All of the eurozone for the crisis occupied summer talks (AP)

By GABRIELE STEINHAUSER, AP Business writer Gabriele Steinhauser, Ap Business Writer - Sat Jul 9, 6: 51 am and

Brussels - hope for the euro area could enjoy a lull in the summer in its crisis disappeared as quickly as it appeared.

Last week, it seems that all sides would get a time out. The Greece had avoided a default on its huge debts. Banks agreed to roll over their Greek bonds holdings, and Finance Ministers reported that a second rescue plan could be agreed - but not before the fall.

But while few observers think that the Europe of the crippling debt crisis has been resolved, the mood is broken after the Standard & Poor rating agency warned plan to contribute to a new rescue package Greek banks would likely cause a default value.

Rival agency Moody, then trac market translated in countries outside the Greece when he cut grade of credit of the Portugal to the junk, saying to a system of contributions Bank would probably push to take a second rescue plan.

And with the Greece due to a further review of its finance in August, was traditionally quiet of the European Union seems period set for a repeat of the drama of June.

This month, inspectors from the international debt of Greece spend weeks in Athens trying to save a rescue failing while the eurozone States fought on the role of the Greeks held days of violent demonstrations and private creditors.

In what was to be their last meeting before the summer, the Finance Ministers of the euro Monday the challenge of rebuilding consensus erosion on the way to rescue Greece again.

"It will be a Eurogroup difficult, because the positions are hardening," an official EU said of the meeting on condition of anonymity because of the sensitivity of the talks Bank.

After the rating agency Standard & Poor said that even the French model of easy market for a reversal of binding would probably be considered as a "selective default" by the Greece, Germany grows back to its original plan: a link swap, rather than buy new bonds, banks and other investors private exchange their bonds for those with longer deadlines.

"If the French model - depending on how it has the form - is this problem (to trigger a default rating) too, then we can return to the model that we proposed,"spokesman finance German Martin Kotthaus, said Friday in Berlin. ".

Bond swap is generally considered a more radical than a rollover option, because it would be easier to verify how many investors participate effectively and so leave more room for the information.

"We have to walk a narrow path between voluntary contributions and at the same time an important," said Kotthaus.

The situation in Greece and in the monetary union of the other difficulties members - already bailed out Ireland and Portugal as well as the Spain and Italy - is also set to overshadow the other main topic at the meeting next week: how to deal with the banks fail stress tests.

Bank stress test results of the European Union are due next Friday and are considered an important indicator of the credibility of the region, after the exercise of the concealed year huge problems to Irish banks.

New EU banking regulator said that tests of this year are much stricter and insists on the fact that States have the necessary support in place to deal with the results.

"Until the stress tests are published, the States concerned have be able to say"this is how we will react,"said an official of the euro area.". The official who is to come with models for restructuring ordered in some cases, and to stimulate the Security Fund added. He was speaking on the condition of anonymity because EU Finance Ministers, who will be joining their colleagues in the euro Tuesday were still finalising decisions on performer.

However, fears about the potential costs for States to take care of not not lenders was already inflexible shares of the Bank Friday, especially in Italy responsible for debt, which the banks resisted until the crisis much better than their counterparts in other European countries.

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Geir Moulson Berlin contributed to this story.

Clinton urges strong action from Europe on the crisis of debt (AFP)

MADRID (AFP) - Secretary of State Hillary Clinton Saturday we called EU leaders to a powerful response to the crisis economic ripple throughout Europe.

During a visit to Madrid, she has also welcomed reforms by the Spanish Prime Minister José Luis Rodriguez Zapatero to revive the economy and rein in debt aims to allay the fears of market which Spain will follow in the footsteps of the Greece, the Ireland and Portugal for a financial bailout plan.

"It is our hope that European leaders continue to ensure that the European face of the crisis response is strong, flexible and effective", Clinton said at a press conference jointly with Jiminez of Trinidad for the Spanish Minister for Foreign Affairs.

"Under the direction of Zapatero the Spanish Government has taken important measures to strengthen its finances, restore the banking sector and to improve its competitiveness." We understand how difficult these steps are.

