US parties hopeful of debt limit deal as deadline looms

US political rivals are cautiously optimistic about the chances of raising the $14.3tn (£8.7tn) debt limit by Tuesday and averting possible financial default.

Republican Senate leader Mitch McConnell said the sides were "very close" to a $3tn deal after talks with Vice-President Joe Biden.

America limits by law the total amount of debt its government can run up in order to pay its bills, and the Obama administration is under mounting financial pressure.

Mark Mardell reports.