US federal government shuts down

Discussion in 'Americas' started by Sridhar, Oct 1, 2013.

  1. Sridhar

    Sridhar House keeper Moderator

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  3. Sridhar

    Sridhar House keeper Moderator

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  4. Sridhar

    Sridhar House keeper Moderator

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  5. Ray

    Ray The Chairman Defence Professionals Moderator

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    This will seriously affect a large number of people who will not get their pay and pensions!
     
  6. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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  7. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    I got my pensions on 30 SEP. Unfortunately my second ex-wife gets half.
     
  8. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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  9. jmj_overlord

    jmj_overlord Regular Member

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    will this shutdown affect the us army and it's counter terrorism ops ?
     
  10. happy

    happy Senior Member Senior Member

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    What shutdown? Global stock markets move up even as US politicians bicker bitterly

    Hong Kong: The U.S dollar treaded water and most Asian stock markets edged up on Wednesday as investors appeared hopeful the first partial U.S. government shutdown in 17 years will be short-lived and not have a broader impact on the economy.

    However, one immediate impact is a drop-off in U.S. economic data at a time when the Federal Reserve has already muddied expectations on when will it start reducing its stimulus.

    The failure of Congress to agree on a bill that funds government operations meant up to one million workers were put on unpaid leave, as Democrats and Republicans fight over President Barack Obama's healthcare programme.

    On Tuesday, a survey by the private Institute of Supply Management (ISM) showed robust U.S. manufacturing activity, with expansion at the fastest pace in almost 2-1/2 years.

    But with the government shutdown, the news didn't have a big impact on Asia. The MSCI's broadest index of shares outside Japan up 0.4 percent.

    U.S. S&P futures eased 0.1 percent after the cash index advanced 0.8 percent on Tuesday.

    Japan's Nikkei, the most expensive in Asia based on price-to-earnings ratios, came in for profit-taking and was down 1.2 percent.

    Korean stocks were up 0.4 percent and Indonesian stocks gained 1.2 percent. China markets are closed until Tuesday for holidays.

    "Markets are taking it one day at a time with a near-term impact unlikely and any prolonged government deadlock only increases the likelihood of a delay in U.S. tapering," said Kenneth Akintewe, a Singapore-based portfolio manager at Aberdeen Asset Management.

    If anything, the U.S. shutdown offered a brief window of opportunity to investors looking to cut some of their emerging market exposure, particularly if the U.S. dollar fell further.

    Citi strategists also believe shutting down the U.S. government reinforces the chance that QE tapering will be delayed. Also, they say an additional 10-15 basis points drop on the 10-year Treasuries to 2.50 percent "would not be inconceivable".

    Yields on 10-year bonds have fallen by nearly 40 basis points from a September high of nearly 3 percent, erasing a large chunk of the rise from May 22, when the Fed first hinted at withdrawing its policy easing. On Wednesday, 10-year U.S. Treasury futures were flat on the day.

    DEFENSIVE STANCE

    While that drop in U.S. yields has widened the gap in the favor of emerging market debt, recent flows suggests investors are still wary of buying Asian bonds, instead preferring to venture cautiously into shorter-dated emerging market bonds or even staying in cash.

    Emerging market bond funds saw their first weekly inflow in the week ended September 25 after 17 straight weeks of outflows, during which more than $25 billion was withdrawn.

    Buying relatively safe haven stock markets of Korea and bonds with short maturities rather than venturing into the riskier, heavily foreign-owned markets of Indonesia and India still remained the flavor of the day, according to a trader.

    Aberdeen's Akintewe said that despite the drop in U.S. yields, "there is still a big likelihood of a steepening of the U.S. yield curve and as a result, investors don't want to be aggressive about taking duration risk at this stage."

    In currencies, the euro eased to $1.3515, having hit an 8-month high of $1.3589 in European trade on Tuesday, ahead of a European Central Bank policy meeting later in the day where it is widely expected to stick to its policy course.

    The dollar stood at 97.80 yen after falling as low as 97.65 yen on Tuesday.