"And we know that Spain still faces major challenges as it works to consolidate its finances, to reduce unemployment and to overcome the legacy of the global economic crisis," Clinton added.

Zapatero government has raised taxes and expenses with stroke and to lower the public deficit and reforming the labour law to make it easier to lay off to encourage hiring and bring down a rate of unemployment of more than 21%, the highest in the developed world.

The reforms have fueled protests and hurt the popularity of the Government but Clinton said that she was confident that Madrid "will continue the reform process".

"I want to say publicly how much we understand that it takes time and patience of these changes and to see through", she added.

His comments echoed those of Secretary of the Treasury American Timothy Geithner, who earlier this month warned that ambitious tax reform plans put in place in several European nations will take years, not months, to bear fruit.

Week last Federal Reserve Chief Ben Bernanke warned that failure to solve the European sovereign debt crisis could threaten the stability of the global financial system if a solution is found.

"We mostly just follows closely the situation and ensuring best as we can that our own institutions are well positioned to sovereign debt in the so-called country of the devices," he said, referring to smaller economies, sick of the euro, as the Greece, the Ireland and Portugal.

"Messy by default in one of these countries would probably be roil financial markets around the world." It could have a significant impact on credit spreads, the price of the shares and so on. "And so in this regard, I think that the effects of the United States would be quite significant", he added.

High use of WINS IMF Lagarde, press the Greece on the crisis (Reuters)

WASHINGTON (Reuters) - French Minister of finance Christine Lagarde Tuesday clinched the top IMF job, keeping the lender in the hands of a European international at a time of growing concern about a possible Greek debt default value.

LaGarde, who starts his term of five years as Director-General on 5 July, will find itself immediately plunged into efforts by the IMF and the European Union at the head of a Greek default which could trigger an international crisis.

Minutes after his appointment, pressed Lagarde of Greece to move quickly push through unpopular austerity measures that the IMF and EU say are a prerequisite for some help.

"If I have a message this evening on the Greece, it is to appeal to the Greek political opposition in support of the party which is currently in power, in a spirit of national unity," she told TF1 television.

LaGarde, 55, the first woman at the head of the IMF, the successor to Dominique Strauss-Kahn, who resigned from the IMF in May to defend himself against charges of sexual assault against a New York hotel maid. He denies the charges.

His skills as a difficult bargaining with a reputation for bargains to seal under pressure will be weight that it moves to defend the economic interests of the France to the supervision of an international institution which must be considered as a neutral player in the world.

Succession race was one of most hotly contested in the history of the emerging MFIS of nations market expressed dissatisfaction with the 64-year tradition of having a European head of the IMF and an American lead sister institution, the World Bank.

In a Financial Times blog, Mohamed El-Erian, Chief Executive Officer of Pimco, the largest investor of binding of the world, said that Lagarde would need to show the efforts of the IMF to help distressed European countries were not politically motivated.

He said that she would need to prepare for the possibility that the IMF could face losses of rescue plan big loans made in recent years, including the 30 billion euros for the Greece.

LaGarde must also demonstrate a commitment to meritocracy by eliminating some appointments based on nationality, El-Erian added, quoting the position of n ° 2 of the Fund which traditionally goes to an American.

Washington is considering already appoint the White House Advisor David Lipton to succeed John Lipsky IMF second in command at the end of August, according to sources close to discussions of.

FINDING CONSENSUS

Selection of Lagarde to the Central Bank Governor Agustin Carstens of the Mexico was assured after the United States clearly support and emerging markets China, Brazil, the India and the Russia did likewise.

French President Nicolas Sarkozy called the new appointment of Lagarde "a victory for the France".

Carstens, said that he hoped that Lagarde would continue "significant progress in strengthening the governance of the institution, to ensure legitimacy, cohesion and ultimately, its effectiveness."

Developing countries, resentment in a process which favored a European from the outset, said they would hold Lagarde to his promise to give them more voting power in the Fund.

Emerging markets have long called for greater say in the IMF to take account of their weight in the global economy. They have threatened to leave the fold of the IMF unless that imbalances of power electoral fund are corrected.

