October 1st – Top Morning Stories

1/ US

 

- Government Shutdown Begins as Deadlocked Congress Flails - Bloomberg  - By Roxana Tiron, Richard Rubin & Kathleen Hunter

 

The U.S. government began its first partial shutdown in 17 years, idling as many as 800,000 federal employees, closing national parks and halting some services after Congress failed to break a partisan deadlock by a midnight deadline.
 
Congressional leaders have scheduled no further negotiations on spending legislation, raising concerns among some lawmakers that the shutdown could bleed into the more consequential fight over how to raise the U.S. debt limit to avoid a first-ever default after Oct. 17.

 

2/ China

 

- China manufacturing tepid in September, small firms struggle - Reuters - Reporting by Koh Gui Qing and Jonathan Standing; Editing by Kim Coghill

 

China’s manufacturing growth edged up only slightly in September, official data showed on Tuesday, with small firms struggling in the face of overcapacity and weak demand, adding to concerns a nascent economic recovery may be foundering.
 
The official Purchasing Managers’ Index (PMI) stood at 51.1 last month from August’s 51.0, below expectations in a Reuters poll for a rise to 51.5, which would have been the highest in 17 months.

 

3/ Eurozone

 

- Troika adds to pressure over fiscal targets - Irish Times - By Arthur Beesley

 

The Government is under increasing pressure from the bailout troika over its fiscal targets as updated forecasts from the European Commission suggest it is likely to miss its end-year deficit target.
 
The news comes as Fine Gael and Labour push this week for a final settlement on the scale of cutbacks and tax measures to be adopted in this month’s budget.
 
In a draft report circulated last night to members of the Oireachtas Finance Committee, the commission projected an end-year deficit of 7.6 per cent of economic output, “just slightly above” the programme ceiling of 7.5 per cent of GDP.