Business Update: Fiscal Cliff, Fed Policy, Hostess Bidders

4 years 11 months 4 weeks ago Saturday, December 15 2012 Dec 15, 2012 Saturday, December 15, 2012 8:27:00 PM CST December 15, 2012 in News
By: Katie Brennan
loading

Deadlock in negotiations on Capitol Hill over next year's budget has Wall Street worried about the potential impact of the so-called "fiscal cliff." In this week's Business Update, KOMU 8's Katie Brennan explains how the fiscal cliff threat is overshadowing positive economic news.

U.S. Markets closed down for the first time in a month as investors lose patience with politicians and the threat of the fiscal cliff creeps closer.

President Barack Obama and Republican House Speaker John Boehner met for a third time to discuss next years budget, but failed to come to an agreement. If they don't before January, more than $600 billion in tax increases and spending cuts will be a hard hit the already weak economy.

Frustration over the deadlock in Washington overshadowed an unprecedented move by the Fed to tie 0% interest rates to specific unemployment and inflation goals. Chairman Ben Bernake announced Thursday the Fed will extend its bond-purchasing program and keep official rates near zero for as long as unemployment remains above 6.5 percent. He noted the threat of the fiscal cliff is already hurting the economy.

"Even though we've not yet even reached the point of the fiscal cliff potentially kicking in, it's already affecting business investments and hiring decisions by creating uncertainty or creating pessimism," said Bernanke.

Investors certainly share that sentiment. The S&P 500 was down 0.3 percent for the week to 1,413. The Dow fell 0.2 percent to close at 13,135. The NASDAQ fell 15 points to 2,971.

There was some potentially positive news for Missourians last week.

Bloomberg News reported Walmart and Kroger are among dozens of companies bidding to take over assets of Hostess. You may recall hundreds of Hostess employees in Boonville and Saint Louis lost their jobs when the bankrupt company closed its bakeries across the county as it began liquidating its assets in November. A buyout by Walmart or Kroger could mean some of those workers getting their jobs back. Both companies are staying quiet and the bidding process is confidential so we'll have to wait and see how it plays out.

The weeks leading up to Christmas are typically quiet on Wall Street, but investors will keep their eyes on Capitol Hill.
If lawmakers come to an agreement, we'll keep you updated on how Wall Street reacts.

 

 

More News

Grid
List
PERRYVILLE (AP) — A dog who was the subject of a two-year court battle and a faked death is back... More >>
1 hour ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 10:40:00 AM CST December 15, 2017 in News
ST. LOUIS (AP) — The search for a new St. Louis police chief is down to six finalists — three... More >>
1 hour ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 10:34:09 AM CST December 15, 2017 in News
GIRARD, Kan. (AP) — Authorities are investigating the death of a man whose body was found under a rural southeast... More >>
2 hours ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 9:43:00 AM CST December 15, 2017 in News
OLATHE, Kan. (AP) — A homeless man who told police he dismembered his wife in a Missouri hotel room then... More >>
2 hours ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 9:40:17 AM CST December 15, 2017 in News
COLUMBIA - The trial date for a man charged in connection with a 2002 rape case has been set for... More >>
3 hours ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 8:33:00 AM CST December 15, 2017 in News
COLUMBIA - A Missouri basketball player and a former Mizzou student have teamed up to start a nonprofit aimed at... More >>
4 hours ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 8:15:00 AM CST December 15, 2017 in News
COLUMBIA - The Columbia Chamber of Commerce is advocating for a full functioning Hyperloop to come to Missouri. After... More >>
8 hours ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 3:32:00 AM CST December 15, 2017 in News
COLUMBIA – More than 2,300 students will receive degrees from The University of Missouri this weekend, which means heavy traffic... More >>
9 hours ago Friday, December 15 2017 Dec 15, 2017 Friday, December 15, 2017 2:20:00 AM CST December 15, 2017 in News
ST. LOUIS (AP) — Kevin Roy scored twice and John Gibson made 29 saves as the Anaheim Ducks defeated the... More >>
13 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 10:20:39 PM CST December 14, 2017 in Sports
COLUMBIA - Iron Tiger Tattoo parlor in downtown Columbia mops its floors nearly three times a day. It didn’t use... More >>
14 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 9:56:00 PM CST December 14, 2017 in Target 8
CAMDENTON - The Missouri Department of Natural Resources recommended an old manufacturer in Camdenton as a Superfund site. Money... More >>
15 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 8:30:00 PM CST December 14, 2017 in News
VERSAILLES - Prosecutors filed charges against three employees of the Morgan County Jail on Monday, including a nurse accused of... More >>
16 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 7:50:00 PM CST December 14, 2017 in News
FULTON - People who are preparing to travel for the holidays are automatically at risk for robberies, road issues, and... More >>
16 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 7:25:00 PM CST December 14, 2017 in News
JEFFERSON CITY (AP) — The search for Missouri's next top education official has started. The State Board of Education... More >>
18 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 6:13:24 PM CST December 14, 2017 in News
MOBERLY - Fire and law enforcement officers from three counties received radiological training Thursday at the Moberly Fire Department. ... More >>
18 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 6:09:00 PM CST December 14, 2017 in News
COLUMBIA - Here is the latest on a threat to Moberly Area Community College's Columbia campus: 8:11 a.m. Friday... More >>
19 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 5:00:00 PM CST December 14, 2017 in News
UPDATE: Prosecutors have charged Monquail Williams with assault and domestic assault following Thursday's stabbings. Authorities took Williams into custody... More >>
19 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 4:47:00 PM CST December 14, 2017 in News
COLUMBIA - The City of Columbia has new aid in fighting snowy roads this with the help of its new... More >>
20 hours ago Thursday, December 14 2017 Dec 14, 2017 Thursday, December 14, 2017 4:04:00 PM CST December 14, 2017 in News
Columbia, MO
Broken Clouds 43°
1pm 44°
2pm 45°
3pm 44°
4pm 44°

Select a station to view its upcoming schedule:

Coming Up Next

12:00p
KOMU 8 News @ Noon
12:30p
Inside Edition
1:00p
Days of Our Lives
12:00p
Jerry Springer
1:00p
Maury
2:00p
Maury

Tonight's Schedule

7:00p
Blindspot
8:00p
Dateline NBC
7:00p
The 86th Annual Hollywood Christmas Parade
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld