Business News Roundup: RBS, Lloyds Banking Group, Barclays, Glencore Bumi deal, Google beats Wall Street, CBI.

Spain takes a sovereign debt rating hit

Standard & Poor’s has downgraded Spain’s sovereign debt rating, citing slowing growth and a weakening financial system. In an announcement late on Thursday, the rating agency knocked Spain’s rating down one notch from double A, where it has been since last April, to double A minus. It also kept the country’s rating on a negative outlook, writes the Financial Times.

Glencore looks to get into Bumi

Glencore, the world's biggest commodities trader, is in advanced discussions to lend Indonesia's Bakrie brothers about $900m (£572m). The deal could give the Swiss-based, London-listed trader a stake and preferential trading rights in Bumi, the Indonesian coal company formed by the brothers and the financier Nat Rothschild.

Although the brothers are in talks with several potential saviours, sources indicated last night that they were most likely to strike a deal with Glencore, according to the Independent.

Google results 'defy' slowdown

Google defied the global economic slowdown last night by posting a 26% rise in net profits for the last quarter. The internet search engine company also claimed to be making strides in its battle with Facebook, announcing that more than 40 million users have joined Google+, its social network.

Google beat Wall Street expectations by reporting net income of $2.73bn (£1.73bn) for the three months to 30 September, from $2.17bn a year ago, the Guardian reports.

European Union

Ill-judged regulation of the financial services sector by the European Union could damage UK growth, the CBI warned on Thursday night. John Cridland, director-general of the business group, said that a number of proposed regulations from Brussels would hold back London's leading business sectors.

In a strongly-worded speech at the CBI's London dinner, he said: "The likely effect of many of Brussels' current proposals will be to damage the UK's prospects for growth. Nowhere is this more acutely the case than for professional and financial services, which are being bombarded with unwarranted regulation," says the Telegraph.