Friday newspaper round-up: US shutdown, Autumn Budget, Ryanair...
By Benjamin Chiou
Date: Friday 03 Oct 2025
(Sharecast News) - Senior officials inside Donald Trump's administration have acknowledged the federal government shutdown, without an end in sight, could hurt the US economy. The damage could be worth billions of dollars each week, according to analysts. [...] "We estimate that each week of shutdown would reduce US GDP growth by 0.1 percentage points (ppt) in Q4 (in annualized terms), translating into a $7 billion weekly hit to the economy," a report by EY Parthenon said, citing the effect of lack of pay for furloughed federal workers, delayed government procurement of goods and services and decline in demand. - The Guardian
Britain's fiscal watchdog is poised to deliver a £20bn blow to Rachel Reeves by downgrading its forecasts ahead of the Budget. The embattled Chancellor will on Friday receive initial predictions from the Office for Budget Responsibility (OBR) about the state of the economy, which will underpin her autumn tax and spending plan set to be unveiled on Nov 26. Ms Reeves is set to be plunged even deeper in the red because the OBR is widely expected to admit its assumptions about UK productivity gains have been too optimistic. - The Telegraph
Ryanair could cancel up to 600 flights a day next week due to French air traffic control (ATC) strikes, the airline has claimed. The company's chief executive, Michael O'Leary, has reiterated demands to the EU to protect overflights in a long-running campaign to minimise the disruption from ATC strikes. The strikes mean flights from the UK to France and holiday destinations such as Spain, Italy and Greece will be affected, as those routes overfly France. - The Guardian
The government can raise as much as £45 billion in non-inflationary taxes in line with its manifesto pledges at next month's budget, according to an American investment bank. Economists at Morgan Stanley said that Rachel Reeves, the chancellor, could raise £25-45 billion to cover a fiscal deficit through a blitz of taxes targeting pension savings, a reform of council tax, gambling taxes, and a series of smaller changes removing tax loopholes for capital gains and national insurance contributions. - The Times
The owner of Selfridges has warned of a slowdown in wealthy foreigners visiting London to shop after suffering a £130m sales hit. Cambridge Retail Group (CRG), which controls the British luxury department store, said "reduced numbers of international visitors coming to the UK and shopping" led to revenues tumbling last year to £1.44bn versus £1.57bn a year earlier. The warning will fuel concerns over Britain's luxury sector after it was dealt a blow from a government decision to axe tax-free shopping for tourists. - The Telegraph
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