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Stock indexes gave back some of their gains Monday and the euro turned lower against the dollar following a report that Germany and five other major European nations could risk having their credit ratings downgraded.

The Dow Jones industrial average jumped as much as 167 points Monday but gave up more than half of that gain in the afternoon. The Financial Times reported that Standard & Poor’s might put the six nations on “creditwatch negative,” which means there is a 50-50 chance that one might be downgraded in the coming months.

The Dow and S&P 500 rose in early trading on hopeful signs that Europe was making progress toward preventing a breakup of its 17-nation currency union. Yields on Italian government bonds receded sharply after the new government of Mario Monti introduced sweeping austerity measures over the weekend.

Also, the leaders of France and Germany called for a new European treaty to prevent nations from running up big debts like the ones that pushed Greece and other weak countries to the brink of default.

“There’s pent-up demand, and people will use any excuse to get back in, thinking there’s been too much pessimism,” Gendreau said. Despite strong signals about the U.S. economy, the market has been weighed down by negative headlines about the U.S. budget impasse, credit-rating downgrades of the U.S. and other nations, and Europe’s spreading crisis, Gendreau said.

The Dow was up 70 points, or 0.6 percent, at 12,089 at 2:30 p.m. Eastern. The Standard & Poor’s 500 index rose 12, or 1 percent, to 1,256. The Nasdaq composite index rose 28, or 1.1 percent, to 2,655.

The gains were broad. All 10 industry groups in the S&P 500 rose. Financials stocks were among the biggest winners. Investors have feared that U.S. banks might be dragged down by their close connections to the unstable European financial system.

JPMorgan Chase & Co. jumped 3.5 percent, the most in the Dow. Bank of America was the second-biggest gainer of the Dow 30, rising 3.2 percent. Citigroup Inc. rose 5.7 percent, Morgan Stanley 6.1 percent.

Investors are hoping that a summit of European leaders on Thursday and Friday will produce concrete measures to prevent a messy breakup of the euro currency, which is shared by 17 nations. Markets have been jittery because of fears that the euro might disintegrate, causing a sharp recession in Europe that would spread through the world economy.

While the statements from French President Nicolas Sarkozy and German Chancellor Angela Merkel were far from a long-term solution, investors are eager to buy on any hint of good news because they have been earning meager returns from relatively low-risk investments such as Treasurys and CDs, said Brian Gendreau, investment strategist with Cetera Financial Group instant payday loans.

Italian bond yields dropped to their lowest level in a month, a day after the nation’s new government introduced austerity measures. That suggests traders believe that Italy is far less likely to default. The main Italian stock index jumped 2.9 percent.

Italy’s borrowing costs pulled back from a level that might have forced the nation to default. Analysts say bailing out Italy would be too costly and would hurt the credit standing of German and France, which have the strongest economies in the euro group.

The yield on the 10-year Italian bond plunged half a percentage point to 5.93 percent. It rose above 7 percent last month, a level at which other nations were forced to take bailouts. By comparison, bond yields in Germany, Europe’s largest and most stable economy, are roughly 2 percent.

Monday’s strong gains follow the best week in more than two years for U.S. stock indexes. The S&P 500 rose 7.4 percent last week, the most since March 2009. The Dow jumped 7 percent, the most since July 2009.

Markets are hopeful that, given the gravity of the situation afflicting the euro zone, the German and French leaders will come up with a common proposal for tighter integration on budget matters. Analysts say that such a plan could lead to further emergency aid from the European Central Bank, possibly through the International Monetary Fund.

In corporate news:

_ Gannett Co. leapt 11.4 percent after the media company was upgraded to “buy” from “neutral” by analysts at Lazard Capital Markets.

_ Incyte Corp. fell 2.7 percent after a Citigroup analyst downgraded the drug maker to “neutral” from “buy,” saying its new blood-disease drug Jakafi might not work as a long-term treatment.

_ SuccessFactors Inc. soared more than 50 percent after the company agreed to be sold to German software company SAP for $3.4 billion. SuccessFactors makes software specializing in human resources tasks. The deal is part of SAP’s plan to compete with software rival Oracle Corp.

