:00:00. > :00:00.headlines from BBC News. Now for the latest financial news with Sally
:00:00. > :00:21.Tick tock — its day 14 of the US latest financial news with Sally
:00:21. > :00:21.Tick tock — its day 14 of the US shutdown and just days to go before
:00:21. > :00:27.default China is 'an opportunity, not a threat' Britian's chancellor
:00:27. > :00:47.Welcome to World Business Report. I'm Sally Bundock. Also in the
:00:47. > :00:51.programme food prices creep up in China and exports unexpectedly drop.
:00:51. > :00:55.We'll have the latest from our team in the region. Day 14 and the US
:00:55. > :00:58.shutdown enters its third week and there's still no sign of a deal
:00:58. > :00:59.shutdown enters its third week and end the political deadlock over
:00:59. > :01:06.government spending and raise the federal debt ceiling which expires
:01:06. > :01:09.this Thursday. Late on Sunday the head of the International Monetary
:01:09. > :01:15.Fund, Christine Lagarde warned a US default could tip the world into
:01:15. > :01:17.recession. Our Chief Economics Correspondent Hugh Pym explains
:01:17. > :01:27.what's at stake and how the current Budget impasse could affect everyone
:01:27. > :01:31.around the world. What is the debt ceiling? In many months, the US
:01:31. > :01:37.government spends more money than it gets in. It borrows money and to
:01:37. > :01:41.make up the shortfall. It is done by the US Treasury through the issue of
:01:41. > :01:49.bonds. US bonds are seen as one the US Treasury through the issue of
:01:49. > :01:56.Congress put in place of the first limit on accumulated debt — as
:01:56. > :02:00.ceiling the US government can have. Congress has to vote to raise the
:02:00. > :02:08.ceiling. So what it did they vote Congress has to vote to raise the
:02:08. > :02:08.ceiling. So what it did they vote not to increase at? This time,
:02:08. > :02:14.Republicans are using the votes not to increase at? This time,
:02:14. > :02:19.protest against the healthcare plan. The current ceiling is a
:02:19. > :02:23.protest against the healthcare trillion and the USA hit that level
:02:23. > :02:25.back in May. Since then, the US Treasury has been scraping together
:02:25. > :02:30.all the cash it can to keep the Treasury has been scraping together
:02:30. > :02:45.which will include the interests on government funded. They estimate
:02:45. > :02:48.which will include the interests on the IOUs and paying back some debt.
:02:48. > :02:58.By the end of a Toba, it may be forced to delay an interest — not
:02:58. > :03:05.paying what you are when you are is a default. That shockwave would
:03:05. > :03:14.reverberate through the global financial markets, probably raising
:03:14. > :03:20.interest rates for the whole world. Nice to see you again, Chris. It is
:03:20. > :03:21.the same conversation we are having dashes the lack of movement in
:03:21. > :03:30.Washington. Heart you surprise? dashes the lack of movement in
:03:30. > :03:36.are you surprised? They are talking about the right questions are now.
:03:36. > :03:40.Senators were having some debate around the level of funding to a
:03:40. > :03:43.continuing resolution and the length of that resolution. That is a good
:03:43. > :03:46.thing because when the Senate is talking about the numbers, you can
:03:46. > :03:56.always get to some level in the exclusive issues at stake — the
:03:56. > :04:02.healthcare law. Doing it or not doing it. They have gone from that
:04:02. > :04:09.to numbers which makes it more doing it. They have gone from that
:04:09. > :04:10.to numbers which makes it more Interesting as well that the Obama
:04:11. > :04:25.decision? Do you think they have to administration did not go for the
:04:25. > :04:25.decision? Do you think they have to force the issue? Effectively, we
:04:25. > :04:39.threat of a default. The principle force the issue? Effectively, we
:04:39. > :04:47.Effectively, that has happened. they would not negotiate over that.
