14/10/2013 World Business Report

headlines from BBC News. Now for the latest financial news with Sally

Tick tock — its day 14 of the US latest financial news with Sally

Tick tock — its day 14 of the US shutdown and just days to go before

default China is 'an opportunity, not a threat' Britian's chancellor

Welcome to World Business Report. I'm Sally Bundock. Also in the

programme food prices creep up in China and exports unexpectedly drop.

We'll have the latest from our team in the region. Day 14 and the US

shutdown enters its third week and there's still no sign of a deal

shutdown enters its third week and end the political deadlock over

government spending and raise the federal debt ceiling which expires

this Thursday. Late on Sunday the head of the International Monetary

Fund, Christine Lagarde warned a US default could tip the world into

recession. Our Chief Economics Correspondent Hugh Pym explains

what's at stake and how the current Budget impasse could affect everyone

around the world. What is the debt ceiling? In many months, the US

government spends more money than it gets in. It borrows money and to

make up the shortfall. It is done by the US Treasury through the issue of

bonds. US bonds are seen as one the US Treasury through the issue of

Congress put in place of the first limit on accumulated debt — as

ceiling the US government can have. Congress has to vote to raise the

ceiling. So what it did they vote Congress has to vote to raise the

ceiling. So what it did they vote not to increase at? This time,

Republicans are using the votes not to increase at? This time,

protest against the healthcare plan. The current ceiling is a

protest against the healthcare trillion and the USA hit that level

back in May. Since then, the US Treasury has been scraping together

all the cash it can to keep the Treasury has been scraping together

which will include the interests on government funded. They estimate

which will include the interests on the IOUs and paying back some debt.

By the end of a Toba, it may be forced to delay an interest — not

paying what you are when you are is a default. That shockwave would

reverberate through the global financial markets, probably raising

interest rates for the whole world. Nice to see you again, Chris. It is

the same conversation we are having dashes the lack of movement in

Washington. Heart you surprise? dashes the lack of movement in

are you surprised? They are talking about the right questions are now.

Senators were having some debate around the level of funding to a

continuing resolution and the length of that resolution. That is a good

thing because when the Senate is talking about the numbers, you can

always get to some level in the exclusive issues at stake — the

healthcare law. Doing it or not doing it. They have gone from that

to numbers which makes it more doing it. They have gone from that

to numbers which makes it more Interesting as well that the Obama

decision? Do you think they have to administration did not go for the

decision? Do you think they have to force the issue? Effectively, we

threat of a default. The principle force the issue? Effectively, we

Effectively, that has happened. they would not negotiate over that.

Effectively, that has happened. Hopefully it gets a result. The

power goes out in the Senate, that Hopefully it gets a result. The

power goes out in the Senate, that could push down to the deadline

power goes out in the Senate, that hopefully within a couple of days

you will see a resolution will stop what you think the final outcome

will be's most likely the Republican changing the healthcare law, other

completely dropped and the most continuing resolution to keeping the

Budget going, the government open, until about January, at a level

Budget going, the government open, appreciate you coming and talking to

us. Britain's Finance Minister, Chancellor George Osborne, is in

relations between the two countries. Today he's been speaking to students

at Peking University. Observers Today he's been speaking to students

improving and so far Osborne has announced the UK will relax visa

rules for Chinese visitors and has unveiled a one point three billion

dollar plan for Chinese investment in Manchester Airport, creating

saying where you are? So far, the 16,000 new jobs. What are people

saying where you are? So far, the announcement has generated the most

attention on the Chinese equivalent announcement has generated the most

attention on the Chinese equivalent of Twitter. That more tourists would

be allowed to travel to the UK has excitement. That seems to be the

thing that is getting a lot of attention here. In many ways, it

would make sense to relax those attention here. In many ways, it

these rules. It seemed unusual that Chinese visitors in particular had

UK? Absolutely. UK Visa officers, Chinese visitors in particular had

UK? Absolutely. UK Visa officers, when they realised many people were

choosing to skip the UK because when they realised many people were

missing out on a lot of high end Chinese tourists — people who spend

a lot of money. In Paris, they will spend a lot of money in boutiques.

By relaxing those rules, they can encourage more people to travel

By relaxing those rules, they can the UK. We are hoping to fast track

visas for businesspeople — people who need visas very quickly. It

might be easier for them to travel to the UK. In terms of trade deals,

we know about the investment near Manchester airport, any other deals?

We are hearing about a possible Manchester airport, any other deals?

on nuclear energy that will be coming up later this week. The

Chancellor will also be travelling to southern China to visit the

officers of a major technology company in China. They have already

announced they will be opening an office in the UK. Throughout the

week he will be travelling through the country, announcing further

deals. He is trying to announce the country, announcing further

variety of deals across industries in the UK. Thank you very much.

Staying with China, it's had some economic numbers out this morning

crept up to a seven—month high in which are rather worrying. Inflation

crept up to a seven—month high in September and in the same month

there's been an unexpected fall September and in the same month

exports. Rico Hizon is in our Asia business hub with the details on

2.9%. You mention a spike in food that. Nice to see you. Tell us more

2.9%. You mention a spike in food driver, authorities also blamed

holidays in late September, also floods and droughts in some areas.

rise it travel costs. Producer prices fell which shows Chinese

rise it travel costs. Producer fractures have yet to benefit from

government measures to boost growth. Sales to South East Asia fell by

currency against the US dollar. Imports fared better. They rose

currency against the US dollar. 7.4%. Expert data might be quite

weak in upcoming months as financial turmoil affects the global markets.

holiday. We have a mixed picture. These markets are digestive news out

of China and also the fact that there is seemingly no movement in