KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
The ongoing US government shutdown, now entering its third week, is draining roughly US$15 billion a day from the economy, Treasury Secretary Scott Bessent warned on Wednesday — calling for Democrats to “be heroes” and work with Republicans to reopen the government.
Shutdown Drag Hits Economic Momentum
Speaking at a CNBC event during the IMF and World Bank meetings, Bessent said the shutdown has begun to “cut into muscle” of the US economy.
“We believe that the shutdown may start costing up to US$15 billion a day,” he said.
He cautioned that the deadlock is becoming the biggest impediment to America’s investment boom, particularly as the country rides a wave of AI-driven and manufacturing-led growth.
“There is pent-up demand, but then President Trump has unleashed this boom with his policies. The only thing slowing us down here is this government shutdown,” Bessent said.
Policy Support and Investment Boom
Bessent argued that Republican tax incentives and tariffs are fueling long-term capital formation, comparing the current growth phase to past industrial revolutions:
“We can be in a period like the late 1800s with railroads or the 1990s with the internet and tech boom.”
Despite the short-term disruption, Bessent remains confident that AI investment and reshoring trends will continue to support robust economic expansion once the government reopens.
Deficit Outlook: Signs of Fiscal Improvement
Bessent also said the US fiscal deficit for FY2025, which ended Sept 30, was smaller than last year’s US$1.833 trillionshortfall — though he declined to give a final number.
He expects the deficit-to-GDP ratio could fall toward 3% in the coming years, provided the US “grows more and spends less.”
The Congressional Budget Office (CBO) recently projected a slight improvement to US$1.817 trillion, helped by a US$118 billion surge in customs revenue from Trump’s tariffs.
Investor Takeaway
Economic hit: The shutdown’s US$15 billion daily toll risks trimming Q4 GDP growth.
Fiscal watch: Lower deficits and rising tariff income could ease Treasury issuance pressures.
Investment narrative: AI and industrial capex remain bright spots, but prolonged gridlock may weigh on sentiment.
Bottom line: Washington’s standoff is testing the resilience of the US economy’s post-AI boom momentum.
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