Obama: No shutdown talks under threat

The US Senate has rejected the latest budget proposed by the House of Representatives, increasing the likelihood of a shutdown of some essential government services.

It the shutdown happens, it would be the first time in 17 years and could see more than 700,000 staff sent home on unpaid leave, with no guarantee of back pay once the deadlock is over.

Speaking after an Oval Office meeting with Israeli Prime Minister Benjamin Netanyahu, President Barack Obama warned there could not be "meaningful negotiations" under the threat of default on the debt.