Financial 411: Weekly Business Roundup
Friday, July 15, 2011
News Corporation's phone-hacking scandal continues to grow. Dow Jones CEO Les Hinton has announced he's resigning. He was chairman of News International, overseeing the British newspapers that are at the heart of the scandal.
Reporters from those papers are accused of hacking into people's voice mails to get information.
"News Corp. is an enormous force here in New York," said Greg David, director of the Business and Economics Reporting Program at the CUNY Graduate School of Journalism.
All week we've been hearing about the fight in Washington over raising the nation's debt limit, and on Friday, President Barack Obama repeated his desire to reach a deal that would also cut spending and raise revenues.
"We have a chance to stabilize America's finances for a decade, for 15 years or 20 years, if we're willing to seize the moment," he said.
If the president doesn't reach a deal with Republicans by August 2, the U.S. risks defaulting on its financial obligations and severely cutting back funding for programs like Social Security. We'll talk about the impact that could have on New York City.
And at last, the final installment of Harry Potter opened at midnight. And it's not just entertainment — it's big business.
David discusses these stories and this week's top business headlines.
Markets rose Friday after some companies, including Google, reported strong second quarter earnings. The Dow climbed 43 points, closing at 12,480. The S&P 500 was up seven points, to close at 1,316. And the Nasdaq rose 27 points, closing at 2,790.