Business News

CCTV Script 06/04/18


— This is the script of CNBC's news report for China's CCTV on April 6, Friday.

After the panic for trade war subsided and the US stocks continued to rise for 3 consecutive days, President Trump brought another risk to the market at the close. After the US stock closed, Trump claimed that he had asked the US Trade Office to consider imposing extra tariffs on China's additional $100 billion imported items. Such a statement caused more tension to Sino-US relations. In the market, the fear of increased trade frictions has returned to a high level, US stocks and futures also have fallen. After the announcement of the statement, the Dow Jones industrial average fell beyond 400 points, meanwhile, the S&P index and Nasdaq Composite index also lost more than 1%. Additionally, the market panic rose quickly, and capital flowed into the hedge assets, such as gold and Yen. Gold price rose, while the US dollars against Yen dropped.

[Brett Mc Gonegal, CEO, Capital Link Int'l] "we know the markets don't like uncertainty - that's the thing, that's the real variable to be quantified, and that's why you are seeing these immediate reaction, futures trading lower."

Actually, many people had never thought about this more aggressive statement from Trump, cause some analysts believed that the US would not introduce further tariffs when we had discussion with them yesterday, however, it's obvious that the new statement dispel this opinion, and we have to reassess the direction of the trade war.

At the same time, Trump also stated that he had asked the Minister of Agriculture to launch a plan that aims to protect the benefits of US farmers and agriculture, which due to China want to impose more tariffs on US agriculture products, but the White House also confirmed that Trump wants to negotiate with China. For example, Kuldow, the Chief Economic Advisor of Trump, stated that the US and China will come to a trade agreement. Before Trump publish this statement, Navarro, the Trade Advisor of the White House, when he was interviewed by CNBC, he said, during the 60 days' notice period, the 2 sides will have a discussion.

[Peter Navarro] "We are goanna go through 60 days of comment, here from everybody about that and see where we are in the end of it. Meanwhile, theres gonna be discussions ongoing with Amabassor Lighthizer and Tre sec Mnuchin on our side and Chinese officials on the other side."

What are the specific Chinese products would be involved? How dose China declare their position? These 2 key problems may decide the following steps of the Sino-US trade war.

[Gary Locke, Former US Ambassador to China] "They are gonna, they are gonna respond to the United States. The Chinese ... on some of these things."

After the details are announced, the market has to reassess the development. We will keep eyes on this issue.