BRUSSELS (AFP) -- Struggling Spanish banks will not get much needed cash directly from Europe‘s new bailout fund until next year, a senior European official said Friday.A European Union summit last month agreed that the European Stability Mechanism would recapitalize banks directly, rather than give funds to the government concerned and so weigh down the state accounts with new debt.Spain, under pressure on financial markets as its borrowing costs reach dangerously high levels, had held out for

Facebook and Yahoo have agreed to settle a patent dispute, averting a potentially lengthy battle over the technology running two of the Internet's most popular destinations.In dropping the lawsuits, the companies agreed to license their patents to each other. They are also agreeing to an advertising alliance that expands their existing partnership. Friday's settlement involves no exchange of money

ROME (AFP) ― The Italian government agreed overnight Thursday on a series of measures to slash public spending by 26 billion euros ($32 billion) over three years, including major payroll cuts.“The economies in this measure will be 4.5 billion euros in 2012, 10.5 billion in 2013 and 11 billion in 2014,” said Prime Minister Mario Monti.Much of the savings will be found in the health and public administration budgets, said Monti.Deputy Economy Minister Vittorio Grilli said the planned measures woul

The European Central Bank cut its key rates to a new all-time low Thursday in a bid to keep up the positive momentum after EU leaders made some progress in solving the crisis at a summit last week.The ECB's policy-setting governing council voted, as expected, to lower the rate for its main refinancing operations by a quarter of a percentage point to 0.75 percent at the regular monthly meeting here

China announced Thursday it was cutting interest rates for the second time in a month, the latest effort to boost growth in the world's second-biggest economy.The changes, which take effect from Friday, will see the benchmark one-year lending rate drop by 0.31 percentage points and the deposit rate fall by 0.25 percentage points, the central bank said in a statement on its website.All correspondin

SHANGHAI (AFP) ― China has started stockpiling rare earths for strategic reserves, a state-backed newspaper said Thursday, in a move which may raise more worries over Beijing’s control of the coveted resources.China has already started the purchase ― using state funds ― and storage of rare earths for strategic reserves, the China Securities Journal said, but did not say exactly when the initiative was launched.The country produces more than 90 percent of the world’s rare earths, which are used i

STRASBOURG (AFP) -- Russia is offering Cyprus more favorable conditions than the EU and IMF as the Meditarranean island seeks aid to shore up its banks, Cypriot President Demetris Christofias said Wednesday."The conditions offered by Russia are more favorable" because it does not "impose any conditions" and offers "a lower interest rate," Christofias, a communist, told the European Parliament.Cyprus currently holds the rotating European Union presidency.Aid from the EU and International Monetary

Former Barclays head Diamond admits 'reprehensible’ behavior over the rate-fixing scandalLONDON (AFP) -- Moody’s on Thursday cut its outlook on Barclays' financial strength rating to “negative” from “stable” after the bank’s top executives resigned this week over an interest rate rigging scandal.“Moody's Investors Service has today changed the outlook on the “C-/baa2” standalone bank financial strength rating of Barclays Bank Plc to negative from stable,” the ratings agency said in a statement.T