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| Version 1 | Version 2 |
|---|---|
| Asian markets fall as US shutdown nears | Asian markets fall as US shutdown nears |
| (about 3 hours later) | |
| Asian markets have fallen on fears that the US may be heading for a shutdown of government services. | Asian markets have fallen on fears that the US may be heading for a shutdown of government services. |
| The US needs to agree a new spending bill before the financial year ends at midnight on Monday. But political divisions have resulted in a stalemate. | The US needs to agree a new spending bill before the financial year ends at midnight on Monday. But political divisions have resulted in a stalemate. |
| There are worries over the economic impact of a failure to do so, which may see non-essential federal services shut and staff placed on unpaid leave. | There are worries over the economic impact of a failure to do so, which may see non-essential federal services shut and staff placed on unpaid leave. |
| Stock indexes in Japan, Hong Kong, Australia and South Korea all declined. | Stock indexes in Japan, Hong Kong, Australia and South Korea all declined. |
| Japan's Nikkei 225 index fell 1.6%, Hong Kong's Hang Seng was down 1.2%, Australia's ASX dropped 1.4%, while South Korea's Kospi shed 0.7% | |
| "It is the fear of the unknown," said David Kuo of financial website the Motley Fool. "No one knows what is really going to happen and markets don't like uncertainty." | "It is the fear of the unknown," said David Kuo of financial website the Motley Fool. "No one knows what is really going to happen and markets don't like uncertainty." |
| "There is likely to be some reduction in US government spending, but we don't know what areas are going to be affected. | "There is likely to be some reduction in US government spending, but we don't know what areas are going to be affected. |
| "Until that is resolved, we are likely to see volatility in the markets," he added. | "Until that is resolved, we are likely to see volatility in the markets," he added. |
| Voting for shutdown? | Voting for shutdown? |
| One of the key areas of debate between the Democrats and the Republicans has been President Barack Obama's healthcare law, popularly known as Obamacare. | One of the key areas of debate between the Democrats and the Republicans has been President Barack Obama's healthcare law, popularly known as Obamacare. |
| Early on Sunday, the Republican-run House of Representatives passed an amended version of the Senate spending bill that removed funding from the healthcare law, raising the chances of a shutdown. | Early on Sunday, the Republican-run House of Representatives passed an amended version of the Senate spending bill that removed funding from the healthcare law, raising the chances of a shutdown. |
| US Senate Majority leader Harry Reid has vowed that his Democrat-led chamber will reject the Republican bill. | US Senate Majority leader Harry Reid has vowed that his Democrat-led chamber will reject the Republican bill. |
| "Tomorrow, the Senate will do exactly what we said we would do and reject these measures," said Adam Jentleson, a spokesman for Senate Majority Leader Harry Reid. | "Tomorrow, the Senate will do exactly what we said we would do and reject these measures," said Adam Jentleson, a spokesman for Senate Majority Leader Harry Reid. |
| "At that point, Republicans will be faced with the same choice they have always faced: put the Senate's clean funding bill on the floor and let it pass with bipartisan votes, or force a Republican government shutdown." | "At that point, Republicans will be faced with the same choice they have always faced: put the Senate's clean funding bill on the floor and let it pass with bipartisan votes, or force a Republican government shutdown." |
| Speaking for the president, White House spokesman Jay Carney said: "Any member of the Republican Party who votes for this bill is voting for a shutdown." The president, he said, would also veto the Republican bill. | Speaking for the president, White House spokesman Jay Carney said: "Any member of the Republican Party who votes for this bill is voting for a shutdown." The president, he said, would also veto the Republican bill. |
| Shutdown impact | Shutdown impact |
| If the government does shut down on 1 October, as many as a third of its 2.1 million employees are expected to stop work - with no guarantee of back pay once the deadlock is resolved. | If the government does shut down on 1 October, as many as a third of its 2.1 million employees are expected to stop work - with no guarantee of back pay once the deadlock is resolved. |
| National parks and Washington's Smithsonian museums would close, pension and veterans' benefit cheques would be delayed, and visa and passport applications would be stymied. | National parks and Washington's Smithsonian museums would close, pension and veterans' benefit cheques would be delayed, and visa and passport applications would be stymied. |
| Programmes deemed essential, such as air traffic control and food inspections, would continue. | Programmes deemed essential, such as air traffic control and food inspections, would continue. |
| The defence department has advised employees that uniformed members of the military will continue on "normal duty status", but "large numbers" of civilian workers will be told to stay home. | The defence department has advised employees that uniformed members of the military will continue on "normal duty status", but "large numbers" of civilian workers will be told to stay home. |
| 'Far more dangerous' | 'Far more dangerous' |
| The looming shutdown, which would be the first for 17 years, is not the only crisis the US government is facing. | The looming shutdown, which would be the first for 17 years, is not the only crisis the US government is facing. |
| The US government and Republicans are also at loggerheads over extending the government's borrowing limit. | The US government and Republicans are also at loggerheads over extending the government's borrowing limit. |
| The US Treasury Secretary has warned that the US will hit its debt ceiling by 17 October, leaving the government with half the money needed to pay its bills. | The US Treasury Secretary has warned that the US will hit its debt ceiling by 17 October, leaving the government with half the money needed to pay its bills. |
| Earlier this month Jack Lew said that unless the US is allowed to extend its borrowing limit, the country will be left with about $30bn to meet its commitments, which on certain days can be as high as $60bn. | Earlier this month Jack Lew said that unless the US is allowed to extend its borrowing limit, the country will be left with about $30bn to meet its commitments, which on certain days can be as high as $60bn. |
| A failure to raise the limit could also result in the US government defaulting on its debt payments. | A failure to raise the limit could also result in the US government defaulting on its debt payments. |
| President Obama has warned that "failure to meet this responsibility would be far more dangerous than a government shutdown". | President Obama has warned that "failure to meet this responsibility would be far more dangerous than a government shutdown". |
| Washington faced a similar impasse over its debt ceiling in 2011. Republicans and the Democrats only reached a compromise on the day the government's ability to borrow money was due to run out. | Washington faced a similar impasse over its debt ceiling in 2011. Republicans and the Democrats only reached a compromise on the day the government's ability to borrow money was due to run out. |
| That fight was resolved just hours before the country could have defaulted on its debt, but nevertheless led to ratings agency Standard & Poor's downgrading the US for the first time ever. | That fight was resolved just hours before the country could have defaulted on its debt, but nevertheless led to ratings agency Standard & Poor's downgrading the US for the first time ever. |
| The 2011 compromise included a series of automatic budget cuts known as the "sequester" which came into effect earlier this year. | The 2011 compromise included a series of automatic budget cuts known as the "sequester" which came into effect earlier this year. |