:00:00. > :00:00.asylum application was rejected. Those are the latest headlines. Now
:00:00. > :00:20.for the latest financial news with World Business Report.
:00:21. > :00:25.Markets welcome the deal to end America's debt deadlock as analysts
:00:26. > :00:26.begin to count the cost to the US economy.
:00:27. > :00:29.Plus ` son of Libor? Regulators widen their probe into suspected
:00:30. > :00:35.rigging in the global currency market.
:00:36. > :00:47.Welcome to World Business Report. In just a moment, more on what could be
:00:48. > :00:53.a massive new scandal to hit the financial industry. First, as you
:00:54. > :00:59.have been hearing, the US Senate and House of Representatives have voted
:01:00. > :01:01.through an 11 hour veal to raise the nation's borrowing limit and fund
:01:02. > :01:06.the Federal Goverment until early next year. `` 11 power bill.
:01:07. > :01:11.Financial markets breathed a sigh of relief. The risk of America
:01:12. > :01:19.defaulting on its debts have been averted. US bond yields have fallen.
:01:20. > :01:24.Analysts are already counting the cost to the US economy of the two
:01:25. > :01:28.week shutdown of government services that has seen hundreds of thousands
:01:29. > :01:36.of workers sent home without pay. Standard and Poor's and says that
:01:37. > :01:42.the crisis have wiped around 0.66% off GDP growth this quarter. In
:01:43. > :01:45.money terms, it has cost the American economy $24 billion. That
:01:46. > :01:48.figure does not reflect the true cost to individuals and businesses
:01:49. > :01:52.would to the reputation of the US in the eyes of global investors.
:01:53. > :02:03.It is a busy time in this home. Her two homes are doing homework. A
:02:04. > :02:07.single mother with no child support or alimony, she relies on her
:02:08. > :02:11.government job to pay for everything. The last two weeks have
:02:12. > :02:17.been a struggle. It is extremely difficult. The last pay cheque was
:02:18. > :02:22.only for one week. I did not know I would be getting another paycheque,
:02:23. > :02:26.depending on when we returned. There is no information as to whether we
:02:27. > :02:32.would be getting in back pay. So we just stop spending and start putting
:02:33. > :02:37.money into the economy. The American economy depends upon people like
:02:38. > :02:42.this to spend money. With 450,000 federal workers pinching pennies,
:02:43. > :02:47.the shutdown has come at a price. The last under the US government
:02:48. > :02:56.shutdown, in 19 54 to anyone days, it cost the Federal Goverment $1.5
:02:57. > :02:59.billion. `` in 1995 for 21 days. One research firm estimates that the
:03:00. > :03:06.government lost $300 million each day. Goldman Sachs says that the
:03:07. > :03:12.shutdown could shave as much as 0.9% from the American GDP this quarter.
:03:13. > :03:19.Economists at Bank of America cut their forecasts for US growth this
:03:20. > :03:21.quarter from 2.5% to 2%. While these may not seem like significant
:03:22. > :03:26.figures, this is not a normal, healthy economy. America is still
:03:27. > :03:33.recovering from a crippling recession. Washington's short`term
:03:34. > :03:39.fiscal policies are becoming costly. It is driven by character ``
:03:40. > :03:44.calendar driven crises. That is undermining economic growth by about
:03:45. > :03:49.0.25% per year since 2009 and costing the economy some 900,000
:03:50. > :03:55.jobs. For now, this mother is eager to hear back to her job but worries
:03:56. > :04:01.that this is not over. I'm going to get back very cautiously. I will
:04:02. > :04:05.have an expectation around January. These are some of the short`term
:04:06. > :04:10.effects of the shutdown. The long`term effects remain unclear and
:04:11. > :04:14.could be much more far reaching. For instance, America is now somewhat
:04:15. > :04:20.tarnished in the eyes of global investors.
:04:21. > :04:32.A rather gloomy outlook therefore America's future. Another take now.
