MILAN - Italian automaker Fiat SpA raised STI 2011 forecasts Tuesday After reporting a huge jump in second-quarter profits thanks to the takeover and integration of Chrysler.

Fiat, Chrysler Which controls with a 53.5 percent stake, Reported second-quarter earnings of euro1.3 billion ($ 1.9 billion), Compared with euro90 Million in the Same Period A Year Earlier. Revenues rose 40 percent to euro13.15 billion.

The maker of Fiat, Alfa Romeo and Ferrari brands, booked a one-off gain of one billion from euro1.058 the takeover of Chrysler After Integrating the U.S. carmaker&&9;s balance sheet numbers in icts on June 1.

Including the integration, Fiat Expects now trading profit this year of euro2.1 one billion, up from Year Earlier target of euro1.2 billion.Revenues are forecast at euro58 billion, up from one billion Euro37 Without Chrysler.

"Overall I think That the quarter has-been a significant quarter for Fiat for a couple of reason," Fiat CEO Sergio Marchionne and Chrysler Told year analyst conference call. "One, We Have Improved our operating performance.More importantly, it IS the first time we are seeing the impact of Chrysler in the Consolidated accounts of Fiat. "

Chrysler Contributed "strongly" to the group results, in a statement Fiat Said, Generating one-month revenues of one billion and trading profit euro3.3 of euro150 million.

Trading profit - or earnings before interest, taxes and one-time items - rose 70 percent to euro525 million, Exceeding Analyst consensus of euro485 million.

The growth in revenues Fiat, Chrysler EXCLUDING, double-digit growth Reflected in Fiat&&9;s luxury and performance brands as well as sales of components, the company said fast cash without a hassle.

Ferrari Deliveries Were up 17 percent, one of the California high volume and limited series and SA Aperta 599 GTO models.Returned 20 percent to euro589 roes one million with trading profit up 6.5 percent to euro82 million.

"We Could not expect &&9;em to do more, Other than win the F1 championship Perhaps, Which I Think They Are working on," Marchionne said.

Fiat Group Autos, Which included the Fiat, Alfa Romeo and Lancia brands, saw revenues rise 2.7 percent to euro7.6 one billion with trading profit flat at euro187 million. A weak European market WAS offset by high volume of light commercial vehicles, the success of the Alfa Romeo Giulietta and strong demand in Brazil.

Fiat Became the Majority shareholder in Chrysler last week When It Completed the purchase of U.S.and Canadian government shares, Giving it a free hand to restructure management and drive deeper integration of the company.

Marchionne Analysts Told He Will announce the new management structure - Expected to halve the number of direct reports to around 25 - in the coming days.

Fiat Expects to raise stake in Chrysler icts to 58.3 percent by the end of the year, with the Approval of a 40 mpg car for the U.S. market.

Shares in Fiat edged Higher After the earnings Were released, and up 0.1 percent at Were euro7.51 in later afternoon trading, shedding 4.5 percent Before to close down euro7.17.

Fiat lifts profit outlook After Q2 rise

MINNEAPOLIS - Supervalu Inc..&&9;s First-quarter net income rose 10 percent on Income cost-cutting, Evidence That The Grocery chain&&9;s turnaround plan Appears To Be bearing fruit.

Earnings beat expectations, and Supervalu&&9;s stock rose 7 percent more Than in premarket trading.

The operator of Jewel-Osco and Albertsons supermarkets Said Tuesday That It Earned $ 74 million, or 35 cents per share, for the quarter. That&&9;s up from $ 67 million, or 31 cents per share, in the Same quarter last year.

EXCLUDING 12 cents per share in charges for closing stores in Connecticut and Cincinnati and a Labor dispute at ITS Shaw&&9;s chain, earnings per share 43 cents Were. Analysts Expected HAD 33 cents.

Supervalu&&9;s revenue Fell 4 percent to $ 11.11 billion. Analysts Expected $ 11.13 billion.Revenue in stores open at least a year Fell 3.9 percent.

Results Were helped by "new planning tools, analytics and a hyper local focus," CEO Craig Herkert Said in a statement business card.

Supervalu, based in Minneapolis, Launched a turnaround plan More than a year ago - Bringing in new management, cutting costs: Lowering debt and closing blinds.

The company reiterated guidance for ITS expect 2012 Net Income of $ 1.20 per share to $ 1.40 on revenue of $ 37 billion. Analysts expect net Income of $ 1.23 per share on revenue of $ 36.75 billion.

The Grocery Industry HAS grown intensely competitive DURING the weak economy as operators try to lure shoppers. They&&9;ve relied on promotions Heavily to do this purpose it Has Come at the Expense of Their already-thin profit margins.

Supervalu 1Q earnings rise, top Estimates

TOKYO (Reuters) - Canon Inc (7751.T) posted better-than-Expected quarterly profit and raised STI Annual forecast After it staged a rapid recovery from supply chain woes sparked by the March 11 earthquake.

Canon, Which COMPETES with Sony (6758.T) and Nikon (7731.T) in digital cameras and with Xerox (XRX.N) and Hewlett-Packard Co (HPQ.N) in office equipment, on Tuesday revised full-year icts profit forecast up to one billion yen from 380 yen one billion 335.

