Showing posts with label U.S. Government Shutdown. Show all posts
Showing posts with label U.S. Government Shutdown. Show all posts
Wednesday, January 24, 2018
Global stocks mostly up after US government shutdown ends
NEW YORK - Most stock markets around the world pushed higher Tuesday on investor relief over the end of the US government shutdown, dealers said.
Leading bourses in Asia climbed more than 1 percent, while the S&P 500 and Nasdaq finished at records for the third straight day.
"A resolution to the US government shutdown has helped boost Asian and European indices," said IG analyst Joshua Mahony.
"However, with a short-term solution in place, we will be back in the same position in weeks."
Democrats on Monday agreed to a Republican deal that brought an end to the three-day federal shutdown -- the first since 2013 -- and keeps the government running until February 8.
Wall Street hit new records Monday and continued to push higher in trading on Tuesday, led by Netflix, which climbed more than 10 percent thanks to postivie results.
That was the latest of the upbeat earnings reports following US tax reform, with many companies pointing to higher profits under the lower tax rate.
"What we're really seeing is confidence build from companies and from consumers," said Maris Ogg of Tower Bridge Associates.
PULLBACK AHEAD?
Most major European bourses gained ground after Asia extended a new year rally on continued optimism about the upcoming earnings season.
Frankfurt's DAX 30 struck a record high after a key survey showed surging German investor confidence in January.
The ZEW institute's monthly index of financial players' economic expectations added 3.0 points to 20.4, a much sharper gain than the 0.5-point increase forecast by analysts.
Equity markets remain upbeat, brokers say, despite having surged in recent weeks on the back of a robust global economy and increased optimism following US tax reform.
Some investors are eyeing a pullback in stocks for a market that is "overbought on a short-term basis," said Briefing.com analyst Patrick O'Hare, but he added that there is reason to question that outcome.
"A consolidation phase wouldn't surprise anybody, yet the staying factor for many in the market already is that a lot of sidelined participants are hoping for a pullback to put money to work," he said.
Sentiment also was bolstered by a report from the International Monetary Fund raising its world growth outlook and predicting at least a short-term boost from the US tax reform.
The improved IMF outlook also gave a boost to oil prices, with analysts expecting stronger growth to boost petroleum demand.
KEY FIGURES AT AROUND 2130 GMT (5:30 A.M. WEDNESDAY IN MANILA)
New York - DOW: DOWN less than 0.1 percent at 26,210.81 (close)
New York - S&P 500: UP 0.2 percent at 2,839.13 (close)
New York - Nasdaq: UP 0.7 percent at 7,460.29 (close)
London - FTSE 100: UP 0.2 percent at 7,731.83 points (close)
Frankfurt - DAX 30: UP 0.7 percent at 13,559.60 (close)
Paris - CAC 40: DOWN 0.1 percent at 5,535.26 (close)
EURO STOXX 50: UP 0.1 percent at 3,669.88
Tokyo - Nikkei 225: UP 1.3 percent at 24,124.15 (close)
Hong Kong - Hang Seng: UP 1.7 percent at 32,930.70 (close)
Shanghai - Composite: UP 1.3 percent at 3,546.50 (close)
Euro/dollar: UP at $1.2300 from $1.2263 at 2200 GMT
Pound/dollar: UP at $1.4001 from $1.3987
Dollar/yen: DOWN at 110.32 yen from 110.92 yen
Oil - Brent North Sea: UP 93 cents at $69.96 per barrel
Oil - West Texas Intermediate: UP 90 cents at $64.47 per barrel
source: news.abs-cbn.com
Monday, January 22, 2018
Wall St surges on government shutdown's end, aiding global momentum
NEW YORK - A deal to end a three-day government shutdown in Washington sent a jubilant Wall Street to a fresh set of records on Monday, as US stocks continued their seemingly irrepressible upward march.
Most other global markets also rose but across the Atlantic results were mixed, with Paris and Frankfurt up while London sagged.
Word of the bargain struck among lawmakers in Washington early Monday afternoon sent all three New York stock indices soaring to fresh heights -- the eighth time this year that Wall Street has hit a trifecta of record finishes.
