US senators reached a bipartisan deal on Sunday that would resume federal funding and end a shutdown that has stretched to a record 40 days and forced many government operations to grind to a halt. The deal between Democratic and Republican senators &mdash; just the first step to halting the shutdown &mdash; came as authorities warned US air travel could soon &quot;slow to a trickle&quot; as thousands more flights were cancelled or delayed over the weekend. Outlets including CNN and Fox News reported lawmakers had reached a stopgap agreement to fund the government through January after wrangling over health care subsidies, food benefits, and President Donald Trump&#39;s firings of federal employees. As news of the breakthrough emerged, Trump told reporters when he arrived at the White House after a weekend at his Mar-a-Lago estate in Florida: &quot;It looks like we&#39;re getting very close to the shutdown ending.&quot; The Republican-led Senate swiftly held a procedural vote Sunday aimed at moving the legislative measure forward, and the vote appeared to have support from enough Democrats to advance. Once it clears the Senate, it would need to pass the House of Representatives, also in Republican control, and then head to Trump&#39;s desk for his signature -- a process that could take days. Earlier Sunday, Transportation Secretary Sean Duffy said that if the shutdown continued, the number of flights being snarled or cut would multiply while Americans gear up to travel for the Thanksgiving holiday later this month. By Sunday evening, the number of cancellations of flights within the United States and to and from the US had surpassed 2,700, with nearly 10,000 delays, according to data from tracking platform FlightAware. Airports that were particularly hard hit included the three New York City area airports, Chicago&#39;s O&#39;Hare, and Hartsfield-Jackson in Atlanta. Newark&#39;s Liberty International Airport &mdash; a major northeastern US hub &mdash; was among the worst-hit. At New York&#39;s LaGuardia Airport, more than half of all outbound flights were delayed. Splits over health careWithout a deal, Duffy warned that many Americans planning to travel for the November 27 Thanksgiving holiday would &quot;not going to be able to get on an airplane, because there are not going to be that many flights that fly if this thing doesn&#39;t open back up.&quot; It could take days for flight schedules to recover after the shutdown is finally ended, and federal funding &mdash; including salaries &mdash; starts to flow again. Sunday marked the third day of flight reductions at airports nationwide, after the Trump administration ordered reductions to ease the strain on air traffic controllers working without pay. According to lawmakers, the bill would restore funding for the SNAP food stamp program, which helps more than 42 million lower-income Americans pay for groceries. It would also reverse Trump&#39;s firings of thousands of federal workers over the past month, and assure a vote on extending health care subsidies that are set to expire at the end of this year. &quot;This deal guarantees a vote to extend Affordable Care Act premium tax credits, which Republicans weren&#39;t willing to do,&quot; Senate Democrat Tim Kaine said in a statement. The bill &mdash; a so-called continuing resolution (CR) to keep government funded at pre-shutdown levels &mdash; &quot;will protect federal workers from baseless firings, reinstate those who have been wrongfully terminated during the shutdown, and ensure federal workers receive back pay&quot; as required by law, he added. But many Senate Democrats are opposed to the deal, including the chamber&#39;s top Democrat, Chuck Schumer, who expressed anger that it offers a vote for extending the health care subsidies instead of extending them directly. &quot;I can not in good faith support this CR that fails to address the health care crisis,&quot; Schumer told the chamber, adding: &quot;This fight will and must continue.&quot;

Americas

The deal between Democratic, Republican senators comes as authorities warn US air travel can soon "slow to a trickle" as thousands more flights are cancelled, delayed over the weekend.