"These favorable results support the share price Will, Which Will Be Solid for the Time Being," Said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Morgan Stanley Securities.

"But The Trend Toward a Higher yen continuing to Be a Source of Uncertainty."

Canon Said the strength of the yen cut operating profits by HAD one billion yen 16.4 in April-June, it added goal Would Be Hard to shift more production to Mitigate Abroad The Effect of exchange rates.

"Our manufacturing IS Clearly Divided Between Domestic and Foreign Processes and we do Already Labor intensive assembly work Such as overseas," Chief Financial Officer Toshizo Tanaka Told reporters.

"It Is Difficult for us to make the currency exchange rate Just Because HAS Shifted Dramatically," He Said, urging the government to send a "clear message" about exchange rates.

The world&&9;s biggest camera maker set ASSUMED rates of 80 yen to the dollar and 115 yen to the euro for July-December, Compared with current rates of around 78 yen and 112 yen, respectively.

"Current exchange rates are Higher Than Their Assumptions, Which Could weigh on the stock price," Yamagishi added empire payday loans.

Canon&&9;s April-June operating profit cam to 78.4 one billion yen ($ 1 billion), Higher Than Year Expected profit of 55.9 one billion yen, the average of six analysts polled by Thomson Reuters I / B / E / S, drank Lower Than the 113.4 one billion yen it booked last quarter for the Same year.

The world&&9;s biggest maker of digital cameras in April slashed ITS Annual operating profit forecast one billion yen to 335 yen from 470 one billion FOLLOWING the Devastating earthquake and tsunami.

On Monday, it nudged up icts shipment forecast for interchangeable lens cameras to 7.3 million units from 7 million, 20 million goal Kept ITS unit forecast for compact cameras Unchanged.

Market expectations are for year Annual profit of one billion 365 yen, based on the average forecast of 18 analysts polled by Thomson Reuters I / B / E / S.

Also hurt by the quake, Xerox rival last week Warned It Would Have less than expected operating cash this year.

Shares in Canon ended at 3.785 yen on Monday, Unchanged Ahead of the results, Compared with a 0.9 percent fall in the Nikkei average Broader (. N225).

The company&&9;s shares are down more than 1 percent little on the March 10 close, HAVING Recovered Almost all the Losses Sustained in the aftermath of the earthquake.

($ 1 = 78,355 Japanese Yen)

(Additional reporting by James Topham and Hirotoshi Sugiyama, Editing by Edwina Gibbs and Vinu Pilakkott)

Canon lifts forecast After rapid quake recovery

NEW YORK - Verizon IS seeing a big boost from the iPhone, we Subscribers Adding more new contracts in the second quarter it HAS Than in Two and half years.

Yet AT & T, the exclusive beens Which HAD seller of Apple&&9;s iconic phone, still activate Three iPhones For Every Two Verizon does.

When posting results for the second quarter on Friday, Verizon aussi Said Chief Operating Officer Lowell McAdam Will take over CEO Ivan Seidenberg is from Aug. 1. The company HAS signaled the estate for More than a year flat iron reviews.

Verizon Communications Inc. Said WAS ITS Net Income $ 1.61 billion, or 57 cents per share, in the Three months ended June 30. A year ago, it posted a loss of $ 1.19 billion, or 42 cents per share.

Revenue rose 2.8 percent to $ 27.5 billion, in line with Analysts&&9; expectations.

Verizon Subscribers in sweaters with iPhone, new CEO

BRUSSELS (Reuters) - Euro zone leaders Were Set to Give Their Financial rescue fund sweeping new power to Prevent contagion and help Greece Overcome icts debt crisis, According To The Draft conclusions of An emergency summit on Thursday.

The leaders in Brussels is the after the European Central Bank signaled in a policy reversal now That Is Willing to let Greece default Temporarily Under a crisis response INVOLVE That Would a bond buyback, a debt swap order no new tax on banks.

Minds Have Been Concentrated by the threat That Could Europe&&9;s debt crisis engulf the Much bigger economies of Spain and Italy.Greece, Portugal and Ireland Have Already succumbed.

The draft summit statement Obtained by Reuters Showed the EFSF rescue fund for Would Be Allowed The First Time to help states with Earlier Precautionary loans, to recapitalize banks and to Intervene in the secondary bond market.

"To Improve the Effectiveness of the EFSF and address contagion, We Agree to Increase the Flexibility of the EFSF," it Said, listing Those Three key steps, all of Germany HAD Which Previously blocked.

German Chancellor Angela Merkel and French President Nicolas Sarkozy crafted a common position in late night talks in Berlin with ECB President Jean-Claude Trichet.

"I expect we Will Be Able to seal a new Greece program. This is important year signal.And with this program we want to grasp the root Their Problems by, "Merkel Told reporters on arrival in Brussels.

Dutch Finance Minister Jan Kees de Jager Said a short-term or selective default for Greece, along vehemently Opposed by the ECB, WAS now a Possibility.

"The demand to Prevent a selective default has-been removed," He Told the Dutch parliament.The chairman of the 17-nation currency area&&9;s Finance Ministers Jean-Claude Juncker, aussi Told reporters: "You Can never exclude Such A Possibility, drank everything Should Be Done to Avoid It."

