Most of the damage inflicted on the U.S. labor market by the recession is reversible, according to Federal Reserve research, leaving open the possibility that additional stimulus will be effective in reducing joblessness. About one-third, or 1.5 percentage points, of the jump in unemployment from 5 percent as the economic slump began to its 10 percent peak in October 2009 can be traced to a mismatch between the supply of labor and job openings, according to a study released this month by the Fed

PARIS (AFP) ― With drought parching farms in the United States and near the Black Sea, weak monsoon rains in India and insidious hunger in Africa’s Sahel region, the world could be headed towards another food crisis, experts say.Asia should keep a catastrophe at bay with a strong rice harvest while the G20 group of industrialized and emerging economies tries to parry the main threat, soaring food prices.“We have had quite a few climate events this year that will lead to very poor harvests, notab

Vehicle sales will drop as much as 20 percent next quarter as the payouts expire, analysts sayToyota Motor Corp. and Honda Motor Co. can thank government aid for helping auto industry sales grow faster in Japan than any major market this year. As state subsidies are about to run out, so may the euphoria. Japan vehicle sales, after surging 53 percent in the first seven months, will drop as much as 20 percent next quarter as the payouts expire, analysts at BNP Paribas SA and IHS Automotive said. T

Spain will put its bank rescue fund in charge of the bad assets separated out from the nation’s struggling lenders that are receiving a European bailout. The FROB fund will be the main shareholder in a so-called bad bank, according to a proposal that will be approved by the Cabinet on Friday, Economy Minister Luis de Guindos told the Efe news agency in an interview Sunday. All the banks receiving loans from European rescue funds will have to transfer their non-performing assets to the bad bank,

BERLIN (AP) ― A senior ally of Chancellor Angela Merkel insisted that there is no room for concessions to Greece on fulfilling the conditions of its aid program and said in an interview published Sunday that he sees little chance of Germany’s governing coalition supporting a third rescue package.Greek Prime Minister Antonis Samaras is to visit Germany and France over the next week as Europe awaits a report next month from debt inspectors on Greece’s progress in implementing reforms and austerity

ROME (AP) ― Italy’s financial situation has made progress compared with last year, the premier said Sunday, believing the country will eventually emerge from the bleak economic crisis. Mario Monti said the condition of the economy was “worse” in 2011, before he was appointed to lead Italy down a tough path of austerity, new taxes and pension reforms. But Monti, an economist who put together a government of technocrats in November, didn’t venture any timeframe for the hoped-for exit from financia

Japan’s embattled Sharp is considering cutting thousands of jobs in addition to its current plan of slashing 5,000 jobs to repair its disintegrating balance sheet, a report said Saturday.As the struggling electronics maker decided to cut thousands more jobs, its main banks are likely to provide bridge loans of about 60 billion yen ($755 million) to shore up Sharp’s cash flow, the Mainichi Shimbun reported, without citing sources.A separate report by the Yomiuri Shimbun said Saturday it is consid

Luxembourg’s P.M. says Greece won’t leave eurozone, exit isn’t politically feasible: reportBERLIN (AP) ― Greece won’t leave the 17-nation eurozone, Luxembourg’s prime minister said, arguing in an interview published Saturday that an exit wouldn’t be politically feasible and would carry unforeseeable risks.Greece has been kept afloat by international loans, but has fallen behind on implementing reforms and austerity measures demanded in exchange, fueling impatience in Germany and other prosperous

OTTAWA (AP) ― German Chancellor Angela Merkel said Thursday that Germany is committed to doing everything it can to maintain the euro and renewed her call for fiscal discipline by praising Canada for not “living on borrowed money” and saying it should serve as a model for Europe. Merkel, fresh off her summer vacation, arrived in Ottawa for two days of meetings with Canadian Prime Minister Stephen Harper. Last month, European Central Bank President Mario Draghi said the bank would do “whatever it

Finnish cellphone maker has been downgraded to ‘BB-’ from ‘BB+’HELSINKI (AP) ― Rating agency Standard and Poor’s on Wednesday downgraded Nokia Corp.’s long-term corporate credit rating further into junk status amid concerns over the cellphone company’s deteriorating profitability. While cutting its rating on Nokia by two notches to “BB-,” S&P warned there could be further downgrades as it slapped a negative outlook on the company. For S&P, anything below “BBB-” is considered junk status, or not

ALBANY, New York (AP) ― The attorneys general of New York and Connecticut have issued subpoenas to seven banks over the possible manipulation of a global interest rate, a person with knowledge of the matter told the Associated Press on Wednesday. Subpoenas were issued, mostly last month and this month, to Barclays, Citigroup, Deutsche Bank, JPMorgan Chase, HSBC, Royal Bank of Scotland and UBS, the person said.  The person spoke on condition of anonymity because the person was not authorized to d