Reuters - Video



Business pain with no gain in shutdown

Tuesday, Oct 08, 2013 - 02:13

Oct. 08 - As the shutdown enters its second week, its impact on the markets and corporate America is becoming more clear. Bobbi Rebell reports.

▲ Hide Transcript

View Transcript

Day 8 of the shutdown and it's the new business as usual in Washington. President Obama and House Speaker John Boehner both talking the talk: SOUNDBITE: U.S. PRESIDENT BARACK OBAMA (ENGLISH) SAYING: "Let's stop the excuses. Let's take a vote in the House. Let's end this shutdown right now. Let's put people back to work." SOUNDBITE: U.S. HOUSE SPEAKER JOHN BOEHNER, (ENGLISH) SAYING: "There are no boundaries here. There is nothing on the table, there is nothing off the table. I am trying to do everything I can to bring people together and to have a conversation." But for rest of the country- that new business as usual is starting to hurt. Lockheed- which is the largest information technology provider to the government- still has 2,400 furloughed workers. They can't work because the government facilities they work at are closed. Plane sales at Boeing and Airbus are being blocked- even though some furloughed workers are being recalled- because the FAA registry remains closed. Humana- the managed care company- saying the government shutdown would delay payments related to its military health services contract. And they could be liable for up to $175 million worth of claims. REPORTER BRIDGE: BOBBI REBELL, REUTERS REPORTER (ENGLISH) SAYING: And economic confidence is deteriorating- down more in the past week during the partial government shutdown than in any week since the Lehman Brothers collapse on September 15th, 2008. But Sam Coffin of UBS says how Americans say they feel and what they actually do aren't always the same. SOUNDBITE: SAM COFFIN, U.S. ECONOMIST, UBS (ENGLISH) SAYING: "It seems as if these fiscal policy fights hit confidence more than they hit spending. For spending to be damaged one has to really see a greater hit to income than we are likely to see this time around, and in turn we don't expect a big consumer spending response." But spending on houses - a growing concern. Part of the background check to get a mortgage involves an income check- but without the IRS- the Mortgage Bankers Association says a growing number of loans are being held up. As are some mergers- no Federal Trade Commission to give the thumbs up or down. In the futures markets- the shutdown has cut funding for surveillance, leaving some markets without the usual policing... and regulators say trillions of dollars of derivatives are changing hands virtually unsupervised.

Business pain with no gain in shutdown

Tuesday, Oct 08, 2013 - 02:13

Top News »

The Exchange »

Moving Pictures »