Strauss-Kahn pushed through changes in the voice that benefited mainly large emerging economies such as China, the India and the Brazil, but not as much as they wanted.

"RIGGED SYSTEM."

Finance Minister Guido Mantega to the Brazil said Brazil sustained Lagarde because it promised to continue "raise the profile of emerging markets" in the IMF. "We hope that the commitment is met," said Mantega.

Arvind Subramanian, senior fellow at the Peterson Institute in Washington, said emerging economies had missed a golden opportunity to force change at the head of the IMF by failing to rally around Carstens, or putting in place their own candidate of consensus.

"It is a fake system must change, but... the only reason that the result is that (developing countries) wanted to because the emerging-market countries do not seize the opportunity,"Subramanian said."".

The global development group Oxfam said appointment of Lagarde is "ridiculous" and had damaged the credibility of the IMF.

"There were noises concerning the opening, but the decision was made before that the candidates were interviewed, said Sarah Wynn-Williams, head of Oxfam in relations with the IMF and the World Bank."

The United States, worried by the possibility of contagion from the Greek crisis, warned that the appointment of the next IMF Chief should not be delayed.

The Board of IMF progressed despite persistent concerns about a legal matter unresolved in France research on the role of Lagarde in a payment of arbitration 2008 to a French businessman.

Lagarde said she was "completely indifferent" by the case. A top French court postponed a decision on the matter until July 8.

The IMF may decide not to offer a contract to Lagarde to what the Court makes a final decision, said a Council source.

(Reporting by Glenn Somerville on Washington, Luciana Lopez in Brasilia and Alexandria Sage and Catherine Bremer additional Paris)

(Editing by Paul Simao, Jan Paschal and Andrew Hay)

LaGarde WINS IMF post, press the Greece on the crisis

Finance Minister Christine Lagarde the France reacts after the announcement that it has been selected as the new head of IMF, in the studios of TV TF1 in Boulogne-Billancourt, near Paris, June 28, 2011.

Credit: Reuters/TF1By Lesley Wroughton

WASHINGTON. Tue, June 28, 2011 6 pm EDT

WASHINGTON (AFP) - the Minister of French finance Christine Lagarde Tuesday captured the top job of the IMF, keeping the international lender between the hands of a European at a time of growing concern to a default value of Greek debt as possible.

LaGarde, who starts his term of five years as Director-General on 5 July, will find itself immediately plunged into efforts by the IMF and the European Union at the head of a Greek default which could trigger an international crisis.

Minutes after his appointment, pressed Lagarde of Greece to move quickly push through unpopular austerity measures that the IMF and EU say are a prerequisite for some help.

"If I have a message this evening on the Greece, it is to appeal to the Greek political opposition in support of the party which is currently in power, in a spirit of national unity," she told TF1 television.

LaGarde, 55, the first woman at the head of the IMF, the successor to Dominique Strauss-Kahn, who resigned from the IMF in May to defend himself against charges of sexual assault against a New York hotel maid. He denies the charges.

His skills as a difficult bargaining with a reputation for bargains to seal under pressure will be weight that it moves to defend the economic interests of the France to the supervision of an international institution which must be considered as a neutral player in the world.

Succession race was one of most hotly contested in the history of the emerging MFIS of nations market expressed dissatisfaction with the 64-year tradition of having a European head of the IMF and an American lead sister institution, the World Bank.

In a Financial Times blog, Mohamed El-Erian, Chief Executive Officer of Pimco, the largest investor of binding of the world, said that Lagarde would need to show the efforts of the IMF to help distressed European countries were not politically motivated.

He said that she would need to prepare for the possibility that the IMF could face losses of rescue plan big loans made in recent years, including the 30 billion euros for the Greece.

LaGarde must also demonstrate a commitment to meritocracy by eliminating some appointments based on nationality, El-Erian added, quoting the position of n ° 2 of the Fund which traditionally goes to an American.

Washington is considering already appoint the White House Advisor David Lipton to succeed John Lipsky IMF second in command at the end of August, according to sources close to discussions of.

FINDING CONSENSUS

Selection of Lagarde to the Central Bank Governor Agustin Carstens of the Mexico was assured after the United States clearly support and emerging markets China, Brazil, the India and the Russia did likewise.