US senators reach deal that could end record shutdown

WASHINGTON: The US government shutdown became the longest ever Wednesday, topping the 35-day record set during Donald Trump&rsquo;s first term, as his administration warned of holiday air travel chaos and threatened Americans&rsquo; benefits in a bid to force a resolution. Federal agencies have been grinding to a halt since Congress failed to approve funding past September 30, and the pain has been mounting as welfare programs &mdash; including aid that helps millions of Americans afford groceries &mdash; hang in limbo. There were, in recent days, the first fragile signs of progress in Congress in the search for an off-ramp, although 1.4 million federal workers, from air traffic controllers to park wardens, remain on enforced leave or working without pay. Hours before the shutdown record toppled at midnight, the Trump administration sounded the alarm over turmoil at airports nationwide if the crisis drags beyond a sixth week, with worsening staff shortages snarling airports and closing down sections of airspace. &ldquo;So if you bring us to a week from today, Democrats, you will see mass chaos... you will see mass flight delays,&rdquo; Transportation Secretary Sean Duffy told a news conference in Philadelphia. &ldquo;You&rsquo;ll see mass cancellations, and you may see us close certain parts of the airspace, because we just cannot manage it &mdash; we don&rsquo;t have the air traffic controllers.&rdquo; Thanksgiving air travel is expected to set a new record this year, the American Automobile Association projected &mdash; with 5.8 million people set to fly domestically over the November 27 holiday. More than 60,000 air traffic controllers and Transportation Security Administration officers are working without pay, and the White House has warned that increased absenteeism could mean chaos at check-in lines. Airport workers calling in sick rather than working without pay &mdash; leading to significant delays &mdash; was a major factor in Trump bringing an end to the 2019 shutdown. Both Democrats and Republicans remain unwavering, however, over the main sticking point in the current stoppage &mdash; health care spending. &lsquo;Defiance&rsquo;Democrats say they will only provide votes to end the funding lapse after a deal has been struck to extend expiring insurance subsidies that make health care affordable for millions of Americans. But Republicans insist they will only address health care once Democrats have voted to switch the lights back on in Washington. While both sides&rsquo; leadership have shown little appetite for compromise, there have been signs of life on the back benches, with a handful of moderate Democrats working to find an escape hatch. A separate bipartisan group of four centrist House members unveiled a compromise framework Monday for lowering health insurance costs. Democrats believe that millions of Americans seeing skyrocketing premiums as they enroll in health insurance programs for next year will pressure Republicans into seeking compromise. But Trump has held firm on refusing to negotiate, telling CBS News in an interview broadcast Sunday that he would &ldquo;not be extorted.&rdquo; The president has sought to apply his own pressure to force Democrats to cave by threatening mass layoffs of federal workers and using the shutdown to target progressive priorities. Trump on Tuesday repeated his administration&rsquo;s threat to cut off a vital aid program that helps 42 million Americans pay for groceries for the first time in its more than 60-year history, even though the move was blocked by two courts. The White House later clarified, however, that it was &ldquo;fully complying&rdquo; with its legal obligations and was working to get partial SNAP payments &ldquo;out the door as much as we can and as quickly as we can.&rdquo; <figcaption class="caption-cover-image text-sm text-gray-600 italic"> </figcaption>

The US Capitol is seen in Washington, DC on November 4, 2025. (AFP)

The US government shutdown became the longest ever Wednesday, topping the 35-day record set during Donald Trump’s first term, as his administration warned of holiday air travel chaos and threatened Americans’ benefits in a bid to force a resolution.

US government shutdown becomes longest in history

Reuters

FILE PHOTO: US. flag, H-1B visa application form and displayed company logos are seen in this illustration taken September 26, 2025. (REUTERS/Dado Ruvic)

Labor unions filed a lawsuit against the US government on Thursday, alleging that the Trump administration violated the First Amendment rights of people who are legally in the United States by searching their social media for specific viewpoints, including criticism of Israel.

Labor unions sue US over monitoring social media of visa holders

WASHINGTON: A food aid program that supports millions of low-income mothers and their young children received a $300 million infusion from the Trump administration this week, alleviating some anxiety that it would run out of money during the government shutdown. The Special Supplemental Nutrition Program for Women, Infants, and Children helps more than 6 million low-income mothers, young children, and expectant parents purchase nutritious staples, such as fruits and vegetables, low-fat milk, and infant formula. The program, known as WIC, was at risk of running out of money this month due to the government shutdown, which occurred just before it was slated to receive its annual appropriation. This week, White House spokeswoman Karoline Leavitt posted on X that the White House had found &ldquo;a creative solution&rdquo; to use tariff revenues to keep the program afloat. By Thursday, at least some states were receiving WIC money. Alaska and Washington said they received enough federal funds to keep their programs running until at least the end of October. The Inter-Tribal Council of Nevada, which had closed its office on Thursday after running out of money, received money that allowed it to reopen on Friday, radio station KUNR reported. Officials from the US Department of Agriculture, which runs WIC, told congressional staffers they were using $300 million in unspent tariff revenue from the last fiscal year to keep the program afloat, two people briefed on the call told AP. The people declined to be named because they were not authorized to share details from the call. Tariff revenue supports many USDA programs. The law permits the administration to transfer money allocated for other programs to WIC. Without the additional money, state and local governments would have had to step in to pay for their WIC programs and later seek reimbursement from the federal government when funding was restored. Washington state, which is dealing with a massive budget shortfall, said it could not afford to use state money for the WIC program. In Alaska, the WIC program only had enough federal money to operate through Saturday, meaning the state would have had to step in with its own funding to keep the program running. But this week, officials learned they were receiving nearly $900,000, enough to fully fund the program through Nov. 8, according to Shirley Sakaye, a spokesperson with the state&rsquo;s health department. About half a million of that came from leftover funds from other programs, she said. The government has been shut down since Oct. 1, after Republicans and Democrats in Congress failed to pass a bill to continue funding the government. Congressional Democrats want to reverse cuts to Medicaid that were passed earlier this year as part of President Donald Trump&#39;s mega-bill. They also want to extend subsidies that cut the cost of Affordable Care Act insurance plans, which cover more than 24 million Americans. The White House and Republicans in Congress have hammered Democrats for the shutdown, highlighting the potential damage it could do to WIC. &ldquo;The Democrats are so cruel in their continual votes to shut down the government that they forced the WIC program for the most vulnerable women and children to run out this week,&rdquo; Leavitt posted on X. But House Republicans and the White House have also sought to cut the program. Trump&#39;s budget proposal and a budget bill passed by House Republicans last month would not have fully funded the program, meaning it would have to turn away eligible applicants. &ldquo;Since President Trump is now signaling he cares about the WIC program, he should finally get to the negotiating table to reopen the government,&rdquo; said Sen. Patty Murray, a Democrat from Washington state. &ldquo;And he should immediately disavow his budget request to significantly cut benefits for millions of moms and kids &mdash; and tell House Republicans to back off their proposed cuts as well.&rdquo; ____

