He has built an unlikely political career on the bold premise that opponents of tax-cutting Republicanism are a bunch of limp-wristed "girlie men" and Arnold Schwarzenegger is nothing if not consistent in his line of attack.

The Governor of California has written yet another chapter in his colourful personal history by sending his leading Democratic rival a metal sculpture of a pair of bull's testicles.

Sources close to both men told the Los Angeles Times that the gift was a response to a similar gag by Mr Steinberg, who recently sent a package of mushrooms to the Governor's office, after Mr Schwarzenegger had branded Democratic proposals to raise taxes "hallucinatory".

Yet the gift was not received well. Mr Steinberg returned the sculpture to its sender with a stern note about the need to protect society's most vulnerable from cuts in services.

Kevin Rudd, the Australian Prime Minister, has rejected calls to resign amid accusations that he misled parliament over his friendship with a car dealer, in what has become the biggest political crisis of his 19-month premiership.

The allegations centre around claims that the Prime Minister and the Treasurer, Wayne Swan, misled parliament when they denied that a Queensland car dealer, John Grant, received special attention over his application for a government loan to cope with the global credit crunch.