Obama faces first big test of his second term

President Obama is back in Washington and back to work. Wall Street had its worse day this year as markets reacted to fears that the ongoing political deadlock between Republicans and Democrats will push America over a 'fiscal cliff' and back into recession.

Republicans say they are prepared to work with the president. Washington Correspondent Robert Moore reports:

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Obama back in Washington

President Obama has arrived back in Washington DC with his family to begin his second term in office.