French President Nicolas Sarkozy called the new appointment of Lagarde "a victory for the France".

Carstens, said that he hoped that Lagarde would continue "significant progress in strengthening the governance of the institution, to ensure legitimacy, cohesion and ultimately, its effectiveness."

Developing countries, resentment in a process which favored a European from the outset, said they would hold Lagarde to his promise to give them more voting power in the Fund.

Emerging markets have long called for greater say in the IMF to take account of their weight in the global economy. They have threatened to leave the fold of the IMF unless that imbalances of power electoral fund are corrected.

Strauss-Kahn pushed through changes in the voice that benefited mainly large emerging economies such as China, the India and the Brazil, but not as much as they wanted.

"RIGGED SYSTEM."

Finance Minister Guido Mantega to the Brazil said Brazil sustained Lagarde because it promised to continue "raise the profile of emerging markets" in the IMF. "We hope that the commitment is met," said Mantega.

Arvind Subramanian, senior fellow at the Peterson Institute in Washington, said emerging economies had missed a golden opportunity to force change at the head of the IMF by failing to rally around Carstens, or putting in place their own candidate of consensus.

"It is a fake system must change, but... the only reason that the result is that (developing countries) wanted to because the emerging-market countries do not seize the opportunity,"Subramanian said."".

The global development group Oxfam said appointment of Lagarde is "ridiculous" and had damaged the credibility of the IMF.

"There were noises concerning the opening, but the decision was made before that the candidates were interviewed, said Sarah Wynn-Williams, head of Oxfam in relations with the IMF and the World Bank."

The United States, worried by the possibility of contagion from the Greek crisis, warned that the appointment of the next IMF Chief should not be delayed.

The Board of IMF progressed despite persistent concerns about a legal matter unresolved in France research on the role of Lagarde in a payment of arbitration 2008 to a French businessman.

Lagarde said she was "completely indifferent" by the case. A top French court postponed a decision on the matter until July 8.

The IMF may decide not to offer a contract to Lagarde to what the Court makes a final decision, said a Council source.

(Reporting by Glenn Somerville on Washington, Luciana Lopez in Brasilia and Alexandria Sage and Catherine Bremer additional Paris)

(Editing by Paul Simao, Jan Paschal and Andrew Hay)

Fall in US Stocks on concern debt crisis in the European Nations intensify - Bloomberg

A trader works on the floor of the New York Stock Exchange on June 23, 2011 in New York. Photographer: Spencer Platt/Getty Images

US stocks fell this week, giving the Standard & Poor 500 Index its seventh loss in eight weeks, in the concern that the European debt crisis is not contained.

JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) fell at least 1.5% after European Central Bank President Jean-Claude Trichet said on June 22, that the crisis threatens to infect banks. Micron Technology Inc. (MU) sank 7.9%, mostly in the & S P 500 after the Declaration of income and profits that missed analysts forecasts. Red Hat Inc. (RHT), the largest vendor of operating system Linux, jumped 9.3% after beating estimates with its earnings forecasts.

The & S P 500 fell 0.2% to 1,268.45 and dropped three consecutive days at the end of the week. The measure fell by 7 percent since April 29. The Dow Jones Industrial Average fell 69.78 or 0.6%, to 11,934.58 points this week.

"Everyone is looking to digest the European debt situation is going to shake,", said Jason Pride, Director of Glenmede Philadelphia investment strategy, which manages approximately $ 20 billion. "They play a costly game of chicken with the Greece because the inconvenience of passing is not a bailout for the country plan is indeed a collapse of the financial system.".

Equities is fell after Investors Service of Moody said, on 23 June, that it may downgrade 13 Italian lenders because they would be vulnerable to a decline in the Government's credit rating. Bonds rose in Spain and Italy. He said signals of risk for financial stability in the euro area are blinking "red", as the debt crisis in countries such as the Greece threat of infecting banks around the region.