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How should people prepare their houses for sale during the winter?

A bit of simple maintenance now will go a long way to keep a house in good shape for prospective buyers this winter.

Start by clearing leaves from gutters and patios. Keep walking areas swept and collect lawn debris regularly. Remember to check working fireplaces for loose mortar and debris. Get heating systems inspected. Stock up on filters for timely changes throughout the winter. Replacing window screens with storm windows will cut heating costs and extend the life of the screen material.

Don’t overlook the driveway. Snow, ice and salt that come with the winter season can wreak havoc on driveways and blacktop surfaces. Protect them by filling cracks and holes before the freeze sets in. Snow can alter the overall look of the property. Shovel and de-ice paths and doorways. The driveway and sidewalks should be plowed. Make sure that outside lights and doorbells work. Consider installing more lights to highlight effectively the best areas of the house.

Focusing on the interior is also important for selling in the winter. Furnished homes and those that are well organized have more appeal. Make sure beds are made, furniture is well placed and that countertops and closets are clutter-free. Bear in mind that not all home shoppers celebrate the same holidays. Keep holiday decorations as a seasonal accent so buyers see the home, not just the adornments.

Selling a home in the winter has its perks. Chances are, buyers looking for a home during the winter holidays are serious about buying and not simply shopping around. At that time of year, there are fewer homes on the market, reducing the competition.

The Federal Reserve, after employing a dwindling set of policy options at its last two meetings, may hit the pause button in hopes that the faint signs of the economy’s rebound will grow stronger.

By taking a wait-and-see approach, the Fed would be buying time to assess whether its actions in August and September are having the desired effect of lowering long-term interest rates enough to jump-start growth.

The Fed’s decision will be announced around mid-day Wednesday following two days of closed-door discussions.

The central bank will also release an updated economic forecast and Federal Reserve Chairman Ben Bernanke will hold a news conference to discuss the Fed’s new forecast.

It will be Bernanke’s third news conference after a Fed meeting and will continue a practice he began last April in an effort to give the public a better understanding of the Fed’s decision-making.

Most economists believe the Fed will leave policy unchanged, although it will be a close call.

“It is about 50-50 on whether they will do anything. There is evidence the economy is continuing to grow, but we still have a fundamentally weak economy,” said Brian Bethune, economics professor at Amherst College.

Financial markets in the United States and around the world were jolted Tuesday after Greece’s prime minister made the surprise decision to call a referendum on the country’s latest rescue package. The move sparked fears that the entire debt deal could unravel, that Greece could default on its debt and that the crisis could ripple through the global financial system.

Economists said Europe was sure to be a major discussion topic during the Fed meeting.

“They will talk about Europe, but I don’t expect any action,” said David Jones, head of DMJ Advisors, a Denver-based consulting group. “The Fed will not respond to the problems in Europe until it is clear they are causing a significant weakening in economic activity in the United States.”

David Wyss, former chief economist at Standard & Poor’s, said one reason for the Fed’s reluctance to do more is that they don’t have many policy options left.

“They know they are running out of tools so they don’t want to employ another one unless they have to,” he said.

The economy nearly stalled out during the first six months of the year, with growth slowing to an anemic 0.9 percent, the slowest pace since the recession ended in June 2009 low fee pay day loans.

However, the government reported last week that growth rebounded modestly in the summer with the economy expanding at an annual rate of 2.5 percent in the July-September period, the best quarterly performance in a year.

While the economy would have to nearly double from the 2.5 percent rate to make a significant dent in high unemployment, the faster growth at least eases fears of a new recession.

At its Aug. 9 meeting, the central bank approved changing its guidance on future policy to say it hoped to keep a key interest rate, which has been near zero since December 2008, at a record low through at least mid-2013, as long as inflation does not become a threat.

The belief was that such an assurance would give investors more confidence that rates would not begin rising any time soon and help to push long-term rates down farther.

