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US Senate leaders upbeat on debt deal

15 October 2013 Last updated at 13:01 BST

US Senate leaders have expressed optimism after a flurry of negotiations on raising the federal debt ceiling to avert a potentially disastrous default.

They were also nearing a deal to end a partial government shutdown, now in its third week, congressional sources said.

However, the BBC's Laura Trevelyan said some conservative Republicans are claiming that "no deal is better than a bad deal".