30/09/2013

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:00:05. > :00:22.for the latest financial news with No deal. In less than 24 hours time,

:00:22. > :00:29.the US government could shutdown as lawmakers fail to pass a new budget.

:00:29. > :00:32.Closing down a life line. Terrorist risks cause Barclays to stop dealing

:00:32. > :00:33.with remittance companies in Africa. A move that could leave millions

:00:33. > :00:48.without the money they survive on. Welcome to World Business Report.

:00:48. > :00:53.I'm Sally Bundock. Also in the programme, we will be speaking to an

:00:53. > :01:06.expert about how Barclays move to companies could have a far reaching

:01:06. > :01:07.First of all, we start in the US, where a government shutdown looms.

:01:07. > :01:10.As the week kicks off, hundreds where a government shutdown looms.

:01:10. > :01:15.thousands of federal employees could find themselves not going to work on

:01:15. > :01:21.Tuesday morning. This due to a political stalemate in Washington

:01:21. > :01:25.over federal spending. Over the weekend, congressional leaders tried

:01:25. > :01:29.to negotiate a new budget but, at Republicans are not willing to

:01:29. > :01:32.loosen their stance on further healthcare spending. And with that,

:01:32. > :01:35.the stakes are high but they are no deal can be reached. Politically,

:01:35. > :01:45.the stakes are high but they are even higher for ordinary Americans.

:01:45. > :01:50.most popular tourist destinations in Many make the trip to one of the

:01:50. > :01:55.most popular tourist destinations in America, to catch a glimpse and

:01:55. > :01:56.most popular tourist destinations in snap a photo. The Statue of Liberty

:01:56. > :02:00.is a defining feature of the New York City skyline. But if Washington

:02:00. > :02:08.can't get a budget together by museums and monuments will be closed

:02:08. > :02:35.believe what's happening. It's an to visitors. The government shut

:02:35. > :02:39.believe what's happening. It's an enemies, and what we are finding is

:02:39. > :02:51.that, through a budget fight, with radical views against the use and

:02:51. > :02:54.basically being held hostage. The last time the US government closed

:02:54. > :03:00.its doors was in the mid— 90s, costing American taxpayers $1.4

:03:00. > :03:06.billion. Today, shut down seems almost unavoidable. It sounds like

:03:06. > :03:09.the Democrats are obsessed with shutting down the government. That's

:03:09. > :03:15.all they talk about. The only thing we want to shut down is ObamaCare.

:03:15. > :03:24.The reason we want to shut it down is because of the harm it is doing

:03:24. > :03:30.government closer but a bigger problem is that the government needs

:03:30. > :03:37.October, or the US risks defaulting Failure to meet this responsibility

:03:37. > :03:42.would be far more dangerous than a government shutdown. There would be

:03:42. > :03:47.an economic shutdown, which impacts not just here but around the world.

:03:47. > :03:50.For now, the world waits for the largest economy to pass the budget

:03:50. > :03:54.and keep the Statue of Liberty from and keep the Statue of Liberty from

:03:54. > :03:59.As we countdown to this deadline, turning her back on the thousands of

:03:59. > :04:00.As we countdown to this deadline, edge. Sharanjit Leyl is at our Asia

:04:00. > :04:10.see you. What's going on in Asia? edge. Sharanjit Leyl is at our Asia

:04:10. > :04:14.see you. What's going on in Asia? As you can imagine, Asian markets

:04:14. > :04:28.but not hugely. The DK fell over 2% US and may be heading for a shot

:04:28. > :04:28.but not hugely. The DK fell over 2% but it's now just over 1%. As are

:04:28. > :04:37.fear of the unknown and the fact but it's now just over 1%. As are

:04:37. > :04:42.fear of the unknown and the fact that markets don't like uncertainty.

:04:42. > :04:45.In Japan, we see exporter related stocks like Toyota falling, that's

:04:45. > :04:52.because the dollar has been falling sharply against the Japanese yen.

