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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 on the 19th day of their conflict. Women in the northern town of Beit Hanoun wailed as medics pulled three dead relatives from a home struck overnight by an Israeli air strike, with hospital officials saying 85 bodies had been found after the guns fell silent at 8 a.m. (1.00 a.m. EDT). Just before the truce started, 18 members of a single family, including five children, died in a strike near the southern town of Khan Younis, the Gaza Health Ministry said. Israel's military pledged to hold fire for 12 hours but said it would carry on searching for tunnels used by militants.
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.