At the next meeting on Sept. 20-21, the Fed voted to shift $400 billion of its holdings from short-term to long-term Treasury securities in another effort to push already low long-term rates down further. These rates are critical for consumers borrowing to buy homes and cars and for businesses borrowing to make investments to expand their operations.

Both the August and September moves were approved on 7-3 votes with three regional bank presidents _ Richard Fisher of Dallas, Charles Plosser of Philadelphia and Narayana Kocherlakota of Minneapolis _ voting no because of concerns the actions raise the threat of future inflation.

That was the largest number of dissents in nearly 20 years from an action by the Federal Open Market Committee, the panel of Fed governors and central bank presidents who meet eight times a year to set interest-rate policies.

On the other side are at least four Fed officials, Vice Chair Janet Yellen, Governor Daniell Tarullo, Chicago Fed President Charles Evans and New York Fed President William Dudley who have expressed concerns that the economy is still at risk and may need more support.

If the Fed does move again, many believe it will not occur until either the December meeting or early next year. Some economists believe the likely next change would be a further tweaking of the Fed’s communication efforts.

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About 1,000 Libyan revolutionary troops have launched a major assault on Moammar Gadhafi’s hometown, surging from the east to try to capture the last area under loyalist control.

Tuesday’s push to rout the remaining resistance from Sirte came a day after commanders announced they had captured most of a second stronghold, Bani Walid.

Libyan fighters have squeezed the die-hard Gadhafi supporters into an area comprising just a few blocks in Sirte but have been unable to gain full control of the city.

It has been more than two months since the former rebels gained control of the capital and much of the rest of the oil-rich North African nation. Persistent fighting has prevented Libya’s new leaders from declaring final victory and setting a timeline for elections.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

TRIPOLI, Libya (AP) _ Libyan revolutionary forces have captured almost all of Bani Walid, one of Moammar Gadhafi’s last remaining strongholds, but still face pockets of resistance as they try to end a weeks-long standoff, officials said Monday.

Fierce resistance in Bani Walid and Gadhafi’s hometown of Sirte has prevented Libya’s new leaders from declaring full victory and setting a timeline for elections. It has been more than two months since the former rebels gained control of the rest of the oil-rich North African nation.

In a step toward normalcy, the transitional leadership council confirmed it has signed an agreement with NATO that partially lifts the no-fly zone imposed in March over the country, allowing resumption of some flights without seeking NATO approval. The embargo was imposed as part of the U.N. Security Council resolution that authorized airstrikes to protect civilians from Gadhafi’s regime.

Anwar Elfeitori, the minister of transportation and communications, said the agreement signed Thursday in Malta will make it easier to transport wounded fighters from the front lines for treatment.

“The partial lifting of the air embargo will help with the transportation of the casualties, which is the No. 1 priority at this time, as well as facilitate the movement of people between Libya and the rest of the world,” Elfeitori told The Associated Press in an interview.

He said the agreement only applies to specific routes and altitudes for humanitarian flights but is designed so it can be amended to include other areas as security conditions allow.

In Washington, State Department spokesman Mark Toner said the revolutionary council fighters are making progress short term personal loan. He called on pro-Gadhafi forces “to lay down their weapons and join the new Libya.”

NATO officials have expressed surprise at the persistence of Gadhafi’s supporters. Libyans believe the heavy resistance signals some of Gadhafi’s sons and other high-level regime figures are hiding in the areas.

Fighters in Bani Walid, which has proven particularly hard to capture because of its difficult terrain, said they have entered the city center for the first time but still were fighting Gadhafi supporters in surrounding villages.

“We liberated the city around sunset on Sunday and raised the revolutionary flags all over the city,” field commander Abdel-Salam Genouna told The Associated Press. He said fighters had occupied the central marketplace, the hospital, the hotel and an old fort that had all been used as bases for Gadhafi loyalists.

“We are patrolling the neighborhoods because there are still some scuffles, but otherwise it is completely under our control,” he said, adding revolutionaries also had control of a steep valley called Wadi Zeitoun that had been a sniper base for Gadhafi’s forces.

