Business News

CCTV Script 24/01/17

This is the script of CNBC's news report for China's CCTV on January 24, Tuesday.

Welcome to CNBC Business Daily.

U.S. equities fell on Monday, but closed off session lows, as investors looked for more details regarding President Donald Trump's policies.

Stocks in the U.S. rallied following the presidential election on hopes of corporate tax cuts, government spending and the deregulation of certain sectors.

However, stocks have largely moved sideways recently as investors seek more details regarding said policies.

The markets have already priced in all the goodwill that Trump's winning brings to the White House.

If Obamacare repeal/replace takes longer than anticipated; if a trade war begins to brew; if tax reform is stalled, the market might start to sell.

According to an old saying on Wall Street - "buy the rumor, sell the news" and gave it new life for the Trump rally: buy the election, sell the inauguration.

At the mean time, bank executives have been selling their stocks too, according to Wall Street Journal.

Since Mr. Trump's election victory on Nov. 8, investors have pushed financial stocks to multiyear highs on expectations of lighter regulation, lower taxes and pro-growth economic policies.

Executives at some of the biggest Wall Street banks have sold nearly $100 million worth of stock in that time, according to a Wall Street Journal review of securities filings. That is more in that same period in any year since 2006.

Gold rose on Monday, touching its highest in two months as unease over the economic policies of U.S. President Donald Trump pushed investors towards safer assets while the dollar and U.S. bond yields fell.

Trump at his inauguration promised to put "America first", while his administration said it would withdraw from or renegotiate important trade agreements, raising fears that a protectionist White House could reduce global trade.

Meanwhile, Trump signed an executive order Monday announcing the U.S. will withdraw from negotiating the TPP, or Trans-Pacific Partnership deal.

According to research by the Peterson Institute, the deal would have increased U.S. exports by $123 billion. Using back-of-the-envelope math, Obama's White House had estimated an increase of 650,000 jobs.

However, the issue for Trump on TPP is that although the government is helping creating wealth for these companies, there's no mandate that they spend it on hiring or wages.

Now that the TPP is effectively dead, Trump's administration will have to make separate trade deals with each country. That can take time.

CNBC's Qian Chen, reporting from Singapore.

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