The parent of Days Inn, Ramada and Super 8 hotel brands Said Q2 earnings rose 25% to 64 cents a share, beating forecasts by 8 cents. Revenue climbed 13% to $ 1.09 bil, topping views aussi. Wyndham Worldwide (NYSE: WYN - News) guided full-year profit View High. FBR Capital Markets Said the profit forecast upgrade Reflect Modest recovery in consumer midtier Spending payday loans. Wyndham shares rose 1.6%.

Wyndham tops, Raises Outlook

The No. 3 U.S. tobacco company&&9;s Q2 earnings rose 18% to $ 2.05 a share, beating by 3 cents Estimates. Sales Grew 11% to $ 1.69 bil, topping views Easily as it sold 10% more Newport and Maverick cigarettes at high price. Lorillard (NYSE: SO - News), spun off from Loews Which Corp. (NYSE: L - News) in &&9;08, Q3 volumes cautioned That Will Be Hurt by a large wholesaler stockpiling Earlier year flat irons for hair. That Could Hurt Profitability and pricing as well. Lorillard shares Fell 4.5%.

Lorillard beats, cautious view

WASHINGTON - Treasury Secretary Timothy Geithner (GYT&&9;-nur) says the economy May Have Slowed DURING the second quarter of the year, the goal He&&9;s looking for it to pick up.

The Economy Grew at a rate of 9.1 percent from January to March. The April-to-June figures for the gross domestic product arent in yet, drank Have Some economists forecast lower Them To Be.

Geithner says growth for the first half of 2011 Will Probably come in at 2 percent, Perhaps Even Slightly lower hair dryer.

Geithner REPRIMANDS slow growth is rising Oil Prices, bad weather, the nuclear crisis in Japan, and tight budgets for local and State Governments. He says the specter of aussi a government Default is Taking a toll.

Geithner spoke on "Fox News Sunday" and CNN&&9;s "State of the Union."

Treasury secretary says economy May Have Slowed

WASHINGTON (Reuters) - Jobless rates Jumped in June from the month in Before More than half of the U.S. states have reversed the Public Employment sinking trend of steadily Improving Labor Conditions in the first half of 2011, Labor Department data released on Friday Showed.

Altogether, 28 states and the District of Columbia registered Unemployment Rate Increase from the month Before and eight states HAD rate decreases. From a year Before, the rats Dropped in 39 states and rose in eight states and the District of Columbia, Labor Department data Showed.

In May, only 13 states and the District registered over the month and Increase oven only states HAD Increase over the year.

The Unemployment rate in Nevada rose to 4.12 percent from 1.12 percent in May, in the first rise this year.Continued to the state register the Highest jobless rate in the country.

"Recent Weakness evident at the national level May Be Trickling Into the Silver State," Said Bill Anderson, chief economist with the Nevada Department of Employment, Training and Rehabilitation, in a statement.

Nevada&&9;s jobless rate Typically Rises in June, the month&&9;s goal WAS Increase Twice as large as the average of the last 10 years, According To the department. Retail shed 800 jobs in the state, education 400 jobs, 400 jobs and healthcare.

After Nevada, California Had the Highest Unemployment Rate of 11.8 percent. North Dakota again posted the Lowest rate, 3.2 percent, Followed by Nebraska, 4.1 percent.

Shrinking tax revenue in Nevada HAS Caused the State and Local Government to cut 3.600 jobs over the year, the department Said, Almost all at the local level.

Many states Seem To Be FOLLOWING Nevada&&9;s lead.State and Local Government Thousands of jobs cut in June, pushing Their payrolls down to the Lowest in Five Years, According To a Labor Department report released this month Earlier.

North Carolina, Where the Unemployment Rate Jumped to 9 best humidifier.9 percent in June from 7.9 percent in May, government lost 10.200 jobs, According To the state&&9;s Employment Department. Three-fourths of the cuts at the state level Were, and Mostly in Higher Education.

Oregon&&9;s Unemployment Rate edged up to 4.9 percent in June from 3.9 percent in May. Since June 2010, the state added 29.600 HAS Private Sector jobs, government purpose lost 9.100 jobs.

The housing bust, financial crisis and recession Devastated state and local tax revenues. For more Than Three Years, Have Cut Spending states, hiked taxes, Borrowed and Turned to the federal government for help in Keeping Their balanced budgets.Now, with FEW places left to find Savings, They Are rolling back funds for cities, counties and school districts.

We have national level, payrolls rose 18.000 in June and the Unemployment Rate notched up to 9.2 percent.

Michigan jobless rate Held the Highest in the Country DURING the 2007-09 recession, the goal at the end of 2010 Employment Situation Improved STI.

While ITS jobless rate of 5.10 percent lower IS Than June 2010&&9;s rate of 12.6 percent, the state&&9;s Labor Market "has no significant foreign exchange Shown The Beginning of the Year," Said Rick Waclawek, director of Michigan&&9;s Labor Bureau.

Still, total payrolls Grew in 26 states and Washington, DC, in June, with Texas Gaining The Most jobs, 32,000. California payrolls rose by 28.800 and 18.000 by Michigan payrolls. The payrolls shrank in 24 states over the month, with Tennessee losing jobs The Most, 16.900.Followed Missouri, 15.700 shedding jobs, and then Virginia with 14.600 jobs.

