CCTV Script 14/10/16

This is the script of CNBC's news report for China's CCTV on October 14, Friday.

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

Thailand's King Bhumibol Adulyadej, who was the world's longest-reigning monarch, died in hospital on Thursday, the palace said in an announcement.

King Bhumibol reigned for seven decades after ascending the throne in 1946.

His loss will be deeply mourned in Thailand, where he was regarded as a pillar of stability during decades of political upheaval and rapid development.

The country's benchmark SET stock index has fallen 6 percent since Oct. 7, the last trading day before the palace said Bhumibol was in an unstable condition after receiving haemodialysis, a treatment for kidney failure.Over the same period, the Thai baht has weakened around 2 percent against the dollar. The currency has fallen to some of its lowest levels since February.

And the volatility might continue.

[JONATHAN BRODSKY, Cedar Street Asset Management LLC Principal and Founder] "Valuations are becoming interesting but you have this political transition, so there's this balancing act of potentially attractive companies and yet you know, political uncertainty that has certainly has played out of the currency and stock prices over the last few days."

On the political front, Thailand can ride out its succession pain.

The King's son, Crown Prince Maha Vajiralongkorn, is expected to succeed him. Yet the military has of late tightened its grip on power. That may help to avoid a repeat of the prolonged economic turmoil that came with the last big power struggle.

A royal succession, however, might be less problematic than many have long feared.

[CHRISTIAN LEWIS, Eurasia Group Associate, Asia] "I think the transition is gonna be fairly stable here, primarly because palace law dictates first and foremost the succession will the handed off to the destinate there, who is the crown princess here, but in addition to that, the early signs we saw, show the parties had the consensus within the political elites to pass along to the crown prince here."

Wether the new king will remain as powerful and influential as King Bhumibol Adulyadej ramains to be the key question, as the current military government promised an election by the end of 2017.

CNBC Qian Chen, reporting from Singapore.


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

Two years after Indian Prime Minister Narendra Modi launched his "Make in India" campaign, things seem to be on the right direction so far.

Indian factory activity expanded at its fastest pace since mid-2015 in August, helped by surging new orders.

Here are some of the most popular industries that manufacturing investors are pouring their money into.

First of all, phones.

Data showed that phones made in India reached 100 million in the year of 2015.

According to the report by Counterpoint, smartphone shipment in India marked 20% annual growth and 12% sequential Growth in Q3 2015. 1 in every 3 mobile phone shipped was a smartphone while 1 in 3 smartphones were LTE smartphones.

It's also estimated that smartphone shipments will reach 100 million in 2018.

Next, cars.

GM, Ford and Volkswagen -- the three global automobile powerhouses either have started operating their India factories round the clock or are in the process of doing so to meet increasing export demand, in a resounding endorsement of the Prime Minister's call to make in India.

Interestingly, these carmakers are only expected their domestic sales to grow by a single digit, however, they are targeting 20-60% jump in 2016 production, clearly indicating their export plans. While these carmakers have a market share of less than 3-4% in India, experts say high export volume is helping them make local operations viable.

[Rahul Bajaj | Chairman, Bajaj Auto] "Make in India only indicates dont just keep importing. If you keep importing, like what I said earlier, one day you may lose, one day you will find yourself without foreign exchange to pay for that. So It only means have it here, manufacture it here, and thats the best way the provide employment apart from agriculture and services."

Apparel manufacturing is another industry that has huge potential.

India's apparel export stood at $17 billion for the financial year 2015-16.

Now, the government has set a target for apparel exports at $20 billion for the current financial year. The textile ministry has also asked the apex industry body the Apparel Exports Promotion Council (AEPC) to create 1 million jobs and achieve $30 billion in three years.

Lastly hardware like semiconductor exporting is also key to the country's economy.

During October 2014 to May 2016, FDI equity inflow has increased by 46 per cent i.e from $42.31 billion to $61.58 billion in comparison to previous 20 months.

However, challenges remain.

With quite some foreign investors still playing the wait and see game, India's progress of economic reforms, as well as upgrades of the country's infrastucture and soft power are the key things to watch.

CNBC's Qian Chen, reporting from Singapore.

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

Speaking of India's software export sector, let's take a look at the following chart, which shows the sector's growth in the last 15 years.

As you can see, India's software exports are getting huge -- roughly 75 billion USD in 2014/15 - and continuously registering double digit annual growth.

But at the same time, we can see that the overall pattern of growth is slowing.

Market diversification for Indian software remains limited -- this is one of the reasons causing the cooling down of growth.

In 2013-14, export destinations were: North America (63%), UK (13%), other Europe (11%), Aus/NZ (4%), Asia (6%).

Another way we can look at what's going on... is this chart, which shows the performance of registered units under India's Software Technology Park.

As you can see, numbers of units, both exporting and operating units, are experiencing a drawdown after the year of 2009.

Thus, slowing down in advanced economies has dragged investment growth lower. And that's why India's IT sector was hit hard after the 08 financial crisis.

[ANIL GUPTA, Smith School of Business, University of Maryland, Professor of Strategy, Globalization & Entrepreneurship] Certainly Silicon Valley has cooled down, just look at what happens in the IPO front, china has cooled down, India has cooled down. So yes theres definitely a cooling down, valuations have come down, fundings, you know, are harder, to get funding. 065044 They are having to think about more of profitability, rather than close for the sake of growth."

Now, how to keep up the industry's rapid growth?

Analysts say future transition from cheap labor to digital initiatives is the key.

CNBC's Qian Chen, reporting from Singapore.

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