WARSAW, Poland - The National Bank of Poland has cut interest rates to a historic low as the economy continues to slow and inflation is below target. The central bank cut its benchmark reference rate to 3 per cent from 3.5 per cent on Wednesday, surprising many economists who had expected the bank to keep rates on hold for now. The bank didn't give an immediate explanation for the move. However, when it made its last rate cut two months ago, it cited a marked economic slowdown in the country.

MADRID - Spanish telecoms company Telefonica said Wednesday its first-quarter net profit rose 21 per cent to 902 million euros ($1.18 billion) despite a fall in revenues in its key Latin American market. The company, which has mobile and fixed-line operations across Europe and Latin America, said that revenue from its business in Brazil had overtaken its domestic market for the first time. Sales in the Latin American country reached 3.263 billion euros, while a 16.4 per cent drop in recession-strapped Spain left income at 3.260 billion euros.

By Marc Jones LONDON (Reuters) - World shares hit their highest level in almost five years on Tuesday as last week's strong U.S. jobs report continued to fuel optimism about the health of the global economy. Japanese stocks jumped in a delayed reaction to the data because Tokyo had been closed for a public holiday on Monday. The head of the European Central Bank added to the positive mood by saying it was ready to cut rates again if needed.

By Stephen Brown BERLIN (Reuters) - German Finance Minister Wolfgang Schaeuble signaled a softening of his stance on a European banking union on Tuesday, saying the euro zone should press ahead on the basis of current law without waiting for a controversial overhaul of the EU's Lisbon treaty.