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.
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