(Reporting by Lisa Lambert, additional reporting by Michael Connor in Miami, Jim Christie in San Francisco, and Karen Pierogi in Chicago, Editing by Andrew Hay)

Jobless rates jump in 28 U.S. states in June

PARIS - France and Germany Have Overcome differences over how to combat the continent&&9;s debt crisis and Agreed Spreading was common position ahead of year European emergency summit Thursday, the French president&&9;s office said.

The leaders of the eurozone&&9;s biggest economies Held last-ditch talks in Berlin for seven hours late Wednesday, Amid pressure for a big announcement That Could Boost Market Confidence & Container the turmoil.

German Chancellor Angela Merkel and French President Nicolas Sarkozy "Reached agreement on a Franco-Germanic common position," Sarkozy&&9;s office in a statement Said early Thursday, Without elaborating on What the position is.

Germany HAD downplayed calls for anything "spectacular" while France has HAD Pushed for strong, long-term aid plan for Greece at Thursday&&9;s summit in Brussels.

The stakes are high. Markets Have Been Extremely volatile over the past weeks we fear the crisis spread to larger Might Countries like Italy.The International Monetary Fund Warned That leaders must do more to keep debt problems from the poisoning Entire continent&&9;s economy.

Merkel and Sarkozy is with European Central Bank chief Jean-Claude Trichet on Wednesday as THEY WORKED Toward a plan. Theys Told U.S. President Herman Van Rompuy Their agreement about social ET That Can Take It Into account history in consultations ahead of Thursday&&9;s meetings, Expected to start midday in Brussels, the French statement said.

Earlier Tuesday, Merkel&&9;s Spokesman Said Steffen Seibert Would the leaders discuss "all the options on the table and agreements, if possible, a joint position."

Merkel&&9;s goal ET reiterated the stance talks That Will not yield a "spectacular solution" that Greece&&9;s Problems Fixed Quickly, drank Will Be Merely a stepping stone in a process along.Merkel HAD Said There Would Be No decision to restructure Greece&&9;s debt or create Eurobond debt that link across Countries.

The French government and the European Commission, however, That It Was Warned That the EU urgently come up with a significant deal.

French Finance Minister Francois Baroin France-Info radio Told That "There Should Be a strong message tomorrow, from the Highest level."

European Commission President Jose Manuel Barroso Said "nobody Should Be Under Any illusion, the situation IS very serious."

He Said That at the very least, leaders Need to present How They Will make Greece&&9;s debt sustainable, Under What terms private Creditors Will Have To Contribute to a new bailout for the country, and What to Give New Power to Their bailout fund.

European leaders faced criticism for Have Their slow, piecemeal efforts to stem the debt crisis.

The IMF urged European leaders to act more boldly, warning That There Is "no roadmap consist ahead" and That This Could produce "significant regional and global as possible spillovers."

"Market participants unconvinced That Remain a sustainable solution iz at hand," the report said. "Limiting damage Any further Top Is Now crucial."

Borrowing rates Have Risen particularly sharply in Italy and Spain and while THEY Slightly eased a day ahead of the summit, feeling vulnerable Remains as investors see no immediate way-through Europe&&9;s policy stalemate.

Merkel Opposed HAS a Restructuring of Greece&&9;s debt upon Losses That Would Force Private Sector Creditors as well as Any notion of Creating Eurobonds - debt that link together different Countries room air conditioners.

Such Jointly Guaranteed Bond for the eurozone Entire Would make borrowing cheaper for Countries with shaky finances goal more expensive for nations with a top rating Such as Germany.Unsurprisingly, Berlin is the main country to oppose Such a measure.

Germany and France Stressed That Both nations must seek a joint position to make the summit of the 17 eurozone nations&&9; leaders a success.

"France and Germany - as Europe&&9;s unification HAS Shown - must reach agreement year, If That Does not Happen Europe Does not advance," Merkel&&9;s Spokesman Seibert said.

So far, discussions on the contribution of private revolved around Creditors Have Three Options, According To a paper from a eurozone Officials&&9; working group dated July 16.

The first Would see the eurozone&&9;s financial bailout fund a buyback of government bonds at Greek Their current distressed Prices, paired with the Guarantees That Would Be Remaining bonds repaid. That option Would Give the Greek state the biggest short-term relief, end May Be the Most Expensive for the eurozone.

The only eurozone Would not Have To fund the buyback and repayment guarantee, the paper says goal THEY Would Likely Be seen as a default by rating Agencies. That Would force the eurozone to come up with the banks liquidity support for Greek That Would Be cut off from the European Central Bank&&9;s Financial Lifeline.

The second option to revert a Proposal made by French banks SEVERAL weeks ago. Banks Would reinvested share of the money THEY collect from Greek bonds Maturing Into new bonds with longer repayment deadlines.

However, Proposal That Would still trigger a "selective default" rating, requiring liquidity and capital support for Greek banks. It Would Provide significant short-term relief for Greece, the paper says, the goal Should Come With lower interest rates and the euro zone along Maturities for loans.

