Greece default would hurt other countries, says Moody's

Greece is seeking political consensus over its latest austerity programme

Any Greek debt default would likely hurt the credit rating of other peripheral eurozone countries, the ratings agency Moody's has warned.

In a statement on the impact of a potential default, Moody's said such a default would also hurt Greek banks.
Moody's also became the latest agency to say any kind of restructuring of Greek debt would constitute a default.
And Prime Minister George Papandreou is meeting opposition leaders to discuss Greece's latest austerity plan.
Mr Papandreou met Conservative party leader Antonis Samaras in the morning, and is to meet another four party leaders later in the day.
However, the head of the Communist party, which is influential with trade unions, has refused to meet.
Greece received a 110bn euro (£96bn; $155bn) bail-out from the European Union and International Monetary Fund last year.
As it attempts to reduce its debts, it has introduced various austerity measures.
But its efforts have not been helped by political bickering and the European Union has called for cross-party support in Greece for a medium-term austerity programme.
'Adverse implications' There has been increasing speculation that Greece could be allowed to restructure its debt.
On Monday, the Luxembourg Prime Minister and head of the eurogroup, Jean-Claude Juncker, said that a restructuring would involve a delay in repayments and a cut in interest payments, but would only be granted if the Greek government met strict targets.
In its statement, Moody's said: "It is apparent that the longer the current state of uncertainty affecting Greece persists, the greater the temptation on the part of both the Greek and the euro area authorities to try to undertake some form of debt restructuring - in other words, to allow Greece to default.
"Moody's believes that a default is likely to have adverse credit rating implications for Greece, possibly some other stressed European sovereigns, and the Greek banks, regardless of the efforts made to achieve an 'orderly' outcome.
"The full impact on Europe's capital markets would be hard to predict and harder still to control. The fallout would have implications for the creditworthiness (and hence the ratings) of issuers across Europe."
Meanwhile, Greece's cost of borrowing in bond markets has continued to rise steadily, as expectations of an eventual default rise.
The yield on its 10-year bonds rose above 17% on Tuesday, up from 15.3% a week ago.

'Blast' at new Iran oil refinery as Ahmadinejad visits

President Ahmadinejad was unhurt in the blast

At least one person has been killed and 20 injured in a blast at an Iranian refinery around the time of a visit by Iran's president, local media say.

A technical problem caused the blast and then a fire, Fars news agency said.
Thick smoke was seen rising from the refinery but the fire was under control, the semi-official agency said.
President Mahmoud Ahmadinejad was not injured, and made a televised speech to mark the opening of the oil refinery in the south-western city of Abadan.
A senior Iranian official said the incident was "not an act of intentional sabotage".
"Experts had forewarned that Abadan refinery was not ready to be inaugurated," Hamid-Reza Katouzian, head of Iran's parliamentary energy committee, was quoted as saying by Reuters news agency.
"The incident in Abadan refinery was due to technical problems."
Another news agency, Mehr, said the explosion was caused by a gas leak and some employees inhaled toxic substances.
It reported that at least two people had been killed.
Historical significance There were conflicting reports about whether the blast had occurred before, during or after Mr Ahmadinejad's visit.
In August last year, Iranian authorities denied that an explosive device had been thrown at Mr Ahmadinejad's convoy near the city of Hamedan.
Analysts say Mr Ahmadinejad is currently involved in a power struggle with Supreme Leader Ayatollah Ali Khamenei, after the latter reinstated the intelligence minister the president tried to sack.
The refinery is being launched in two phases and ultimately will produce more than 6m litres (1.3m UK gallons) of petrol a day, mostly for domestic consumption.
Correspondents say Mr Ahmadinejad's presence shows the importance Iran, a major oil producer, places on increasing its refining capacity as sanctions hit its ability to import petrol.
Accidents are relatively frequent in Iran's oil and gas infrastructure, and state media said similar incidents had been reported at the plant in the weeks before it opened.
There have also been media reports of two acts of sabotage against the main gas pipeline from the south to the capital Tehran, though they said supply was not affected.
The port of Abadan has a special significance in Iranian history after post-war Prime Minister Mohammad Mossadeq nationalised the Iranian assets of the Anglo-Iranian oil company.
His move led eventually to a CIA-backed coup which overthrew him and led to decades of Iranian animosity towards the West.