The Trump administration allocated $300 million in tariff revenues to keep the WIC food program running during the government shutdown, temporarily preventing service disruptions for millions of low-income mothers and children nationwide.

WIC food program receives $300M to keep running during government shutdown

Gold surged past the $4,000 an ounce level for the first time on Wednesday, building on a record-breaking rally as broader geopolitical and economic uncertainty, as well as expectations of US interest rate cuts, sent investors flocking to the safe-haven asset.&nbsp;Silver also climbed to a record high on Wednesday, latching on to gold&#39;s record streak as investors flocked to the metal.&nbsp;&quot;Gold&#39;s strength reflects an extremely positive macroeconomic and geopolitical background for safe-haven assets, plus concerns over other traditional safe havens,&quot; said Matthew Piggott, director of gold and silver at Metals Focus.&nbsp;Gold, traditionally seen as a store of value during times of instability, is up 52% year-to-date, after gaining 27% in 2024. It is one of the best-performing assets of 2025, outpacing advances in global equity markets and bitcoin and losses for the US dollar and crude oil.&nbsp;Silver was up 71% so far this year, benefiting from the same factors driving gold&#39;s rally as well as tightness in the spot market.&nbsp;&quot;The silver market continues to tighten, with rising lease rates, as Comex stocks scale record highs and amid India&#39;s seasonal demand strength. The recent rally has been supported by hefty ETP inflows,&quot; said Suki Cooper, Global Head, Commodities Research at Standard Chartered Bank.&nbsp;The metals&#39; rally has been propelled by a combination of factors, including expectations of US interest rate cuts, mounting political and economic uncertainty, strong central bank buying, hefty inflows into ETFs and a weakening dollar.&nbsp;&quot;With these factors persisting into 2026, we fail to see any catalyst for gold to meaningfully retrace at present. Therefore, we expect gold to continue to push up throughout the year to attempt a challenge of $5,000/oz,&quot; Piggott added.&nbsp;The US government shutdown entered its eighth day on Wednesday, delaying the release of key economic data and forcing investors to rely on non-government sources to assess the timing and scope of Fed rate cuts.&nbsp;Markets are pricing in a 25-basis-point rate cut at the Fed&#39;s upcoming meeting, with a similar reduction expected in December.&nbsp;&nbsp;Global crises, such as the Middle East conflict and the war in Ukraine, have stoked demand for bullion, while political turmoil in France and Japan added to the flight to gold.&nbsp;Globally, inflows into gold ETFs hit $64 billion year-to-date, according to data from the World Gold Council, with a record $17.3 billion in September alone.&nbsp;A &quot;fear of missing out&quot; is also boosting the rally, analysts said.&nbsp;On a technical basis, gold&#39;s Relative Strength Index (RSI) stands at 88, indicating the metal is overbought.

Business

Gold hit a record $4,000 an ounce and silver reached new highs as investors sought safety amid global crises, US rate-cut expectations, and economic uncertainty.