The Third Option Is The Only One That Would AVOID a default rating, order Likely Will Run Into huge opposition from banks That Do not hold Greek bonds.IT offers a tax on the Financial Sector to recoup share of the cost of Rescuing Greece. However, it Would result in only small short-term relief for Greece.

By the time the leaders&&9; top advisers Meet Thursday morning ahead of the summit, the paper Will Most Likely Be narrowed down to be Two ways: One That Would Trigger a default - a combination of option one and two - and One That Will not Said a eurozone official. The official speaking on condition of WAS anonymity, Because Were still Ongoing talks.

Greece, Meanwhile, IS ITS Struggling to Reduce budget deficit from 10.5 percent of Gross Domestic Product in 2010 to 7.5 percent this year as it implements harsh austerity Measures That Have Pushed Into Recession the country.

Data released Wednesday Showed back euro3 one billion in arrears, with the January-June deficit euro12.7 Reaching one billion was tax basis - Against a Budgeted euro10.3 billion.

"Tomorrow&&9;s summit Will determines the future of the country and of Europe," Government Spokesman Said Elias Mossialos in Athens.

___

Gabriele Steinhauser in Brussels and Nicholas Paphitis in Athens Contributed to this

Germany, France reach deal on euro debt crisis

NEW YORK - Wells Fargo & Co. says second-quarter profit STI rose 30 percent, Boosted by a release of reserves set aside to cover souring loans as icts Customers Continued to Improve Their loan and credit card payments.

The San Francisco bank says STI Net Income rose to $ 3.73 billion, or 70 cents per share, in the Three months ended June 30. Wall Street WAS expecting 69 cents per share, on average.

Revenue edged down 5 percent to $ 20.39 billion, just short of analyst Estimates for $ 20.43 billion.Revenue in icts Largest segment, community banking, fell kerosene heater.

The Largest contributor to the quarter&&9;s results cam from a $ 1 trillion release from the money set aside to cover Uncollected loans and credit card bills, as the Amount Written off from bad loans dropped.

In premarket trading, Wells Fargo shares added 33 cents to $ 27.21 per share.

Wells Fargo 2Q profit leaps 30 pct; defaults drop

BEIJING (Reuters) - China stepped up criticism of Washington ITS on Thursday President After Barack Obama met the Dalai Lama stopped short of goal Threatening retaliation, WAS Indicating Beijing keen to Avoid Escalating Tensions Between the world&&9;s biggest economies.

Obama met the exiled Tibetan spiritual leader for 45 minutes on Saturday, praising HIM for embracing non-violence while reiterating the United States That Did not Support Independence for Tibet.

Beijing accused the Dalai Lama Which of Being a violent separatist, Responded with predictably vehement words on Monday through tightly controlled state media icts, though mentioning Without Any retaliation Broader That Could deepen strains.

"Generally, the Chinese Believe That the U.S.government meets with the Dalai Lama to appease Either domestic hardliners icts or STC to wind dissatisfaction with China in Other fields, "wrote the Global Times, a popular tabloid published by the Communist Party mouthpiece People&&9;s Daily.

The Nobel Peace laureate is "a drop of spittle on China from the West," Said the newspaper editorial in STIs.

The People&&9;s Daily Warned the meeting "will undoubtedly affect the development Negatively process of Sino-USrelations ", Which Have Numerous suffered setbacks of the past FEW months with arguments over trade, Taiwan and the Internet.

The Dalai Lama Denies Seeking Independence for Tibet, Sayings ET wants a peaceful transition to true for the remote Himalayan Autonomy Region, China HAS Which Ruled with iron fist year Since 1950, When Chinese Troops in OnD.

Confined TO ANGRY WORDS

Aim the angry rhetoric echoed previous statements about the Many Dalai Lama&&9;s encounters with foreign leaders politique, Suggesting That Will China&&9;s leaders confined Their reaction to angry words.

The Foreign Ministry, Which Two predictably angry statements published in the early hours of Sunday, HAS made No Further Comments on the meeting.

"The Chinese protest over Obama&&9;s meeting with the Dalai Lama and routine IS Unlikely To Have Any real consequences," Said Minxin Pei, a professor of government at Claremont McKenna College, in emailed comments to Reuters.

"As A Matter of Principle, China must make icts Known displeasure to the U.S., as it HAS done so for Many Years, &&9;he added.

"But The Chinese are very pragmatic and Also Understand That IS this symbolic meeting. So They Will not Want to harm the Sino-American relationship substantive Because of this incident. Theys Will not take retaliatory Any Measures infrared space heaters."

While the latest spat HAS Happened while leaders in Washington are at odds over how to raise the $ 14.3 trillion U.S. debt ceiling in time to Avoid Default, China Highly Unlikely IS ITS to dump U.S. Treasury bills to punish the United States.

China, the United States&&9; biggest foreign creditor, hold more than $ 1 trillion in U.S.Treasury debt and Washington HAS Warned to Be Responsible in Protecting Investors&&9; Interests.

Selling U.S. Treasury bills "would Rather Be a risky move, and one Which is Openly hostile if Explicitly framed as a &&9;response," Said Harold Scott, an associate political scientists with the RAND Corporation.