"The market collectively breathed a sigh of relief as the government shutdown is over and it did not get dragged out or disrupt normal Main Street or Wall Street activities," said Adam Sarhan of 50 Park Investments.
Sarhan said corporate profits again are the central focus of investors, and 68 percent of companies that have reported so far have beaten Wall Street's estimates.
"Until we have more clarity in respect of what is going to happen on the earnings front in 2018, the bulls deserve the benefit of the doubt," he told AFP. "The market refuses to fall, even in these extended circumstances."
Struggling industrial behemoth General Electric, which also is due to post quarterly earnings, fell another 0.6 percent Monday -- briefly sinking below $16 per share -- after a downgrade of its stock by Bank of America Merrill Lynch.
A BREAKTHROUGH IN GERMANY, TOO?
Meanwhile, prices edged higher in Paris and Frankfurt, after Germany's center-left Social Democrats voted Sunday to begin formal coalition talks with Chancellor Angela Merkel's conservatives.
The news, which brought Europe's top economy a step closer to a new government after months of deadlock, helped guide the euro higher.
"This is a step in the right direction for German politics and traders will be watching it closely," said CMC Markets UK analyst David Madden.
The thumbs-up will come as a huge relief to Merkel, staving off the threat of snap polls or the unappealing prospect of leading an unstable minority government.
Shares in the French and German telecoms giants, Orange and Deutsche Telekom, were boosted by a report in French daily Le Monde that the two held merger talks between May and September 2017 last year, traders said. Shares of both companies ended the day around two percent higher.
The report said there were "confidential discussions" held between the two companies examining the options for a "merger of equals."
KEY FIGURES AROUND 6 A.M. MANILA TIME
New York - DOW: UP 0.6 percent at 26,214.60 points (close)
New York - S&P 500: UP 0.8 percent at 2,832.97 (close)
New York - Nasdaq: UP 1 percent at 7,408.03 (close)
London - FTSE 100: DOWN 0.3 percent at 7,708.82 (close)
Frankfurt - DAX 30: UP 0.2 percent at 13,463.69 (close)
Paris - CAC 40: UP 0.3 percent at 5,541.65 (close)
EURO STOXX 50: UP 0.4 percent at 3,665.28 (close)
Tokyo - Nikkei 225: FLAT at 23,816.33 (close)
Hong Kong - Hang Seng: UP 0.4 percent at 32,393.41 (close)
Shanghai - Composite: UP 0.4 percent at 3,501.36 (close)
Euro/dollar: UP at $1.2263 from $1.2225
Pound/dollar: UP at $1.3987 from $1.3860
Dollar/yen: UP at 110.92 from 110.77 yen
Oil - Brent North Sea: UP 42 cents at $69.03 per barrel
Oil - West Texas Intermediate: UP 25 cents at $63.62
source: news.abs-cbn.com
Sunday, January 21, 2018
Chinese state media: US government shutdown exposes 'chronic flaws'
BEIJING - China's official news agency said in a commentary on Sunday that the shutdown of the US government exposed "chronic flaws" in the US political system.
Funding for federal agencies ran out at midnight on Friday in Washington after lawmakers failed to agree on a stopgap funding bill.
"What's so ironic is that it came on the first anniversary of Donald Trump's presidency on Saturday, a slap in the face for the leadership in Washington," China's Xinhua News Agency said in a commentary by Xinhua writer Liu Chang.
The commentary said that the Trump administration had "backtracked" on policies supported by his predecessor, Barack Obama, including the Trans-Pacific Partnership trade agreement and US participation in the Paris climate agreement.
"If there was any legacy that has survived the transfer of power, it was the spirit of non-cooperation across party lines," the Xinhua commentary said.
While Xinhua commentaries are not official statements, they offer a reflection of Beijing's thinking.
"The Western democratic system is hailed by the developed world as near perfect and the most superior political system to run a country," it said.
"However, what's happening in the United States today will make more people worldwide reflect on the viability and legitimacy of such a chaotic political system," it said.
