Defense Industry Worried About Defense Spending Cuts

Despite sequestration being ditched and no interest for cuts by the Washington establishment

The defense industry is worried last week's budget deal on taxes could damage its negotiating position for the next "fiscal cliff" deadline two months from now, when across-the-board spending cuts would take effect.

The deficit debate is shifting from taxes toward spending cuts and the debt limit, where there will be more of a focus on new cuts to the Pentagon.