30/09/2013 World Business Report


30/09/2013

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for the latest financial news with No deal. In less than 24 hours time,

:00:05.:00:22.

the US government could shutdown as lawmakers fail to pass a new budget.

:00:22.:00:29.

Closing down a life line. Terrorist risks cause Barclays to stop dealing

:00:29.:00:32.

with remittance companies in Africa. A move that could leave millions

:00:32.:00:33.

without the money they survive on. Welcome to World Business Report.

:00:33.:00:48.

I'm Sally Bundock. Also in the programme, we will be speaking to an

:00:48.:00:53.

expert about how Barclays move to companies could have a far reaching

:00:53.:01:06.

First of all, we start in the US, where a government shutdown looms.

:01:06.:01:07.

As the week kicks off, hundreds where a government shutdown looms.

:01:07.:01:10.

thousands of federal employees could find themselves not going to work on

:01:10.:01:15.

Tuesday morning. This due to a political stalemate in Washington

:01:15.:01:21.

over federal spending. Over the weekend, congressional leaders tried

:01:21.:01:25.

to negotiate a new budget but, at Republicans are not willing to

:01:25.:01:29.

loosen their stance on further healthcare spending. And with that,

:01:29.:01:32.

the stakes are high but they are no deal can be reached. Politically,

:01:32.:01:35.

the stakes are high but they are even higher for ordinary Americans.

:01:35.:01:45.

most popular tourist destinations in Many make the trip to one of the

:01:45.:01:50.

most popular tourist destinations in America, to catch a glimpse and

:01:50.:01:55.

most popular tourist destinations in snap a photo. The Statue of Liberty

:01:55.:01:56.

is a defining feature of the New York City skyline. But if Washington

:01:56.:02:00.

can't get a budget together by museums and monuments will be closed

:02:00.:02:08.

believe what's happening. It's an to visitors. The government shut

:02:08.:02:35.

believe what's happening. It's an enemies, and what we are finding is

:02:35.:02:39.

that, through a budget fight, with radical views against the use and

:02:39.:02:51.

basically being held hostage. The last time the US government closed

:02:51.:02:54.

its doors was in the mid— 90s, costing American taxpayers $1.4

:02:54.:03:00.

billion. Today, shut down seems almost unavoidable. It sounds like

:03:00.:03:06.

the Democrats are obsessed with shutting down the government. That's

:03:06.:03:09.

all they talk about. The only thing we want to shut down is ObamaCare.

:03:09.:03:15.

The reason we want to shut it down is because of the harm it is doing

:03:15.:03:24.

government closer but a bigger problem is that the government needs

:03:24.:03:30.

October, or the US risks defaulting Failure to meet this responsibility

:03:30.:03:37.

would be far more dangerous than a government shutdown. There would be

:03:37.:03:42.

an economic shutdown, which impacts not just here but around the world.

:03:42.:03:47.

For now, the world waits for the largest economy to pass the budget

:03:47.:03:50.

and keep the Statue of Liberty from and keep the Statue of Liberty from

:03:50.:03:54.

As we countdown to this deadline, turning her back on the thousands of

:03:54.:03:59.

As we countdown to this deadline, edge. Sharanjit Leyl is at our Asia

:03:59.:04:00.

see you. What's going on in Asia? edge. Sharanjit Leyl is at our Asia

:04:00.:04:10.

see you. What's going on in Asia? As you can imagine, Asian markets

:04:10.:04:14.

but not hugely. The DK fell over 2% US and may be heading for a shot

:04:14.:04:28.

but not hugely. The DK fell over 2% but it's now just over 1%. As are

:04:28.:04:28.

fear of the unknown and the fact but it's now just over 1%. As are

:04:28.:04:37.

fear of the unknown and the fact that markets don't like uncertainty.

:04:37.:04:42.

In Japan, we see exporter related stocks like Toyota falling, that's

:04:42.:04:45.

because the dollar has been falling sharply against the Japanese yen.

:04:45.:04:52.

Toyota gets about 31% of its revenue from North America and it is of

:04:52.:04:56.

course lower today as a result. from North America and it is of

:04:56.:05:03.

cautious ahead of their own domestic announcement about the government's

:05:03.:05:07.

economic growth and tax strategy. Elsewhere, looking at some of the

:05:07.:05:14.

other markets, BHP Billiton in Australia, the biggest oil producer,

:05:14.:05:18.

has dropped over 1%, as crude oil prices fell. Many analysts Inc this

:05:18.:05:23.

is a knee—jerk response that we prices fell. Many analysts Inc this

:05:23.:05:28.

see today. —— say this is. There have always been resolutions in

:05:28.:05:33.

see today. —— say this is. There past to avert crisis. Thanks for the

:05:33.:05:33.

