I've never really found inspiration for story ideas in the news, but I'd say it certainly affects our lives in so many ways. I would say that certainly the stories of the day appear in the work - I just have never gone so far as to say, well, this particular event could influence a plot of an entire book.
Michael KorytaStephen King, by far, is the standard-bearer. I think anyone who writes suspense fiction and says that King isn't an influence is either lying or being foolish. I read his book 'On Writing' before I read pretty much any of his fiction.
Michael Koryta