Closed for business – many US federal buildings are shut and more than 700,000 federal employees are on unpaid leave. The US government is in the midst of a partial shutdown because politicians in Congress have failed to agree the budget for the next fiscal year.
The political paralysis, however, could be a mere rehearsal for a more critical problem on the horizon: the world’s largest economy is running out of money. The US is due to hit its debt ceiling in less than two weeks.
In Europe, Italy escaped political meltdown when Prime Minister Enrico Letta won a confidence vote. The turbulence, however, highlights how fragile the government is and the challenges Letta faces in reforming the economy.
We discuss all that with Nejra Cehic from Bloomberg in this edition of Business Weekly.