"It Would Dramatically worsen US-China ties, and for what? After all, what, specifically, Is the effect of the President&&9;s meeting with the Dalai Lama That harms China&&9;s Actual Control on the ground in Tibet? Zero."

Choreographed CAREFULLY

Analysts Said Washington choreographed the meeting to make it APPEAR as low-key as possible, Taking Into account China&&9;s sensitivity to the issue.

Like the previous meeting Between Obama and the Dalai Lama in February 2010, Saturday&&9;s get-together Took place in the White House Map Room Rather Than the more official Oval Office and the White House Issued only one photograph of the meeting.

Zhu Feng, a professor of Peking University, Said the way Obama hosted the Dalai Lama shows That WAS Washington Trying to minimize the negative impact.

Though Beijing and Washington bicker Frequently, parties Have Improved drastically FOLLOWING President Hu Jintao&&9;s visit to the United States in January, and Closely Both work on issues like the Global Economic Recovery, North Korea and Iran.

Obama&&9;s meeting with the Dalai Lama coincides with Vice President Xi Jinping&&9;s visit to Tibet to mark 60 years Since the region&&9;s "peaceful liberation." Xi IS Widely Expected to Become President in 2013.

Tibetan exile groups say IS UNDER Even Than Normal Tight Security, and foreign tourists Have Been banned.

Tibetans in China Expressed Their support for the Obama rally and Disseminated photographs of the rally on Twitter.

Beijing-based Tibetan writer Woeser wrote on Twitter That on Wednesday the "slander and attack" by Some Party leaders on the Dalai Lama has "Deeply offended Many Tibetans."

(Additional reporting by Sally Huang, Editing by Ben Blanchard and Miral Fahmy)

China assails U.S. over Dalai Lama, fallout Seen Limited

EL SEGUNDO, Calif.. - Strong sales of toys tied Into Barbie and Disney / Pixar &&9;s "Cars 2" helped Mattel&&9;s second-quarter Net Income Rise 56 percent, the Largest U.S. toy maker Said Friday.

Net Income for the Three months ended June 30 rose to $ 80.5 million, or 23 cents per share, from $ 51.6 million, or 14 cents per share, last year. Analysts Expected Net Income of 16 cents per share, According To Fact Set.

Revenue rose 14 percent to $ 1.16 one billion from $ 1.02 billion. Analysts Expected revenue of $ 1.1 billion. U.S. revenue rose 7 percent while international sales Jumped 23 percent.

"Despite the mixed Economic News, I am Encouraged by our strong operating results continue to Believe and we are well-Positioned for the all-important second half of the year," Said CEO Robert Eckert in a statement.

He added That merchandise tied to "Cars 2" had "outstanding performance outdoor fireplace." The movie WAS released in June.

Toys tied into Summer movies Generally do well.This summer a bumper crop of toy-related movies are out. In addition to "Cars 2," IS selling Mattel toys related to "Green Lantern."

Barbie sales rose 12 percent. Monster High and Disney Princess dolls aussi Performed well. One weak spot WAS Hot Wheels. Sales Fell 2 percent.

Sales of Fisher-Price toys, Including the Thomas and Friends line, rose 4 percent. American Girl sales rose 13 percent.

Mattel Inc. IS based in El Segundo, Calif. Chief rival Hasbro Inc. reports results on Thursday.

Mattel 2nd-Quarter Net Income Jumps 56 percent

NEW YORK (Reuters) - Standard & Poor&&9;s on Friday raised the pressure on Washington Debt Negotiator, Saying It Could downgrade Insurers, Securities Clearinghouse, mortgage Agencies and a laundry list of Other FIRMS if There Is not a deal soon to lift the debt ceiling and cut the deficit.

The ratings agency singled out Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB) and the Depository Trust Co, Which Facilitate payment transfers Among major banks.Its action aussi Affected Some fixed-income, exchange-traded and hedge funds and Some Federal Home Loan Banks and Farm Credit System Banks, Among a list of Others.

S & P targets icts characterized as "entities with direct links to, or reliance on, the federal government."

Many of the Firm That landed in That Were target quick to put the onus right back on President Barack Obama and the congressional leaders to hash out Trying to stave off a deal a debt default.

"Whatever Happens Will Have Nothing to do with us, and everything to do with Washington.The hope is everyone&&9;s hand IS Obviously That Washington gets icts act together so That Both Their rating and Bears Can Remain Where THEY Belong-at AAA, "Said Patrick Korten, a Spokesman for Insurance Knights of Columbus, Which WAS on the negative watch list.

Among the Other Insurers put on watch, a Spokesman for Goldman Sachs (GS.N), parent company to Goldman Sachs Mitsui Marine Derivative Products LP, Declined to how payday loans in 1 hour. A Spokesman for New York Life Told Said S & P Financial Institution No. Can it carry a rating or outlook Higher Than sovereign rating STI, and STI Believes That The Insurance rating to Be Justified fully. The Others Were not immediately available to how.

Another group in Broad S & P sights Is The Clearinghouse, Which Guarantee contracts tied to everything from oil contracts to shares of Google (GOOG.O) and are critical to U.S.Financial Market Stability.