President Obama hails 'essential' US-UK relationship

The US-UK partnership is "an essential relationship for us and for the world", their leaders have said at the start of the US president's visit to Britain.

The visit began with Barack Obama being formally greeted by the Prince of Wales and the Duchess of Cornwall at the US ambassador's residence, Winfield House.
He is now meeting the Queen at Buckingham Palace at the start of his packed, three-day state visit.
On Wednesday he will meet Prime Minister David Cameron for talks.
The leaders are likely to focus on the Middle East and the ongoing conflict in Libya.
In a joint article in the Times, Mr Obama and Mr Cameron said of their countries' relationship: "Ours is not just a special relationship, it is an essential relationship - for us and for the world.
"When the United States and Britain stand together, our people and people around the world can become more secure and more prosperous.
"The reason it thrives is because it advances our common interests and shared values. It is a perfect alignment of what we both need and what we both believe."

The US president and his wife arrived at Stansted a day ahead of schedule

They also vowed not to abandon the protesters fighting for democracy in Arab countries, writing that they would "stand with those who want to bring light into dark, support those who seek freedom in place of repression, aid those laying the building blocks of democracy.
"We will not stand by as their aspirations get crushed in a hail of bombs, bullets and mortar fire," said the two leaders.
"We are reluctant to use force, but when our interests and values come together, we know we have a responsibility to act."Mr Obama arrived in the UK a day ahead of schedule on Monday, to avoid any disruption from a volcanic ash cloud.
The president flew into Stansted, in Essex, with wife Michelle after leaving the Republic of Ireland, where his week-long tour of Europe began.
The couple will receive a ceremonial welcome later, before visiting Westminster Abbey and Downing Street.
They will also meet the Duke and Duchess of Cambridge at Buckingham Palace and are expected to congratulate them on their marriage.

Continue reading the main story

Analysis

James Landale Deputy political editor, BBC News

Whenever a US president comes here there is always a slightly tortuous debate on whether or not the relationship is still special or not.
Both sides have decided the best way of avoiding that debate is to come up with a new wording entirely. They have a new adjective. It is now an essential relationship.
In a joint article for the Times newspaper, the prime minister and the president say the relationship between their countries was based originally on what they called emotional connections, sentiment and the ties of people and culture but now it thrives on common interests and shared values.
So what they are trying to focus on here now is more business-like pragmatism rather than any idea of appealing to the mythology of past historic links.

Security will be tight during the three-day trip which comes ahead of the G8 summit of world leaders in France.

The state visit to the UK is the 101st to be hosted by the Queen but only the third involving a US president in 100 years. The last US leader to come to the UK on one was George Bush in 2003.
The president's itinerary starts with joining the Duke of Edinburgh to inspect a Guard of Honour in the palace gardens, before a private lunch with the Queen.
The public will get their first chance to see President Obama and the First Lady when they arrive at Westminster Abbey to lay a wreath at the Tomb of the Unknown Warrior.
The couple will then go to Downing Street to meet the prime minister and his wife, Samantha, before returning to Buckingham Palace to meet Labour leader Ed Miliband.
In the evening there will be a state banquet for the Obamas at Buckingham Palace, where they will stay overnight.
On Wednesday, Mr Obama will hold talks with Mr Cameron at Downing Street.
He will be joined later by Michelle for a barbecue at Number 10 with British and American military veterans.
There will be a news conference, before the president departs for the Houses of Parliament, where he will give a speech about US foreign policy to MPs in Westminster Hall.
The day will be rounded off with a return banquet at Winfield House, the official residence of the US ambassador, where the Queen will formally say farewell.
Mr Obama's week-long tour of Europe began in Dublin on Monday where he delivered an open-air speech to thousands of cheering people, reaffirming US-Irish ties.
Speaking in Gaelic, he told them he was happy to be in the Republic of Ireland.
"Whenever peace is challenged... America will stand by you always in your pursuit of peace," he said.
Later this week President Obama will visit Poland and France, where he will attend a meeting of the Group of Eight (G8) major world powe