01/10/2013 World Business Report

news with Sally Bundock and World Business Report. Closing time at

news with Sally Bundock and World lawmakers fail to avert a shutdown

implications. Shutdown, for the of the world's biggest economy.

implications. Shutdown, for the first time in 17 years, the US

government closes its doors; markets around the world brace themselves

business confidence rises in Japan, Shinzo Abe prepares to raise taxes

for the first time since 1997. Welcome to World Business Report.

I'm Sally Bundock. Shutdown in the US, at midnight the deadline to

I'm Sally Bundock. Shutdown in the a partial closure of government

thousands of federal workers will not be able to go to work today

thousands of federal workers will those that chose to head to the

office will not be paid. —— choose. Parks will be closed, passport

offices shut and taxes uncollected. Previous shutdowns have cost America

dearly, some say over $1 billion last time it closed 17 years ago.

But this time the political deadlock seems deeper than before. And when

largest economy closes its doors, the economic impact is global.

Samira Hussain reports from New As the clock struck midnight and

lawmakers inside were unable to As the clock struck midnight and

a budget, the American government is shutdown will have a very real

economic impact on real people right away. Past shutdowns have disrupted

the economy significantly. This away. Past shutdowns have disrupted

would too. It would throw a wrench into the key is of our economy at a

of the economy. It is a government shutdown. All indications are that

The US government therefore goes into default on those debts. No

concede that the government would allow itself to do that but still

everyone does feel as if they are sitting on pins and needles. There

won't do terrible damage to the economy but if it continues for

reached, a political calamity could very easily turn into an economic

We are seeing gains on the Japanese market. Hopefully we will have more

on this in the programme as it progresses. Let's talk about this

man. Shinzo Abe is set to unveil his latest policy on tax and the economy

today. Many now expect the plan latest policy on tax and the economy

finally include an unpopular rise in sales tax after a survey showed

finally include an unpopular rise in manufacturers confidence was at

finally include an unpopular rise in six year high. The government has

previously hinted the tax could six year high. The government has

public debt, the world's largest. April, and then to 10% in 2015.

public debt, the world's largest. But it could also mean people start

the budget? Were you specifically on There is obviously a lot of conflict

that is happening right now. Here is what clear. The American people

don't want to shut down and frankly I don't want to either. They are not

ready for Obama curve away it is currently configured. We need those

two things to come together. And elimination of the programme is

two things to come together. And realistic rate now. We're willing to

take a one—year delay now though we have sought shifted away from that

refuse to go on with that... Saying Congress live under the way it was

written. And we are seeing the Democrats in the Senate refusing to

fairness for the American people. Who are you talking about? There are

to get affordable healthcare. The middle classes and the wealthy

Americans? We are talking about middle class and lower middle class.

The 27 year old male is going to see an insurance premium nearly double.

agreed it is a big enterprise. It is A female is going to be slightly

agreed it is a big enterprise. It is make it affordable to the masses is

not an easy transition and it will be costly. The Democrats argue that

as a price worth paying. How do be costly. The Democrats argue that

see healthcare in the future? The president promised that if you like

your doctor you would be able to keep him, we are finding out that

isn't true. For the average family, their medical insurance deals will

increase by $2500. That is the wrong direction that we need to go. We

need to make sure we have affordable accessible. We are driving the

economics out of their in a way accessible. We are driving the

we are not going to have people accessible. We are driving the

want to deliver the healthcare either. It is going in the opposite

direction, it is becoming more than teeth and less accessible. Thank you

Bill. State of Michigan is the one teeth and less accessible. Thank you

Bill. State of Michigan is the one he is in charge of. We will discuss

it more when we review the papers. Back to Shinzo Abe Bay. For more,

Professor of Economics at Keio University in Japan and government

advisor. He is in Tokyo, not in Singapore. Put this in perspective

of those watching around the world. economy? It is about 220, much

higher than other countries. Make the market people feel confident.

The Prime Minister is going to reduce our budget deficits. Increase

of the sales tax might encourage consumption. In 1997, Japanese sales

tax increased from 3% to 5%. I am very afraid that the same thing

tax increased from 3% to 5%. I am happen. In other words, the huge

consumption will be accelerated happen. In other words, the huge

before. You have concerns about happen. In other words, the huge

move. You think the strength of happen. In other words, the huge

economy that we have seen is showing signs that this is working? That

this latest move will be a success eventually. ? The damage of the

economy will be mitigated. Shinzo Abe Bay will rip... That would be

very good news. Thanks. I will see