Obama urges deal to stave off US default

WASHINGTON - President Barack Obama summoned leaders of both parties to the White House to hammer out a deal to stave off a US debt default with the potential to trigger a major, worldwide financial crisis.

Speaking on Tuesday, Obama called for a deal to raise the nation's borrowing limit that not only cuts spending, as opposition Republicans are demanding, but also raises revenues in the form of tax increases - something that they violently oppose.

"We need to come together over the next two weeks to reach a deal that reduces the deficit and upholds the full faith and credit of the United States government and the credit of the American people," Obama said at the White House.