"On a personal basis I would say yes,"this is red"," Trichet said June 22 in Frankfurt, after a meeting of the European systemic risk Board, referring to planned flight "" giving group to monitor risks. "The message of the Council is that" the relationship between banks and the problems of the debt "is the most serious threat to financial stability in the European Union."

The & S P 500 has fallen since the escalation to a maximum of almost three years, on 29 April, in the concern of the sovereign debt crisis and the economic data lower than estimates of Europe. The tonnage of reference for us stocks increased by 0.9% this year.

The Chicago Board Options Exchange volatility Index, which measures the cost of the use of options such as an insurance against declines in the & S P 500 fell 3.4% 21.10, reduce three consecutive weeks of gains.

US stocks shares rose the most since April 21 June in investor optimism that a vote of confidence to the Greek Prime Minister George Papandreou is to determine how long the nation can win international support to consolidate its finances. Yesterday, the leaders of the European Union is committed to support the Greece if the nation approves austerity measures.

Data from the United States.

Officials of the Federal Reserve lowered their forecasts on 22 June for growth and employment in 2011 and 2012, the projection of the economy will grow 2.7 to 2.9% this year, down from 3.1% to 3.3% in April projection. Central bankers said U.S. inflation, excluding food and energy will be a little higher than previously forecast. They said that the pace of recovery is likely to "pick up over the next few quarters."

Purchases of new U.S. homes fell in may for the first time in three months, showing that the industry is struggling to grow. Sales fell by 2.1% to an annual 319,000 pace last month, the Commerce Department figures showed 23 June.

Index Bank KBW, which tracks 24 companies, declined 2.4 percent this week. JPMorgan, the second largest US Bank by assets, fell by 3.2% to $39.49. Bank of America, the largest U.S. lender by assets, fell by 1.5% to $10.52.

Micron fell 7.9% to $7,21 as the major manufacturer of chips U.S. memory the computer reported revenues and profits that drops below the forecasts of analysts.

The price of dynamic random access memory, or DRAM, to personal computers increased diablo² as supplies and demand for portable consumer and desktop PC manufacturers remained sluggish, the company said. Orders are also slow for chips used in inexpensive mobile phones, pushing towards the low price, said Micron, Chief Executive Steve Appleton.

Walgreen Co. (WAG) collapsed 7.3% to $41.39, helping to send the S & P 500 Staples index consumption decrease of 1.7%, the most among the 10 groups. The largest pharmacy chain U.S. said that he did not renew a contract of more than $ 5 billion in annual sales with Manager of pharmaceutical benefits Express Inc. of Scripts, after negotiations collapsed. The agreement will end on January 1.

Procter & Gamble Co. (PG), most big company consumer in the world, fell by 3.3% to $62.59 for the second largest decline in the Dow average.

Boeing Co. (BA) decreased the most in the Dow, sliding from 3.9% to $71.26. American Airlines AMR s Corp is in talks with Airbus SAS on the purchase of at least 100 aircraft of narrow fuselage, a possible break his confidence for a long time on Boeing jets, said two people familiar with the case.

Energy companies in the S & P 500 dropped 1.4 per cent in group a, the second largest weekly loss, as the crude oil for August delivery fell to $91.16 a barrel in New York after the International Energy Agency, June 23, has announced the release of 60 million barrels. Exxon Mobil Corp. (XOM), company of greater energy in the world by market value, withdrew to 2.8 per cent to $76.78. Chevron Corp. (CLC), the second largest oil company U.S. decreased by 1.3% to $97.90.

Red Hat has risen from 9.3% to $45.03, most in the S & P 500, after it said profits for the year 2012 will be as much as $1 a share, beating the average analyst estimate of 96 cents per share from a survey of Bloomberg.

CarMax Inc. (KMX), the largest seller of cars U.S., reached 9.2% $31.93 after first-quarter sales of used cars rose by 7.5% to 108,511 the same period a year earlier. Income net increased by 25% to 55 cents per share, compared to the forecast of average profit of 47 cents per share in a survey of 13 analysts Bloomberg.

The S & P 500 materials Index (S5MATR), which tracks 30 companies, have increased by 2.4%, the most among the 10 groups. Chemical manufacturer DuPont Co. jumped 4.8% to $51.96, Caterpillar Inc. (CAT), more than material construction manufacturer, increased from 4.2% to $100.01 and Alcoa Inc. (AA), the U.S. aluminium producer, added 3.5 per cent to $15.23.