At a twice-a-decade congress of China's ruling Communist Party in October, President Xi Jinping was anointed for a second term as party chief, strengthening his grip on power. (Reporting by Tony Munroe; Editing by Muralikumar Anantharaman)
source: news.abs-cbn.com
Saturday, October 19, 2013
Mortgage Applications Near Flat as Purchase Demand Falls
Applications for U.S. home loans rose slightly in the latest week as increased refinancing activity offset a decline in demand for purchase loans as the U.S. government shutdown weighed, data from an industry group showed Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 0.3 percent in the week ended Oct. 11. That follows a gain of 1.3 percent in the week ended Oct. 4.
The figures come as the U.S. federal government shutdown has cast a spotlight on fiscal policy, with some economists worrying that the stalemate in Congress could drag on the economy.
That shutdown affected the mortgage market, MBA said.
"Purchase applications for government programs dropped by more than 7 percent over the week to their lowest level since December 2007, and the government share of purchase applications dropped to its lowest level in almost three years," Mike Fratantoni, MBA's vice president of research and economics, said in a statement.
MBA data showed 30-year mortgage rates edged up 4 basis points to 4.46 percent, but rates were still down from September when they matched the 4.8 percent high for 2013.
The refinancing index gained 3.3 percent after recently hitting the lowest level since June 2009. In contrast, the gauge of loan requests for home purchases, a leading indicator of home sales, fell 4.8 percent.
The mortgage survey covers more than 75 percent of U.S. retail residential mortgage applications, according to MBA.
source: dailyfinance.com
Friday, October 4, 2013
Average U.S. 30-Year Mortgage Rate Slips to 4.22%
WASHINGTON -- Average U.S. rates on fixed mortgages fell for the third straight week to their lowest point in three months, as a decline in consumer confidence and the onset of the government shutdown forced rates down.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan dropped to 4.22 percent from 4.32 percent last week. The average on the 15-year fixed loan declined to 3.29 percent from 3.37 percent.
Both are the lowest averages since early July.
Rates began to fall last month after the Federal Reserve held off slowing its $85-billion-a-month in bond buys, which have kept rates low. They fell further this week as the shutdown prompted investors to sell stocks and buy Treasury bonds. Mortgage rates tend to follow the yield on the 10-year Treasury note.
The 10-year note traded at 2.63 percent Thursday morning, down from 2.71 percent on Sept. 23.
The Federal Housing Administration, which guarantees about 30 percent of U.S. home mortgages, says that if the partial shutdown continues for an extended period and the agency's funding runs out, it wouldn't be able to continue approving loans.
In that case, "We do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market," the FHA said in a contingency plan.
Buyers wouldn't disappear. But some would linger in limbo until the government reopened and a backlog of applications cleared.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
* The average fee for a 30-year mortgage was steady at 0.7 point. The fee for a 15-year loan also was unchanged at 0.7 point.
* The average rate on a one-year adjustable-rate mortgage was unchanged at 2.63 percent and the fee held at 0.4 point.
* The average rate on a five-year adjustable mortgage dipped to 3.03 percent from 3.07 percent. The fee rose to 0.6 point from 0.5 point.
source: dailyfinance.com
Pinoy's legal status in jeopardy due to US govt shutdown
NEW YORK- Despite President Barack Obama’s meeting with congressional leaders Wednesday night, there’s still no deal in sight to end the historic government shutdown.
This is bad news for an overseas Filipino worker from La Union, Philippines.
Joel Cruz (not his real name), who requested ABS-CBN News not to reveal his identity, said he could lose his legal status because of the shutdown.
Cruz, who came to the US in January on a temporary H1B work visa, is in the process of switching to a new employer after his previous contract expired last September 30.
Labor and immigration lawyer Felix Vinluan said, “It’s very difficult doing transfer nowadays, considering the shutdown, because a requirement for the H1B petition to be filed would be to secure an LCA or Labor Condition Application… with the shutdown, the Department of Labor is not doing any LCA’s.”
Cruz’s new employer filed an LCA on September 24 but the shutdown has prevented him from filing an H1B transfer petition without the LCA.
