Media playback is unsupported on your device

Argentina defaults for second time

31 July 2014 Last updated at 07:53 BST

Last-minute talks in New York between Argentina and a group of bond-holders to avoid the country defaulting on its debt have ended in failure.

So-called "vulture fund" investors are demanding a full pay-out of $1.3bn (£766m) on bonds they hold.

Argentina has said it cannot afford to do so, and has accused them of using its debt problems to make a big profit.

Katy Watson reports.