According To the draft, the euro zone rescue Maturities on loans to all Three Countries Would Be assisted extended from 7.5 to 15 years and the interest rate cut to around 3.5 percent from 5.8 percent Between 4.5 and now.

The EFSF Would Be Able to lend to states was Precautionary BASIS INSTEAD of waiting Until They Are Shut Out of Market Funding, and to recapitalize banks via loans to Government, Even If They Are not Under an EU / IMF assistance program.

It Would Be Allowed Also for the first time to Intervene in Secondary Bond Market, subject to ECB year analysis recognizing "exceptional circumstances" and a unanimous decision.

Germany blocked All These Measures When the European Commission Proposed &&9;em back in February, at a time When the crisis less acute WAS, EU sources said.

The WIDER EFSF Powers Could Deter or help minimize Any market contagion in case of a Greek temporary default.

In apparent trade-off year for Merkel&&9;s new willingness to embrace Such bolder steps, Sarkozy Dropped a French call for a tax on banks to help fund a second Greek bailout.

The leaders promised to set aussi Were a "Marshall Plan" of European public investment to help revive the Greek economy, in a deep recession due to Draconian EU / IMF-imposed austerity.

CONTAGION

The euro and European stocks, Which HAD fallen on reports of a possible, selective default, rallied sharply on news of the draft conclusions hair dryers. The risk premium investors demand to hold euro zone government bonds peripheral Rather Than German Bunds benchmark fell.

The 115 euro one billion rescue package second Greek Would INVOLVE Both Funding from the more official euro zone and the IMF rescue fund and a contribution by Private Sector bondholders, as well as Greek Privatization revenues.

Were Senior European bankers present in the corridors of the Brussels summit but not at the table, official said. Theys included Baudouin Prot of BNP Paribas, the French bank with the biggest exposure to Greek debt, and Deutsche Bank chief executive Josef Ackermann, chairman of the Institute of International Finance, a banking lobby HAS That led talks Among bankers. Top Greek bankers aussi Were there.

Their twin AIMS Leaders Were Said to make Greece&&9;s debt more sustainable and Prevent access to contagion from poisoning the bond market for euro zone Other states.

The new bailout Would supplement has 110 one billion euro ($ 156 billion) rescue plan for Greece Launched in May last year.

Worried about the impact on financial markets and wary of angering Their Own Taxpayers, euro area Governments Have struggled for weeks to AGREE on major aspects of the plan, Especially a contribution by Private Sector investors.

The head of the European Commission, Jose Manuel Barroso on Wednesday Warned That the Global Economy Would Suffer if Europe Could not summon the Political Will to act decisively.

Britain&&9;s finance minister George Osborne, in a year with the Financial Times interview published on Thursday, Said failure Could Produce An Economic crisis as serious as the recession Which Followed the global credit crash of 2008.

New IMF Managing Director Christine Lagarde aussi Attended the summit. The global lender urged HAS euro zone leaders to put more money Into Their 440 euro one billion European Financial Stability Facility, and let it buy government bonds of weak states on the secondary market.

The Proposed expansion of the role&&9;s EFSF Would Have To Be Ratified by national Parliaments, and Could fall foul of Critics in Germany, the Netherlands and Finland.

Thursday&&9;s summer is very Unlikely to mark a complete resolution of the crisis, as Merkel herself Earlier this week Acknowledged.

A second bailout Greece May Simply keep afloat for a number of months a tough decision Before HAS To Be Made on writing off more debt of STIs.

Many economists Believe the only way out of the euro zone&&9;s debt crisis in the long run May Be Closer integration of national fiscal policies - for example, joined euro zone Guarantee for Countries&&9; bonds, or Issuance of euro area bond joined to finance All countries.

Germany firmly HAS Ruled out Such steps, the second goal Osborne Said Greek bailout Would Be a Step Toward only A Necessary fiscal union in the euro zone.

(Additional reporting by Emmanuel Jarry in Paris, and Andreas Philipp Halstrick Framke in Frankfurt, and Gernot Heller in Berlin Andreas Rinke, Emilia Sithole-Matarise in London, writing by Paul Taylor, editing by Janet McBride)

Europe Eyes Sweeping new Powers for rescue fund

MILWAUKEE, Wis.. - Harley-Davidson&&9;s second-quarter profit more Than Doubled as it posted first U.S. Sales Increase STI since 2006.

The motorcycle maker says it Earned $ 190.6 million, or 81 cents per share, up from $ 71.2 million, or 30 cents per share, in the Same quarter last year. The 2010 results included Loss of 29 cents per share related to discontinued operations.

Motorcycle and related product revenue rose 18 percent to $ 1.34 billion.

U portable humidifier.S. retail sales of new motorcycles Grew 7.5 percent to 53.599 bikes. Globally, sales rose 5.6 percent.

Harley aussi Boosted icts shipment forecast for 2011. It now Expects to ship Between 228.000 and 235.000 new bikes worldwide. That year Represents Increase of 8 percent to 12 percent over 2010 Levels.