“Our forces are everywhere inside the city, and we are protecting the few families we found inside,” he said.

He said fighters from Sabratha, Tripoli and Bani Walid were involved in the operation.

Col. Ahmed Bani, a military spokesman in Tripoli, said revolutionary forces had control over more than 90 percent of the city. He said revolutionary forces had suffered heavy casualties but declined to give a number.

Residents and fighters said that Gadhafi forces retreated in the face of the advance over the past two days.

Moammar al-Warfali, a doctor in Bani Walid, said fighters loyal to the new transitional government seized the center, a key hospital and several other high buildings used by Gadhafi’s snipers to prevent any advance by the revolutionary fighters.

He also said Gadhafi’s son Seif al-Islam had been seen in the city as recently as last week.

NATO has pledged to continue airstrikes for as long as necessary, saying pro-Gadhafi forces continue to pose a threat to civilians in Libya.

Britain’s Foreign Secretary William Hague also pledged more humanitarian and financial support Monday during a visit to Tripoli.

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Germany’s finance minister says private holders of Greek government bonds must accept bigger losses to achieve “a durable and sustainable solution” for Europe’s debt crisis.

Wolfgang Schaeuble told German public broadcaster ARD on Sunday that an agreement struck in July when banks and other investors agreed to renounce on 20 percent of their Greek debt must be renegotiated.

He says the private sector’s contribution to a reduction of Greece’s debt burden “will probably have to be higher fast payday loan.”

The Institute of International Finance, a global bank lobbying group, says its managing director Charles Dallara is in talks with officials from the 17-nation eurozone about the July agreement. Spokesman Frank Vogl declined to elaborate, but the group’s leadership has so far rejected accepting bigger losses.

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The head of the Securities and Exchange Commission is facing increased scrutiny from lawmakers as a former top SEC official says he was cleared to work on how victims of Bernard Madoff’s scheme should be compensated, even though he benefited financially from Madoff’s scheme.

The former SEC general counsel, David Becker, says in written testimony he was told by agency ethics officials he had no conflict of interest in helping craft the SEC policy.

SEC Chairman Mary Schapiro was criticized at a House hearing Thursday for allowing Becker to help set the policy even though he told her he had inherited a Madoff account from his mother business card design.

The SEC inspector general has investigated the matter and asked the Justice Department to determine whether Becker violated conflict-of-interest laws.

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Wasting no time, President Barack Obama is pitching to the public his $447 billion jobs program of tax cuts and new spending after bluntly telling Congress to “stop the political circus” and fix the economy.

But that doesn’t mean Republicans are buying.

“The proposals the president outlined tonight merit consideration,” House Speaker John Boehner, R-Ohio, said Thursday after Obama, in a nationally televised address to Congress, laid out an agenda that leaned heavily on payroll tax cuts to put money into the economy. “We hope he gives serious consideration to our ideas as well.

“It’s my hope that we can work together,” Boehner added.

While noncommittal, it was one of the more generous reactions from Republicans to a speech from a Democratic president in political trouble seeking bipartisanship to repair a long-ailing economy.

“You should pass it right away,” the president told lawmakers more than once and pledged to campaign for its enactment “in every corner of this country.” To that end, Obama set his first trip for Friday to Richmond, Va., a city represented by the No. 2 Republican in the House, Majority Leader Eric Cantor.

There were other hints that Obama intends to carry the fight to Republicans, including his statement that “there’s a bridge that needs repair between Ohio and Kentucky” _ the states that sent Boehner and Senate Republican leader Mitch McConnell to Congress.

In a statement issued after the speech, McConnell said, “For months, we’ve been engaged in a national debate about spending and debt, about the need to get our nation’s fiscal house in order, about the need to rein in government. … Yet here we are, tonight, being asked by this same president to support even more government spending with the assurance that he’ll figure out a way to pay for it later.”

