US stock indices slide as Warren Buffett ‘unconcerned about fiscal cliff’
City Index November 28, 2012 10:15 PM
<p>The Dow Jones has retreated following Warren Buffett’s comments on the chances of a fiscal cliff deal being brokered in time.</p>
The major US stock indices have lost ground in trading this afternoon (November 28th) following Warren Buffett's comments that he is not worried about the fiscal cliff – a financial blip set to affect the US economy in the new year.
Chief executive officer of Berkshire Hathaway and billionaire, Mr Buffett appeared on CNBC's Squawk Box and said that although he believes Congress will miss its December 31st deadline to come up with a deal to avoid the crisis, he is confident the issue will be resolved.
One of the key challenges facing president Barack Obama in his first couple of months following re-election is the agreement he needs to reach with Congress over averting the fiscal cliff – a package of tax rises and spending cuts due to occur simultaneously in 2013.
Democrats control the Senate and the presidency, while Republicans lead the House of Representatives and both opposing sides need to come together to broker a deal.
At 15:15 GMT, the Dow Jones Industrial Average was 0.6 per cent down to an index value of 12791.8 points.
Find out about the Dow Jones and spread betting strategies at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.