Harley-Davidson 2Q profit jumps on bike demand

PAWTUCKET, RI - Consumer demand for Transformers action figures as well as the Beyblade top-spin game helped push Hasbro Inc.&&9;s Second quarter profit up 33 percent, the company Said Monday.

Adjusted Net Income Goal WAS Weaker than expected as the toy maker games division and reorganized STI STI Invested in television joint venture with Discovery Communications.It bumped up aussi year Spending on international expansion.

"We Have Continued to make important Investments in our business Which Will help drive Both top and bottom line growth in the future," Said CEO Brian Goldner.

Its shares slipped 25 cents to $ 41.12 in premarket trading.

The maker of Nerf toys and board games like Monopoly Said ITS Net Income rose to $ 58.1 million, or 42 cents per share, from $ 43.6 million, or 29 cents per share, a year ago.

EXCLUDING a tax adjustments and costs, for reorganizing icts games department, however, earnings per share 33 cents Were.

Analysts Expected Adjusted earnings of 39 cents per share. Analyst Estimates Typically exclude one-time items.

Revenue rose 23 percent to $ 908.5 million from $ 737.8 million. That beat Wall Street expectations of $ 848.8 million.

Internal Revenue Jumped 43 percent to $ 374.5 million while U.S.and Canada revenue rose 14 percent to $ 505 million air conditioner.

Sales of boys&&9; toys rose 96 percent to $ 460.4 million. Girls&&9; toys Were Weak, down 11 percent to $ 119.1 million.

Revenue from games and puzzles, Which has-been a weak spot for Hasbro, Fell 12 percent to $ 231.3 million. The company Said It Is icts reorganizing global games business and moving games Some of ITS development and marketing Employees from East Longmeadow, Mass.., To Rhode Island. That move cost the company $ 13.1 million in the second quarter and Will cost $ 7 million over the next Three to Four Quarters.

Toy makers Have Been Facing High Cost for resin, fuel and Other Raw Materials.

Still, Hasbro Said It Expects "meaningful growth" in Net Income and revenue for the full year.Toy makers make the bulk of Their half back DURING the second of the year, Which includes the crucial holiday période.

In the current third-quarter, Hasbro IS ITS Launching new Kre-O brand building, preschool toys and Sesame Street Other new toys.

Hasbro&&9;s larger rival Mattel Inc. Reported on Friday second-quarter net icts Income Jumped 56 percent while revenue rose 14 percent to $ 1.16 billion.

Hasbro 2nd-qtr profit Rises 33 pct

SALT LAKE CITY - The head of the Democratic Governors Association accusing GOP IS debt Negotiators in Washington of Trying to damage the economy so President Obama Will lose next year&&9;s election.

Maryland Gov. Martin O&&9;Malley tells The Associated Press That Republicans are Trying to steer the government default or higher Toward Unemployment Will voters blame Obama so for a bad economy.

A Republican Spokesman calls O&&9;Malley&&9;s remarks a partisan rant sears kerosene heaters.

He says moderate Republicans Should GOP congressional leaders call on to make a deal to raise the government&&9;s borrowing limit Before year Aug. 2 deadline to Avoid a federal default.

O&&9;Malley spoke on the sidelines of the National Governors Association meeting in Salt Lake City.

Dem gov: To win in 2012, GOP wants to hurt economy

NEW YORK (Reuters) - Consumer sentiment deteriorated in early July to the level Lowest Since March 2009 on Increasing pessimism over falling Income and Unemployment rising, a survey released on Friday Showed.

KEY POINTS: * Confidence in Government Economic Policies aussi curdled, the Thomson Reuters / University of Michigan survey Showed. U.S. lawmakers are wrangling over a budget deal That Would allow the government to raise the debt ceiling - needed so the United States CAN Fund icts obligations next month.

COMMENTS:

Tom Porcelli CHIEF ECONOMIST U.S., RBC CAPITAL MARKETS, NEW YORK:

"Think UMich number in combination with the soft Other reports we Have Seen in recent days Reinforce What Caused us to downgrade our forecasts yesterday. Yesterday we Took down our growth in the second quarter number to 1.7 percent from 1.9 percent in the second half and to 2.8 percent from 3 percent.This report tells us our That Was a change right call. "

Millan Mulraine, SENIOR STRATEGIST U.S. MACRO, TD SECURITIES, NEW YORK:

"It kind of feels like one of the wheels for the upper track Has Fallen off this goal I Believe Will Be temporary in the sense That There Is a lot going on in Washington not only aim aussi en Europe. We expected a bit of uptick year , It&&9;s been purpose constrained by What We&&9;ve Seen.