Obama offered no estimate of the number of jobs his plan would create. He said the tax cuts he is recommending would mean $1,500 a year for the typical working family and $80,000 for businesses with 50 employees of average pay. Unemployment has been stuck at 9.1 percent for two consecutive months and not even the administration is projecting significant improvement anytime soon.

With a nod to deficit hawks _ independent voters among them _ Obama also said he would outline legislation in coming days to offset the bill’s $447 billion price tag so it wouldn’t add to federal deficits.

While the bill’s $253 billion in tax cuts could well draw support from Republicans, an additional $194 billion in new spending likely will prove a harder sell. The president asked for the money to fund highway and other construction projects, modernize schools, stabilize blighted neighborhoods and help states hire teachers and first responders.

“The president’s plan is nothing new,” said Sen. Orrin Hatch of Utah, the senior Republican on the tax-writing Senate Finance Committee.

Rep. Hal Rogers of Kentucky, chairman of the House Appropriations Committee, said he was “concerned that what we’ve heard from President Obama this evening is an echo of his administration’s unsuccessful strategy of the last few years, which has resulted in unsustainable spending that has skyrocketed the budget deficit and pushed our nation further into fiscal crisis.”

“Rather than offer a new road map for recovery and reform, he merely dusted off a tired agenda of old ideas wrapped in freshly partisan rhetoric,” said Sen. Jon Kyl of Arizona, the second-ranking Republican in the Senate and a member of the special committee just embarking on talks to cut future deficits by $1.2 trillion or more.

The reaction of Democrats in Congress was supportive of the president but in terms more partisan than he had used.

Senate Majority Leader Harry Reid, D-Nev., said he hoped the proposals would “present a litmus test to Republicans. I hope they will show the American people that they are more interested in creating jobs than defeating President Obama.”

Democrats control a majority in the Senate but lack the 60 votes to pass legislation over Republican objections.

They have little power in the House, where Republicans are in control.

But the party’s leader in the House, Rep. Nancy Pelosi of California, challenged the majority in terms similar to Reid’s.

“Republicans have a choice to either work with Democrats on the immediate need to create jobs or waste more time when American families are demanding action,” she said.

The centerpiece of Obama’s plan is a reduction in the Social Security payroll tax for millions of workers as well as for employers.

The tax for individuals was cut from 6.2 percent of wages to 4.2 percent for the current year but would rise again on Jan. 1 without action by Congress. Instead, Obama proposed cutting it further for 2012, to 3.1 percent.

The same 3.1 percent tax would apply to employers, half of what they now pay. In addition, businesses would receive additional tax breaks for hiring veterans or individuals who have been without work for more than six months.

A fact sheet distributed by the White House said if enacted, the president’s proposals would prevent 280,000 teacher layoffs, modernize 35,000 schools and establish a new National Infrastructure Bank to modernize roads, rails and other public facilities.

The White House also said an extension of unemployment insurance the president is seeking would prevent 5 million Americans from losing their benefits and encourage states to put initiatives into place along the lines of a Georgia program in which individuals collecting unemployment benefits can do temporary work.

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The lowering of America’s sterling credit rating was the punctuation mark on a tumultuous week in financial markets.

Standard & Poor’s, the credit rating agency, said Friday it was dissatisfied with the plan Congress came up with earlier in the week to reduce the country’s debt.

This is the first time the nation’s credit rating has fallen below the highest level, AAA. The U.S. had held that rating since 1917. The move came just days after a gridlocked Congress finally agreed to spending cuts that would reduce the debt by more than $2 trillion.

The drop in the rating by one notch to AA-plus was telegraphed as a possibility back in April. The three main credit agencies, which also include Moody’s Investor Service and Fitch, had warned during the budget fight that if Congress did not cut spending far enough, the country faced a downgrade. Moody’s said it was keeping its AAA rating on the nation’s debt, but that it might still lower it.

One of the biggest questions after the downgrade was what impact it would have on already nervous investors. While the downgrade was not a surprise, some selling is expected when stock trading resumes Monday morning. The Dow Jones industrial average fell 699 points this week, the biggest weekly point drop since October 2008. The weak economy was the primary catalyst behind that plunge, but the debt debate and the threat of a downgrade were also factors.