"It normally takes the Department of Labor 7 days to approve an LCA application," Vinluan said, "Next Thursday, with the shutdown, the new employer won’t have the LCA so magiging out of status na yung H1B beneficiary by Friday next week, yung I-94 card niya expires next week."
"Dahil sa shutdown, walang pasok yung mga taga Department of Labor kaya pending yung pag approve ng certified na LCA ko," Cruz said, "Malaking epekto kasi siyempre dahil nga sa magiging out of status na ako, wala akong trabaho, hindi ako pwedeng magtrabaho unless mai-transfer nila yung H1B ko."
The clock is ticking for Cruz’s legal status and he may even lose the field engineer job that he was offered.
Vinluan said Cruz is only one of his several clients affected by the shutdown.
With 70% of court employees, including judges, furloughed nationwide as a result of the shutdown, Vinluan said he is expecting further delays in immigration hearings.
Vinluan said his Filipino clients, who are victims of human trafficking were scheduled to be interviewed by the US Attorney General Wednesday, has been postponed indefinitely.
"Last Friday, I got a call from the US Attorney General’s Office, they told me don’t bring your’ clients because we are anticipating — we are going to have a shutdown , so there won’t be an office yesterday so hindi natuloy ang aming investigation," said Vinluan.
Vinluan said as the shutdown lingers, case backlogs in the nation’s 59 immigration courts are expected to experience further delays until the US government re-opens.
“Wala naman talagang koneksiyon yung Obamacare sa pag promulgate ng budget for this new fiscal year, sana they come to their senses and come up with the solution very soon," Vinluan said.
Cruz said, "Siguro tapusin na nila yan, at ayusin na lang nila para mag-open na lahat ng mga offices para lahat ng mga pending applications ay maituloy na at maipasa na nila."
source: www.abs-cbnnews.com
Thursday, October 3, 2013
How govt shutdown ripples across America
Science was put on hold, normally bustling stores went quiet and families depending on government aid feared losing their baby food as a government shutdown rippled across the country.
The budget impasse in Washington shut all but essential U.S. government services for the second straight day on Wednesday, while neither political party appeared willing to budge.
Republicans want to tie continued government funding to measures that would undercut Obama's signature healthcare law, while Obama and his Democrats say that is a non-starter. (Full Story)
Here are some snapshops of people affected across the United States.
SEARCH FOR MISSING HIKER DEFIES SHUTDOWN
Some work was just too important to halt for Ted Stout, 50, even though he was furloughed Tuesday as park chief of interpretation and education at Craters of the Moon National Monument and Preserve in central Idaho. Wednesday marked his eighth day of searching for a missing hiker.
Stout said he and several other laid-off workers would keep combing the vast lava fields for 63-year-old Jo Elliot-Blakeslee on their own time, without pay and despite worsening weather.
"It’s pretty much consuming our lives. We can't let her down now. This needs to continue," said Stout, who has worked for 10 years at a National Park Service site that spans 750,000 acres (300,000 hectares) of volcanic rifts, cinder cones and underground tunnels carved by ancient lava flows.
At its height, the hunt for Elliot-Blakeslee and a companion found dead last week from exposure drew helicopters and up to 100 searchers but those efforts have been scaled back partly because of the government shutdown, Stout said.
"We’re just in a real unusual situation," Stout said. "All we can do is keep looking."
LIVING ON THE EDGE
Jocelyn Gonzalez, 22, is a stay-at home mother in Los Angeles who relies on assistance for her two young kids from Women, Infants and Children (WIC), a food voucher program the U.S. Department of Agriculture says it may not be able to fund if the shutdown lasts into late October.
Gonzalez’s husband, Alexis, works as a waiter and makes less than $1,000 a month, she said. Because of a lack of income, her family around the time the birth of her oldest child, Hazel, had to move from the working class Lincoln Heights neighborhood of Los Angeles to a cheaper, higher-crime area south of downtown.
They started receiving WIC when Hazel was born, and with an infant daughter, Delilah, now part of their family they rely on the program’s coupons to get free milk, baby food, formula, fruits and vegetables, she said.
"There’s been times where we don’t have a lot of money but I have my coupons right there," Gonzalez said.
