economy, but emerging markets are key, according to Moody's Investors Service.

The global economy will remain in a sluggish state for years to come as emerging market growth is unlikely to rebound, said the rating agency.

Moody expects growth across the G20 bloc of major economies to remain below its pre-crisis levels, as the emerging market countries of the group will grow more slowly this year.

The GDP growth of emerging markets is set to fall from 4.4% last year to just 4.2% in 2016.

These economies have in recent years served as the engines of global growth.

Moody's said weak oil commodity prices and falling demand for exports could also drag on the world economy.

Growth forecasts for Argentina, Brazil, Mexico, and Turkey have been slashed. All are emerging market economies which have been at the sharp end of the commodities rout. It is thought that their weakness will have knock-on effects for the world's advanced economies.

Despite the effective tax cut offered by low oil prices to importers of the commodity, the turmoil that engulfed financial markets at the beginning of the year will be enough to prompt a slowdown among advanced G20 markets this year, Moody's believes.

The rating agency expects the GDP of advanced major economies to rise by 1.7% this year, compared with a 1.9% increase in 2015. Elena Duggar, a Moody's associate managing director, said advanced economies had failed to return to the growth rates enjoyed before the recession, as they have done historically following economic busts.

Parents, here's where you might want to close your ears.

The E-sports and gaming industry is growing rapidly and it has already become a world that big brands are looking to cash in on.

About 115 million people world-wide watched e-sports online or in person at least once a month in 2015, nearly double the number in 2012, according to Newzoo BV, a research firm. By 2019, it expects that number to hit 215 million.

E-sports is a small sliver of the $100 billion videogame industry. Like in other sporting events, athletes in the digital arena sport high-end gaming gear and jerseys with sponsor logos.

Revenue from ticket and merchandise sales, advertising and other areas is expected to more than double to $1.07 billion by 2019, according to Newzoo.

Esports has quickly grown in size in recent years and is becoming highly lucrative. The sector generated revenue of $325 million in 2015 from media rights, merchandising, ticket sales and advertising, according to market researchers Newzoo, while SuperData predicts the total worldwide market to reach $910 million in 2016.

As you can see from the chart, professionals are playing for cash as well. It shows that annual prize money distributed in e-sports tounaments world-wide has been sky-rocketing -- to 61 million USD last year.

[Noah Whinston, Immortals CEO] "I think what a lot of brands are realizing that if you are trying to reach 18-34 male demographic, it's this or Netflix. And Netflix doesnt sell advertising."

The foundation of the World Esports Association (WESA) marked a milestone for the industry, in a move to increase the professionalism of competitive video game competitions, or esports, and to capitalize on its growing popularity.

The WESA was formed by the esports gaming network ESL and several professional teams.

The association, which is based on traditional sports associations, will introduce regulations such as player representation, standardized rules and revenue sharing.

But who exactly is making money? Team owners, VC investors are placing bets on teams and infrastructure in the space. Plus, big brands, like Coca-Cola and Pizza-hut, are getting in.

[Rick Fox, Former NBA Player] "There's traditional sports and traditional sport tag to it, right? Which is ticket sales, the media rights, the sponsorship, and merchandise, all the ancillary and traditional ways you will see professional sporting, franchise, capitalize on their investment."

North America is still the biggest market for e-sports so far, but China and South Korea both have huge potentials, accounting for 23% of the industry's global revenues in 2015.

CNBC's Qian Chen, reporting from Singapore.

Follow CNBC International on Twitter and Facebook.