Business Update: Election Results, Delta Departure, Fiscal Cliff Talks
In this Business Update, KOMU 8's Katie Brennan takes a look at what Senator McCaskill and Governor Nixon's election day victories mean for Missouri's economy.
The election sent markets on a roller coaster ride last week. The major indexes were up going into the election, but took a dive Wednesday and Thursday with the reelection of President Barack Obama and on fears of the looming fiscal cliff. Indexes rose a bit Friday, but not enough to make up for the major sell off, leading to the worst week for markets since June.
For the week, the Dow slid 297 points, dipping 2.1 percent. The NASDAQ fell 2.6 percent and the S&P 500 lost 38 points closing down 2.4 percent.
Here is a look at how local election results could impact missouri's economy in the next four years.
Governor Jay Nixon defeated Republican challenger, businessman Dave Spence, becoming the first Missouri governor to win reelection in 16 years.
Nixon ran largely on his economic record- citing balanced budgets, falling unemployment numbers and Missouri's AAA credit rating. According to his record, Missouri residents can expect to see minimal tax increases from Nixon in the next four years, as well as further tax cuts for businesses and few spending cuts. Nixon has said the state cannot count on spending cuts alone to balance the budget.
Democrat Senator Claire McCaskill won her race against Representative Todd Akin. McCaskill's campaign focused on her stance against wasteful spending and government earmarks. Based on her record, McCaskill is expected to vote for continued quantitative easing. The senator voted for the economic stimulus act in 2008 under Bush, as well as in 2009 under Obama. McCaskill is in favor of extending the Bush-era tax cuts for families earning up to $250,000 annually, but looks to raise taxes on those who make more than that.
Staying local, Columbia Mayor Bob McDavid broke the news Tuesday that Delta will depart Columbia Regional Airport for good come February of next year. The decision comes after a $3 million deal from the city brought American Airlines to the market.The city offered Delta a similar deal, but Delta declined.
"I personally believe the Delta decision to discontinue service to Columbia Regional Airport validates our initiative to seek more air service providers and more destinations," said Mayor McDavid at the city council meeting Tuesday evening. He said he is disappointed Delta did not accept the offer, but was not surprised.
Thanks to Veteran's Day, the bonds market and banks have Monday off. The stock market will be open, but it looks like it will be a very quiet holiday session.
President Obama said he'll take on the fiscal cliff this week. He invited Congressional Republican leaders to come to the White House and discuss ways of avoiding the cliff. More on that in next week's KOMU 8 Business Update.