Biden and McCarthy work to resolve US debt ceiling impasse while Biden apologizes for cancelled Australia trip.

President Joe Biden and top Republican Kevin McCarthy have spoken on the phone, in a change of tone in stalled talks on lifting the US debt ceiling. The two sides remain at odds over budget cuts demanded by the Republicans as a condition for raising the ceiling. Failure to do so by June could result in the US defaulting on its debt, causing chaos in financial markets and leading to further rises in interest rates. In exchange for support for raising the debt ceiling, Republicans are demanding budget cuts to the tune of $4.5tn, which includes scuppering several of Mr Biden's legislative priorities.