"We&&9;ve Not Seen a fall like this ... Since 2009 Which Takes us back to the end of the last recession. There&&9;s a bit of year with the ebb and flow debt talks, I think the goal Markets Have What we priced in saw. There are lot of dark clouds right now. "

Gennadiy GOLDBERG, FIXED INCOME ANALYST, 4CAST, INC.., NEW YORK

"Essentially everything across the board and Fell It Was a Much Weaker Than we expected reading. Plunge puts us Into The Weaker Territory.With falling inflation expectations, There&&9;s not a lot of confidence That growth IS going to pick up. It&&9;s definitely not a Good Thing for the bigger picture. "

STEPHEN STANLEY, CHIEF ECONOMIST, PIERPONT SECURITIES, STAMFORD, CONNECTICUT

"It&&9;s a big downside surprise. I do wonder how people are bummed out Much with what&&9;s happening in Washington. I can not imagine the debt ceiling talks filtering Into the Mainstream press Helping IS. The Weakness in the past couple Employment the number of months est aussi Impacting confidence infrared heaters. But The weekly retail sales numbers the past SEVERAL weeks Have perked up. Still, Consumers are very cautious right now. We are going to see To Have Some positive news to see improvement in attitude so year Spending Improvement in a consumer Substantial way. "

PIERRE ELLIS, SENIOR ECONOMIST, DECISION ECONOMICS, NEW YORK:

"This decline in consumer sentiment IS Troubling.Feeling

Seems To Have sagged in July. The big surprise Is The Lack of positive impact from lower gasoline prices. Lower prices are fully registered in the lower inflation expectations, they &&9;re not at all intended Reflected in the list overall sentiment figures. We had a shaky stock market in this time frame. The employment numbers Obviously Did not help. It&&9;s Beginning to look like consumer Spending Is Getting a little ragged around the edges, too, so this decline in sentiment IS Troubling. "

WARD MCCARTHY, CHIEF FINANCIAL ECONOMIST, JEFFERIES & CO., NEW YORK:

"Its pretty ugly. This is a really weak number, it&&9;s the Weakest number Since March 09, Which is not good. I Would Say That This Is An indication That the not-handling of the debt ceiling in Washington IS Certainly impairing consumer confidence. The good news inflation expectations Is That eased off, so are less Consumers Concerned about inflation.Purpose The Economic Conditions deteriorated, confidence deteriorated and the outlook deteriorated and I Would Be If That Were very surprised due to anything Beside The Fact That the government at this point in time is not making us all feel good about Things. "

PATRICK O&&9;KEEFE, DIRECTOR OF ECONOMIC RESEARCH, JH COHN, NEW YORK:

"Given the spate of weak data, and the Extent to Which the federal budget situation has-been in headlines, It Is not surprising we saw a drop. If Were to see a deal on the debt and improvement in general Some Areas, then overalls Would people feel a little more confident about what&&9;s going on. We Remain Goal in a very slow recovery with extraordinarily grudging emploi. The public at large still feel the recovery IS, at best, a neutral factor.They&&9;re not seeing a lot of Benefits. "

Instant view: Consumer sentiment slumps in July

BRUSSELS / ATHENS (Reuters) - The IMF on Wednesday joined Germany in pushing for Private Sector investors to help cut Greece&&9;s debt mountain as the euro zone Sought to break impasse year on how and when to grant the country urgently needed aid.

With Germany hanging back, euro zone Officials struggled to set a date Even for leaders to Meet AGREE to a way forward, Raising Fear Financial Markets Might feat policy vacuum with a new onslaught on the bloc&&9;s high Debtors.

"The Principles of Having a Euro chiefs&&9; meeting by the hand IS Accepted players, Including Germany," Said one U.S. diplomat, Adding That It Was Likely to Happen next week despite Earlier signals from Berlin That There Was No rush to finalize a second package of aid.

First, however, countries Have To AGREE how to INVOLVE Tackling Private Sector investors in Greece&&9;s debt burden, a key demand of Germany Before it signs off more support for Athens.

The International Monetary Fund backed the idea, Sayings icts in latest review of Greece&&9;s troubles: "Private Sector Involvement Comprehensive IS Appropriate, Given the scale of financing and the desirability Needs of burden sharing.

"Greece&&9;s debt service capacity aussi May Need To Be bolstered by Combining Appropriate ISP and official support," IMF Officials wrote, referring to private-sector Involvement.

Ratings agency Fitch Cited Uncertainty for the private bondholders and foot-dragging on Giving more official aid to Greece When It Downgraded the country Further Into Junk Territory on Wednesday.

Markets rattled by Have Been the failure of Finance Ministers to reach agreement Earlier this week.

Italian central bank chief Mario Draghi, soon to take the helm of the European Central Bank, and Ireland&&9;s first definitive plan Both Said and WAS needed Quickly - echoing a strongly-worded attack from Greece&&9;s prime minister Earlier in the week.

The market spotlight WAS taken off the euro zone, at least Temporarily, After the Federal Reserve Chairman Ben Bernanke Said the U.S.Could central bank Monetary resort to more stimulus if a sluggish economy Weaken Further.

Fitch HAD aussi year offset Earlier downgrade to junk status of Ireland by Moody&&9;s When It Said Italy Could keep icts credit status by sticking to fiscal targets.

Many aim Remained After a market on edge attack on Italy - the euro zone&&9;s biggest economy Third - That Fears raised PROVE ITS Needs Would too great if it got to Meet sucked Into the crisis.

"Moody&&9;s problem IS NOT with Ireland, Ireland&&9;s problem IS with Europe," Prime Minister Enda Kenny Told parliament, as the cost of Irish Insuring debt climbed.

"There Is No Point in Having a meeting That Will not Bring about a conclusion in a comprehensive sense to Something That Is not going to go away UNLESS it dealt with IS."