:04:33. > :04:35.These two week stand`off ` what damage would you say it is done in
:04:36. > :04:40.terms of future growth in consumer confidence? This is building up to
:04:41. > :04:45.be a huge issue for Q4. The longer this went on, the more of an impact
:04:46. > :04:49.on GDP. Once we hit the debt ceiling, the implications for GDP
:04:50. > :04:54.growth at just in the US but across the industrialised world would be
:04:55. > :04:58.devastating. However, I do think that this has been resolved early
:04:59. > :05:03.enough in the quarter for the US to make up quite a lot of the output
:05:04. > :05:11.and the negative impact that it has lost through the crisis. The net
:05:12. > :05:16.impact of this on Q4 US GDP growth may be very small indeed at the end
:05:17. > :05:22.of the day. In which case, what effect if any do you think this will
:05:23. > :05:28.have on the US Fed decision as to when to begin tapering or not? You
:05:29. > :05:31.think that we will begin to see tapering any time around when the
:05:32. > :05:39.new chairman will stand in for indeed before January 15 and we see
:05:40. > :05:45.the government negotiations begin again? The crisis expectations for
:05:46. > :05:48.tapering were pushed into next year. But I think that there is still a
:05:49. > :05:52.chance that the Fed may go in December if the economic data
:05:53. > :05:57.running into the end of the year is strong enough. The data next month
:05:58. > :06:02.will be hugely distorted by what has happened. By the time we get to
:06:03. > :06:06.December, a lot of these distortions will be ironed out. Remember that
:06:07. > :06:10.the US economy was strengthened quite significantly running into the
:06:11. > :06:15.crisis. The degree to which it can recover its boys may increase the
:06:16. > :06:18.chances that we could possibly see Fed tapering before the end of this
:06:19. > :06:23.year. I do not think that this will happen, on balance, but there is a
:06:24. > :06:29.significant chance that it May. What damage you think, if any, this has
:06:30. > :06:32.all done to the confidence that American `` America's foreign
:06:33. > :06:37.creditors had? It has damaged confidence in the US Treasury and
:06:38. > :06:43.the US debt obligations, quite significantly. The US is in a good
:06:44. > :06:48.position in the sense that the dollar is the global reserve
:06:49. > :06:52.currency and that there are very few close substitutes for US Treasury
:06:53. > :06:57.debt. This has been a crucial factor that has underpinned the market
:06:58. > :07:00.through this crisis. Had we gone into default, of course, that
:07:01. > :07:05.situation would have changed radically. In the medium term, there
:07:06. > :07:08.may be a small increase in the US Treasury yields as a result of the
:07:09. > :07:13.continuing uncertainties. The debt ceiling shenanigans may be occur at
:07:14. > :07:17.some point in the future. The medium`term damage is probably not
:07:18. > :07:27.that significant at this point. OK, thank you for that. A moderate tone.
:07:28. > :07:30.For more on that, go to the BBC website. We have a special page
:07:31. > :07:33.dedicated to the US debt ceiling. You can find all sorts of
:07:34. > :07:47.explainers, videos, and analysis on there. That's bbc.com/usdebt.
:07:48. > :07:51.Regulators around the world are looking into allegations that
:07:52. > :07:56.traders have been colluding to read the foreign exchange market. On
:07:57. > :08:00.Wednesday, the UK financial regulators opened a formal
:08:01. > :08:03.investigation after questioning information from several banks.
:08:04. > :08:08.According to reports, regulators in the US are also involved. Now
:08:09. > :08:12.authorities in Hong Kong say that they are also looking into the
:08:13. > :08:19.allegations trading currencies is worth more than five trillion
:08:20. > :08:29.dollars a day. What more do we know so far? What we know is that Hong
:08:30. > :08:35.Kong's Kong monetary authority, is taking these allegations very
:08:36. > :08:38.seriously. I got off the phone with a spokeswoman for the monetary
:08:39. > :08:42.authority and they have confirmed that they are following up the
:08:43. > :08:47.matter with banks and also with their counterparts around the world.
:08:48. > :08:49.She did specify that they are not opening a formal investigation at
:08:50. > :08:53.the moment. They are simply following up these of a board and
:08:54. > :09:04.allegations that have been made around the world. She did not
:09:05. > :09:08.mention or name the banks and not `` nor which regulators. We would
:09:09. > :09:15.assume that they were speaking to regulators in the UK and the US. We
:09:16. > :09:18.have been hearing for the last week that senior traders at unnamed banks
:09:19. > :09:23.around the world have been colluding with one another, using knowledge of
:09:24. > :09:29.their client orders, to benefit themselves. Regulators are looking
:09:30. > :09:30.at the electronic Communications to see what they have been talking
:09:31. > :09:42.about. Many thanks. In other news: We look
:09:43. > :09:48.at the markets. While markets did a rally for the most part on Thursday
:09:49. > :09:55.after that last`minute deal to lift the US government's foreign limit
:09:56. > :10:01.and got a pet `` potentially catastrophic debt default stopped.
:10:02. > :10:17.From the end of the team, goodbye. There is to be a radical overhaul in
:10:18. > :10:21.the way that cases of child sex abuse are prosecuted. The Director
:10:22. > :10:25.of Public Prosecutions has issued a final set of guidelines that include
:10:26. > :10:29.the questioning of a victim's account less while questioning the
:10:30. > :10:33.suspect's story more vigourously at `` more vigourously. Keir Starmer
:10:34. > :10:35.called the guidelines the most fundamental attitude shift across
:10:36. > :10:39.the criminal justice system for a generation.
:10:40. > :10:42.The way in which child victims, sexually abused by Jimmy Savile,
:10:43. > :10:46.were treated by the criminal justice system is a source of shame. Too
:10:47. > :10:56.often, victims have been discouraged or dismissed. It has taken, I was
:10:57. > :11:02.about ten or 11... This man's experience has in typical. In a
:11:03. > :11:08.children's home, he said that he was abused by a man who was then a local
:11:09. > :11:10.councillor. We were not believed. People are given the wrong
:11:11. > :11:12.impression that the lads who are there came