Millions of Somalis who rely on past to avert crisis. Thanks for the

:05:33.:05:38.

sent from abroad will find access to this money cut off today. British

:05:38.:05:40.

Bank Barclays is pulling out of this money cut off today. British

:05:40.:05:43.

relationships with remittance firms, families and businesses in a country

:05:43.:05:47.

where banking infrastructure doesn't exist. Barclays' fears the risk

:05:47.:05:52.

where banking infrastructure doesn't untraceable cash being used to

:05:52.:05:52.

finance terrorist organisations untraceable cash being used to

:05:52.:05:59.

too great. But the firms that will be affected are starting to fight

:05:59.:06:03.

back. Late Sunday, three remittances am now joined by a spokesman from

:06:03.:06:20.

the BBC Somali service. What's going on? Barclays is probably the last to

:06:20.:06:29.

that offers services. By closing make this move? Yes, it is the last

:06:29.:06:36.

that offers services. By closing remittance companies will lose their

:06:36.:06:36.

effect on the millions of Somalis remittance companies will lose their

:06:36.:06:50.

effect on the millions of Somalis who depend on remittances. A recent

:06:50.:06:53.

study by the UN found 40% of Somalis depend on remittances for their

:06:53.:06:57.

study by the UN found 40% of Somalis basic of needs, food, health and

:06:57.:07:01.

education. It will be cutting off a lifeline. From Barclays' point of

:07:01.:07:07.

view, they argue the risk is too ramifications. What do you think the

:07:07.:07:20.

answer is? A number of banks have been fined huge amounts of money.

:07:20.:07:25.

Whenever I speak to Barclays, a been fined huge amounts of money.

:07:25.:07:29.

they can't take that risk of being fined. Ironically, none of the

:07:29.:07:34.

existing Somali companies have ever been found guilty of any sort of

:07:34.:07:37.

money laundering or funding of terrorism. The bigger companies

:07:37.:07:42.

money laundering or funding of got everything computerised, they

:07:42.:07:45.

check the identity of senders and receivers very rigourously. They

:07:45.:07:49.

have said to Barclays, if you tell us what it is that you want us to

:07:49.:07:54.

do, because Barclays has just told eligibility criteria, if you tell us

:07:54.:08:04.

what we need to do, we will up al gain. Because they are not being

:08:04.:08:12.

told, they are stuck. What about big companies that provide this kind of

:08:12.:08:16.

has said it is available to provide service, like Western Union. Are

:08:16.:08:28.

breakaway part of Somalia that services. But it has one office

:08:28.:08:32.

breakaway part of Somalia that declared itself independent more

:08:32.:08:36.

way that a company like Western than 20 years ago. So, there's no

:08:36.:08:40.

way that a company like Western Union could provide the services

:08:40.:08:42.

have agents in the most promote that the Somali companies do. They

:08:42.:08:48.

have agents in the most promote other way of getting money in. The

:08:48.:08:51.

there are terrorist organisations fear is that if these remittance

:08:51.:08:59.

there are terrorist organisations there, armed traffickers, people

:08:59.:09:03.

traffickers. If that money starts going down those kinds of routes,

:09:03.:09:04.

the situation will be far worse going down those kinds of routes,

:09:05.:09:11.

Thank you for explaining that. We will keep an icon that. Let's fill

:09:11.:09:17.

you in on some other stories now. —— keep an eye on that. Siemens is

:09:17.:09:24.

you in on some other stories now. —— cut up to 50,000 jobs or 4% of its

:09:24.:09:26.

workforce as part of a cost—cutting programme. It will shed 5000 jobs in

:09:26.:09:34.

Germany and another 10,000 abroad. It axed its former chief executive

:09:34.:09:36.

Now the markets in Asia. They are very much focused on this budget row

:09:36.:09:53.

moment. The impasse over spending and healthcare. That will darken the

:09:53.:10:00.

markets over the next 24 hours or so and will have an impact on European

:10:00.:10:02.

trade. We will see you soon for and will have an impact on European

:10:02.:10:06.

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