this is business live from bbc news with david eades and maryam moshiri. the cheque‘s not in the post. the us government shutdown means thousands of workers won't get paid today. live from london, that's our top story on friday 11th january. much of the us government is paralysed by a political standoff over donald trump's plans to build a wall on the border with mexico. but for thousands of workers, the political just became very personal. also in the programme... former nissan boss carlos ghosn is slapped with two new financial misconduct charges in japan. and it's been a hectic first full week of business after the festive break. our economics correspondent andrew walker will be here to talk

us through the highs and the lows. as the us government shutdown continues, we want to know, how would you cope if you didn't get yourjanuary pay cheque? let us know — just use the hashtag #bbcbizlive. hello and welcome to business live. let's go first to the us, where for hundreds of thousands of government employees, it should be pay day. but they won't be getting a cent, with the budget standoff in congress over president trump's border wall leaving large parts of the federal government without funding. the shutdown is about to enter its fourth week, and on saturday, it will become the longest in us history. some 800,000 federal workers will not get paid today — or until the crisis is resolved. around half of them have been sent home but the rest, 100,000, have had to carry on working unpaid

because they are deemed essential. that's led to anger and protest. my husband works hard everyday to make sure that we are safe as a country. and it's terrifying to think that our president thinks of us as pawns. you know not knowing how long this is going to last, i've really had to budget as much as i can and just say, ok, how do i not spend anything for weeks at a time? because everyday i don't know when the show down is going to end. when the shutdown is going to end. all we want to do is, we want to work. i want to work, i want to serve my country. if it continues longer, i'll have to go into my retirement money, to pay the bills. the bills keep coming, they don't stop. professor peter trubowitz, head of the international relations and director of the us centre at the lse, is with me now. thank you very much for coming in. good to be here. obviously, each

individual has their own fears and worries, in an economic sense, for the us, what is the story, is it that big? i think it is a big story. first of all, the political scene has changed in the united states today because of all these people not receiving paycheques, these 800,000 government employees. the longer this goes on, the more it will affect individual sectors, the ones which have gotten the most attention so far are, for example, tourism, so many of the national parks were closed over the holidays, others have limited staffing. that has taken a hit and gotten a lot of attention but also small business loa ns a re attention but also small business loans are no longer being issued. and over the holiday break, that was not such a big issue because there weren't many applications, but there will be many more now. and the other place interestingly which will begin to see the effect is on farmers and

ranchers, who rely on the us department of agriculture for weekly reports a deep they're not going to be getting those reports. so it is a real impact. i suppose president trump is having to look at being the man who presided over the longest government shutdown in history, that does not look good on the cv. as of tomorrow. as of tomorrow. so what is going to give? well, right now, both sides have really dug in and so as you said in the lead, there's a stand—off. he has shown no signs of having ground, nor has nancy pelosi and the democrats in the house. i think really, trump has three options here. one is, he can concede. the other is, he can go for a bargain which a lot of senate republicans are now urging him to

do, which would be to combine an end to the government shutdown and funding for some version of the wall, in return for immigration reform, especially for the dreamers. the final option, and the one that he is threatening, is to declare a national emergency. if he goes down that path, it about what he would do is, he would open government, he would end the shutdown, while creating the possibility of getting funds either through federal emergency relief funds which are still there or the defence department... but then there is the possibility of paralysis as it goes through the courts? absolutely, so the democrats will definitely take this to the courts if that happens. and many are uncomfortable with that option because they are thinking 2020 and a democrat is in office and if you call a national emergency over this, they will call a national emergency over something else. peter,, thank you.. let's take a look at some of

the other stories making the news. president trump has pulled out of the world economic forum in davos later this month because of the continuing us government shutdown. us secretary of state mike pompeo and treasury secretary stephen mnuchin are still expected to attend the gathering of world business and political leaders in the swiss ski resort. more signs of turmoil in the beleaguered uk retail sector. angry shareholders of debenhams department stores have forced the chief executive and chairman off the board of the struggling company. despite the coup, the company says sergio bucher will stay on as ceo and that it has full confidence in his plans to turn around the business. injapan, former nissan boss carlos ghosn looks likely to remain injail after being indicted with two new charges. he's now been detained in a tokyo jail for almost eight weeks on charges of financial misconduct, which he strenuously denies. mariko 0i is in singapore.

just spell out these latest charges? well, david, the latest charge is called aggravated breach of trust, which is a lot more serious than what he has already been indicted for, which was under reporting his income by some $18 million. with this latest charge, he is accused of transferring his personal investment losses onto nissan and also accused of making a fairly hefty payment to a businessman in saudi arabia for allegedly helping him to cover up the losses. of course, when we saw mrghosn in court the losses. of course, when we saw mr ghosn in court for the first time since he was arrested in mid—november on tuesday, he denied all the allegations and he said that he is innocent. but nevertheless he has been charged with these latest charges just before the extension —— the detention —— of himself expires.

