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Shutdown strain: US economy reels under layoffs and lost pay; food banks, small firms struggle to cope – The Times of India

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Shutdown strain: US economy reels under layoffs and lost pay; food banks, small firms struggle to cope – The Times of India


Washington’s economy is facing deepening distress as the longest-ever US government shutdown, mass layoffs of federal workers, and cuts to food assistance converge to hit households and small businesses across the capital region, AP reported.The Capital Area Food Bank, which supports more than 400 pantries and aid organisations across the District of Columbia, northern Virginia, and two Maryland counties, is preparing to provide 8 million more meals than planned this year — a nearly 20% increase.“This city has been hit especially hard because of the sequence of events that has occurred over the course of this year,” said Radha Muthiah, CEO and president of the food bank.The nation’s capital, home to roughly 150,000 federal employees, has been reeling from layoffs, the shutdown, and heightened law enforcement deployment. With the shutdown halting pay for hundreds of thousands of workers and freezing federal food aid, the economic strain has intensified.The District’s unemployment rate stood at 6% in September, one of the highest in the nation, compared with the US average of 4.3%. Economists warn that the regional impact of the shutdown will persist well after federal operations resume.Political reverberations are also being felt: Democrat Abigail Spanberger’s win in Virginia’s governor’s race was fuelled in part by her focus on the economic fallout of President Donald Trump’s policies on the region.Local businesses see sales fall, jobs vanishWashington’s restaurants, bars, and small retailers — heavily reliant on federal employees’ spending — have reported steep drops in sales. The Restaurant Association of Greater Washington said many eateries already operating on thin margins are now struggling to stay afloat as federal staff skip commutes and dining out.“Going without paychecks is causing cash flow issues for federal workers, and that’s spilling over into small businesses,” said Tracy Hadden Loh, a fellow at Brookings Metro, quoted AP. “A lot of businesses rely on higher spending in Q4 to stay profitable for the year.”At The Queen Vic, a British pub in northeast Washington, co-owner Ryan Gordon said weekend crowds have halved. “We still had seats for people, which means the bars around us who get our overflow got nothing,” he said, estimating business is down 50% since the shutdown began.Families under pressure as aid stallsThe financial strain is also pushing middle-income families into crisis. Thea Price, a former employee of the US Institute of Peace, lost her job in March, followed by her husband’s job loss as a government contractor.After relying on SNAP food assistance and savings, the couple’s payments were halted by the shutdown. With limited options left, Price is leaving Washington for her hometown near Seattle.“We can’t afford to stay in the area any longer and hope something might pan out,” she said. “We’re just in a much different place than when these things started.”At the Capital Area Food Bank, forklifts are running overtime to meet growing demand. “We’re focused on getting food to those who need it,” Muthiah said. “But people are borrowing against their futures to pay for basic necessities today.”





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Investor alert: Sebi flags digital gold risks; should you trust unregulated platforms? – The Times of India

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Investor alert: Sebi flags digital gold risks; should you trust unregulated platforms? – The Times of India


Markets regulator Sebi has warned investors against putting money into digital or e-gold products, cautioning that such instruments fall outside its regulatory framework and carry significant risks, PTI reported.The advisory follows Sebi’s observation that several online platforms have been promoting “digital gold” or “e-gold” as a convenient alternative to physical gold, without disclosing that these are unregulated products.“In this context, it is informed that such digital gold products are different from Sebi-regulated gold products as they are neither notified as securities nor regulated as commodity derivatives. They operate entirely outside the purview of Sebi,” the regulator said in a statement.Sebi warned that these offerings “may entail significant risks for investors and may expose investors to counterparty and operational risks.” It also clarified that investor protection mechanisms applicable to regulated securities do not extend to such unregulated schemes.The regulator advised that investors seeking exposure to gold should use Sebi-regulated instruments, including Gold Exchange Traded Funds (ETFs) offered by mutual funds, exchange-traded commodity derivatives, and Electronic Gold Receipts (EGRs) that are tradable on recognised stock exchanges.“All investments in Sebi-regulated gold products must be made through registered intermediaries and are governed by the regulatory framework prescribed by the regulator,” Sebi said.The advisory is aimed at protecting retail investors from unregulated entities that offer gold-backed digital investment options without sufficient safeguards, leaving investors vulnerable to fraud or default.





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Trade ties: India, Australia review CECA talks; reaffirm push for early deal to boost economic partnership – The Times of India

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Trade ties: India, Australia review CECA talks; reaffirm push for early deal to boost economic partnership – The Times of India


India and Australia have reaffirmed their commitment to conclude the second phase of their Comprehensive Economic Cooperation Agreement (CECA) at the earliest, as Commerce and Industry Minister Piyush Goyal held talks with his Australian counterpart Don Farrell to review the progress of negotiations, PTI reported.According to an official statement, both sides agreed to work “constructively towards the early conclusion of a balanced and mutually beneficial CECA.”The meeting reviewed the progress made under ongoing negotiations and discussed ways to further strengthen bilateral trade and investment linkages. The ministers also explored avenues to expand cooperation across goods, services, and emerging sectors.The first phase of the trade pact — the Economic Cooperation and Trade Agreement (ECTA) — came into effect in December 2022, marking a key milestone in the two countries’ economic engagement.India’s bilateral merchandise trade with Australia stood at $24.1 billion in 2024–25, with exports growing 14% in 2023–24 and a further 8% in 2024–25, the statement said.Both sides expressed confidence that the early conclusion of CECA would unlock new opportunities for businesses and contribute to deeper strategic and economic ties between the two Indo-Pacific partners.





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Video: How the Government Shutdown Is Affecting Air Travel

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Video: How the Government Shutdown Is Affecting Air Travel


new video loaded: How the Government Shutdown Is Affecting Air Travel

Niraj Chokshi, our reporter covering transportation, describes where and how flights are being cut in the government shutdown.

By Niraj Chokshi, Karen Hanley, Leila Medina and James Surdam

November 8, 2025



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