Business News

CCTV Script 25/04/18


— This is the script of CNBC's news report for China's CCTV on April 25, Wednesday.

The 3 major indexes opened high yet closed low and slumped in the mid-day trading amid potential renegotiation of Iran's nuclear agreement improved market panic and the decline in greenback and oil price boosted gold and other safe-haven asset. Meanwhile, in the US stock, both macroeconomics and individual stocks affect the market sentiment. Ten-year US Treasury yield exceeded 3%, aggravating investor concerns about the Fed's rate hike, it's believed that the Fed will increase interests for 4 times this year, and the blue chip stock, like Caterpillar, google and Facebook plummeted in the mid-day trading, making market sentiment ebb

Caterpillar that is believed as "Weather forecast" for global economy released strong earnings before the market, with a 12.9 billion revenue in the 1st quarter, which increased 31.6% year-on-year, topping the market's expectation.

That drives the stock price of Caterpillar increased more than 4% at the beginning of the session. The executive on the earnings tele-conference said, however, the first quarter's performance may be the highest point of the year, making the market has a negative view to its future performance and sold out Caterpillar, finally, its stock price fell 6.2%.

And because Caterpillar is a very important blue chip stock, it is highly relevant to the broader stock index, so it also weighted down the Dow by 1.74%, S&P 500 declined 1.34%. It has passed 53 trading days from this index formally entered the correction zone since Feb 8; this is the longest correction time in the past decade. The correction time for S&P 500 is 37 trading days on average. At the same time, the negative outlook and news on the earnings of technology stocks caused the technology stocks to dive.

NASDAQ composite index descended 1.7%. First, a 1.39% decrease was seen in Apple amid the TSMC, a Taiwan-based IC manufacturing company and is also a key partner to Apple, published the second-quarter profit forecast that is below Wall Street's expectations, making the market believes that Apple's shipments are expected to be far lower than expected. For example, on the day after TSMC announced its profit forecast, Morgan Stanley lowered its forecast for Apple's mobile phone sales in the second quarter.

Apple's stock price has declined by 7.4% and its market value lost nearly $64 billion since the last Fri amid the negative sentiment in market.

In addition, the financial report released by Google's parent company – Alphabet, is actually very strong, but the market concerns that;

The earnings shows that "TAC", as much as $6.3 billion, indicates that Google's payment to partners exceeds expectations, leaving the market worried about Google's profitability.

Facebook faced new data security scandals, which caused the stock price to fall by 3.7%.

According to reports, some cybercriminals posted sensitive personal information on Facebook, including credit card numbers and social security IDs, and some of these messages have been on Facebook for several years. The negative news made investors lose confidence in the Facebook Company that will publish the financial report on Wednesday, causing Facebook's share price to fall again.

Bezos, the Amazon CEO, said in an award ceremony that Amazon will be subject to strict supervision of government, adding that, the supervision over the U.S. tech giants is becoming more and more strict, making the market worried about Amazon's profitability and the stock price declined 3.8%, the entire technology stocks fell is also called as FANG stocks. Netflix, the last one of the top4 tech giants, was off more than 3.6%, which make its market value lost 85 billion USD in the overnight trading. We will keep an eye on this issue.