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US budget deadlock: Obama sees 'narrowed differences'

Talks between US congressional leaders over spending cuts have ended without a deal, leaving only hours for negiotiators to agree on a compromise.

If a deal is not reached, the law providing funding for most of the US government will expire at midnight on Friday, forcing a shutdown.

But President Obama has said progress had been made during the talks, and he hoped to be able to announce a deal in the morning.

Adam Brookes reports from Washington.

  • 08 Apr 2011