“I think we will have a knee-jerk reaction on Monday,” said Jack Ablin, chief investment officer at Harris Private Bank.

But any losses might be short-lived.

“The market’s already been shaken out,” said Harvey Neiman, a portfolio manager of the Neiman Large Cap Value Fund. “It knew it was coming.”

One fear in the market has been that a downgrade would scare buyers away from U.S. debt. If that were to happen, the interest rate paid on U.S. bonds, notes and bills would have to rise to attract buyers. And that could lead to higher borrowing rates for consumers, since the rates on mortgages and other loans are pegged to the yield on Treasury securities.

However, even without an AAA rating from S&P, U.S. debt is seen as one of the safest investments in the world. And investors clearly weren’t scared away this week. While stocks were plunging, investors were buying Treasurys and driving up their prices. The yield on the 10-year Treasury note, which falls when the price rises, fell to a low of 2.39 percent on Thursday from 2.75 percent Monday.

A study by JPMorgan Chase found that there has been a slight rise in rates when countries lost an AAA rating. In 1998, S&P lowered ratings for Belgium, Italy and Spain. A week later, their 10-year rates had barely moved.

The government fought the downgrade. Administration sources familiar with the discussions said the S&P analysis was fundamentally flawed. They spoke on condition of anonymity because they weren’t authorized to discuss the matter publicly. S&P had sent the administration a draft document in the early afternoon Friday and the administration, after examining the numbers, challenged the analysis.

S&P said that in addition to the downgrade, it is issuing a negative outlook, meaning that there was a chance it will lower the rating further within the next two years. It said such a downgrade, to AA, would occur if the agency sees smaller reductions in spending than Congress and the administration have agreed to make, higher interest rates or new fiscal pressures during this period.

In its statement, S&P said that it had changed its view “of the difficulties of bridging the gulf between the political parties” over a credible deficit reduction plan.

S&P said it was now “pessimistic about the capacity of Congress and the administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government’s debt dynamics anytime soon.”

One analyst suggested the downgrade might move Congress to take concrete steps to fix the nation’s budget problems.

“It’s a downgrade and it’s bad, but if it spurs more conversation about bringing down spending and maybe more intelligent tax policy, it could be a good thing in the long run,” said Frank Barbera, a portfolio manager of the Sierra Core Retirement Fund.

The Federal Reserve and other U.S. regulators said in a joint statement that S&P’s action should not have any impact on how banks and other financial institutions assess the riskiness of Treasurys or other securities guaranteed by the U.S. government. The statement was issued to make sure banks did not feel that the downgrade would affect the amount of capital that regulators require the banks to hold against possible losses.

Before leaving for a weekend at Camp David, President Barack Obama met with Treasury Secretary Timothy Geithner in the Oval Office late Friday afternoon.

The downgrade is likely to have little to no impact on how the United States finances its borrowing, through the sale of Treasury bonds, bills and notes. This week’s buying proves that.

“Investors have voted and are saying the U.S. is going to pay them,” said Mark Zandi, chief economist of Moody’s Analytics. “U.S. Treasurys are still the gold standard.” He noted that neither his parent organization, Moody’s, nor Fitch, the other of the three major rating agencies, have downgraded U.S. debt.

The ratings agencies were sharply criticized after the financial crisis in 2008 for not warning investors about the risks of subprime mortgages. Those mortgages were packaged as securities and sold to investors who lost billions of dollars when the loans went bad.

Japan had its ratings cut a decade ago to AA, and it didn’t have much lasting impact. The credit ratings of both Canada and Australia have also been downgraded over time, without much lasting damage.

“I don’t think it’s going to amount to a lot,” said Peter Morici, a University of Maryland business economist.

Still, he said, “The United States deserves to have this happen,” because of its clumsy handling of fiscal policy.

In reacting to the downgrade, Democrats and Republicans continued to blame each other and pledged to hold firm to their principles.

