$1.4trn in US cuts agreed

 
Julian Harris
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STOCKS spiked briefly in New York last night after the White House briefed that Republicans and Democrats have agreed on $1.5 trillion (£930bn) in deficit cuts, with further progress to come.

Talks have spilled into this week from last weekend, with heated exchanges allegedly causing US President Barack Obama to storm out of one meeting.

Obama’s treasury secretary Tim Geithner last night put pressure on opposition Republicans to agree to a rise in the debt ceiling, by stating: “We are running out of time.”

A further $200bn in cuts could be agreed imminently, the White House said, yet spin doctors warned that there has been no “hallelujah moment” in the crunch talks.

The American government has until 2 August to raise its debt ceiling, else it will begin defaulting on its commitments.