Obama hails US budget deal

Barack Obama has hailed a deal to avoid a "fiscal cliff" of stark tax hikes and spending cuts. The US House of Representatives backed the bill by 257 votes to 167.

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'Significant differences' stand in way of fiscal cliff deal

US Senate Majority leader Harry Reid said Democrats and Republicans need to resolve significant differences to reach a deal to avert the US going over the "fiscal cliff" that will result in tax hikes and spending cuts.

His comments came as talks ended with no resolution. Reid said the negotiations will continue later today.

There are still significant differences between the two sides. There is still time left to reach an agreement and we intend to continue negotiations.

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