:04:52. > :04:56.Toyota gets about 31% of its revenue from North America and it is of

:04:56. > :05:03.course lower today as a result. from North America and it is of

:05:03. > :05:07.cautious ahead of their own domestic announcement about the government's

:05:07. > :05:14.economic growth and tax strategy. Elsewhere, looking at some of the

:05:14. > :05:18.other markets, BHP Billiton in Australia, the biggest oil producer,

:05:18. > :05:23.has dropped over 1%, as crude oil prices fell. Many analysts Inc this

:05:23. > :05:28.is a knee—jerk response that we prices fell. Many analysts Inc this

:05:28. > :05:33.see today. —— say this is. There have always been resolutions in

:05:33. > :05:33.see today. —— say this is. There past to avert crisis. Thanks for the

:05:33. > :05:38.Millions of Somalis who rely on past to avert crisis. Thanks for the

:05:38. > :05:40.sent from abroad will find access to this money cut off today. British

:05:40. > :05:43.Bank Barclays is pulling out of this money cut off today. British

:05:43. > :05:47.relationships with remittance firms, families and businesses in a country

:05:47. > :05:52.where banking infrastructure doesn't exist. Barclays' fears the risk

:05:52. > :05:52.where banking infrastructure doesn't untraceable cash being used to

:05:52. > :05:59.finance terrorist organisations untraceable cash being used to

:05:59. > :06:03.too great. But the firms that will be affected are starting to fight

:06:03. > :06:20.back. Late Sunday, three remittances am now joined by a spokesman from

:06:20. > :06:29.the BBC Somali service. What's going on? Barclays is probably the last to

:06:29. > :06:36.that offers services. By closing make this move? Yes, it is the last

:06:36. > :06:36.that offers services. By closing remittance companies will lose their

:06:36. > :06:50.effect on the millions of Somalis remittance companies will lose their

:06:50. > :06:53.effect on the millions of Somalis who depend on remittances. A recent

:06:53. > :06:57.study by the UN found 40% of Somalis depend on remittances for their

:06:57. > :07:01.study by the UN found 40% of Somalis basic of needs, food, health and

:07:01. > :07:07.education. It will be cutting off a lifeline. From Barclays' point of

:07:07. > :07:20.view, they argue the risk is too ramifications. What do you think the

:07:20. > :07:25.answer is? A number of banks have been fined huge amounts of money.

:07:25. > :07:29.Whenever I speak to Barclays, a been fined huge amounts of money.

:07:29. > :07:34.they can't take that risk of being fined. Ironically, none of the

:07:34. > :07:37.existing Somali companies have ever been found guilty of any sort of

:07:37. > :07:42.money laundering or funding of terrorism. The bigger companies

:07:42. > :07:45.money laundering or funding of got everything computerised, they

:07:45. > :07:49.check the identity of senders and receivers very rigourously. They

:07:49. > :07:54.have said to Barclays, if you tell us what it is that you want us to

:07:54. > :08:04.do, because Barclays has just told eligibility criteria, if you tell us

:08:04. > :08:12.what we need to do, we will up al gain. Because they are not being

:08:12. > :08:16.told, they are stuck. What about big companies that provide this kind of

:08:16. > :08:28.has said it is available to provide service, like Western Union. Are

:08:28. > :08:32.breakaway part of Somalia that services. But it has one office

:08:32. > :08:36.breakaway part of Somalia that declared itself independent more

:08:36. > :08:40.way that a company like Western than 20 years ago. So, there's no

:08:40. > :08:42.way that a company like Western Union could provide the services

:08:42. > :08:48.have agents in the most promote that the Somali companies do. They

:08:48. > :08:51.have agents in the most promote other way of getting money in. The

:08:51. > :08:59.there are terrorist organisations fear is that if these remittance

:08:59. > :09:03.there are terrorist organisations there, armed traffickers, people

:09:03. > :09:04.traffickers. If that money starts going down those kinds of routes,

:09:05. > :09:11.the situation will be far worse going down those kinds of routes,

:09:11. > :09:17.Thank you for explaining that. We will keep an icon that. Let's fill

:09:17. > :09:24.you in on some other stories now. —— keep an eye on that. Siemens is

:09:24. > :09:26.you in on some other stories now. —— cut up to 50,000 jobs or 4% of its

:09:26. > :09:34.workforce as part of a cost—cutting programme. It will shed 5000 jobs in

:09:34. > :09:36.Germany and another 10,000 abroad. It axed its former chief executive

:09:36. > :09:53.Now the markets in Asia. They are very much focused on this budget row

:09:53. > :10:00.moment. The impasse over spending and healthcare. That will darken the

:10:00. > :10:02.markets over the next 24 hours or so and will have an impact on European

:10:02. > :10:06.trade. We will see you soon for and will have an impact on European