Gold tops $4,000, silver hits record as investors seek safety

LONDON: Stock markets diverged Monday as a deepening political crisis in France sent Paris into a tailspin while a new Japanese ruling party leader buoyed shares in Tokyo.&nbsp;Gold pushed ever closer to $4,000 an ounce as the US government shutdown and expected interest cuts from the Federal Reserve boosted the precious metal&#39;s attractiveness.&nbsp;The euro fell against main rivals and French borrowing costs spiked as Sebastien Lecornu, who had been prime minister for less than a month, resigned just 14 hours after naming a largely unchanged cabinet.&nbsp;France&#39;s &quot;fractured parliament is making it nearly impossible to pass a budget that reduces the fiscal deficit&quot;, said Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics.&nbsp;&quot;With government borrowing running at more than five percent of GDP and the debt ratio rising, the risk premium on French government bonds will continue to widen,&quot; he added.&nbsp;Shares in French banks BNP Paribas, Societe Generale and Credit Agricole all shed around three percent in afternoon trading.&nbsp;The London and Frankfurt stock exchanges, however, were up in afternoon deals.&nbsp;On Wall Street, both the S&amp;P 500 and tech-heavy Nasdaq Composite sat next to record highs as AI deals overshadowed concerns over a government shutdown that dragged into a second week.&nbsp;Shares in Advanced Micro Devices (AMD) jumped more than 33 percent after the chipmaker announced a multi-year partnership with OpenAI to develop AI data centres which should bring it tens of billions of dollars in new revenue over the next five years.&nbsp;In Asia, Tokyo surged almost five percent to a record high and the yen sank on bets the new leader of Japan&#39;s ruling party will loosen monetary policy to kickstart the economy.&nbsp;Sanae Takaichi, likely to become Japan&#39;s prime minister this month, has previously backed aggressive monetary easing and expanded government spending.&nbsp;The yen weakened more than one percent against the dollar and hit a record low against the euro.&nbsp;Yields on 30-year Japanese bonds rose sharply reflecting fears the country&#39;s already colossal debt will balloon further.&nbsp;After her victory Saturday, Takaichi pledged first to implement measures to address inflation and boost Japan&#39;s economy, rural areas and primary industries.

Paris stocks slumped after French PM Sebastien Lecornu resigned, while Tokyo surged on optimism over Japan’s incoming leader Sanae Takaichi. 

Paris stocks drop as French PM resigns, Tokyo soars

WASHINGTON: The United States (US) government shutdown is set to stretch into next week after senators voted Friday for a fourth time to reject a funding fix proposed by President Donald Trump&#39;s Republicans. Federal agencies have been out of money since Wednesday -- with a wide range of public services crippled -- as a result of deadlocked talks in Congress on how to keep the lights on. Tourist sites such as the Washington Monument have closed, key data on employment has been delayed and some official websites have ground to a halt, although other areas of government have yet to be affected. 750,000 employeesSome 750,000 employees are likely to be put on furlough -- a kind of enforced leave with backpay after the shutdown -- as the funding crisis deepens. Senate leaders have no plans to keep the upper chamber of Congress in session over the weekend, meaning Friday&#39;s vote on a short-term fix was the last chance of the week to end the crisis. At the center of the standoff is a Democratic demand for an extension of health care subsidies that are due to expire -- meaning sharply increased costs for millions of low-income Americans. Republicans -- who control the legislature and the White House but need Democratic votes on government funding bills -- have announced no plans to address the issue. The Democrats are trying to force Republicans&#39; hand by blocking a Trump-backed funding resolution that needs a handful of their votes. &lsquo;This madness must end&rsquo;The White House said the Democratic posture amounted to &quot;an intentional sabotage of our country.&quot; &quot;This madness must end,&quot; Trump&#39;s press secretary Karoline Leavitt told reporters. &quot;President Trump and Republicans are calling on Democrats to reopen the government immediately on behalf of the American public.&quot; Amid widespread pessimism over the possibility of a quick solution, Republicans voiced in Congress hopes that the latest failure might push some moderates in the opposition to cross the aisle. <h2 style="line-height: 2;">Permanent redundancies&nbsp;</h2>&quot;Hopefully over the weekend, they&#39;ll have a chance to think about it,&quot; Republican Senate leader John Thune told reporters at the US Capitol. &quot;Maybe some of these conversations start to result in something to where we can start moving some votes and actually get this thing passed.&quot; Complicating efforts to strike a deal is the threat from Trump to turn thousands of the planned furloughs into permanent redundancies, strip funding and slash benefits as he ramps up pressure on the Democrats. The administration has also been accused of allowing government officials to use partisan language in messaging about the shutdown after the Department of Housing and Urban Development on Tuesday posted a notice on its website blaming the shutdown on the &quot;Radical Left.&quot; Altered email messages&nbsp;The New York Times reported Friday that some furloughed Education Department staff had noticed their out-of-office email messages being altered without their knowledge to point the finger at Democrats. &quot;Unfortunately, Democrat Senators are blocking passage of H.R. 5371 in the Senate which has led to a lapse in appropriations,&quot; the emails said, according to the Times. With an announcement on layoffs expected any day, Trump&#39;s budget chief Russ Vought is planning to brief Republican senators next week. The House of Representatives has been in recess and Republican Speaker Mike Johnson told reporters he has been meeting the president ahead of its return to discuss plans for layoffs. &lsquo;Terrified&rsquo;Johnson accused Senate Democratic Minority Leader Chuck Schumer of pushing the shutdown because the veteran New Yorker is &quot;terrified&quot; of left-wing activists grabbing his seat in 2028 elections. &quot;Chuck Schumer is a far-left, progressive politician but he&#39;s not far enough left for this base and so he&#39;s got to show a fight against the president,&quot; Johnson said.

