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President Obama has told British politicians that, despite the rise of new global powers, the time for US and European leadership "is now".
As he began, Mr Obama joked that with an "especially active press corps", the relationship between the UK and US was forever being "over analysed".
But he he added: "There are few nations that stand firmer, speak louder and fight harder to defend democratic values around the world than the United States and the United Kingdom."
He said the two countries had "arrived at a pivotal moment once more" following global recession and years of conflict.
With the winding down of operations in Iraq, progress in Afghanistan and having dealt "al-Qaeda a huge blow by killing its leader Osama Bin Laden", President Obama said it was time to enter a "new chapter in our shared history" with new challenges.
But he rejected arguments that the rise of superpowers like China and India meant the end for American and European influence in the world. "Perhaps, the argument goes, these nations represent the future, and the time for our leadership has passed. That argument is wrong. The time for our leadership is now," he said.