By Sarah Marsh BUENOS AIRES (Reuters) - Argentina looks set to default on its debt for the second time in 12 years next Thursday as negotiations with "holdout" investors seemingly go nowhere and neither side shows signs of blinking first, though a last minute deal can't be discounted. After a slew of legal setbacks for Argentina in U.S. courts, the country has just days to comply with a 2012 ruling by U.S. District Judge Thomas Griesa to pay $1.33 billion plus interest to the funds it calls "vultures." If the deadlock persists, Griesa will prevent Argentina from making a July 30 deadline for a coupon payment on exchanged bonds, triggering a new default just as the economy struggles with recession, dwindling reserves and soaring inflation. "A deal now seems unlikely." Unlike Argentina's 2001-2 debt crisis when it was broke and could not pay its civil servants, this time around the country is solvent but prevented by Griesa from servicing its bonds until the battle with the holdouts is resolved.
By Nidal al-Mughrabi and Maayan Lubell GAZA/JERUSALEM (Reuters) - Palestinians in the Gaza Strip poured into the streets on Saturday to recover their dead and stock up on food supplies after a 12-hour humanitarian truce agreed by Israel and Hamas took hold. Women in Beit Hanoun wailed as medics pulled three dead relatives from a home struck overnight by an Israeli air strike. Near Khan Younis, 18 members of a family died from tank shelling shortly before the truce began, the Gaza Health Ministry said. Gaza health officials said rescue workers have so far pulled out 40 bodies from under the rubble since the truce began.
PHILADELPHIA (AP) — Police are searching for two men who carjacked an SUV and plowed into a group of children and adults selling fruit to raise money for their church, killing three kids and critically injuring their mother and the carjacking victim. Another woman was hurt but is in stable condition.