"It&&9;s not unexpected, and we do not see this as a reflection on how OCC ITS Conducts business," Said Jim Binder, Spokesman for the OCC, Which clears U.S. options or futures for 14 Exchanges. "It&&9;s all about what&&9;s going on in Washington."

The US-based Depository Trust & Clearing Corporation, Which runs the National Securities Clearing Corporation and the Depository Trust Company, not fired, how Immediately.

Freddie Mac aussi Declined to how.

(Reporting by Ben Berkowitz, Jonathan Spicer and Dan Wilchins in New York and Margaret Chadbourn in Washington, Writing by Ben Berkowitz; Editing by James Dalgleish)

S & P downgrade of U.S. Threaten finance companies

WASHINGTON - The U.S. trade deficit surged in May to the Highest level in More than Two and a half years, driven upward by a Big Increase in oil imports.

The Commerce Department says the deficit INcreased 15.1 percent to $ 50.2 one billion in May. That&&9;s the imbalance Largest Since October 2008 fast cash advance.

Exports Declined 0.5 percent to $ 174.9 billion. Imports rose 2.6 percent to $ 225.1 billion.

Oil imports drove May to $ 50.2B Deficit trade

BRUSSELS (Reuters) - European Council President Van Rompuy HAS Called year emergency meeting of top Officials dealing with the euro zone debt crisis for Monday morning, Reflecting concern That Could the crisis spread to Italy, the region&&9;s Third-Largest Economy.

European Central Bank President Jean-Claude Trichet Will expects the meeting Along with Jean-Claude Juncker, chairman of the region&&9;s Finance Ministers, European Commission President Jose Manuel Barroso and Olli Rehn, the Economic and Monetary Affairs commissioner, Three official sources Told Reuters.

Van Rompuy&&9;s Spokesman Dirk De Backer said: "It&&9;s a coordination, not a crisis meeting." He added Would not Be That Italy on the agenda and Declined to say What Would Be Discussed.

However, official sources Two Told Reuters the situation in Italy That Would Be Discussed.The talks Were Organized After a sharp sell-off in Italian assets on Friday, Fears That Which HAS INcreased Italy, with the Highest sovereign debt ratio relative to STI in the euro zone economy After Greece, Could Be Next To Suffer In the crisis. A second international bailout of Greece Will Be Discussed Also, the sources said.

The spread of the Italian 10-year benchmark government bond yield over German Bunds hit lifetime highs around 2.45 euro per centage points on Friday, raising the yield to 5.28 percent Italian, close to the 5.5-5.7 percent area Some bankers think Which Could start putting heavy pressure on Italy&&9;s finances.

Shares in Italy&&9;s biggest bank, Unicredit Spa, Fell 7.9 percent on Friday, Partly Because Of worries about the results of stress tests of the Health of European Banks That Will Be released on July 15.The Leading Italian stock index Sank 3.5 percent.

The market pressure is Due Partly to Italy&&9;s high sovereign debt and sluggish economy, order aussi to concern That Prime Minister Silvio Berlusconi May Be Trying to Undermine and Even push out Finance Minister Giulio Tremonti, Who has Promoted Deep Spending Cuts to control the budget deficit.

"We can not go on for days like Friday Many More," a senior ECB official said."We&&9;re very worried about Italy."

Monday&&9;s emergency meeting was preceded Will Previously scheduled gathering of the euro zone&&9;s 17 Finance Ministers to Discuss how to secure a contribution of Private Sector investors to the second bailout of Greece, as well as the results of the stress tests of 91 European banks.

GREECE

Greece 110 IS Already Receiving one billion euros ($ 157 billion) of loans International Under a rescue scheme Launched in May last year failed to order this HAS changed market expectations That It Will Eventually default on debt icts.

Senior Officials worry euro zone That Progress towards a second Greek bailout, Which Would aussi total around one billion euros 110, IS NOT Being Made Quickly Enough and That IS poisoning the delay investors&&9; confidence in weak economies around the region small personal loans.

"We Need to move on this in the next couple of weeks.It&&9;s not a case of waiting Until late August or early September as Germany IS saying. That&&9;s too late and Markets Will make us pay for it, "a top official euro zone Told Reuters on Saturday.

German Officials Insist THEY too want to put together the second Greek bailout as Quickly As Possible, But The Private Sector&&9;s contribution IS proving to Be a major sticking point.

Germany, the Netherlands, Austria and Finland are Determined That Banks, Insurers and Other Holders of private Greek government bonds Should Bear Some of the Costs of Helping Athens. Purpose More than Two Weeks of Negotiations with bankers Represented by the Institute of International Finance (IIF), a lobby group, Have made next to no progress on agreeing a formula acceptable to all sides.

INITIALLY Focused talks were complex French plan for private Creditors to roll over one billion euros up to 30 of Greek debt, buying new bonds have matured Their Existing ones.Around half of Proceeds from Greek bonds Maturing Before the end of 2014 Would Be Into rolled over very long-term debt while 20 percent put Into Would Be a "guarantee fund" of AAA-rated securities.

That plan aims have floundered HAS, HAS Berlin has revived Greek Proposal to swap bonds for longer-dated debt That Would Extend Maturities by seven years. Proposals to buy back bonds and removes Greek Them Have Also Been floated.

