CCTV Transcripts

CCTV Script 21/10/19


— This is the script of CNBC's news report for China's CCTV on October 21, 2019, Monday.

In response to potential volatility following Saturday's vote in the U.K. parliament, many of London's largest Banks have added extra traders ahead of time. However, in fact, the pound was much more subdued than expected when foreign exchange markets began trading after the vote.

British pound dropped 0.65 against USD, now hovering around 1.29, lost 0.2% against EURO,

Capital Economics, an independent research consultancy, pointed out that the Saturday's vote is a good result to British economy and British pound as it makes it much less likely that Britain will leave the EU at the end of the month without a deal.

Goldman Sachs believes that the possibility of Brexit without a deal has dropped from 10% to 15% after Saturday's vote, however, it also means the uncertainty over Brexit could last longer which is not good news to investors. Brexit has made Britain's investment activities significantly less active, causing part of investors to strike, because the risk of making a decision in uncertainty is extremely great.

Axel Weber

UBS Chairman

I think you've seen, with Brexit but also with the trade disputes, that there has been an enormous increase in uncertainty

"Uncertainty has been bad for investments all along. What you're seeing at the moment ⁠- and we're seeing it in our client base ⁠- is almost an investor strike."

This uncertainty has had a negative impact on London's international city position and on the attractiveness of London's property market.

To spread the risk, it has become a new trend for London buyers to buy houses in Paris, according to data from Pairs property agency, interest in Paris from London-based buyers jump 20 per cent in a year, many of the buyers are executives in financial industry and bankers. The value of Paris's prime properties had increased by nearly 8 per cent, the average property price in Paris grew by more than 6 per cent. In contrast, London's property market has been falling since the referendum.

This week, the UK parliament will have a decisive vote on Johnson's Brexit deal. There are research institutions pointed out that compared to leaving in the EU

New trade barrier will cost trade and productivity, if Britain leaves the EU under Johnson's deal.

The average decline in British income per capita is 2000 pounds(6.4%) over 10 years, this number is 4.9% under Theresa May's deal.

British government officials said Sunday that Britain would leave the European Union on Oct. 31, even though Johnson had submitted an unsigned request for an extension, showing Brexit is on its final stage to make a decision and we will know the result of this suspense in Monday's vote.