The US government shutdown will continue into next week after Senate Republicans' funding proposal failed again. Democrats demand healthcare subsidy extensions, while both sides trade blame amid growing furloughs, service disruptions, and partisan tensions.

US government shutdown to drag into next week

WASHINGTON: US President Donald Trump&#39;s administration on Wednesday froze $26 billion for Democratic-leaning states, following through on a threat to use the government shutdown to target Democratic priorities.&nbsp;The targeted programs included $18 billion for transit projects in New York, home to Congress&#39;s top two Democrats, and $8 billion for green-energy projects in 16 Democratic-run states, including California and Illinois.&nbsp;Vice President JD Vance, meanwhile, warned that the administration might extend its purge of federal workers if the shutdown lasts more than a few days.&nbsp;The moves made clear that Trump would carry out his threat to take advantage of the shutdown to punish his political opponents and extend his control over the $7 trillion federal budget, established by the US Constitution as the domain of Congress.&nbsp;&quot;Billions of dollars can be saved,&quot; he wrote on Truth Social late on Wednesday.&nbsp;The government shutdown, the 15th since 1981, suspended scientific research, financial oversight, environmental cleanup efforts and a wide range of other activities.&nbsp;Approximately 750,000 federal workers were ordered not to work, while others, such as troops and Border Patrol agents, began working without pay. The Department of Veterans Affairs said it would provide burials at national cemeteries but would not erect headstones or mow the grass.&nbsp;Vance said at a White House briefing that the administration would be forced to resort to layoffs if the shutdown lasts more than a few days, adding to the 300,000 who will be pushed out by December. Previous shutdowns have not resulted in permanent layoffs.&nbsp;The US Patent and Trademark Office said it would lay off 1% of its 14,000 employees, according to an internal letter seen by Reuters.&nbsp;Schumer alleges shutdown &lsquo;blackmail&rsquo;Hakeem Jeffries, the top Democrat in the House of Representatives, said the funding freeze for subway and harbor projects in his home of New York would throw thousands out of work.&nbsp;Top Senate Democrat Chuck Schumer, also from New York, said Trump was targeting regular Americans for partisan aims.&nbsp;&quot;He is using the American people as pawns, threatening pain on the country as blackmail,&quot; Schumer said.&nbsp;Republican Senator Thom Tillis said he was concerned that the freezing of infrastructure funds for New York could make it harder for Congress to exit the shutdown.&nbsp;&quot;They need to be really careful with that, because they can create a toxic environment here,&quot; Tillis said. &quot;So hopefully they&#39;re working with the leader, and the leader with them, on not creating more work to get us out of this posture.&quot;&nbsp;Republican Senate Leader John Thune dismissed concerns that the spending freeze amounted to hostage-taking.&nbsp;&quot;Well, vote to open up the government, and that issue goes away, right? I mean, it&#39;s pretty straightforward,&quot; he said at a press conference.&nbsp;Jeffries said he had not had any contact with the White House since a meeting with Trump earlier in the week.&nbsp;&quot;We haven&#39;t heard from the White House since the White House meeting on Monday,&quot; he said in a CNN interview. &quot;Clearly, they wanted to shut the government down.&quot;&nbsp;Different day, different vote, same resultsMeanwhile, the Senate again rejected efforts to keep the government functioning as both a Republican proposal that would fund the government through November 21 and a Democratic vote that would pair funding with additional health benefits failed in floor votes.&nbsp;Trump&#39;s Republicans hold a 53-47 Senate majority, but they need the support of at least seven of Schumer&#39;s Democrats to meet the chamber&#39;s 60-vote threshold for spending bills.&nbsp;At issue on the government funding front is $1.7 trillion for agency operations, which amounts to roughly one-quarter of annual spending. Much of the remainder goes to health and retirement programs and interest payments on the growing $37.5 trillion debt.&nbsp;A bipartisan group of senators huddled on the floor during the vote, trying to find a path forward.&nbsp;&quot;I want to see that a deal is a deal, and I would like to see the Republicans make a commitment to work with us on health care,&quot; said Senator Tim Kaine, a Virginia Democrat who represents many federal workers near the nation&#39;s capital. &quot;But I&#39;ve never said that has to be all I&#39;s dotted and T&#39;s crossed because that could be complicated.&quot;&nbsp;Democrats are also seeking guarantees that Trump will not be able to ignore spending bills he signs into law, as he has repeatedly done since returning to office.&nbsp;Both sides sought to pin the blame on the other, looking for an advantage ahead of the 2026 midterm elections that will determine control of Congress.&nbsp;Democrats said Republicans were responsible for the disruption, as they control the levers of power in Washington.&nbsp;Republicans said Democrats were surrendering to partisan pressures to oppose Trump, even though they have routinely backed spending bills in the past. They also repeated a false claim that the Democratic proposal would extend health coverage to people who are in the country illegally.&nbsp;According to the nonpartisan Congressional Budget Office, the Democratic plan would only restore coverage to certain categories of immigrants who are in the country legally, such as asylum seekers and people on work visas.&nbsp;Several government agencies posted notices on their websites blaming the &quot;radical left&quot; for the shutdown - a possible violation of a law known as the Hatch Act meant to insulate nuts-and-bolts government services from partisan politics.&nbsp;The longest US government shutdown, which stretched over 35 days in 2018-2019 during Trump&#39;s first term, ended in part after flight delays caused by air traffic controllers calling in sick.