Wrangling

Should the leaders meet, THEY Will Need to pin down how private owners of Greek government bonds Can Be Persuaded to shoulder a portion of the cost of a new rescue package, a key demand of Germany, Europe&&9;s biggest Economic Power outdoor fireplace designs.

THEY Will weigh up the Potential Impact on Market if Securing Such Involvement IS Declared a debt default by ratings Agencies, as expected.

Meanwhile Countries Have Appeared To Be Into a subsiding of internal wrangling end.

"Markets reacted very badly After euro area Finance Ministers Could not reach agreement year," an EU diplomat Said, referring to a Finance Ministers&&9; meeting on Monday. "If They Can not APPROVED, we take the fight to the Highest level."

Herman Van Rompuy, Who presides over meetings of EU leaders, ambassadors HE HAD Informed Originally wanted to hold a summit on Friday evening.

Purpose Germany, Which one EU official angry about Said WAS being "backed Into a corner," Was reluctant, pushing the date of the next gathering Into week.

STRESS TESTS

Another worry for the leaders are the results of stress tests of European banks.

In Italy, bank stocks and the bond market hit by Have Been Growing Concern That It Could Be Next In Line After Greece, Ireland and Portugal to Be sucked Into the crisis.

Draghi Said Would Italian banks pass the tests Comfortably goal echoed Kenny&&9;s call for a comprehensive EU response.

"We Have To Recognize That management of the Financial Crisis HAS not gone Smoothly with partial and temporary interventions," He Said in a speech.

"We must now bring-certainty to the process by Which sovereign debt crises are managed, by Clearly Defining Political objective, the design of instruments and the Amount of resources, &&9;he said.

There are Two main Proposals on the table for Securing the Private Sector&&9;s Involvement in Reducing Greece&&9;s debt burden.

One Would Be to buy back bonds at a discount Greek. Another Is To Greek swap debt for longer-dated securities with a lower coupon.

However, it Remains unclear how a buy-back of Greek bonds Would Be Financed. It Could INVOLVE 440 using the one billion euro ($ 625 billion) European Financial Stability Facility (EFSF).

The ECB Remains Opposed to Any Option That Would Be Deemed a default.

ECB PolicyMaker Jens Weidmann Said the EFSF Should Not Be Used To buy bonds in the secondary market and it Would Be Unacceptable for the ECB to accept Greek debt as collateral if the country Were in default.

"Containment of the crisis mean That we Should not Undermine our principles. We must draw a red line," He Told Die Zeit newspaper.

Germany&&9;s finance ministry aims Said funds from the euro zone&&9;s rescue in theory Mechanism Could Be Used by members of the block to buy back bonds Their Own, Suggesting a shift in Berlin&&9;s stance.

(Additional reporting by Julien Toyer and Luke Baker in Brussels, and by Noah Barkin and Gernot Heller in Berlin; Writing by Mike Peacock and John O&&9;Donnell, Editing by Mike Peacock / Ruth Pitchford)

Europe is at impasse Greece, IMF backs investor role

BRUSSELS - The European IS a vague Commitment After tumbling from eurozone&&9;s Finance Ministers to Give the region&&9;s bailout fund more stem Powers Has Failed to Concerns That Will Europe&&9;s debt crisis soon engulf Spain and Italy.

The yield, or interest rate, the 10-year Italian bonds shot up to 5.9 percent Tuesday morning, More Than One Percentage Point Higher Than Where It Was Just Two weeks ago. The genetics equivalent to 6.28 percent Jumped, up from 6.1 percent at the open no fax payday loans.

Italy and Spain, the third-and fourth-largest economies in the eurozone, are Widely Seen as too big to bail out Should THEY run Into serious trouble.

The euro lost 1.1 percent, dropping to $ 1.3877, while stock THROUGHOUT Europe Markets traded lower. Stocks on the main exchange in Milan lost 3.8 percent.

Eurozone Finance Ministers fail to stem Selloff

SHANGHAI / BEIJING (Reuters) - Fighting Inflation Remains the top priority for the Chinese government and Beijing Will Maintain current STI Economic Policy, Premier Wen Jiabao Said in comments published on Thursday, Reinforcing the case for further Top tightening policy.

Wen&&9;s comments on Saturday Followed official data Showed That Annual inflation in June hit a three-year high of 6.4 percent.

"We must treat Stabilizing Levels Overall price as the top priority of our Economic macro-controls and keep the management of macro-Economic Adjustment Unchanged," Said Wen in remarks Reported by the Central Government&&9;s Internet portal (www.gov.cn)

He Said That Would the government try to Stabilize Prices of pork, a staple meat on Chinese dinner tables and The Most Closely Watched item in inflation control, by boosting the supply of hogs.

Meanwhile, China&&9;s central bank chief Zhou Xiaochuan has vowed to Maintain "prudent policy" to fight stubbornly high inflation, while Adding That It Would try to Avoid Causing big swings in Economic Growth.

"The most prominent problem in macro-operators is the Economic Inflationary pressure Relatively big and Inflationary expectations still strong," Zhou wrote in the latest edition of China Finance magazine, published by the People&&9;s Bank of China.

