The world this week - Business
Janet Yellen, America’s treasury secretary, gave her strongest warning yet on the potential consequences of not raising the federal debt limit, saying it would be “catastrophic”.
The Treasury estimates that it will run out of money by October 18th unless the ceiling is increased to allow the government to continue borrowing.
Even with a stopgap resolution to avoid a government shutdown, the issue of lifting the debt limit still remains.
Ms Yellen said the uncertainty was eroding investor confidence.
Stockmarkets had their worst day in months on September 28th.
The S&P 500 dropped by 2% and the Nasdaq by 2.8%, its biggest decline in half a year.
European and Asian bourses also fell.
The prospect of a government shutdown was just one factor unsettling investors.
Markets are also digesting moves by central banks to taper their stimulus programmes, which has led to a sell-off in bonds.
Natural-gas prices remained volatile, but were still rising sharply in Asia and Europe, and to a lesser degree in America.
That fed into oil markets, as some industries switch to the commodity to keep the lights on.
The price of Brent crude crept up to $80 a barrel for the first time in three years.
Battle lines were drawn in the American Senate over a possible second term for Jerome Powell as chairman of the Federal Reserve.
Elizabeth Warren, a left-wing Democrat, became the first senator publicly to oppose Mr Powell remaining in office because of his past support for financial deregulation.
She called him “a dangerous man”.
Joe Biden is expected to announce his decision on who should lead the central bank within the next few months.
Ford announced an $11bn plan to build three factories that will produce batteries for electric vehicles and another plant to make its F-series of electric pickup trucks.
The investment is in partnership with SK Innovation, a South Korean company; the carmaker is providing $7bn.
Along with its Detroit rivals, General Motors and Stellantis, Ford has made a commitment to switch to greener motoring and wants 40% of its global sales to be electric by 2030.
The arrangement was only intended as a stopgap.
Euronext is an alliance between the Paris, Brussels, and Amsterdam bourses.
The tax credit will gradually taper for higher earners.