government shutdown 2025, federal govt shutdown, US Congress

The targeted programs include $18 billion for transit projects in New York, home to Congress's top two Democrats, and $8 billion for green-energy projects in 16 Democratic-run states, including California and Illinois.

White House freezes funds for Democratic states in shutdown slap

SYDNEY: Wall Street futures slipped, gold struck a record high, and Asian stocks wavered on Wednesday, as the deadline passed for a US government shutdown that is expected to delay the release of crucial jobs data and muddy the interest rate outlook. With no clear path out of the impasse, agencies warned that the government shutdown would halt the release of the closely watched September employment report and lead to the furlough of 750,000 federal workers, incurring a daily cost of $400 million. Both S&amp;P 500 futures ESc1 and Nasdaq futures NQc1 dropped 0.5%. Gold prices XAU= climbed to $3,875 an ounce, hitting a record high for third straight session. European futures STXEc1 were little changed. With Friday&rsquo;s non-farm payrolls report absent, investors may place greater weight on the ADP National Employment Report due later today. Forecasts are centred on a modest gain of 50,000 private-sector jobs. &quot;Typically, a shutdown is immaterial for markets. In fact, the 2018-2019 shutdown, which lasted for over a month, actually saw Wall Street rise,&quot; said Kyle Rodda, a senior analyst at <a data-fr-linked="true" href="//Capital.com" style="font-size: 18px;">Capital.com</a>. Rodda added that the issues for markets are twofold, with one being the delay of the release of the non-farm payrolls data. The other one is &quot;US President Trump has also threatened to permanently lay off workers, which could turn the shutdown into a mini-labour market shock,&quot; he said. Futures now imply a 96% chance of a rate cut by the Federal Reserve in October, up from 90% the day before, with around a 74% probability of another move in December.&nbsp; Anthony Saglimbene, chief market strategist at Ameriprise, said in a note that if the shutdown lingers, the September inflation reports, due in mid-October, could also be negatively affected. &quot;An extended period where the US Bureau of Labor Statistics is not operating at full strength could affect data collection efforts for other reports, which may impact the quality of the data,&quot; he said. On Wednesday, Japan&#39;s Nikkei N225 dropped by over 1%, following an 11% surge in the previous quarter. South Korean shares KS11 rose 0.6%, adding to the 11.5% gain in the last quarter, after data showed its exports rose at the fastest pace in 14 months in September. Taiwan&#39;s shares TWII gained 1.3%. The island&#39;s top tariff negotiator stated on Wednesday that Taiwan will not agree to a deal with Washington that would require half of all semiconductor production to take place in the US. Chinese markets, including Hong Kong, are closed for a public holiday. Overnight, Wall Street managed to end the quarter on a positive note, closing higher. Data showed that US job openings increased marginally in August, while hiring declined, and consumer confidence fell by more than expected. In foreign exchange markets, the dollar index =USD held steady after three straight days of losses and was last at 97.84. It was flat at 147.98 yen JPY=EBS, reacting little to a Bank of Japan survey showing Japanese companies expect consumer prices to rise an average 2.4% a year from now, above the central bank&#39;s 2% target. In the Treasuries market, yields were steady in Asia. The benchmark US 10-year Treasury yield US10YT=TWEB was flat at 4.1561%, having risen 1 basis point overnight. Oil prices steadied on Wednesday after two consecutive days of losses as investors weighed potential OPEC+ plans for a larger output hike next month against the prospect of shrinking inventories in the US. US crude CLc1 inched up 0.1% to $62.46 a barrel, while Brent LCOc1 was 0.2% higher at $66.16.