    In commodity markets, gold hit a two-month low below $1,300 an ounce. Copper futures CMCU3 dipped 0.2 percent after posting its biggest quarterly gain since March 2012 thanks to steadying global growth.

    Oil prices softened as a result of the government gridlock with the November contract down 0.23 percent to $107.69 per barrel.

    U.S. stocks started off a new month and a new quarter with gains on Tuesday as investors appeared confident that the first partial government shutdown in nearly two decades would be short-lived.

    The Dow Jones industrial average rose 62 points to end at 15191.70.

    What shutdown? Global stock markets move up even as US politicians bicker bitterly - NDTVProfit.com
     
  11. anoop_mig25

    anoop_mig25 Senior Member Senior Member

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    Well this news really socked me .One cannot imagine such a situations in India , i mean budget begin not passed .

    But this is america and american democracy. look how both parties fight for their demands are included.Even this begin unpopular decision but both parties forced did not budge from their stand.and works is still in pogress

    Here in india we have parties and their leadser who s@@t in their clothes when they here word "CBI"

    We have parties who help and support in passage of law which is brought at last moment to win votes just because this parties donot want bad press in election form media controlled by a single party
     
  12. The Messiah

    The Messiah Bow Before Me! Elite Member

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    I bet she voted for obama.
     
  13. arnabmit

    arnabmit Homo Communis Indus Senior Member

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    [​IMG]
     
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  14. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    No, that would be my first ex-wife.
     
  15. aerokan

    aerokan Regular Member

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    People don't understand economics at all. Neither a average investor nor Obama. And the fate of the world cannot be changed despite knowing what lies ahead in the path.:tsk:
     
  16. happy

    happy Senior Member Senior Member

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    US shutdown: Who cares! Sensex rallies 300 points

    NEW DELHI: Most Asian markets including India seem to have given two hoots to concerns over the partial shutdown in the US, something which most analysts say is likely to slow down the world's largest economy.

    The S&P BSE Sensex rallied over 300 points in mid-morning trade on Thursday, led by gains in IT, metals, autos and capital good stocks.

    At 10:20 a.m.; Sensex was trading 287 points higher or 1.4 per cent at 19,804.40. It has hit a low of 19,583.97 and a high of 19,823.95.

    Earlier in the week, US federal government staggered into a partial shutdown which may put the US in danger of busting through its debt ceiling.

    The congressional Republicans stubbornly demanded changes in the nation's health care law as the price for essential federal funding and US President and Democrats adamantly refused which led to the first government shutdown for the first time in 17 years.

    Both leaders of the House and Senate acknowledged there would not be a resolution in time to stop a shutdown, as flurry of last-minute moves by the House, Senate and White House failed to break a bitter budget standoff over President Barack Obama's health care law.

    Will the shutdown impact global markets, including India?

    Well, analysts are of the view that emerging markets including India are likely to remain volatile ahead of debt ceiling negotiations and FOMC meet due later in the month of October. However, it (shutdown) is only a near-term worry for global markets and should end up benefiting emerging markets like India.

    "The shutdown was on the cards. Hopefully, there will not be an overhang on the market for too long, but in this interim period, it could be one more negative," said Jyotivardhan Jaipuria, HoR, BofA-ML in an interview with ET Now.

    "Therefore, for most investors it is a near-term worry, but it is not going to be prolonged because ultimately they have to find a solution. No politician can afford to have a prolonged shutdown of the US," he added. Jaipuria expects markets to correct around 3 per cent in next 15-20 days after the event, markets will slowly recover.

    The last two shutdowns, which took place weeks apart in late 1995 and early 1996, cost taxpayers $1.4 billion, according to estimates from the Office of Management and Budget, according to a report.

    Global markets may remain nervous on this event along with EM's including Indian market, said Siddharth Sedani, Assistant Vice President at Microsec Capital Ltd.

    "Indian markets would be volatile during this week on US Govt. shutdown as well as some domestic positives like Q1FY14 CAD came in line with expectation and improved PMI (still in contraction mode) boost the Indian markets to stay afloat and not drift down significantly," he added.
     
  17. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    CT ops depend on Obama poll numbers (inverse relationship).
     

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