If the WIC program runs out, Gonzalez said her options will be limited.
"We can’t afford daycare so I don’t know what I would do," she said. "I can’t even imagine, because it helps us out a lot."
FAST FOOD SOLUTION
Myrna Pascual, 61, an analyst with the U.S. Department of Housing and Urban Development in San Diego, fears a U.S. government shutdown could force her to borrow against her home, increase her credit card use and possibly look for work at fast food restaurants.
"I would do that just to get by, because I'm not saved up," said Pascual.
If Pascual remains out of a job until next week, she said she plans to file for unemployment benefits, but cannot be sure she will be eligible.
Her husband is retired and has limited resources on a fixed income. Both of her college student daughters still live at home.
She recently rented a room in her home to a boarder and started selling some of her possessions on eBay.
"My options are very limited," she said. "I'm just hoping for the best."
HOLD THE DONUTS
The Dunkin' Donuts near three of Chicago's federal office buildings usually has a line out the door as court clerks, Environmental Protection Agency lawyers and Internal Revenue Service agents feed their sugar habits.
On Wednesday, business was so scarce one customer had three attendants, each of them offering "Can I help you?" in chorus. This makes store manager Vanessa Banderas nervous about her workers' jobs, and her own.
"The way it was today, it was like 'Oh my God, where is everybody? Where's the business?'" said Banderas, 30, of Chicago, a single mother with four school-age children.
If business remains this slow, she will have to temporarily lay off about half of the store's 18 workers, she said.
"I just thought Obama's doing the right thing because he wants health care for everyone and then look what's going on," Banderas said.
SCIENCE SHUT DOWN
National Weather Service meteorologist Amy Fritz helped build the computer model that predicted flooding from Hurricane Sandy that hammered New York and New Jersey a year ago. Now the roughly 65 people in her office have been sent home without pay.
"It's like getting the wind knocked out of you," said Fritz, 38 and a union steward, who faces $130,000 in student loans for her masters degrees in oceanography and meteorology.
The family's main breadwinner, she pays $500 to $600 a month on the loans, plus rent and health insurance.
Now, all spending is on hold.
"I need a new laptop," Fritz said. "That's not happening."
PAYCHECK 'HELD HOSTAGE'
In a time of crisis, Karen Buondonna looks for levity. She jokes that she is well-prepared for the furlough because it is her third in just over two years, thanks to a stop-gap funding extension and sequestration.
A researcher for the Federal Aviation Authority's drone program in New Jersey, Buondonna considered riding out the government shutdown at the beach in Atlantic City. But, faced with the prospect of losing a paycheck, she has spent her days at home, hoping to be called back to work.
"My paycheck is being held hostage because of something I am not a part of," said Buondonna, 46, the main bread winner in her family, which includes her 6-year-old daughter and 9-year-old son. "It's very disruptive and very stressful. I have bills to pay just like everyone else."
Buondonna, speaking as a representative of her union, and not as an employee of the FAA, said she has already canceled a planned kitchen renovation and may have to use her savings to make her next mortgage payment.
But what she was most distressed about was being prevented form doing her job.
"It's not just a job to me," she said. "I believe in the mission of my agency. I am a dedicated government worker."
NO FISHING
Among the federal parks closed by the shutdown is Florida's Everglades National Park, where Rich Smith, 33, has been fishing since he was a boy and today makes his living as a guide.
Park Rangers have told fishing guides to stay out of the park during the shutdown, threatening them with big fines if they disobey, he said.
"Unfortunately there isn't anything else for me. This is my 11th year of guiding full time, you don’t just pick up and do something else. In the Florida Keys we’re 100 per cent about tourism," Smith said.
Smith fishes more than 200 days a year in the park, charging customers $400 to $600 for four to eight hours of fishing. A month-long shutdown could cost him as much as $10,000.
Smith had a trip booked for Thursday, paid for months ago by a repeat customer. Now he may have to cancel.
"There are other areas he can fish," Smith said, "but the Everglades is one of the best destinations on planet earth."
