US military protest shutdown

Hundreds of US military veterans gathered in Washington, DC, to demand that the country's war memorials are reopened. The memorials have been temporarily closed as a result of the federal government shutdown.

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House to vote to re-open services after US shutdown

US Republican majority leader Eric Cantor has said the House will vote for federal employees to receive pay after a shutdown of government services on Saturday.

Mr Cantor added that the House will also vote to re-open the Federal Emergency Management Agency (FEMA), the National Weather Service and the Head Start Program.

United States House Majority Leader Eric Cantor (Republican of Virginia). Credit: Ron Sachs / Pool via CNP


Obama blames Republicans for government shutdown

President Obama has called for a vote to re-open government. Credit: Reuters

President Obama has blamed congressional Republicans for the US Government's budget shutdown, caused after the party sought delays to healthcare reforms, known as 'Obamacare'.

The stalemate is in its third day with little sign of compromise between Republicans and Democrats and concerns grow about the economic consequences.

Speaking today at a press conference, Obama said: "This whole thing is about one thing, the Republican obsession with the Affordable Care Act. That seems to be the only thing that unites the Republican Party right now."

Obama has called for a straight up-or-down vote to re-open government but said House of Representatives Republican leaders are intimidated by the most conservative members of their caucus.

Republicans may give Obama 'bigger list' of demands

Some Republicans have warned that they may use impending negotiations about the US debt ceiling to exact greater demands on a range of policies from President Barack Obama.

House Republicans have sought concessions and delays to the healthcare bill known as Obamacare, but these have been rejected by the Democrat-controlled Senate.

Read: Obama 'exasperated' over government 'shutdown'

Representative John Fleming warned there "will be an even bigger list when it comes to the debt ceiling," which must be agreed by 17 October.

"We're going to be talking about the Keystone XL pipeline, movement of cuts into entitlement reforms, beginning to adjust sequester," he said.

Analysts warns of turmoil if US defaults on debt

Analysts fear the political deadlock in Washington could risk the US defaulting on its debt for the first time, sending prices soaring and global stock markets into turmoil.

Congress has until 17 October to agree on an increase to the $16.7 trillion borrowing cap, but Republicans and Democrats appear no closer to a resolution.

Traders working at the New York Stock Exchange the last time the US came close to a default in August 2011 Credit: REUTERS/Brendan McDermid

The last time the US came close to a default in 2011, stocks in America's largest companies fell some 17 points and one credit rating agency removed the country's top-tier rating.

The episode cost the US Treasury $1.3 billion (£803 million) in higher interest costs that year, according to a government study.

Barack Obama's 'shutdown' stalemate with Republicans

President Barack Obama warned that he will not negotiate over budget issues with Republicans in a bid to end the partial US government 'shutdown'.

President Barack Obama said he will not negotiate over the budget. Credit: Reuters

Talks at the White House did not lead to a breakthrough but Obama remained hopeful that "common sense will prevail" in the standoff.

A statement from the White House said: "The president made clear to the leaders that he is not going to negotiate over the need for Congress to act to reopen the government or to raise the debt limit to pay the bills Congress has already incurred."

Obama held talks will senior US politicians, including the top Republican, House of Representatives Speaker John Boehner, over the government 'shutdown' which began on Tuesday.


Obama 'exasperated' over government 'shutdown'

CNBC's John Harwood speaks with President Barack Obama on the government shutdown Credit: CNBC

Barack Obama has admitted he is "exasperated" with the US government services 'shutdown' and warned that Wall Street could be in trouble.

In a interview with CNBC, the president directed his frustrations towards the Republican politicians, saying their hostility to "civil" negotiation threatens not only the functioning of government, but the wider health of the economy.

"I am exasperated with the idea that unless I say that 20 million people, 'you can't have health insurance, they will not reopen the government.' That is irresponsible", he said.

Read more on why the US congress is in deadlock

The president also warned that Wall Street needs to be genuinely worried about the stalemate in Washington.

"It is important for [Wall Street] to recognize that this is going to have a profound impact on our economy and their bottom lines, their employees and their shareholders," Obama said

US Spy chief: 'Shutdown seriously damaging'

Director of National Intelligence James Clapper warns that US national security is under threat Credit: PA Wire

US intelligence officials warn that the government 'shutdown' is seriously damaging the intelligence community's ability to guard against threats and protect the US.

Director of National intelligence James Clapper told a Senate panel that an estimated 70% of intelligence staff from the CIA, National Security Agency and Defense Intelligence Agency have been placed on unpaid leave.

Another spy official also added that general morale had been devastated.

The US government has closed all 'non-essential operations' after Congress failed to reach a new budget deal. Read more on why the US government is in 'shutdown'

US Army chief: 'Shutdown is harming daily operations'

US Army soldiers in training at Camp Atterbury, Indiana Credit: US Army

The US Army's chief of staff has urged a quick resolution to the budget row that has led to non-essential government services being closed - known as a 'shutdown' - warning that it was significantly harming the Army's day-to-day operations.

General Ray Odierno told Reuters: "It is going to be difficult for us to do anything.

"We won't be doing training like we normally would, we won't be travelling, we won't be doing the co-ordination necessary, only mission-essential tasks."

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