Business News

CCTV Script 14/11/17

— This is the script of CNBC's news report for China's CCTV on November 14, Tuesday.

The pound dropped 0.9 percent Monday morning to $1.3070, aided by a report by the U.K.'s Sunday Times newspaper which revealed a group of 40 Conservative members of parliament have agreed to sign a letter of no-confidence in May following months of criticism of her leadership.

Meanwhile, the UK stockes fell, as a response to the political uncertainty.

Now, the key question is whether this represents political noise or real underlying change.

A no-confidence list in early October following May's speech at the Conservative Party annual conference garnered 35 names. The number required to trigger a vote is 48.

The report underscores persistent fears surrounding May's handling of an onslaught of crises facing her Conservative Party, including a weakened majority, internal divisions over Brexit, multiple sexual harassment allegations and cabinet member departures. Brexit proceedings remain sluggish, and EU demands for greater detail on issues like the U.K.'s financial commitments, the rights of EU workers and the Irish border have yet to be met.

Early European trading saw the pound suffer its worst fall since November 2, when it hit $1.3043 following the Bank of England's announcement to raise interest rates for the first time since the financial crisis.

The so-called divorce bill is how much the U.K. could pay to fulfil its remaining obligations to the EU as it leaves the bloc. Any potential agreement would reduce the perceived risk of a no-deal "hard Brexit" scenario.

And even if so, a change in Conservative Party leadership would not automatically lead to a general election - thanks to country's Fixed Term Parliaments Act, an early election requires two-thirds of MPs voting in favor.

CNBC Qian Chen, reporting from Singapore.