RIPPLE EFFECT 'HURTS EVERYONE'
Victims of discrimination will just have to wait.
Rebecca Eaton and her colleagues at the Seattle branch of U.S. Equal Employment Opportunity Commission investigate claims of employment discrimination in violation of federal law in Washington state, Montana, Idaho, Oregon, and Alaska.
They arrived at work on Tuesday to a memo instructing them to freeze all legal cases and close the office.
"The ripple effect of this one thing is hurting everybody," said Eaton, 39, a legal assistant, who has so far constricted her spending and cancelled an annual vacation.
She worries unemployment benefits could be delayed because federal funding that covers processing costs in the Washington state office have been halted. The state unemployment office said it was covering this shortage by dipping into its own limited funds, which could run out in a few weeks.
source: www.abs-cbnnews.com
Tuesday, October 1, 2013
Apart from dollar, investors keep cool about US shutdown
The first U.S. government shutdown in 17-years weakened the dollar on Tuesday, sending it to an eight-month low against the euro, but met a subdued response from investors in equity and fixed income markets.
U.S. Federal government agencies have been directed to cut back services after lawmakers failed to pass a temporary spending bill before a midnight deadline, threatening the salaries of over a million workers.
"No one really knows when they are going to get their act together, so you would have thought there would have more of a reaction than there has been," said Greg Matwejev, director of FX Hedge Fund Sales and Trading at Newedge.
The dollar has borne the brunt of the response so far, falling to a 1-1/2 year low against the safe-haven Swiss franc and hitting an 8-month low against a basket of six major currencies. The weakness lifted the euro to an eight-month high of $1.3589.
However, MSCI's world equity index, tracking shares in 45 countries, gained 0.15 percent by early in the European session, though it saw its biggest daily fall of September on Monday as investors anticipated the shutdown.
Europe's broad FTSEurofirst 300 index inched 0.2 percent higher after the open but held near a three-week low.
U.S. stock index futures also pointed to gains when Wall Street opens later in the with the broad S&P stock futures inched up 0.5 percent after cash prices fell on Monday.
"The U.S. shutdown is a central point for the markets, but as long as the hope for just a temporary shutdown exists, it will not be a strong burden for equities," Christian Stocker, equity strategist at UniCredit said.
Markets were also absorbing the mixed readings on economic activity across the manufacturing sector for September.
Euro zone factory activity grew for the third month running in September as demand enabled picked up. While activity in China expanded only slightly last month raising questions over the strength of its nascent recovery.
DEBT FLAT
In fixed income markets, German government bond yields, normally seen as a safe haven by investors in times of uncertainty, were steady though yields on U.S. Treasury 10-year notes did rise to hit 2.645 percent, a gain of three basis points.
Gold, another traditional safe haven asset, did pop higher after the shutdown became apparent, hitting $1331.66 an ounce, though it is trading well within its recent $1,300 to 1,350 range.
While many market players expect the government shutdown, which in the past has lasted from one day to nearly a month, to ultimately be resolved, they are more fearful about implications for debt ceiling negotiations due later this month.
"People will start to think the deadline for the debt ceiling, which is around the October 17, is not going to be met in that case there is a risk of a default," Eric Chaney, chief economist at AXA Group, said.
Any likelihood of that the U.S. government is going have problems servicing its massive debt is likely to hit equity market hard though it would raise expectations the Federal Reserve will keep its monetary stimulus in place for longer.
Elsewhere Italian bonds were also broadly steady a day before Italian Prime Minister Enrico Letta faces a vote of confidence as Italy tries to draw a line on growing political tensions.
The yield on the benchmark 10-year Italian government bond was up one basis point at 4.58 percent.
Meanwhile Brent crude fell below $108 a barrel to trade near a 7-week low on worries that the shutdown of the U.S. government may crimp oil demand.
Brent crude for November fell 70 cents to $107.67 a barrel. U.S. crude was at $101.99, down 34 cents.
source: www.abs-cbnnews.com
What happens with a US gov't shutdown?
The U.S. federal government was due to start partially shutting down on Tuesday after lawmakers failed to compromise on an emergency spending bill before a midnight deadline.