my the detention —— of himself expires. my source says that it is highly unlikely that bail would be approved because of the seriousness of the latest charges. the broader asian markets are up, following gains on wall street. 0n the nikkei nissan was up nearly three quarters of a percent after tokyo prosecutors filed two new charges of financial misconduct against former nissan chief carlos ghosn. 0n the european stock markets this friday morning, the markets perhaps taking a bit of a breather after what has been a two modulus week. and michelle fleury has the details of what's ahead on wall street today. so, when is the bull market back on, you might be thinking? the index of america's biggest companies has now

risen for five days in a row, which hasn't happened since back in september before all those worries about erections and bear markets took hold. but there are still plenty of factors around which could alarm investors. what the federal reserve will do next is top of that list. the data out on friday will collect a lot of attention. forecasts are for prices to have slipped slightly in the past month, but to still be increasing atjust over 2% per year. but if inflation has actually picked up, well, investors may start worrying about more interest—rate hikes that could stop this recent market surge in its tracks. joining us us now richard dunbar, senior investment strategist, aberdeen standard investments. good to see you. i mean, it is such a mixed picture in the us at the moment, but one thing we picked up on what macy's with a 18% fall in its share price courtesy of

relatively poor, not disastrous, figures, but it is a huge drop?m is interesting, the labour is of the retail, not confined exclusively to europe. it is the anchor in a lot of the troubled shopping mall is in the us. two months ago they said things we re us. two months ago they said things were all right, yesterday they things were not all right and it is a worry for the consumer, and it is to do with moving online and general concern. so it is a collection of different things, anxiety about what is coming up as well as this move, and it feels like it is growing by the month, towards online? well, the move online and also us interest rates are going up so the price of money is going up which tightens up else across the us. and also black friday, that is their thing, which we have transported over to europe, but they say that discounting started early and remained. let's talk about a good news story,

looking at the us markets since christmas eve, we have seen a 10% rise in the us stock markets — what is behind that? it is interesting, before christmas investors were definitely glass half empty. and since then it has been glass half full. they were worried about rising interest rates and trade talks. since christmas, it looks like we're going to get a bit more good news out of the trade talks between the us and china, certainly that is the expectation on the markets. the falls we saw in the second half of last year left the markets a little cheaper than they were before. would you be brave enough to say that the drop has stabilised now and it is done? i wouldn't be brave enough to say that! we will have to wait and see on the news from the car industry, the trade talks, these things at an flow and i would expect that they would continue to do so. still to come.

the us—china trade dispute continues to dominate the headlines. but the car industry also got a lot of attention this week for the wrong reasons. 0ur economics correspondent andrew walker will be here in a few minutes to talk us through a hectic week of business stories. you're with business live from bbc news. richard branson's virgin atlantic hasjoined a group to bid for troubled airline flybe. the group, which includes stobart air and hedge fund cyrus capital partners, hopes to run the airline under the virgin atlantic brand to compliment its long haul services. we can talk now to our correspondent theo leggett. first of all explain to me exactly what is behind this deal, why would it make sense to all involved parties? quite simply

because flybe is losing money and on its own it doesn't have the financial clout to keep operating until it can recover. flybe has been losing quite a lot of money, it operates not so densely used regional routes using small aircraft and it has been trying to cut costs but it has been hit by a combination of high fuel prices and a fall in the value of sterling. when you're leasing aircraft in dollars and paying for your fuel leasing aircraft in dollars and paying for yourfuel in leasing aircraft in dollars and paying for your fuel in dollars, with your revenue being in pounds, all of that does not make a lot of sense. so what they needed was an investor to come in with enough cash to keep them going and to support them as they try and turn the business around. and that's what's happened. so we have this consortium of virgin atlantic, cyrus capital, the hedge fund and stobart air, which is a major logistics provider. together they are going to put £20 million into the business initially with the promise of another £80

million, providing the financial strength that flybe needs to turn itself around and it will have the advantage of using the virgin atla ntic advantage of using the virgin atlantic rand. virgin have tried this before, haven't they, and it didn't work, what makes them think it might work this time? absolutely. in fact it is the third time the virgin atlantic brand has been used for a shortfall widget style carrier. not so many years ago they also had virgin express running under the virgin brand which was operating out of brussels. i think this is trying to use flybe's network in order to bring passengers in so that they can then get on virgin atlantic plane is. so instead of flybe being a self standing independent airline, it will start to bring passengers channelling them into virgin atlantic, that seems to be the thing. plenty more on our website on that story. this one... the finer things in life, helping

