US government shutdown looms, potentially delaying key economic reports • FRANCE 24 English

US government shutdown looms, potentially delaying key economic reports • FRANCE 24 English

It is time now for us to turn to get the latest update on business news. Charles Perlan joins us in studio for that. And Charles, we’re going to start with a looming government shutdown in the United States. Uh wide-ranging economic ramifications, of course. Absolutely. Democrats and Republicans in Congress have until the end of Tuesday to come to some form of agreement on a spending bill. And the odds aren’t looking great after Vice President JD Vance said he believed the government is on track to shut down after a meeting with congressional leaders. Senate and House Democrats are using this leverage to make a series of demands relating to health care spending. Top of the list being a request to extend health care subsidies for Barack Obama’s signature affordable care act, which Republicans have been seeking to wind down. Democrats also asking for a reversal of funding cuts to Medicaid included in Donald Trump’s big beautiful bill or so-called big beautiful bill. Medicaid is a healthcare program destined for America’s poorest households. And they’re also asking for an end to the unilateral rescending of federal funds uh by the White House. For instance, uh for funds dedicated to medical research. Take a listen to House Democratic Leader Hakeim Jeff. Democrats are fighting to protect the health care of the American people and we are not going to support a partisan Republican spending bill that continues to gut the health care of everyday Americans. is a Republican caused healthc care crisis that is causing hospitals and nursing homes and community-based health clinics all across the country in rural America, urban America, small town America, the heartland of America and black and brown communities throughout this country. So what will this shutdown mean then in terms of government jobs and other services? Well, federal agencies have been uh preparing for this, but uh in spite of White House pressure to consider firings as part of their planning, they are instead calling for temporary furlows. More than 400,000 employees will be sent home as non-essential. Essential workers, include those, for instance, in law enforcement and safety inspections. Uh all workers are entitled to receive back pay once the shutdown ends as part of a uh 2019 law. Among the services not running key economic reports that are due to be published soon over the next few weeks uh over the just over the next week we’re expecting to have fresh data on jobless claims the monthly jobs report and the US trade balance and if the shutdown extends even further the consumer price index the key inflation gauge is due to be released on October 15th. All this data provides clarity on the US economy at an uncertain time when the effects of Donald Trump’s wide-ranging tariffs still need to be better understood. This is data used by the Federal Reserve as it considers its next move with regards to interest rates. Without up-to-date information, it can’t adapt its policies to meet its dual mandate of both full employment and 2% inflation. All of which contributes to shaking the trust in the US government’s creditworthiness. Okay. Okay. Well, let’s move on now with a new record acquisition steeped though, Charles, in geopolitics. Mhm. Video game giant Electronic Arts is to be acquired for a record-breaking $55 billion in what seems likely to become the biggest private equity buyout ever, led by consortium of groups, including Saudi Arabia’s public investment fund, Silverlake, and Jared Kushner’s Affinity Partners. Saudi Arabia has poured billions of dollars into the video game industry over the past few years as part of its a drive to diversify its economy away from fossil fuels, raising accusations of sports washing for an authoritarian regime. Luke Shrego tells us more about the deal. An end to Electronic Arts 36-year history as a publicly traded company at $210 a share, putting a $55 billion price on what would be the largest leverage buyout in history. This moment is a powerful recognition of EA’s remarkable work. Together with our partners, we will create transformative experiences to inspire generations to come. The video gaming giant is well known for its popular franchises like the formerly FIFA affiliated football games, Madden NFL, The Sims, and firsterson shooter Battlefield. EA’s annual revenues have hovered around $7.5 billion for the last three fiscal years. But despite the slowdown in the video game sector since the end of the co9 pandemic, its property’s longevity make it an attractive opportunity for the consortium of private equity firms behind the deal. They include Silver Lake, a firm part of the joint venture that’s to assume oversight of the Tik Tok video applications operations in the United States. Affinity Partners, a company run by Donald Trump’s son-in-law Jared Kushner, and Saudi Arabia’s public investment fund. It already holds a 9.9% stake in EA as the kingdom seeks to diversify away from oil revenue and pour billions into everything from infrastructure to tourism, sports, and gaming. PIF is uniquely positioned in the global gaming and esports sectors, building and supporting ecosystems that connect fans, developers, and IP creators. The deal is expected to close in the first quarter of 2027, though will first require approval from EA shareholders and regulatory authorities. Quick look at the markets, Charles, before you go. Well, mixed trading in the Asia-Pacific region as China publishes manufacturing activity readings showing a sixth straight month of contraction underlining timid domestic demand in the country and the effect of US tariffs. You can see the hang trading basically flat over onetenth of a percent higher while the Nikk is down uh just under one10enth of a percent lower. Charles Pan with their business update. Thanks very much indeed.

As an October 1 deadline fast approaches for the US Congress to agree on a spending bill to keep the US government running, federal agencies have outlined plans for a potential shutdown. Seen as non-essential, key economic reports on jobs and inflation could be delayed, adding more uncertainty over the state of the US economy. Also in this edition, we look at the record buyout of video game maker Electronic Arts by a group of investors led by the Saudi Public Investment Fund (PIF) and Jared Kushner.
##Shutdown ##USEconomy ##Democrats

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