:04:47. > :04:47.Effectively, that has happened. Hopefully it gets a result. The
:04:47. > :04:56.power goes out in the Senate, that Hopefully it gets a result. The
:04:56. > :04:59.power goes out in the Senate, that could push down to the deadline
:04:59. > :05:02.power goes out in the Senate, that hopefully within a couple of days
:05:02. > :05:08.you will see a resolution will stop what you think the final outcome
:05:08. > :05:17.will be's most likely the Republican changing the healthcare law, other
:05:17. > :05:23.completely dropped and the most continuing resolution to keeping the
:05:23. > :05:36.Budget going, the government open, until about January, at a level
:05:36. > :05:38.Budget going, the government open, appreciate you coming and talking to
:05:38. > :05:41.us. Britain's Finance Minister, Chancellor George Osborne, is in
:05:41. > :05:43.relations between the two countries. Today he's been speaking to students
:05:43. > :05:47.at Peking University. Observers Today he's been speaking to students
:05:47. > :05:50.improving and so far Osborne has announced the UK will relax visa
:05:50. > :05:53.rules for Chinese visitors and has unveiled a one point three billion
:05:53. > :06:09.dollar plan for Chinese investment in Manchester Airport, creating
:06:09. > :06:16.saying where you are? So far, the 16,000 new jobs. What are people
:06:16. > :06:20.saying where you are? So far, the announcement has generated the most
:06:20. > :06:24.attention on the Chinese equivalent announcement has generated the most
:06:24. > :06:28.attention on the Chinese equivalent of Twitter. That more tourists would
:06:28. > :06:36.be allowed to travel to the UK has excitement. That seems to be the
:06:36. > :06:39.thing that is getting a lot of attention here. In many ways, it
:06:40. > :06:44.would make sense to relax those attention here. In many ways, it
:06:44. > :06:45.these rules. It seemed unusual that Chinese visitors in particular had
:06:45. > :06:55.UK? Absolutely. UK Visa officers, Chinese visitors in particular had
:06:55. > :06:57.UK? Absolutely. UK Visa officers, when they realised many people were
:06:57. > :07:05.choosing to skip the UK because when they realised many people were
:07:05. > :07:13.missing out on a lot of high end Chinese tourists — people who spend
:07:13. > :07:19.a lot of money. In Paris, they will spend a lot of money in boutiques.
:07:19. > :07:24.By relaxing those rules, they can encourage more people to travel
:07:24. > :07:27.By relaxing those rules, they can the UK. We are hoping to fast track
:07:27. > :07:30.visas for businesspeople — people who need visas very quickly. It
:07:30. > :07:37.might be easier for them to travel to the UK. In terms of trade deals,
:07:37. > :07:41.we know about the investment near Manchester airport, any other deals?
:07:41. > :07:47.We are hearing about a possible Manchester airport, any other deals?
:07:47. > :07:51.on nuclear energy that will be coming up later this week. The
:07:51. > :07:56.Chancellor will also be travelling to southern China to visit the
:07:56. > :08:01.officers of a major technology company in China. They have already
:08:01. > :08:05.announced they will be opening an office in the UK. Throughout the
:08:05. > :08:06.week he will be travelling through the country, announcing further
:08:06. > :08:12.deals. He is trying to announce the country, announcing further
:08:13. > :08:19.variety of deals across industries in the UK. Thank you very much.
:08:19. > :08:21.Staying with China, it's had some economic numbers out this morning
:08:21. > :08:24.crept up to a seven—month high in which are rather worrying. Inflation
:08:24. > :08:24.crept up to a seven—month high in September and in the same month
:08:25. > :08:29.there's been an unexpected fall September and in the same month
:08:29. > :08:37.exports. Rico Hizon is in our Asia business hub with the details on
:08:37. > :08:55.2.9%. You mention a spike in food that. Nice to see you. Tell us more
:08:55. > :08:55.2.9%. You mention a spike in food driver, authorities also blamed
:08:55. > :09:01.holidays in late September, also floods and droughts in some areas.
:09:01. > :09:15.rise it travel costs. Producer prices fell which shows Chinese
:09:15. > :09:22.rise it travel costs. Producer fractures have yet to benefit from
:09:22. > :09:33.government measures to boost growth. Sales to South East Asia fell by
:09:33. > :09:41.currency against the US dollar. Imports fared better. They rose
:09:41. > :09:47.currency against the US dollar. 7.4%. Expert data might be quite
:09:47. > :09:58.weak in upcoming months as financial turmoil affects the global markets.
:09:58. > :10:03.holiday. We have a mixed picture. These markets are digestive news out
:10:03. > :10:04.of China and also the fact that there is seemingly no movement in