Looming government shutdown sends vibrations abroad

The looming threat of a U.S. government shutdown isn’t just a domestic concern.

Marketplace’s European bureau chief Stephen Beard says a political stalemate could have a huge negative global impact, raising borrowing costs around the world.

“This standoff in Congress is ringing alarm bells,” he says.

Meanwhile, eyes are also on Italy. Beard says the Italian government is holding a confidence vote on Wednesday, and the stakes are high.

“If it loses that vote, the third biggest economy could slide back into political turmoil, and that could reignite the Eurozone debt crisis.”

Marketplace’s European bureau chief Stephen Beard joined host David Brancaccio from London to discuss.