In a buy-back, the euro zone&&9;s bailout fund, the European Financial Stability Facility, Might buy bonds from the Greek market, or the EFSF Greece Might lend money to buy bonds. However, schemes thesis Would require further Top to the exchange&&9;s rules and EFSF Therefor Would Have To Go Through national Parliaments, an official source said.

SQUARE ONE

A senior official euro zone on Friday Reuters Told That Rather Than Being progress made in the talks with the IIF, as managing director Charles Dallara IIF HAS Said, Were all sides close to being "back to square one."

Dallara Will expects the euro zone meeting of Finance Ministers in Brussels on Monday.

Since the euro zone&&9;s debt crisis erupted last year, the region&&9;s rich Governments Have Aimed to limit it to Greece, Ireland and Portugal, Which Have signed up to bailouts totaling 273 one billion euros - a sum That Is Small Compared to the Financial Resources of the zone as a Whole.

Spain, Commonly Seen as the next domino in the Potential crisis, HAS managed to retain access to market ITS Funding Through Fiscal Reform. Because of the large order sizes of the Italy and Spain, pressure on the euro zone Would Dramatically Increase if needed Eventually Those Countries Financial assistance.

(Additional reporting by Francesca Landini in Milan and Gernot Heller in Berlin; Editing by Andrew Torchia)

Exclusive: U.S. calls emergency meeting as Italy stalks crisis

WASHINGTON - The job market IS defying history.

A dismal June Employment Report Shows That Employers are nowhere near as Adding Many Jobs As They Normally do this After a long recession HAS ended.

Unemployment climbed HAS for Three straight months and Is Now at 9.2 percent. There&&9;s no precedent, in data going back to 1948, Such A high rate for Two Years Into What Is A economists say recovery.

The economy added just 18.000 jobs in June. That&&9;s a fraction of the 90.000 jobs HAD Expected economists and a sliver of the jobs needed 300.000 EACH month to shrink Significantly chômage.

The excruciatingly slow growth IS confounding economists, spooking Consumers dismaying and job seekers. Friday&&9;s report Analysts Forced to re-examine Their Assumption That Would Strengthen the economy in the second half of 2011.

THEY HAD Expected improvement in June After a bleak jobs report for May.That figured in Hiring THEY HAD May-been artificially weakened by temporary Factors - a run-up in gasoline Price to $ 4 a gallon and factory disruptions Caused by Japan&&9;s earthquake and nuclear crisis.

Aim the June numbers Were Even Worse Than May&&9;s, Even though gasoline prices are falling and factories revving up again.

"This is a Remarkable, across-the-board backslide," says economist Heidi Shierholz of the Economic Policy Institute.

Sometimes disappointing Economic reports look better on closer inspection. This one gets uglies.

Workers&&9; hourly pay Fell in June. THEY WORKED Fewer hours. And 16.2 percent of Those Who Were Either wanted to work Unemployed, forced to settle for part-time jobs or Given Up HAD looking for work. That figure up from 15.8 percent WAS in May.

Among the frustrated IS Cris Cohen, Who Was ugly off in April from a job as a contractor for Cisco Systems in Raleigh, NCHe&&9;s Been searching for work then sincere, futilely combing job listings, Reaching out to friends and setting up a website with a resume and a blog.

"In the past I&&9;ve left When jobs or off-been ugly, I&&9;ve just contacted connections I Have HAD, and that&&9;s led to opportunities," says Cohen, Who has a wife and a 9-year-old sound. "Now it&&9;s just dry Seems Much More .... There&&9;s Always That just Anxious feeling, nausea That."

One problem Is That After slashing jobs DURING the Great Recession, Employers are still reluctant to replace &&9;em. They&&9;ve Learned to squeeze more revenue out of work and Reduced staffs. Productivity and corporate profits soared Have. Aim companies do not want to add Workers Until They&&9;re confident That Consumers are Spending Enough To Support Higher sales.

Other Factors are restraining Hiring, too. More sophisticated software lets managers scrutinize exchange in Their Businesses minute-by-minute.THEY Can postpone Hiring Until They&&9;re sure THEY Workers Need more.

Employers Have Good Reason to wait, says economist Ken Mayland at ClearView Economics. A Political standoff over the federal debt limit to Threaten the U business?ards.S. government send Into default next month. That Would interest rates soaring and send Might tip the economy back Into recession.

Even if President Barack Obama and congressional Republicans Agree to raise the borrowing limit, the deal Likely Will require deep cuts in Government Spending and tax Possibly Increase. Combined, Could Those steps slow the economy further Top.

The economy HAS Already lost 493.000 jobs sincere government ended the recession, Most Of Them Eliminated by cash-short cities and counties. Now it faces the prospect of big cuts by the federal government, too.

Heightening The Uncertainty are Europe&&9;s debt crisis and the Possibility That China&&9;s efforts to tame inflation slow icts Will booming economy.Both destabilization Factors Could Reduce Financial Markets and U.S. exports, one of the FEW economy&&9;s strength.

"Why Would a year using hire now?" Mayland says. "It&&9;s hunker down and wait and see."

