Business News

CCTV Script 15/01/18

— This is the script of CNBC's news report for China's CCTV on January 15, Monday.

A strong magnitude 7.1 earthquake struck the coast of southern Peru on Sunday morning, leaving two dead, 17 missing and several dozen injured, while causing homes and roads to collapse.

Peru is located in the Ring of Fire, an area in the Pacific Ocean prone to earthquakes and volcanic eruptions. Although Earthquakes are common in Peru, many local homes are built with precarious materials that cannot withstand them.

Many people might still remember the 2007 Peru earthquake, which measured 8.0 on the moment magnitude scale.

The Peruvian government stated that 519 people were killed by the quake and more than 1200 got injured. Meanwhile, damages to the country's infrastructure was severe, with the city of Pisco having more than 80% of its buildings destroyed.

Besides, one market asset which is sensitive to Peru's earthquake, is the copper price. Peru is the world's number 2 copper producer, with mining accounting for 57% or Peru's total exports and 12% of the country's GDP in 2017.

However, as many of the mines in the south are located far inland from the coastal region where the quake struck, so far, we have heard several mining companies' representatives coming out and saying there were no reports of damage or operations had been affected. This morning, prices of March copper futures climbed, but gains were limited after those representatives' clarification.

Last but not the least, another industry which could also be hit by this earthquake - tourism. Last year, various hurricanes and typhoons made their landings on the U.S. southern coast line and the coast of the Caribbean, resulting in many tourism destinations being damaged and waiting for repairs.

But what's worse, since the beginning of this year, a series of earthquake continued to hit this area, including the 7.6-magnitude earthquake hit the coast of Honduras on Jan 10, triggering Tsunami.

After that, countries like Chile, Costa Rica, El Salvador and Nicaragua all suffered different magnitudes of earthquakes, making some tourists worry about paying recent visits to these once-famous beach-destinations.

CNBC's Qian Chen, reporting from Singapore.