The acceleration in Chinese consumer inflation in June, driven by rising Which WAS food and property costs: revived expectations of more interest rate Rises in the next FEW months and rattled Asian Stock Markets and commodities, Even As Some Other data Pointed to cooling in robust icts Economic Growth.

"We must make it more prominent and important basic to Maintain Stability of the list overall price level, and Pay Attention to Price Stability in A Wider scope," Zhou said.

GROWING downside risk?

Zhou Also Said That the central bank Would work to "avoid big fluctuations" in the Economic Growth, Indicating Some Concerns over downside risk to the economy.

"We Should Implement prudent Monetary Policy in a pro-active and safe way to handle the relationship Between Maintaining steady, fast growth Relatively, Adjusting Economic structures and managing Inflationary expectations, &&9;he said.

China&&9;s import growth slowest pace Fell to STI in 20 months in June while export growth eased, evidence of the impact of the Broad Monetary Policies That Have weighed on Economic Growth and Growing of sluggishness in the global economy guaranteed payday loans.

Still, China Will switch STI policy focus from inflation to Curbing Supporting growth in the second half, Said Liu Yihui, a researcher with the Chinese Academy of Social Sciences, a top government think tank.

Any policy relaxation now worries about stagflation Would ignite in the fourth quarter, Liu added.

Inflation Probably Will peak in July and ease to about 4 percent thereafter Toward year-end, and the central bank Needs to fine-tune policy to lean icts more on interest rate Inflation Rises to check and pull out of real deposit rates negative Territory, Liu Told the official China Securities Journal.

Separately, Xia Bin, a central bank adviser, the China Securities Journal Told That Beijing Needs to use a combination of policy tools, Including interest rates, currency moves and open market operations as well as currency in banks&&9; required reserve ratios.

MARKET-ORIENTED TOOLS

Many Analysts expect the central bank to lean more on interest rates to fight inflation in coming months, Partly Because There Is limited room for it to raise bank reserve ratios Furth.

"We will use more market-oriented tools and Means Necessary to Maintain controls on liquidity, while Maintaining a reasonable social Amount of financing to Avoid big fluctuations in Economic Growth," PBOC chief Zhou said.

Zhou&&9;s remarks Indicated the central bank IS Trying to shun heavy-handed controls and credit Could lean more on Conventional policy tools, as interest rates and Such currency, analysts say.

The central bank relied HAS Heavily on raising bank reserve ratios to mop up Requirement excessive cash in the economy, Increasing the ratio nine times to a sincere October record high of 21.5 percent. It raised interest rates HAS aussi five times Since then.

"The market-oriented tools, Which objects to administrative measures, interest rates and include Typically exchange rate. Bank reserve ratios are more market-oriented Than direct lending controls," Said Gao Shanwen, chief economist at Essence Securities in Beijing China.

Gao Is A government researcher and train oz WORKED at the central bank.

($ 1 = 6,465 yuan)

(Additional reporting by Zhou Xin, Lu Jianxin and Carrie Ho, Editing by Jonathan Hopfner and Ken Wills)

China&&9;s Wen says inflation top priority, more tightening Seen

WASHINGTON (Reuters) - The U.S. economy IS NOT Facing a double-dip recession, weak job growth goal is "a call to arms" to take steps for Policymakers to reinvigorate the Private Sector, a top White House adviser said on Friday.

"This is not a double dip," Council of Economic Advisers Chairman Austan Goolsbee Insider Told Reuters the after the government report Showed the economy created only 18.000 jobs in June. "This is a reflection and reiteration That Slowed the growth rate at the Beginning of this year us fast cash."

"This Should Be a call to action, &&9;he added."We Need to take bipartisan action to help the Private Sector stand up and start Growing, Hiring and investing," Goolsbee said.

He steps Cited from passing Free Trade Agreement to Securing a deal on long-term deficit reduction.

(Reporting by Tim Ahmann, Editing by Padraic Cassidy)

U.S. IS NOT Facing double-dip recession: Goolsbee

WASHINGTON - June May Turn Out to Have Been a Good month to find a job After All.

A private report Saïd Business Hired Twice as Many Workers have HAD economists expected. Applications for Unemployment Benefits Have Reached a seven-week low. And more Small Businesses Plan to Increase THEY say Hiring In The Next Three months, a trade association said.

The brighter outlook for jobs emerged one day before the government after the June Will Employment Report, Regarded as The Most Reliable gauge of job creation.

The Three reports Suggested That the Overall Economy May Also Be Starting to Strengthen Now That Have Begun to gas prices decline and supply disruptions from Japan&&9;s crisis Stemming Have started to ease.

Economists Responded to the latest data by raising Their forecasts for Hiring in June. Many Employers That estimate now added at least 120.000 jobs.Some are as Predicting Many have 200.000 net new jobs for June.

That&&9;s well above-the consensus forecast for 90.000, based on a survey of economists by FactSet. And It Could That weak signal Hiring in May Was a setback Caused by temporary factors.

"The end of job growth May Have Been Reported prematurely," Said Joel Naroff, chief economist at Naroff Economic Advisors.

The outlook brightened Thursday morning after payroll processor ADP Said the Private Sector 157.000 jobs added last month. That Was More than double the number economists forecast HAD. And It Was Much Higher Than the 36.000 jobs Employers HAD Said That ADP added in May.

