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. 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.
Personal data including text messages, contact lists and photos can be extracted from iPhones through previously unpublicized techniques by Apple Inc employees, the company acknowledged this week. The same techniques to circumvent backup encryption could be used by law enforcement or others with access to the "trusted" computers to which the devices have been connected, according to the security expert who prompted Apple's admission. In a conference presentation this week, researcher Jonathan Zdziarski showed how the services take a surprising amount of data for what Apple now says are diagnostic services meant to help engineers. As word spread about Zdziarski’s initial presentation at the Hackers on Planet Earth conference, some cited it as evidence of Apple collaboration with the National Security Agency.
Even if data next week shows a mediocre rebound in U.S. economic growth, that might be enough to keep the stock market aloft at record highs and the Federal Reserve steadfast in its winding down of stimulus through bond purchases. Growth had shrunk 2.9 percent in the first quarter due to a harsh winter and spending cuts tied to the federal Affordable Care Act. Indeed, Friday's disappointing report on durable goods orders in June spurred JPMorgan and Goldman Sachs to shave their second-quarter outlook by 0.1 percentage point to 2.6 percent and 3.0 percent growth, respectively.