To contact the reporters on this story: Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net. Cecile Vannucci in New York at the cvannucci1@bloomberg.net

To contact the responsible editor of the story: Nick Baker at the nbaker7@bloomberg.net

Foreclosure hits home on old Philly crisis block (AP)

PHILADELPHIA - mold includes drywall, Windows and floors; furniture pure Dusty inside. As one of the thousands of abandoned houses dotting the suburbs of cities ghosts in the wake of the crisis of foreclosure - except this brick, townhouse is in the heart of the old from Philadelphia, one of the first residential streets of America.

The fate of 109 the Elfreth Alley, a paved Street built in 1702 and visited by 250 000 tourists annually, shows that houses with historical pedigrees are not the problem of foreclosure, preservatives said.

"We are subjected to the same problems as the streets everywhere in America." Here, we have a House to foreclosure, said that p. Justin Detwiler, preservation architect and vice President of Alley Elfreth, formed by residents in 1934 to buy and renovate houses.

In 2008, 200 years House, three floors with grey-blue shutters has been abandoned by its owners, who built rear addition, in accordance with the preservation Alliance for the greater Philadelphia region 10 most endangered properties list.

"The House and its unfinished addition were sitting vacant since suffering from severe water infiltration mold infestation and vandalism," States from the list.

Philadelphia public documents identify Scott and Caren Cronin as owners of the House, which Detwiler said is in limbo between two banks claims on it. An address for them, in the western suburbs Grove is in foreclosure, according to the Sheriff of the County of Chester sales records.

A call to a phone of West Grove listing for the couple had not returned, or an e-mail sent to Caren Cronin from his blog. Photos two rooms have since been removed from blog homepage.

"The House will not be demolished." I do not think anyone wanted to leave that occur, "said Detwiler. "But there are complex issues of foreclosure and renovation gone bad that it unravel."

Alley of the Elfreth, listed on the National Register of historic places, is often called the oldest street inhabited permanently in America, while the streets of Santa Fe, N.M. and St. Augustine, Florida, make similar claims.

He built for trucks travelling up to the shore near the Delaware River and the name of Jeremiah Elfreth, an 18th century blacksmith and a land speculator who built and leased to several houses there. Its 32 survivors townhouses were built between 1724 and 1836.

Unlike the Society Hill near mansions built for the upper crust of the city, the humble Elfreth's Alley houses were populated by workers, Shipwrights, and artisans. Waves of immigration from the 18th to the 20th century are reflected in the block change ethnic mixture.

The industrial revolution surrounded on the block with smoke-spewing factories, and poverty and decay took many of the houses. The Elfreth Association alley began working to save the block threats of demolition.

More than 70 years after he was derided as a slum, the street is today with young families, college-age tenants and visitors carrying the camera.

While it does not appear that a historic private home in the United States found in even a serious link, several historic churches nationwide are languishing in foreclosure. Preservation Alliance President Gallery John said that Elfreth 109 alley has been placed on the list of group endangered as a means to shed light on a wider issue.

"Elfreth's Alley and houses are important, but what we thought was most important was to show that foreclosure issues may affect historic properties even in such historically important places," he said.

Neighborhood association has found a bank with a claim against the House, but has not yet recovered records on the second, Detwiler said. His group is seeking funding and volunteer work, he said, but such ideas will remain speculative until the House remains in an uncertain state of receivership.

The city is poised to adopt persons requiring legislation or banks with the acquisition of vacant houses barred to bring them up to code within 15 days.

In the proposal adopted by the municipal Council and supported by the Mayor, owners would be required to register with the city, or appoint a local Manager if they are not based in Philadelphia and displays the names and contact information on the building for residents call with concerns.

Chicago and Milwaukee said legislators have adopted similar measures in order to prevent rapid deterioration frequently following foreclosure - and make it easier to trace the banks holding distressed properties.

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Online:

The Elfreth alley Association: http://www.elfrethsalley.org