Business News

CCTV Script 14/07/17

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

Steel stocks jumped Thursday after a report President Donald Trump said he is considering quotas and tariffs on steel imports to the U.S.

Shares of U.S. Steel traded 3.7 percent higher, AK Steel leaped more than 7 percent and Nucor Corporation rose by 2.6%. Overall, the S&P 500 Steel sub-index jumped by 2.65%

The steel industry has argued in favor of a tariff or quota on imports, which would limit the amount or raise the price of imported steel and boost business for U.S. steel makers.

"There are two ways - quotas and tariffs. Maybe I'll do both," Trump said Wednesday evening, according to excerpts of his conversation with reporters on Air Force One. The transcript was made available Thursday afternoon.

To be sure, the U.S. government hasn't made an announcement on steel tariffs yet.

In April 20th, Trump directed the Commerce Department to investigate whether steel dumping threatens U.S national security. A report on those findings has been delayed, but it is said that Secretary of Commerce Wilbor Ross "pretty much committed" to announcing some options next week as part of Commerce's review of the steel imports.

So right now, the steel industry still awaits an official decision.

A group of influential economic advisers to past presidents on Wednesday cautioned President Trump against a potential plan to impose restrictions on imported steel.

Fifteen economists who had served as former chairs of the President's Council of Economic Advisers under both Republican and Democratic administrations -- including former Fed chairs Alan Greenspan and Ben Bernanke -- penned a joint letter in opposition to tariffs or other limits on steel imports. The protections, they wrote, would harm relations with close allies and damage the economy, including by raising costs for manufacturers, reducing factory employment and raising prices for consumers.

Other groups have raised their voices in protest of a tariff or quota. On Tuesday, 18 agricultural groups including the National Pork Producers Council sent a letter to Ross arguing that restrictions on steel and aluminum could result in other countries retaliating by restricting their products, an outcome that they said would be "disastrous for the global trading system and for U.S. agriculture in particular."

Nick Fullerton, principal and founder of Fullerton Advisors, told CNBC that with the uncertain Trump Effect, he has suggested clients to look overseas to balance their portfolios.

[NICK FULLERTON, Fullerton Advisors Principal and Founder] "We like to take a big step back on things and look at the overall macro effect of what's going on with Trump's comments, sometimes what he is saying comes to fruition and sometimes they don't. What we are doing with our client portfolio is we are making sure they don't quite in the event that Trump effect of this steel terrace don't come into play, we are making sure that our clients don't have too much domestic buyers and we are looking overseas to Europe and some of the emerging markets to ensure that they have a nice balanced global portfolio."

CNBC's Qian Chen, reporting from Singapore.