CCTV Transcripts

CCTV Script 24/07/19

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— This is the script of CNBC's news report for China's CCTV on July 24, 2019, Wednesday.

Johnson's election is hardly in doubt, so the reaction in financial markets was relatively muted after the final outcome released.

All three major European stock indexes closed higher, with the U.K. index edging up 0.56 percent. This is mainly because the removal of any uncertainty usually leads to a positive market response. In the foreign exchange market, the pound rose slightly in the short term and then fell back, currently trading around 1.24 to the dollar.

In contrast to the coldness of financial markets, President Trump was enthusiastic about Johnson's election.

Trump was the first to post a letter praising Johnson, when many institutions issue warnings. This is partly, of course, because Johnson has long been known as Trump of Britain, and the two men share similar styles.

Perhaps more important, though, is the interest the US sees in Johnson's election

We know that the recent trade frictions and disputes between the United States and the European Union have become more and more serious. Despite the recent uproar over digital taxes, the European Union's trade commissioner continued on Tuesday to say the EU would impose additional tariffs on 35 billion euros worth of American imports if the United States imposed punitive tariffs on EU cars. Under these circumstances, the election of Johnson, a Eurosceptic, will bring new uncertainties to the complex triangle of relations between the UK and the US. Johnson's election raises the risk that Britain will be forced to leave the EU, undermining its trade negotiating position and forcing it to find alternative markets outside the EU.

That would give the United States more leverage, both with Britain and with the European Union. Of course, even if Johnson's election raises the odds of a hard Brexit, Goldman Sachs currently puts the odds at just 20%, so to some extent; it's still a small probability.

The Brexit ended Theresa may's premiership and drained her reputation among the British public.

Can Johnson do a better job than his predecessor? There is still a question mark on it. Johnson is not only facing the strong pressure from the EU, but also the internal political and social divisions and confrontations, regarding the Brexit.

For now, at least, some British officials want to step down to put pressure on him. At the same time, Johnson faces a host of external challenges, including the thorny issue of relations with Iran. Britain's economy is also reeling, showing signs of slowing growth. IMF announced to cut global growth forecasts for this year and next, suggesting further easing. The bank of England is now expected to consider cutting interest rates early in response to the political turmoil and economic downturn.

It is also worth noting that the confirmation of the new top choice could lead to new faces in several key posts, including the British ambassador to the United States.

Meanwhile, British media analysis suggests that Hunt, who is running against Johnson for the premiership, may lose his foreign secretary title, and his replacement will be confirmed.

These will be the aspects we need to focus on when Johnson takes office.