sales, apparently, at lidl. your‘re watching business live. our top story — thousands of us government workers won't get paid today. it's because of the partial shutdown of the american government, which has been sparked by a political standoff over president trump's plans to build a wall on the border with mexico. a quick look at how the european markets are faring. they're following the lead on wall street, things looking a little bit more positive today. business got back into full swing after the festive break this week. efforts to resolve the trade dispute between the world's two biggest economies continued to dominate the agenda, with us and chinese negotiators meeting in beijing for criucial talks. but that wasn't the only story grabbing global attention. to talk us through the week's big issues, we're joined by our economics correspondent andrew walker. and one of the big stories which

strikes me, this is a really bad time to be making cars? yes. we've had a succession of bits of bad news from carmakers in europe particularly. we had jaguar land rover announcing plans to cut a500 jobs. ford's european operation is also going to be cutting thousands ofjobs, an also going to be cutting thousands of jobs, an unspecified also going to be cutting thousands ofjobs, an unspecified number but we know it will be in the thousands, while they try and get their european operation back into profit. jaguar land rover has particular problems of falling sales in china, a very important market for it. the problem of consumer backlash against diesel cars and bearing in mind that land rover is basically a diesel operation. and also they've got concerns about exactly what form brexit is going to take and whether that might disrupt their business. and at the beginning of the week we also had specifically british car sales showing a decline over the

last year. so a really difficult time to be a carmaker, yes. and its different between different luxury carmakers, assaidi is and bmw are bigger and they can handle issues much better? to appoint, yes. and we had the ultimate luxury brand, rolls—royce, owned by bmw, showing quite a strong increase in sales. from a base of only a000 cars per year. exactly, it does not sound a lot but it is a lot of money when you consider the unit price. they said they had a particular benefit from the us tax cuts affect strong sales there with people at the top end of the income range having a bit more to spend on a very upmarket car. they are of course very worried about brexit and they have made that clear to the german government, that has filtered through, and they're if you like the bedrock of a lot of german industry, and the industrial figures don't look great from germany? we had some pretty poor

industrial production figures from germany, showing a 1.9% incline in number, compared with the previous month. third month in a row of climbing production there. so that is concerning, i'm afraid. —— especially when you look at the contraction in germany and people are wondering, is germany now in recession? there were some other figures which have suggested it is not quite so gloomy, construction industry surveys for december were pretty upbeat. and although germany is, of course, a big, big manufacturing player, it is still 60% a service sector economy. and although there has been a bit of a slowdown in the service sector, it does still look like it's growing. so things are not looking great in germanyjust now, so things are not looking great in germany just now, but so things are not looking great in germanyjust now, but not necessarily recession. we will get some more figures in a few weeks' time. let's talk about the us and

china and those renewed trade talks at the beginning of the week, not a huge amount coming out but it is progress in the right direction at least? yes, the general tone of what came out, certainly from the chinese side, was reasonably positive. the statement issued by the us trade department were strikingly anodyne, it really just department were strikingly anodyne, it reallyjust said, we've been talking and we're going to continue talking. it seems that senior chinese official is going to be visiting washington later this month, so but is positive. richard wood talking earlier about the markets taking some comfort from this. and it does appear that they've been making some progress on they've been making some progress on the idea of china buying more american agricultural produce, energy... which would help i think perhaps deal with president trump's preoccupation with the bilateral trade imbalance. the really difficult stuff, though, is the us allegations about china stealing american technology. that will be

much much harder to get a commitment from the chinese on which will satisfy president trump. anticlockwise ticking, we're heading towards march and then this thing goes into overdraft with more tariff hikes? yes, a 90 day cooling off period i think was agreed between the two leaders when they met at the g20 summit. indeed, we have started that 90 days and if nothing is done, nothing is agreed, during that period, then the united states is proposing to dramatically increase the punitive tariffs which it is already to some degree putting on chinese goods. in a moment we'll take a look through the business pages but first here's latest of our films from the consumer electronics show in las vegas. do you like your hi—tech stuff?|j do, actually. have never been to the show, i really want to go. here's our tech reporter

cody godwin, trying out an indestructible notepad that you can write on under water. could this be the last stationery you ever buy? it's a pencil that will never run out of lead and a notebook that's pretty much indestructible. so you can see that the ink has survived and i can even add to it if i need to, because it's not writing with ink like a traditional pen, it's more of a chemical reaction with the paper. you can also write on it with a regular pen and you can even erase it. why would somebody spend $60 on nuka when they could just go to the store and get a standard notebook and a pack of pens for much cheaper? we are making internal stationery, we have an eternal notebook and an eternal pencil. the point is, you can use only one notebook. pencils still work underwater, you

