Democrats and Republicans in the US have unveiled competing plans to cut the country’s spiralling debt as the deadline to default draws near.
The Democrats plan to cut $2.7 trillion from the budget over the next decade while the Republicans are looking to trim $1.2 trillion. Neither party proposes any new revenue.
The US will default on its $14.3 trillion debt on August 2 if a new limit isn’t agreed. The uncertainty has hit sharemarkets across the world, including Australia.
RIM slashes 2,000 jobs
Blackberry manufacturer Research in Motion has revealed that it will slash 2,000 jobs, representing 11% of its total workforce.
The job cuts follow an announcement in June that RIM had missed its lowered profit forecast for the year. The company’s share price has dropped by 50% during 2011.
Microsoft apologies for Winehouse tweet
Microsoft has apologised for a tweet sent by its UK operation in the wake of the death of singer Amy Winehouse.
The Twitter message read: “Remember Amy Winehouse by downloading the ground-breaking Back to Black over at Zune.”
Twitter uses lambasted the tweet as “utterly tasteless” and “cheap”, resulting in a swift Microsoft apology.
Overnight
The Dow Jones Industrial Average dipped 88.36 points to 12,592.80. The Australian dollar edged down to 108.13 US cents.
