Spain beset by bank crisis, downgrades, bond pressure

MADRID (Reuters) - Spain's borrowing costs shot up at a bond auction on Thursday and its troubled banks suffered a double blow, with shares in part-nationalized Bankia diving and 16 lenders - including the euro zone's biggest - having their credit ratings cut.

Exclusive: U.N. probes possible North Korea arms trade with Syria, Myanmar

UNITED NATIONS (Reuters) - A U.N. panel of experts that monitors compliance with sanctions on North Korea is investigating reports of possible weapons-related deals between Pyongyang and Syria and Myanmar, the panel said in a confidential report seen by Reuters on Thursday.

Poll shows Greece electing pro-bailout government

ATHENS (Reuters) - Greek voters are returning to the establishment parties that negotiated its bailout, a poll showed on Thursday, offering potential salvation for European leaders who say a snap Greek election next month will decide whether it must quit the euro.

France's left-wing leadership starts with a pay cut

PARIS (Reuters) - France's new left-wing government started work on Thursday with pledges to combat excessive austerity but better manage public finances, marking the debut with a 30 percent cut in pay for President Francois Hollande and all ministers.

U.S. eyes funding boost for Israel's "Iron Dome" shield

WASHINGTON (Reuters) - The Pentagon will seek to provide Israel with an additional $70 million in the coming months for its short-range rocket shield, known as the "Iron Dome," Defense Secretary Leon Panetta said after a meeting with his Israeli counterpart on Thursday.

Egypt Brotherhood forms human chain for candidate

CAIRO (Reuters) - Egypt's Muslim Brotherhood organized a 760-km (470-mile)-long human chain of supporters across the country on Thursday to back the group's presidential candidate Mohamed Mursi in a show of strength ahead of next week's historic vote.

Cameron urges G8 action to stop eurozone crisis from spreading

WASHINGTON (Reuters) - British Prime Minister David Cameron will tell leaders of some of the world's biggest economies on Friday that they must work together to stop the economic crisis afflicting the euro zone from spreading worldwide.

Judge holds Mexican generals over for drug probe

MEXICO CITY (Reuters) - A Mexican judge on Thursday ordered the former deputy defense minister and a top general to be held for 40 days while they are investigated for alleged ties to drug cartels.

Syria's Assad: Nations that sow chaos will suffer

AMMAN (Reuters) - Syrian President Bashar al-Assad said on Wednesday that countries trying to "sow chaos" in Syria could be infected with it themselves, an apparent warning to Arab Gulf nations that back the insurgency aimed at forcing him from power.

U.S. suspends sanctions on investment in Myanmar

WASHINGTON (Reuters) - The United States on Thursday suspended sanctions barring U.S. investment in Myanmar in response to political reforms in the poor southeast Asian state, drawing praise from some U.S. lawmakers but criticism from human rights advocates.