State media says a moderate earthquake rocked southwestern China, injuring at least 336 people. The magnitude-6.0 temblor centred in Yunnan province's Yao'an county struck yesterday evening, causing damage to 2,700 homes, the Xinhua News Agency said. It said the quake was followed by eight aftershocks.

The provincial civil affairs department is sending 2,500 tents, 3,000 quilts and other relief materials to Yao'an, Xinhua said.

Air France faces staff cuts

PARIS (AP):

Air France may need to resort to partial unemployment measures among its 60,000 employees as the air transport market continues to worsen, the airline's chief executive said yesterday.

Speaking at Air France-KLM's annual shareholder meeting, Pierre-Henri Gourgeon said, "The economic situation is not improving. The slight rebound that we hoped for in early summer hasn't materialised."

Gourgeon said Air France-KLM now expects no rebound before the end of the summer or this autumn.