Obama: US default 'worse' than shutdown

Failure to raise the US debt ceiling would cause the US to default on its bills and would be "dramatically worse" than the current shutdown, President Barack Obama has warned.

• Deal lifts markets but does little for US economy

  The temporary nature of the new deal means a cloud will remain over a sluggish US economy that was further slowed by the government's partial shutdown.

• Australian, 3 Tibetans die on Mount Everest

  An Australian tourist and three Tibetans have died in an avalanche on Mount Everest, state media report.

• Typhoon, mudslides kill 17 in Japan; 50 missing

  A typhoon caused deadly mudslides that buried people and destroyed homes on a Japanese island today.

• Deal reached to end US shutdown

  Democratic leader Harry Reid says Senate leaders have reached a bipartisan deal to avoid default and end the US government shutdown.

• Transcript: Jimmy Savile denied sex abuse claims

  British police have released a transcript of an interview with Jimmy Savile in which he denied allegations of sexual abuse.

• Fitch puts US credit rating on negative watch

  The Fitch credit rating agency has warned that it is reviewing the US government's AAA credit rating for a possible downgrade.

• UK police inundated with McCann-related calls

  British police say they've received 1000 calls following the broadcast of a reconstruction of the day Madeleine McCann went missing.

• Two arrested in bullying suicide case

  After a 12-year-old in Florida committed suicide last month, one of her tormenters continued to brag about the bullying, police say.

• Roo's trip to Melbourne Airport chemist

  A chemist at Melbourne Airport has had an unusual customer today, after a kangaroo hopped its way into the shop.

• Shutdown talks collapse as deadline looms

  With time growing desperately short, House Republican efforts to end the US government shutdown collapsed Tuesday night.

• Panda at Edinburgh Zoo no longer pregnant

  Disappointed officials at Edinburgh Zoo say giant panda Tian Tian, who was thought to be pregnant, apparently has suffered a miscarriage.

• White House rejects latest Republican proposal

  The White House has rejected a fiscal plan from Republicans in the House of Representatives to raise the debt ceiling.

• UK goes shopping in China for business

  Although China's economy is now growing at more modest 7 to 8 percent a year, it is still vitally important to Europe.

• Indians return home to cyclone damage

  Hundreds of thousands of people who fled a cyclone in India have returned home to scenes of devastation.

• UK police charge man with knife outside palace

  A man with a knife is facing charges after he tried to dart through a gate at Buckingham Palace.

• McCann suspect seen 'carrying child toward beach'

  British detectives investigating the disappearance of Madeleine McCann say a man featured in two e-fit images was seen carrying a child towards the beach on the night she disappeared.

• UK councils fight luxury basement extensions

  Homeowners in some of London's most affluent neighbourhoods are adding value to their properties by digging down, but now the local councils are fighting back.

• Elderly woman's house infested with bees

  A 98-year-old woman has had thousands of bees removed from her house in Florida.

• Hopes renewed in Madeleine McCann case

  Scotland Yard's investigation has "significantly changed the timeline" and accepted version of events of the night Madeleine McCann vanished.

• US Army developing real-life Iron Man suit

  If you've ever watched an Iron Man film you've probably thought to yourself, "I wonder if this is actually possible?"