CCTV Script 06/07/18

— This specific is usually the script of CNBC’s news report for China’s CCTV on July 6, 2018, Friday.

inside overnight market, due to the “zero-tariff solution” proposed by the United States, the stock prices of auto companies inside European in addition to US stock exchanges have risen. On the European side, Volkswagen closed up more than 4 percent, BMW Motors rose 3.72 percent, in addition to Daimler rose 3.76 percent. These companies are the three major car companies in Germany. inside US stock market, the three major auto companies, Fiat-Chrysler rose 5.8 percent, Ford slightly grew more than 0.5 percent, in addition to General Motors General Motors closed up more than 1.28 percent. t can be seen of which the trade conflict between Europe in addition to the United States has eased, in addition to the bilateral financial markets have been relieved.

We know of which since the export of German car companies accounts for more than 20% of global auto exports, any tariff adjustment will directly affect the economic prospects of Europe. Similarly, US auto exports accounted for 7.2 percent of the entire world’s total, ranking third after Japan. in addition to if the EU in addition to the United States reach an agreement to implement a bilateral zero-tariff solution, then This specific is usually undoubtedly very Great news for American car companies, because they currently face 10% tariffs inside EU market, in addition to the tariff rate of EU cars entering the US market is usually only 2.5%.

Jeremy Klein, chief securities analyst coming from FBN, told CNBC of which the current financial market has already priced the worst case of trade conflicts between Europe in addition to the United States, so any brand new news is usually either positive or medium for the market. today, the auto sector is usually awaiting further consultations between Europe in addition to the United States to confirm the feasibility of bilateral zero tariffs.

inside overall US stock market, the Dow Jones Industrial Average increased 0.75%, the S&P 500 index was up 0.86%, in addition to the Nasdaq Composite Index rose 1.12%, indicating a rebound inside technology sector.

In addition, the events of which the market focused on overnight, as well as the notes of the last monetary policy announced by the Federal Reserve. The notes of the meeting showed of which Fed officials generally believe of which: First, This specific is usually still too early to completely eliminate the concerns of weak inflation, yet the cost trend supports the prospect of 2% inflation. Second, the Fed needs to gradually raise interest rates inside context of a strong economy, in addition to may allow the Fed’s federal funds rate to be higher than the neutral level next year. .Third, most officials have noted of which the risks surrounding trade policy are growing, in addition to This specific poses a downside risk to US economic growth in addition to inflation in addition to of which is usually worrying. This specific shows of which although the Fed is usually paying close attention to trade frictions, there is usually no indication of which This specific concern will drag the Fed’s rate hike.

[Joseph Capurso, Director, Internatinoal Economics] “The Fed seems quite intense on the hiking rates twice more This specific year. of which’s certainly the message I got at the FOMC notes today. genuinely, the question for the market is usually, how many times they are gonna hike next year.”

After the Fed’s meeting notes were announced, the probability of the Federal Fund’s interest rate futures hike again in September This specific year is usually forecast at 78 percent, indicating of which the market expects the Fed to raise interest rates twice before March next year. The published notes are also in line with previous market expectations.

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