The Federal Reserve HAS Already Lowered short-term interest rates to near zero. And last month, it ended a Treasury bond-purchase program That Was Intended to Strengthen the economy.

Congress, pointing to high budget deficits, will not Consider Spending Taxpayer money to jolt the economy with new government programs.

"We Have Ourselves Into a painted corner," says Mayland. "When you&&9;re at zero interest rates and running a $ 1.5 trillion deficit, you do not really Have Many policy options."

Many Analysts say the economy to recover Mainly Need Time from year implosion of the real estate market and a Devastating Financial Crisis.

Normally, housing and construction Would fuel a recovery. Lower Interest Rates Would draw Homebuyers Into the market.Would INCREASED demand encourages builders to hire construction workers and put up new houses.

Not so this time. Home prices are Continuing to fall as banks dump Foreclosed homes on the market. People&&9;s home equity HAS shrunk.

The tepid recovery IS Taking a toll on Consumers, Whose Spending accounts for 70 percent of Economic Activity. The Conference Board business group last week Said That icts Consumer Confidence Index Fell to 58.5 in June. A healthy reading IS 90. At this point the after the Three previous recessions, the index Averaged 87.

The low reading suggests Consumers Spending Will Be wary about. Business Events That Could leave more cautious about Hiring.

Businesses are nervous about the economic outlook Now That the Fed and Congress Seem To Have Their efforts ended to Stimulate growth, says David Rosenberg, chief economist at Gluskin Sheff + Associates.

"The cupboard is pretty bare policy, and We Can See What the emperor looks like disrobed," Rosenberg says."It&&9;s not a pretty picture."

___

AP Business Writers Christopher S. Rugabira and Derek Kravitz in Washington Contributed to this report.

Flat jobs data signal recovery Weakest in Decades

LONDON (AFP) - British house price rose by 2.1 percent in June from the level in May, data from a major home-loans provider Showed on Wednesday.

However THEY slumped by 5.3 percent in June Compared with 12 months Earlier, According To Figures from mortgage lender Halifax.

"Low interest rates, an Increase in the number of people in Employment and Some tightening in market requirements Earlier in the year are Likely to Have Been The Main Factors behind the recent improvement in price trends," Halifax economist Martin Ellis Said housing in a statement .

"The market IS, however, Likely to continue to face significant headwind Which are Expected to constrain housing demand.Low earnings growth, higher taxes and inflation are all Relatively high Continuing to put pressure on Household Finance, &&9;he added in a statement payday loan.

Halifax, Which is of state-rescued by Lloyds Banking Group, Said the average house price in Britain Stood at £ 163.049 (181.733 Euro 261.147 U.S. dollars) in June.

The Bank of England Expected to keep IS ITS key interest rate at a record low level of 0.50 percent on Thursday and Maintain the status quo Into next year due to Britain&&9;s flagging recovery, According To economists.

British house price rise in June: survey

LONDON - A Leading credit ratings agency Monday Warned That Would Be Considered Greece to Be in default if banks rolled over Their holdings in the country&&9;s debt as Proposed by a French plan.

Standard & Poor&&9;s in a statement Said That Two Proposals by year association of French banks "would Likely Amount to a default" under Criteria Because ITS Both options offer "less Than the promised value of the original securities."

Analysts Warned That the S & P&&9;s position Could wreak havoc on Europe&&9;s Attempt to deal with the Greek debt crisis, Especially if rivals Moody&&9;s and Fitch come to the conclusion Sami. A So-Called "selective default" could trigger massive insurance claims on Greek bonds, triggering Another Likely end of turmoil in the Financial Markets.

"A Default is Exactly what the European Politicians want to avoid," Said Louise Cooper, markets analyst at BGC Partners."I imagine a lot of There Are Being Made phone calls Between the European political elite and the bumps at S & P."

The French Finance Ministry and Leading French Holders of Greek sovereign debt - banks BNP Paribas and Credit Agricole - Would not how Monday on the S & P warning.

S & P&&9;s statement Comes After just a week French banks Said They Were ready to help Greece by Accepting a significant debt rollover. Germany&&9;s banks Later Said They Were Also considering Helping out on similar terms as the French plan.

Proposal One Involved em reinvesting at least 70 percent of Their Maturing Proceeds of Greek government bonds in Newly-issued 30-year Greek bonds, backed up by high quality debt from Other countries.The interest rate linked to Would Be Greece&&9;s Economic Growth and Their trading Would Be restricted.

A second option Would Being Considered see French Financial institutions investing at least 90 percent of the Proceeds of Greek bonds expiring in Newly-issued five-year bonds. There Would Be restrictions again on Their trading the bonds and Would Have the Same interest rate formula as the 30-year outcome payday loans.

The Proposal Received a fair degree of support, not least from French President Nicolas Sarkozy.

Policymakers across the eurozone are Trying to come up with a second bailout for Greece That Involves Some Involvement by the Private Sector.

French banks are Among the biggest sovereign debt Holders of Greek - some euro15 billion ($ 21 billion).Germany&&9;s Financial Sector Heavily Exposed est également to the tune of euro16 billion ($ 22.7 billion), According To the Bank of International Settlements.

Greece Avoided a near-term default on ITS ITS Debts After Parliament backed austerity Further Measures in return for more bailout money from international Creditors.

