×

CCTV Script 03/10/17

— This is the script of CNBC's news report for China's CCTV on October 3, Tuesday.

Overnight the US financial market had an immediate reaction towards the Las Vegas music festival shooting. This is because the Las Vegas shooting is the deadliest mass shooting in American's history and it to some extent reminded citizens the need for personal protection. Therefore, US gun sales are expected to increase in the near future. Furthermore, people are also worried that the gun control bill and regulations will become even stricter, prompting people to buy even more guns. As a result, stock prices of firearms manufacturers increased last night.

Among them, firearms manufacturer Sturm Ruger was up by 6.2% on Monday and during closing, it was up by 3.48%, the highest in nearly two months. Also, formerly known as Smith & Wesson, United States largest pistol manufacturer, the American Outdoor Brands had intraday gains of 7.7%. It closed at 3.21%. Another manufacturer, Olin Corporation, closed up at 6.63%, the highest single-day gain since the end of February.

In fact, the historical data tells us that such a trading trend has become the norm after every US mass shooting. Here at CNBC, we have found out that,

Ever since April 1999, a total of 32 mass shootings have occurred in the United States. From the eve of the shooting to a month of the shooting, Sturm Ruger shares climb an average of 2.89%, a trade positive of 59% while American Outdoor Brands shares, formerly known also as Smith & Wesson, rises at an average of 5.36% and also had a 72% trade positive. And in that period of time, these two companies outperformed S&P 500 index.

In short, this is the market's response. Additionally, according to Reuters, more than 10 guns were found in the gunman's room. Once again, in America, gun dispute has become a hot topic for discussion.

Usually, the Democrats are the one supporting "gun control". They are the ones advocating a comprehensive background check before the sale of firearms, as well as, the ban on some firearms magazine. During last year's US elections, people were worried that Democratic candidate Hillary Clinton would promote "gun control" policy when she takes office, resulting in a significant increase in gun sales. As for the people against "gun control", they are usually the Republicans which include President Trump. This is because the US National Rifle Association NRA has always been the greatest lobbyist of the Republicans. The NRA also has the protection of the second amendment in the United States constitution where Americans have the right to bear arms.

This is also why when Trump won the elections, people's gun-buying panic came to an end and the sales of several gun-manufacturing enterprises this year declined. Currently, several Democrats, including Hillary and former Vice President Joe Biden, have expressed their desire to revise the legislation, in order to put a stop to large-scale shooting. However, a White House spokesperson said that now is not the time to discuss the gun control policy.

In fact, according to Reuters, the GOP is actually preparing to relax existing gun laws such as reducing supervision on the exports of silencers, pistols and other small firearms. Yet, such a bill may face greater political resistance due to the Las Vegas shooting.

CNBC's Qian Chen reporting from Singapore.

Contact Business

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    Get these newsletters delivered to your inbox, and more info about about our products and service. Privacy Policy.