World News: Obama secures deal to stop US government shutdown

President Barack Obama and congressional leaders reached a last-minute agreement just before a midnight deadline to slash about $38 billion in federal spending and avert the first federal government shutdown in 15 years.

Obama hailed the deal as "the biggest annual spending cut in history". John Boehner, the Republican speaker of the House of Representatives, said that over the next decade it would cut government spending by $500 billion, and won an ovation from his rank and file.

Amid the biggest clash yet between Democrats and the Republicans who control the House, Obama had warned that a shutdown would damage the economy's recovery by putting an estimated 800,000 government employees out of work.

The deal came together after six gruelling weeks. Obama, Boehner and Democratic Senate Majority Leader Harry Reid announced the agreement less than an hour before government funding was due to run out.

The shutdown would have closed national parks and other popular services, though the military would have stayed on duty and other essential operations would have continued.

Defiant Gbagbo blasts embassy

Artillery hit the residence of France's ambassador to Ivory Coast for the second time in two days, the French embassy said, a possible show of defiance from the Laurent Gbagbo, who has resisted international pressure to emerge from a bunker and cede power.

Sand storm crash horror

Rescue operations were under way last night after a sand storm in northern Germany caused a huge pile-up that killed eight people and injured at least 41 others.

In total some 110 people in 80 cars and three trucks were involved in the crash a few miles from the Baltic Sea.

Power back in tsunami zone

Electrical power was slowly being restored in tsunami-ravaged northern Japan today following a strong aftershock, though more than a quarter of a million homes remained in the dark.

A new wave of anxiety took hold as shoppers emptied store shelves and waited in long lines for petrol after the magnitude-7.1 aftershock on Thursday. Three people died in the aftershock, the worst since the day of the massive magnitude-9.0 quake.

Failed suicide bomber 'sorry'

A PAKISTANI boy who took part in a suicide mission that killed more than 40 people at a Sufi shrine sought forgiveness in a television interview from his hospital bed.

The boy, who police said is 14, was arrested after his belt of explosives failed to go off in Sunday's attack.

Troops beat protesters in Cairo square

Egypt: A heavy force of military police attacked hundreds of protesters in Cairo's Tahrir Square, beating and arresting them and shooting in the air. The soldiers reportedly stormed into a tent camp in the centre of the square, beating and dragging away protesters.

Guatemala: A judge dismissed a suit seeking to block divorce proceedings by the wife of President Alvaro Colom, clearing the way for her to run for the presidency.