With a partial government shutdown, there will be far-reaching consequences for everything from National Park admissions to economic data.
Much of the impact or relative lack of disruption is determined by whether agencies are partly funded by industry user fees or deemed to be essential services.
Here is a roundup of some of the impact that would be felt:
FEDERAL WORKERS: As many as 1 million federal employees could face unpaid furloughs or missed paydays, according to the president of the American Federation of Government Employees, which represents 670,000 union members.
THE WHITE HOUSE: The Executive Office of the President will furlough about 1,265 staff and retain 436 as excepted workers. Among the staff retained will be 15 to provide "minimum maintenance and support" for the White House. Executive agencies will be reduced to skeleton staff, including four at the Council of Economic Advisors.
ECONOMIC DATA: The United States will stop publishing much of its economic data if the government shuts down, including the closely watched monthly employment report.
U.S. SECURITIES AND EXCHANGE COMMISSION: The SEC would continue reviewing applications for initial public offerings (IPOs) and monitoring markets as normal in the early weeks of a government shutdown, and can continue operating fully for a few weeks, a spokesman said.
DEPARTMENT OF HEALTH AND HUMAN SERVICES: Signup for the new U.S. health exchanges under the Affordable Care Act due to start on Oct. 1 will proceed. Across the vast department and its sub-agencies, about 52 percent of staff will be furloughed - some 40,512 workers. Among the programs shuttered would be the Centers for Disease Control's annual seasonal flu influenza program. The National Institutes of Health would not admit new patients in most circumstances.
U.S. FOOD AND DRUG ADMINISTRATION: Some 55 percent of the FDA's employees will be working. Of those reporting to work, 74 percent will be funded with fees paid to the FDA by the industries it regulates. The FDA's expert advisory committee meetings, which recommend whether the agency should approve new products, will for the most part continue. The next scheduled panel is on Oct. 8 to recommend whether to approve expanded use of certain pacemakers and defibrillators from Medtronic Inc. . The FDA will cease most of its food safety, nutrition and cosmetics activities, such as routine inspections of plants and facilities. It will also be unable to monitor imports, and will cease certain compliance and enforcement activities.
U.S. INTELLIGENCE AGENCIES: Substantial numbers of intelligence personnel could be placed on leave, but those assigned to vital national security missions, including supporting the president, and collecting data from informants or spy devices such as eavesdropping systems or satellites, will generally remain on the job.
Shawn Turner, chief spokesman for National Intelligence Director James Clapper, said: "The immediate and significant reduction in employees on the job means that we will assume greater risk and our ability to support emerging intelligence requirements will be curtailed."
NATIONAL PARKS: National parks would close, meaning a loss of 750,000 daily visitors and an economic loss to gateway communities of as much as $30 million for each day parks are shut, according to the non-profit National Parks Conservation Association.
DEFENSE DEPARTMENT: All military personnel would continue on normal duty status, but half of the Defense Department's 800,000 civilian employees would be placed on unpaid leave. Pentagon has said it will halt military activity not critical to national security.
Officials have said military personnel, who are paid twice a month, would receive their Oct. 1 paychecks but might see their Oct. 15 paychecks delayed if a government shutdown takes place and no funding deal is reached by Oct. 7.
INTERNAL REVENUE SERVICE: Most of the federal tax agency's 90,000 employees would be furloughed. Taxpayers who requested an extension beyond the April 15 deadline to file their 2012 taxes must do so by Oct. 15 and will be able to file these returns even if the IRS is still shut down then.
FEDERAL RESERVE AND OTHER FINANCIAL AGENCIES: Bank regulators, including the Federal Reserve and the Consumer Financial Protection Bureau, would stay open because they do not rely on Congress for funding. The Federal Deposit Insurance Corp and the Office of the Comptroller of the Currency pay for themselves and would remain open. Loans guaranteed by Fannie Mae and Freddie Mac will still be available during the government shutdown. Both firms, which were seized by the U.S. government in 2008 as rising mortgage losses threatened them with insolvency, will continue normal operations. The Federal Housing Administration, which offers mortgage lenders guarantees against homeowner defaults, will have limited operations.
