Business News

CCTV Script 10/02/17


This is the script of CNBC's news report for China's CCTV on February 10, Friday.

Welcome to CNBC Business Daily.

U.S. equities rallied on Thursday after President Donald Trump said he would give an announcement regarding taxes in the next few weeks.

"Lowering the overall tax burden on American business is big league ... that's coming along very well. We're way ahead of schedule, I believe. And we're going to announce something I would say over the next two or three weeks that will be phenomenal in terms of tax," Trump said in a meeting with U.S. airline executives.

The market got a boost from Trump's words.

The Dow Jones industrial average rose around 115 points to a record, with Goldman Sachs contributing the most gains.

The S&P 500 advanced about 0.6 percent, with financials rising 1.4 percent, hitting a new all-time high. The Nasdaq composite also hit a fresh all-time high, rising 0.6 percent.

U.S. Treasurys fell Thursday, with yields rising and gold prices falling from their previous 3-month highs.

Equities rose broadly following Trump's election, but have mostly traded sideways this year as investors look for clues about the administration's plans on corporate tax cuts, deregulation and government spending.

"It's almost a resumption of the Trump trade," said Matt Weller, senior market analyst at Faraday Research. "In his acceptance speech, Trump talked about infrastructure and deregulation, but in recent weeks he'd gotten away from that."

"This is sort of reigniting those animal spirits," he said.

Now, institutions are looking for potential winners of Trump's tax reform. Here are two lists provided by Goldman Sachs and JP Mogran.

First three names on Goldman's list -

1. GAP

2. CVS Health

3. ConocoPhillips

With 10-year tax of more than 39%.

For JP Morgan's pick among the S&P 500 stocks -

High-tax companies include Anthem, Autonation and Carmax, etc.

Now, for the next 2 to 3 weeks, markets will wait and see any more hints from the Trump administration on the tax reform.

CNBC Qian Chen, reporting from Singapore.