What is the government shutdown?
The Government shutdown began on Thursday when President Donald Trump called on Congress to raise the debt ceiling and end the shutdown, and it is likely to remain in place through February 7.
It is the longest-running federal government shutdown in US history, and the third time the shutdown has lasted for more than two weeks.
It has cost more than $1 trillion.
What is happening in the world?
The US economy has grown in recent years, as the world’s economic recovery has picked up and the US is on track to remain among the fastest-growing economies in the G7 group of rich economies, a new US economic report shows.
What are the biggest stories of the week?
There are three main issues that have emerged in the past week that have affected the UK’s economic outlook: 1) The election of Donald Trump as US President, which has been a major issue for UK-based businesses in recent months.
The Prime Minister Theresa May said she is “deeply disappointed” by the result and is “very disappointed” that her party lost the general election to the Conservative Party.
She has said she would try to renegotiate Britain’s membership of the EU. 2) The UK’s departure from the European Union.
The vote in the referendum, which took place on 23 June, gave the UK the right to leave the European Economic Area (EEA), an area of the European single market that provides services such as transport, energy, telecommunications and food.
The government says the EEA will be open to all countries.
What has been the reaction of politicians?
The UK Government has not been able to get through to Parliament on time to debate the EU withdrawal bill, which is due to be debated later this month.
May is said to have been concerned that the bill could be a stumbling block in any future Brexit negotiations.
A vote on the bill will be delayed until May 6, meaning a delay of six weeks for parliament to debate and vote on it.
A series of Brexit negotiations are likely to be underway, including the possibility of a transitional deal.
3) A possible trade war with China.
The UK is trying to renegotiated a free trade deal with China, which it has long sought to maintain, and is now looking to the possibility that China may try to take action against the UK in the coming months.
Chinese foreign minister Wang Yi said on Wednesday that “we expect the UK to make an effort to keep the free trade agreement and make a new bilateral trade agreement with China”.
What are some of the issues facing the UK?
There is a possibility that the UK could become a party to a US trade war over the US-UK trade deal.
The US is expected to seek to impose tariffs on British goods such as cars, food, clothing, shoes and tyres in response to the Brexit vote.
This could create significant political and economic disruption.
China and the UK are also likely to seek a trade agreement in the North Atlantic Treaty Organisation (NATO).
What is Brexit?
Brexit means the UK will leave the EU in March 2019, which means it has to negotiate a new relationship with the European Parliament (EP).
The UK was not an EU member in the first place, so it does not have the same rights as other member states in the bloc.
What does the UK Government say?
The Prime Minster Theresa May, the government’s main ally in government, has said it will be “very happy to work with the US and the EU to find a fair trade deal”.
May has said her Brexit will not be a “complete or even good Brexit”.
The Prime minister has said that “Britain will remain a member of the single market and the customs union”.
What have been the other major issues affecting the UK economy?
There have been some minor economic shocks.
On Tuesday, the Bank of England said it would raise interest rates to 0.5% from 1%.
The Bank of Japan cut its benchmark interest rate to 0%.
On Thursday, the Office for National Statistics said it had revised up its inflation figures to a 0.1% increase from 0.0%.
On Friday, the US Federal Reserve announced that it would be keeping interest rates unchanged at zero.
What do you think about Brexit?
Do you think the UK has the right economic and political situation to leave, or should the UK remain a part of the Union?
Leave or remain?
Leave the EU is a choice between leaving the EU and the status quo.
Remain is a more positive option for the UK.
How should we vote?
The referendum on the UK leaving the European Single Market (EU) has been held in two phases, which began on 8 June and will continue until 5 July 2019.
The first phase has resulted in a 52-48 majority for Remain, with Labour and some Lib Dems voting for Leave.
The second phase has seen the result of that vote, which was 50.2% to 48.6% for Remain.
Do you know what to expect in the EU referendum? Read more