Banking

Gold hit a record high and Asian stocks wavered, as a looming US government shutdown delayed key jobs data and increased uncertainty over interest rates and the economic outlook.

Stocks retreat, gold hits record as US government shutdown begins

WASHINGTON: The US government shut down much of its operations on Wednesday as deep partisan divisions prevented Congress and the White House from reaching a funding deal, setting off what could be a long, grueling standoff that could lead to the loss of thousands of federal jobs.&nbsp;There was no clear path out of the impasse, while agencies warned that the 15th&nbsp;government shutdown&nbsp;since 1981 would halt the release of a closely watched&nbsp;September employment report, slow&nbsp;air travel, suspend scientific research, withhold pay from US troops and lead to the furlough of 750,000 federal workers at a daily cost of $400 million.&nbsp;Trump, whose campaign to radically reshape the federal government is already on track to&nbsp;push out some 300,000 workers&nbsp;by December, warned congressional Democrats that a shutdown could clear the path for &quot;irreversible&quot; actions, including cutting more jobs and programs.&nbsp;The shutdown commenced hours after the Senate rejected a short-term spending measure that would have kept government operations afloat through November 21. Democrats opposed the legislation over Republicans&#39; refusal to attach an extension of&nbsp;health benefits&nbsp;for millions of Americans, which are due to expire at the end of the year. Republicans say the issue must be addressed separately.&nbsp;At issue on the government funding front is $1.7 trillion for agency operations, which amounts to roughly one-quarter of the government&#39;s total $7 trillion budget. Much of the remainder goes to health and retirement programs and interest payments on the growing $37.5 trillion debt.&nbsp;Independent analysts warn the shutdown could last longer than the budget-related closures of the past, with Trump and White House officials threatening to punish Democrats with cuts to government programs and the federal payroll. Trump budget director Russell Vought, who has called for &quot;less bipartisan&quot; appropriations, threatened permanent layoffs last week in the event of a shutdown.&nbsp;Record dates to first Trump termThe longest government shutdown in US history stretched over 35 days during December 2018 and January 2019 during Trump&#39;s first term in office, in a dispute over border security.&nbsp;&quot;All they want to do is try to bully us. And they&#39;re not going to succeed,&quot; Senate Democratic leader Chuck Schumer said in a floor speech a day after a White House meeting with Trump and other congressional leaders that ended with the two parties far apart.&nbsp;Senate Majority Leader John Thune described the failed short-term spending bill as a &quot;nonpartisan&quot; measure devoid of partisan policy riders that Democrats have had no problem accepting in years past.&nbsp;&quot;What&#39;s changed is, President Trump is in the White House. That&#39;s what this is about. This is politics. And there isn&#39;t any substantive reason why there ought to be a government shutdown,&quot; the South Dakota Republican told reporters.&nbsp;Trump&#39;s Republicans hold majorities in both chambers of Congress, but legislative rules require 60 of the 100 senators to agree on spending legislation. That means that at least seven Democrats are needed to pass a funding bill.&nbsp;Democrats focus on healthcare fundingDemocrats are under pressure from their frustrated supporters to score a rare victory ahead of the 2026 midterm elections that will determine control of Congress for the final two years of Trump&#39;s term.&nbsp;The healthcare push has given them a chance to unite behind an issue that resonates with voters.&nbsp;Along with the extended health subsidies, Democrats have also sought to ensure that Trump will not be able to undo those changes if they are signed into law. Trump has refused to spend billions of dollars approved by Congress, prompting some Democrats to question why they should vote for any spending legislation at all.&nbsp;University of Chicago professor Robert Pape said the unusually polarized US political climate in the aftermath of conservative activist Charlie Kirk&#39;s assassination and the growing power on the extreme wings of both parties could make it harder for party leaders to agree on a deal to reopen the government.&nbsp;&quot;The rules of politics are radically changing, and we can&#39;t know for sure where all of this is going to end,&quot; said University of Chicago political science professor Robert Pape, who studies political violence.&nbsp;&quot;Each side would have to backtrack against tens of millions of truly aggressive supporters, their own constituents, which is going to be really hard for them to do,&quot; he said.&nbsp;Before the shutdown, Trump reached out to his own supporters with a deepfake video showing manipulated images of Schumer appearing to criticize Democrats while top House Democrat Hakeem Jeffries stood next to him, with a crudely drawn sombrero and mustache imposed over his face.