Over the weekend, the Finance Ministers from eurozone Agreed to release the vital installment of aid money intended for Greece Confirmed THEY Will leave the final decision was the second bailout for debt-ridden country Until Later this summer.

Theys Agreed to sign off on year euro8.7 billion ($ 12.6 billion) slice of Greece&&9;s existing.An extra one billion euro3.3 Will Come from the IMF&&9;s board icts After Expected to Authorize the payment decision in a meeting this week Later.

Without the euro12 billion, Greece Would Have defaulted on ITS massive Debts Within days.

The Country Needs tens of billions of euros in assistance over the coming Further years, aim Ministers Have delayed a second aid package Until They Know How Much private banks and Other Creditors Will contribute.

S & P&&9;s warning in the wake of edible last month&&9;s decision to slap a triple C rating on Greece - Greece leaving at the bottom of the pile of 131 Countries to the agency Gives ratings.

S & P Warns Greek bank plan Would cause default

BRUSSELS (Reuters) - Euro zone Finance Ministers Will APPROVe the next tranche of emergency aid for Greece on Saturday and second discussion three-year financing plan for Athens on July 11, euro zone Officials said.

The release of the 12 one billion euro ($ 17 billion) slice from the euro zone and the International Monetary Fund has-been made possible, the after the Greek parliament Passed austerity and reform Laws on Wednesday and Thursday, Removing the Threat of a near-term debt default.

"The requirements are now in place for a decision on the Disbursement of the next tranche of financial assistance for Greece and for rapid progress on a second assistance package," European Commission President Jose Manuel Barroso and European Council President Herman van Rompuy said on Thursday.

Purpose Germany, Which funds Much of the European Union share of Greece&&9;s bailouts, Said The Laws Must Be Turned Into Action."Parliament&&9;s decisions are one thing and Their Another implementation," Foreign Minister Said Westerwelle.

"The Latter Is What Is Most Important, if we want to Strengthen the common European house and particularly Greece," He Told Greece&&9;s To Vima newspaper interview published in year on Saturday.

Athens HAS Repeatedly failed to Meet budget targets ugly down in the first bailout Agreed last year with the U.S. and International Monetary Fund, raising the risk That Will the crisis spread across the euro zone.

Greece&&9;s second financing program IS to run from 2011 to 2014 and Will come on top of the one billion euro Existing 110 program.

The Ministers are Unlikely to Give Much new detail on the second After Their financing program discussions, to Be Held by telephone at 1600 GMT.Euro zone official sources Said Saturday&&9;s conference call Would Mainly concentrate on releasing the next tranche of aid for Greece, the fifth last year&&9;s Under bailout deal.

"The Ministers Will really focus the meeting on the fifth installment.The Fact That They Are not That Means meeting in person There are no major obstacles to decide on this, "Said one official euro zone, Who Asked Not to be named.

EU leaders made a Commitment to the second program at Their last summit on June 23-24, Which Should Satisfy the IMF&&9;s condition That the euro zone must promise to finance Greece 12 months ahead for the IMF to contribute.

THEY Said aussi Funding for the program from euro zone Would Be Taxpayers aussi goal from a substantial businesses, voluntary contribution of private investors via a Greek debt rollover Internet Payday loans.

The Additional external financing for Greece in That Period, from private and public money Both, Could Be about one billion euros 80-90, Officials Have Said.Expected to raise Greece IS Another one billion euros from privatization 30 in That Time.

HOW MUCH FROM THE PRIVATE SECTOR

On Saturday the Finance Ministers from the 17 Countries using the euro and the President of the European Central Bank Jean-Claude Trichet are Likely to Discuss How Much of the one billion euros 80-90 Could come from the Private Sector.

Private Financial Institutions Held talks with finance ministry and central bank in Euro Zone Countries Officials last week to Discuss What requirements Under the Private Sector Would Be Willing to help finance Greece and by how much.

The Involvement of the Private Sector in the next package is a must for SEVERAL Eurozone Countries as voters grow increasingly shouldering the burden Opposed to bailing out of Greece on Their Own.

But The Private Sector Involvement To Be HAS voluntary so as not to trigger a downgrade of further Top Greek debt to default status by ratings agencies, has put the development Which Could Whole Greek banking Sector at risk.

The Institute of International Finance, a global association of financial institutions, said on Friday That the "private community IS ready to Financial engages in a voluntary, cooperative, transparent and broad-based effort to support Greece and unique Given icts Exceptional Circumstances."

German Finance Minister Wolfgang Schaeuble HAS Said German banks wanted to roll over one billion euros 3.2 &&9;worth of Greek bonds Maturing to 2014.

French banks Have Reached year agreement on how to roll over parts of their debt holdings Greek, French President Nicolas Sarkozy Said, Did not aim Indicate the total amount.

A Further meeting on July 11 Will help to finalize the second financing package for Greece, aims Officials Said Some THEY Would not be surprised if the final decision taken by Finance Ministers Were only in September.

(Additional reporting by Angeliki Koutantou in Athens, editing by Matthew Jones and David Stamp)

Euro zone to APPROVe Greek aid tranche, Berlin Demands Action