:00:00. > :00:27.news with Sally Bundock and World Business Report. Closing time at
:00:27. > :00:29.news with Sally Bundock and World lawmakers fail to avert a shutdown
:00:29. > :00:44.implications. Shutdown, for the of the world's biggest economy.
:00:44. > :00:45.implications. Shutdown, for the first time in 17 years, the US
:00:45. > :00:49.government closes its doors; markets around the world brace themselves
:00:49. > :00:52.business confidence rises in Japan, Shinzo Abe prepares to raise taxes
:00:52. > :01:01.for the first time since 1997. Welcome to World Business Report.
:01:01. > :01:04.I'm Sally Bundock. Shutdown in the US, at midnight the deadline to
:01:04. > :01:07.I'm Sally Bundock. Shutdown in the a partial closure of government
:01:07. > :01:10.thousands of federal workers will not be able to go to work today
:01:10. > :01:14.thousands of federal workers will those that chose to head to the
:01:14. > :01:17.office will not be paid. —— choose. Parks will be closed, passport
:01:17. > :01:19.offices shut and taxes uncollected. Previous shutdowns have cost America
:01:19. > :01:23.dearly, some say over $1 billion last time it closed 17 years ago.
:01:23. > :01:28.But this time the political deadlock seems deeper than before. And when
:01:28. > :01:30.largest economy closes its doors, the economic impact is global.
:01:30. > :01:39.Samira Hussain reports from New As the clock struck midnight and
:01:39. > :01:43.lawmakers inside were unable to As the clock struck midnight and
:01:43. > :01:51.a budget, the American government is shutdown will have a very real
:01:51. > :01:56.economic impact on real people right away. Past shutdowns have disrupted
:01:56. > :02:02.the economy significantly. This away. Past shutdowns have disrupted
:02:02. > :02:05.would too. It would throw a wrench into the key is of our economy at a
:02:05. > :02:58.of the economy. It is a government shutdown. All indications are that
:02:58. > :03:06.The US government therefore goes into default on those debts. No
:03:06. > :03:12.concede that the government would allow itself to do that but still
:03:12. > :03:18.everyone does feel as if they are sitting on pins and needles. There
:03:18. > :03:26.won't do terrible damage to the economy but if it continues for
:03:26. > :03:27.reached, a political calamity could very easily turn into an economic
:03:27. > :03:52.We are seeing gains on the Japanese market. Hopefully we will have more
:03:52. > :04:03.on this in the programme as it progresses. Let's talk about this
:04:03. > :04:05.man. Shinzo Abe is set to unveil his latest policy on tax and the economy
:04:05. > :04:08.today. Many now expect the plan latest policy on tax and the economy
:04:08. > :04:11.finally include an unpopular rise in sales tax after a survey showed
:04:11. > :04:14.finally include an unpopular rise in manufacturers confidence was at
:04:14. > :04:14.finally include an unpopular rise in six year high. The government has
:04:14. > :04:18.previously hinted the tax could six year high. The government has
:04:18. > :04:30.public debt, the world's largest. April, and then to 10% in 2015.
:04:30. > :04:32.public debt, the world's largest. But it could also mean people start
:04:32. > :05:21.the budget? Were you specifically on There is obviously a lot of conflict
:05:21. > :05:24.that is happening right now. Here is what clear. The American people
:05:24. > :05:31.don't want to shut down and frankly I don't want to either. They are not
:05:32. > :05:42.ready for Obama curve away it is currently configured. We need those
:05:42. > :05:47.two things to come together. And elimination of the programme is
:05:47. > :05:50.two things to come together. And realistic rate now. We're willing to
:05:50. > :05:56.take a one—year delay now though we have sought shifted away from that
:05:56. > :06:06.refuse to go on with that... Saying Congress live under the way it was
:06:06. > :06:14.written. And we are seeing the Democrats in the Senate refusing to
:06:14. > :06:21.fairness for the American people. Who are you talking about? There are
:06:21. > :06:38.to get affordable healthcare. The middle classes and the wealthy
:06:38. > :06:45.Americans? We are talking about middle class and lower middle class.
:06:45. > :06:54.The 27 year old male is going to see an insurance premium nearly double.
:06:54. > :07:23.agreed it is a big enterprise. It is A female is going to be slightly
:07:23. > :07:27.agreed it is a big enterprise. It is make it affordable to the masses is
:07:27. > :07:32.not an easy transition and it will be costly. The Democrats argue that
:07:32. > :07:41.as a price worth paying. How do be costly. The Democrats argue that
:07:41. > :07:45.see healthcare in the future? The president promised that if you like
:07:45. > :07:53.your doctor you would be able to keep him, we are finding out that
:07:53. > :08:03.isn't true. For the average family, their medical insurance deals will
:08:03. > :08:10.increase by $2500. That is the wrong direction that we need to go. We
:08:10. > :08:16.need to make sure we have affordable accessible. We are driving the
:08:17. > :08:21.economics out of their in a way accessible. We are driving the
:08:21. > :08:23.we are not going to have people accessible. We are driving the
:08:23. > :08:30.want to deliver the healthcare either. It is going in the opposite
:08:30. > :08:34.direction, it is becoming more than teeth and less accessible. Thank you
:08:34. > :08:46.Bill. State of Michigan is the one teeth and less accessible. Thank you
:08:46. > :08:51.Bill. State of Michigan is the one he is in charge of. We will discuss
:08:51. > :09:02.it more when we review the papers. Back to Shinzo Abe Bay. For more,
:09:02. > :09:12.Professor of Economics at Keio University in Japan and government
:09:12. > :09:20.advisor. He is in Tokyo, not in Singapore. Put this in perspective
:09:20. > :09:36.of those watching around the world. economy? It is about 220, much
:09:37. > :09:42.higher than other countries. Make the market people feel confident.
:09:42. > :09:49.The Prime Minister is going to reduce our budget deficits. Increase
:09:50. > :10:07.of the sales tax might encourage consumption. In 1997, Japanese sales
:10:07. > :10:17.tax increased from 3% to 5%. I am very afraid that the same thing
:10:17. > :10:17.tax increased from 3% to 5%. I am happen. In other words, the huge
:10:18. > :10:24.consumption will be accelerated happen. In other words, the huge
:10:24. > :10:28.before. You have concerns about happen. In other words, the huge
:10:28. > :10:34.move. You think the strength of happen. In other words, the huge
:10:34. > :10:37.economy that we have seen is showing signs that this is working? That
:10:37. > :10:53.this latest move will be a success eventually. ? The damage of the
:10:53. > :11:12.economy will be mitigated. Shinzo Abe Bay will rip... That would be
:11:12. > :11:18.very good news. Thanks. I will see