Obama Breaks Ice with Ally in Revolt


U.S. President Barack Obama laughed off a bust up with his chief Congressional ally Nancy Pelosi over a trans-Pacific trade deal at a joint party fundraiser on Friday.

In a dual appearance on the House of Representatives Democratic leader's home turf in San Francisco, Obama lightheartedly touched on a revolt by lawmakers in his own party over trade.

"As I think some of you may have noticed, it's not like I agree with my Democratic caucus on everything," Obama said to knowing giggles from the crowd, gathered at a wealthy donor's home overlooking the Golden Gate Bridge.

"But on 98 percent of things they are moving in the right direction," he added, as guests shot glances between him and Pelosi.

The California lawmaker had led a revolt against a 12-country trade pact strongly supported by Obama, which resulted in a humiliating congressional defeat on a landmark issue.

Supporters have argued the pact is needed to counter China's growing economic clout in Asia.

The future of the pact remains uncertain, amid prolonged parliamentary wrangling, but may yet pass.

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