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CCTV Script 13/07/16

– This is the script of CNBC's news report for China's CCTV on July 13, Wednesday.

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

After "sell in May and go away", are we expecting a quiet summer? As some experts say, well maybe not this year.

Good news for risk sentiment provided the Federal Reserve holds the line.

U.S. equities have now recouped all losses following the U.K. referendum vote and many wonder whether we now set this issue aside at least until the U.K gets a new government.

According to Factset, over the past four years on average, actual earnings reported by S&P 500 companies have exceeded estimated earnings by 4.0 percent. If that's the case this quarter once again we could perhaps argue there's scope for equity upside.

One senior banker told CNBC that he believes a Brexit could take five or more years to enact.

We shouldn't underplay the short term support central banks have provided here too.

In fact 17 separate central banks across the world have taken action since the vote to allay the fears of both consumers and investors.

Japanese Prime Minister Abe hinted at further stimulus to support the domestic economy and fight deflation. There are high hopes of a rate cut from the Bank of England on Thursday too.

Now, with yields on fixed income globally set to remain low, Asia and emerging market bonds and credit offer attractive returns, a portfolio manager at Fidelity International told CNBC.

"One of the key attributes when we think about investing here in Asia -- be it Australian government bonds, Korean government bonds, Asian U.S. dollar-denominated corporate and sovereign bonds and even thinking about Chinese renminbi-denominated government bonds -- is that you're getting yield," Bryan Collins, a fixed income portfolio manager at Fidelity, told CNBC's "Squawk Box."

"You're getting a relatively attractive risk adjusted return when you compare it to other markets around the world," he said.

It's no small difference. The benchmark 10-year Japan government bond was yielding around a negative 0.271 percent on Tuesday, while the German 10-year bond was at negative 0.1609 and the U.S. 10-year Treasury yield hovered around 1.45 percent. That compared with 10-year Indian and Indonesian local currency government bonds yielding upward of 7 percent.

According to data from JPMorgan, around $3.3 billion flowed into emerging market bonds in the week ended July 7, totting up around $12.1 billion in inflows year-to-date, compared with outflows of more than $14 billion last year.

CNBC's Qian Chen, reporting from Singapore.


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