&nbsp;&quot;It was childish. It was petty,&quot; Schumer told reporters. &quot;It&#39;s something that a 5-year-old would do, not a president of the United States. But it shows how unserious they are. They don&#39;t give a damn about the harm they will cause with their shutdown.&quot; What would stay open, what would close?According to Reuters&#39; earlier report, at least 21 of the 23 largest federal agencies posted details about which employees they would furlough. Here is a guide to what would stay open and what would close in a government shutdown, according to plans released so far: What happens to Social Security, Medicare and Medicaid?The Social Security Administration would keep issuing retirement and disability benefits but would&nbsp;furlough 12% of its staff and pause marketing campaigns, according to the agency&rsquo;s shutdown plan. Payments would likewise continue under the Medicare and Medicaid healthcare programs.&nbsp;Will food aid be continued under SNAP and WIC?The Supplemental Nutrition Assistance Program, the nation&#39;s largest food aid program, and the Special Supplemental Nutrition Program for Women, Infants and Children, known as WIC, would continue operations during a shutdown as funds allow, according to a shutdown planning document published by the US Department of Agriculture.&nbsp;Does the mail get delivered if the government closes? The US Postal Service would be unaffected because it does not depend on Congress for funding, USPS said in a statement. Post offices will be open.&nbsp;What&nbsp;does a shutdown mean for the Internal Revenue Service? The IRS will be fully staffed for five days, according to agency shutdown plans published Monday. The strategy does not say what the IRS, which lost about a quarter of its staff this year and now employs about 75,000 people, would do if the shutdown lasts longer than five business days. An agency spokesperson declined to comment.&nbsp;What&nbsp;about the airports?More than 13,000 air traffic controllers&nbsp;would&nbsp;continue working, but without pay until the shutdown ends, according to the Federal Aviation Administration. Most TSA employees would continue working, according to an agency statement.&nbsp;Will federal courts be fully operational?Last week, the federal judiciary warned that the courts could run out of money to fully sustain operations as soon as Friday if Congress fails to pass a spending bill. That is a shift. The courts sustained operations for five weeks when the government shut down during Trump&#39;s first term.&nbsp;What&nbsp;does a shutdown mean for the military?The 2 million US military personnel would remain at their posts without pay until the shutdown ends, according to a Department of Defense statement. National Guard forces that Trump has deployed to US cities must also continue to work. Contracts awarded before the shutdown would continue, and the department could place new orders for supplies or services needed to protect national security. Trump has ordered the department to rename itself the Department of War, a change that will require action by Congress.&nbsp;How does a government shutdown affect law enforcement?Agents at the FBI, the Drug Enforcement Administration, Coast Guard and other federal law enforcement agencies&nbsp;would&nbsp;remain on the job.&nbsp;What&nbsp;happens to borders and homeland security?Justice Department staff who administer the immigration court system will largely stay on the job because Trump declared illegal immigration a national emergency, according to a department statement. Employees who communicate with state and local officials about immigrant arrests would also keep working, according to the statement. Border Patrol and immigration enforcement agents would stay at their posts, as would most customs officers, according to the Department of Homeland Security&rsquo;s shutdown strategy. Tariff collections would continue, according to the strategy.&nbsp;Does a shutdown delay key economic data?Publication of major US economic data, including employment and GDP reports of critical importance to policymakers and investors, would be suspended.&nbsp;Does a government shutdown affect small businesses?The Small Business Administration would furlough 24% of its staff, according to a statement. It would not approve new loans for small businesses to buy equipment and upgrade buildings.&nbsp; Lending to help businesses recover from natural disasters would continue.&nbsp;What&nbsp;happens if there is a natural disaster?The Federal Emergency Management Agency has about $2.3 billion available in its Disaster Relief Fund, according to a September 15 report, meaning the agency should function if a hurricane or other natural disaster strikes. About 4,000 FEMA employees would be furloughed, according to an agency statement.

US government shutdown, Congress shutdown

Trump, whose campaign to radically reshape the federal government is already on track to push out some 300,000 workers by December, warns congressional Democrats that a shutdown could clear the path for "irreversible" actions.

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