Spanish Economy Minister Nadia Calvino said on Friday that all the debt issued by the European Union to help its member states deal with the consequences of the COVID-19 crisis will eventually be paid back. "Obviously the debt will be repaid," said Calvino, who has been proposed by Spain to head the Eurogroup, the club of 19 finance ministers of the Euro Zone countries.
The risk of a deeper economic euro zone recession than predicted in the European Central Bank's baseline scenario has diminished, ECB governing council member Klaas Knot said on Friday. "Recent data solidifies the confidence in our baseline scenario with a more favourable balance of risks," the Dutch central bank president said in a speech at a webinar hosted by Bloomberg.
* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr. Bunds were set to close their worst week in a month on Friday but analysts expect pressure to abate given uncertainty around the spread of the coronavirus and central bank support.
Lithuania is about to issue the first central bank-produced digital coin in the euro zone, part of a project to trial state-backed digital currencies and blockchain technology in everyday use. The sharp decline in the use of cash and the prospect of Facebook's 2.5 billion users adopting its currency Libra has led central banks to examine how they can issue their own forms of digital currency.
* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr. By Elizabeth Howcroft. Southern European bond yields hit three-month lows on Thursday, in line with broader market optimism as employment data provided signs of economic respite.
Italy's unemployment rate increased in May as laid off workers resumed job-seeking after two months of a strict lockdown to contain the coronavirus oubtreak. The country's unemployment rate, which includes active job-seekers, was 7.8% in May, up from the upwardly revised 6.6% reading in April, data from Italy's statistic agency Istat showed Thursday. The reading is in line with economists' expectations polled by FactSet, who predicted the unemployment rate would rise to 7.7%.
Germany's financial market regulator Bafin wasn't alone in deciding that Wirecard not be categorized as a financial holding company, a spokeswoman for the authority said on Wednesday. All decisions were made along with other supervisors, including the Bundesbank and European Central Bank, Bafin head Felix Hufeld told German parliamentarians in a close-door meeting, she said.
* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr. By Yoruk Bahceli. Germany's 10-year yield rose to a one-week high on Wednesday and were on course for their biggest daily jump in a month, with data supporting optimism as economies emerge from lockdown, while Portugal raised 4 billion euros via a 15-year bond.
Cboe Global Markets said on Wednesday it will launch derivatives trading and clearing at its new European hub in Amsterdam next year as it completes a costlier-than-expected takeover of EuroCCP clearing house. The Chicago-based group had already opened a share trading hub in the Dutch financial capital in October 2019 to avoid Brexit disrupting European share trading operations in London.
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