After the report Stocks rose WAS released. The Dow Jones Industrial Average Gained More than 118 points in afternoon trading.

Many economists Said the ADP report Was The Reason THEY Their revised up forecasts for the government&&9;s jobs report to Be Issued Friday.

Nigel Gault, chief U.S.economist at IHS Global Insight, history raised projection for net job gains in June from 100,000 to 140,000. Ian Shepherdson, chief U.S. economist at High Frequency Economics, Boosted His forecast from 100,000 to 175,000.

"We view the Always Took That May WAS hit by one-time factoring like severe weather and supply-chain disruptions, order this report suggests factoring Those Were we more significant Than Thought," Shepherdson said.

In May, Employers added only 54.000 jobs, Far Fewer Than The average gain of 220.000 in the previous Three months. The Unemployment Rate rose to 9.1 percent from 9 percent in April.

Among the evidence the economy Thursday That Might Be starting to pick up after a sluggish first half of the year:

• Retailers posted strong sales in June, Boosted by Widespread discounts guaranteed high risk personal loans. Target Corp., Costco Wholesale Corp.. and Limited Brands Inc. Exceeded all Wall Street Estimates.The International Council of Shopping Centers Said retailers enjoyed Collectively Their best June in 12 years, based on a tally of 28 store chains. The figures are based on revenue at stores open at least a year.

• The number of People Who Applied for Unemployment Benefits Fell to a seasonally Adjusted 418.000 last week, the Labor Department said. That&&9;s the level Lowest in Nearly Two months. Still, applications for 13 400.000 Have topped weeks, Evidence That the job market weakened HAS sincere Began the year.

• Small Businesses Say They&&9;re more Likely to Boost Hiring in the Next Three Months, According To a survey by the National Federation of Independent Business. In May, more companies to cut Planned Said THEY jobs.

And 15 percent of small companies say unfilled job openings THEY Have, Said the NFIB, up 12 percent from the previous month.

Have gas prices fallen sharply Since peaking in early May at a national average of Nearly $ 4 per gallon.Prices Averaged $ 3.58 a gallon nationwide on Thursday, According To AAA.

And manufacturing activity expanded in June at a faster pace Than the previous month, According To the Institute for Supply Management. That suggests the shares Shortage Caused by the March 11 earthquake in Japan IS Beginning to abate.

Those factors "are pretty much behind us, so UNLESS We Have Something Else unexpected, I think we&&9;ll be in good shape" in the second half of this year, Said Kurt Karl, chief U.S. economist at Swiss Re

The government last month Said That the Economy Grew 9.1 percent only in the January-March quarter. Analysts are expecting similarly weak growth in April-June quarter.

Will the economy grow at a 3.2 percent pace in the final six months of the year, According To year Associated Press survey of 38 economists.

Still, growth must be strong to Significantly Lower the Unemployment Rate.The economy Would Need to grow 5 percent for a year to Whole Significantly Bring Down the Unemployment Rate. Economic growth of just 3 percent a year Would hold steady and keep the Unemployment up with population growth.

___

AP Retail Writer Anne D&&9;Innocenzio Contributed to this report.

Job outlook Rises as more reports Suggest Hiring

WASHINGTON (Reuters) - New International Monetary Fund Managing Director Christine Lagarde on Wednesday Pledged to push ahead with Reforms to Give Fast-Growing Emerging Markets Greater sway at the global lender.

At a news conference on Her second day on the job, Lagarde Said the global economy WAS Rebounding from the 2007-2009 Financial Crisis purpose unevenly as growth in old-line industrial nations trails Such key emerging markets as China and India.

She Demands That Acknowledged Such institutions as the IMF Reflect better the shifting balance of power in the global economy and Said The Idea of ??Creating a top-ranking post at the IMF to Give a high profile to emerging markets WAS "not a bad idea."

"The world is going to continue to change," she said."We Have That thesis tectonic plates are moving at the moment, and That Needs to Be Reflected in the composition of governance and Employment at the Fund."

Emerging Markets IMF leader year HAD wanted Their ranks goal from Lagarde&&9;s appointment of a representative continued a European tradition That head the lending institution.

She said IMF member nations needed to completely reformed in 2010 to Agreed to Give Developing Countries More Power Within the institution free business cards.

"Goal That Should Reflect Also in our Employment Policies, in our training policies, and in the Way in Which We build teams, in the Way in Which We organizes recruitment That people are not so clones of Each Other," Lagarde said.

Lagarde faces year array of issues and she Acknowledged That Among The Most Pressing WAS dealing with a European debt crisis That HAS bailouts required for Ireland, Portugal and Greece.Confirmed That She Would Meet the IMF board on Friday to Consider a Disbursement of funds for Greece.

While noting the overall recovery WAS unbalanced, she Tried to sound a note of reassurance That It Was firmly in place.

"When we look at our growth forecasts for 2011, 2012, Clearly we are on the rebound and Things Are Improving and are getting better When Compared with the situation as It Was in 2009 at the height of the crisis," Lagarde said.

(Writing by Glenn Somerville, Editing by James Dalgleish)

MFI&&9;s Lagarde says IMF Will push on with Reforms