JUSTICE DEPARTMENT: Fewer than 18,000 of the department's 114,486 employees would be furloughed, and if the furlough is prolonged, some of those could be brought back to work. Criminal litigation would continue under a government shutdown, while civil litigation would be curtailed or postponed as much as possible "without compromising to a significant degree the safety of human life or the protection of property," the department said in its contingency plan.
COURTS: The U.S. Supreme Court would probably operate normally, as it has during previous shutdowns, but a spokesman declined to share the high court's plans. Federal courts would remain open for about 10 business days if the government closes on Oct. 1, and their status would be reassessed on or about Oct. 15.
U.S. TRADE REPRESENTATIVE'S OFFICE: Already squeezed by automatic spending cuts imposed by the so-called sequester, the USTR office has reduced travel to the 41 countries where there are concerns about intellectual property, Trade Representative Michael Froman said.
ENVIRONMENTAL PROTECTION AGENCY: The agency would be one of the hardest hit, with less than 7 percent of its employees exempt from furlough. The broad-based shutdown of all but emergency services would delay rule-making, potentially including finalization of renewable fuel volume requirements for 2014.
AGRICULTURE DEPARTMENT: USDA meat inspectors would stay on the job. Statistical reports would not be published, and the important Oct. 11 U.S. crop report could be delayed depending on how long a shutdown lasts. USDA has said its website, USDA.gov, "will go dark and be linked to a 'splash' page," denying access to historical data and other information.
TRAVEL: Air and rail travelers in the United States should not feel a big impact, since passport inspectors, security officers and air traffic controllers will all continue to work as usual.
WASHINGTON SIGHTS: Most popular tourist spots in the nation's capital would close, including the Lincoln Memorial, the Library of Congress, the National Archives, the National Zoo and all Smithsonian Museums. The zoo's live animal webcams would be disabled. All animals will continue to be fed and cared for.
source: www.abs-cbnnews.com
PH econ managers unfazed by US govt shutdown
MANILA, Philippines - Philippine economic managers were unfazed by the US federal government's partial shutdown on Tuesday.
Finance Secretary Cesar Purisima said it is "highly unfortunate for the rest of the world, as even countries like the Philippines are taken on a wild economic ride because of the political game of chicken in Washington."
"Fortunately for the Philippines, we enjoy a strong fiscal position, a structural current account surplus economy whose growth is led by consumption, and a young, educated population. This will allow the Philippines to ride out this situation better than other emerging markets - whose economic models are exports and extractives-based," he said.
However, the Finance chief expressed concern about the possibility of the US defaulting on its debt.
“What is more worrisome to the Philippines is if the US political stalemate cause America to default on its debt by failing to pass a measure on the debt ceiling. A US default, unimaginable for most of history yet now in the realm of the possible because of current political circumstances, can only lead to unprecedented chaos in the global financial markets," Purisima said.
At the same time, Bangko Sentral ng Pilipinas governor Amando Tetangco Jr. said the central bank will maintain a presence in the markets if the US government shutdown results in excessive volatility.
"We will continue to watch how the developments in the US will pan out. We will, as is our policy, maintain a presence in the markets if the domestic market reaction leads to excessive volatility," Tetangco said.
"The immediate impact would be on global and domestic financial market volatility, as investors may move away from risk assets to traditional safe haven assets," he added.
Tetangco said the Philippines' macroeconomic fundamentals would cushion any effects from market volatility.
"The domestic economy has sources of resilience owing to the buffers we have built," he said.
The U.S. government began a partial shutdown on Tuesday for the first time in 17 years, potentially putting up to 1 million workers on unpaid leave, closing national parks and stalling medical research projects.
Federal agencies were directed to cut back services after lawmakers could not break a political stalemate that sparked new questions about the ability of a deeply divided Congress to perform its most basic functions.
After House Republicans floated a late offer to break the logjam, Senate Majority Leader Harry Reid rejected the idea, saying Democrats would not enter into formal negotiations on spending "with a gun to our head" in the form of government shutdowns. - With Reuters
source: www.abs-cbnnews.com
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