Republican presidential candidates criticized the White House. Rep. Michele Bachmann, R-Minn., called on Obama to fire Treasury Secretary Timothy Geithner and submit a plan to balance the budget and not just reduce future deficits. Republican candidate Mitt Romney, former governor of Massachusetts, said the credit downgrade was the “latest casualty” in Obama’s failed economic leadership.

House Democratic Leader Nancy Pelosi said the American people will be closely watching the work of the 12-member joint committee that has been created to produce more than $1 trillion in additional savings over the next decade.

“The work of this committee will affect all Americans, and its deliberations should be open to the press, to the public and webcast,” she said.

Senate Democratic Leader Harry Reid said the downgrade underscored the need for a “balanced approach to deficit reduction that combines spending cuts with revenue-raising measures” such as doing away with tax breaks for the wealthy and oil companies.

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AP reporters Tom Raum, David Espo and Julie Pace in Washington and Business Writers Chip Cutter and Pallavi Gogoi in New York contributed to this report.

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Police investigating phone hacking and police bribery at defunct British tabloid News of the World on Tuesday arrested a man, believed to be a former executive at the newspaper.

The Metropolitan Police said a 71-year-old man had been arrested by appointment Tuesday morning at a London police station. They did not name him, in keeping with British police practice of not identifying suspects who have not been charged,

Sky News, which is 39 percent owned by the newspaper’s parent company, News Corp. identified him as former News of the World managing editor Stuart Kuttner.

He is in custody and being questioned on suspicion of conspiring to intercept communications _ phone hacking _ and suspicion of corruption.

Detectives investigating claims the Rupert Murdoch-owned newspaper illegally eavesdropped on the phone messages of celebrities, politicians and even crime victims have previously arrested 10 people, including Murdoch’s British newspaper chief Rebekah Brooks and Andy Coulson, a former News of the World editor who went on to be Prime Minister David Cameron’s communications chief check cash advance.

Coulson was the paper’s editor when royal reporter Clive Goodman and private investigator Glenn Mulcaire were arrested and jailed in 2007 for hacking the phones of royal staff. The newspaper claimed for years that hacking was limited to those two rogue staff, but have now admitted it was more widespread.

All those arrested have been released on bail and no one has yet been charged.

(This version adds details, corrects suspect’s age in light of new information from police.)

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Congress and the Obama administration are weighing their options as time closes in on the deadline for raising the nation’s debt ceiling, and the White House may call another meeting Sunday of congressional leaders and President Barack Obama.

White House and congressional and aides will continue discussions as Congress moves on two tracks to find a solution for increasing the nation’s borrowing authority while reducing long-term deficits.

The government will exceed the current $14.3 trillion debt ceiling on Aug. 2, after which it will be in default of its obligations. The consequences could be far-reaching, with potentially higher interest rates on mortgages and car loans, a halt in Social Security checks and unsettled world financial markets.

Republicans and some Democrats want to use the debt ceiling countdown as an opportunity to reduce long-term deficits, but both sides have reached an impasse on how to accomplish that.

House Republicans are preparing to vote this week on allowing an increase in the government’s borrowing limit through 2012 as long as Congress approves a balanced-budget constitutional amendment, which is highly unlikely.

In the Senate, the Republican and Democratic leaders are working on a bipartisan plan that would allow Obama to raise the debt limit without a prior vote by lawmakers payday loans lenders. The talks are focusing on how to address long-term deficit reduction in the proposal to satisfy House Republicans.

“Lines of communication remain open with all parties,” said Brendan Buck, a spokesman for House Speaker John Boehner.

White House budget director Jacob Lew was scheduled to make a round of appearances on Sunday television news shows to make the case for Obama’s call to reduce deficits with a mix of spending cuts and revenue increases. Republicans have rejected any plan that contains tax increases.

Obama made the argument himself in his weekly radio and Internet address.

“We have to ask everyone to play their part because we are all part of the same country,” Obama said Saturday, pushing a combination of spending cuts and tax increases that has met stiff resistance from Republicans. “We are all in this together,” he said.

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