know, anyway! what other business stories has the media been taking an interest in? richard dunbar isjoining us again. we've talked about the us shutdown and what about the impact it will have on people's lives on a daily basis? this takes you through some of those stories... the fact of the matter is, people are just not going to get paid their salary today, what does that mean for so many people?” think this story is about to move from the political and the abstract to the individual, and i think that is going to put some pressure on donald trump and his team. you've got people sending letters out of their staff saying they should be holding garage sales to raise money. no testing at the food and drug administration, no planning for next yea r‘s administration, no planning for next year's harry administration, no planning for next yea r‘s harry kane administration, no planning for next year's harry kane is. all of these things are happening and people are

not getting paid. it is all very well donald trump talking about smaller government and a small estate but it hits today. we were asking you what you would do if you didn't get your paycheque for the first time, and it is a huge question, isn't it? suddenly you've got no money to pay all those bills, all the regular things that come in and come out, that is going to have and come out, that is going to have a knock—on effect... and come out, that is going to have a knock-on effect... this person said... the news that congressman and women are still getting paid would infuriate me. it would be infuriating, to anybody who is trying to make ends meet? it seems so trying to make ends meet? it seems so nonsensical. i think that steph will start to land today. the pay will start to land today. the pay will be backdated but at the end of the day, they're going to have to go out and borrow money, this

suggestion of garage sales — really?! let's talk about richard brunson's virgin really?! let's talk about richard bru nson's virgin atlantic really?! let's talk about richard brunson's virgin atlantic getting back into low—cost carriers, this is about flybe it is all over the papers this morning traffic flybe could be saved good news for you put you told us earlier on?” could be saved good news for you put you told us earlier on? i am the biggest user of the belfast service! of course other low—cost airlines are available! i will be on it tomorrow morning! but as you touched on earlier, verge have had a go at this before and this company was worth a quarter of £1 billion eight yea rs worth a quarter of £1 billion eight years ago, and it is now worth nothing, given the move in sterling and the difficult market. so why is virgin into it? they obviously think there are profitable routes on the flybe service. 0bviously, there are profitable routes on the flybe service. obviously, i think they will also have a look at some of the unprofitable ones, a fair number of them will not be continued, i would think. but they obviously think there is profit

there and especially within a large organisation. these are issues out of their control, quarter of a billion, not that long ago, your same? they're leasing their planes in dollars, oil is priced in dollars, they were perhaps a little unlucky, the oil price has collapsed over the past few months, so you're thinking, they would have benefited from that. and police can plan ahead, they've chosen to do it this way and it hasn't worked for them, the virgin team will do it perhaps slightly differently. i hope it does work for them because it is helpful for the uk economy to have these sorts of regional airlines working. and for richard dunbar! most importantly! have a safe journey tomorrow! that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. hi, there, good morning. we have got

some drizzle for some of us this morning. weaving through the day, for most of us will be dry and there will be a few sunny spells breaking through from time to time. those will be fairly limited. high pressure is still dominating. we've seen pressure is still dominating. we've seen this chart a lot over the last few days, high pressure firmly established, and underneath it, all the cloud. the wind will break up the cloud. the wind will break up the cloud. the wind will break up the cloud a touch, coming from the north—west, during the day, especially towards the north—east of england. any rain and drizzle will tend to clear by lunchtime and into this afternoon. maximum temperatures will be higher across england and wales compared to yesterday. tonight we will see this rain moving into

scotland, eventually into northern ireland as well, pushing gradually southwards and eastwards. it's not going to be a cold night. temperatures staying above freezing, potentially no lower than 9 degrees overnight in central scotland traffic will be a windy weekend, especially on sunday. it will stay mild. there will be a mixture of sunshine and showers. this is saturday, rain across southern areas initially will clear away towards the south and behind it, we're left with a good deal of dry weather with some sunny spells. but quite a few showers moving in, especially across scotla nd showers moving in, especially across scotland traffic goes temperatures still in double figures for many of us. still in double figures for many of us. moving into sunday, and other weather front moving in across northern areas and again, the isobars becoming close together, so, a windier day on sunday. in fact

there will be some gales across scotla nd there will be some gales across scotland and the north—east of england. going through the day on sunday there will be a bit of rain at times. but equally there will be some sunny spells. and it will be windy for all of us. the strongest of the gusts up to 50mph will be across north—eastern parts of the country. but look at those temperatures. really quite high for this time in january. you're watching bbc news at 9:00 with me annita mcveigh. the headlines: andy murray announces he'll retire after wimbledon — but in a tearful news conference says his injured hip could force him out of tennis much sooner. i'm not sure i'm able to — to play through the pain, you know, for another four orfive months. the work and pensions secretary, amber rudd, scraps plans to extend

a benefits cap for families of more than two children, in another change to the government's flagship universal credit. carbs are back on the menu, as a review commissioned by the world health organization confirms that eating a high fibre diet can cut the risk of early death by one third. the award—winning bbc television and radio presenter,