Morning business round-up: Spain's borrowing costs rise

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What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Spain continued to dominate the headlines on Thursday morning as fears continue over its debt-laden banking sector.

But there was some good news for the beleaguered government after it experienced <a href="http://www.bbc.co.uk/news/business-18349439" title="link to Spanish bonds story" >strong demand for Spanish bonds</a> at an auction on Thursday.

This is seen as a key test of the country's ability to raise funds, but it had to pay a higher interest rate.

The rate on the 10-year bonds was 6.044%, up from the 5.743% paid when bonds were last sold in April.

Spain sold 2.1bn euros ($2.6bn; £1.7bn) in medium and long-term bonds.

Meanwhile <a href="http://www.bbc.co.uk/news/world-europe-18350977" title="Link to Angela Merkel political union story" >German Chancellor Angela Merkel argued</a> that the EU needs political union to prevent future financial crises, even if this means some countries integrating faster than others.

Speaking on German TV she called for "more Europe", including a budgetary union, saying "we need a political union first and foremost".

But she resisted calls for the joint issuing of eurozone debt.

European stock markets continued their cautious recovery on hope that Germany was closer to a bailout deal with Spain, even though the Spanish government insists it doesn't need any help.

<a href="http://www.bbc.co.uk/news/business-18349596" title="link to China bank rules story" >In China, the government said</a> it will delay the implementation of tougher capital rules for banks until January next near, amid concerns that they may hurt lending and slow economic growth.

The rules would increase the minimum cushion of capital a bank must keep to absorb losses on their loans.

China had planned to introduce the rules at the start of this year.

In Australia, there was some good news <a href="http://www.bbc.co.uk/news/business-18349692" title="link to Australian jobs growth story" >as jobs growth hit an eight-year high</a>.

The economy added 38,900 jobs in May, far more than forecast, making 160,100 jobs in total for the January to May period.

The data follows better-than-forecast economic growth of 1.3% in the first quarter compared with the previous three months.

In the latest <a href="http://www.bbc.co.uk/podcasts/series/bizdaily" title="link to Business Daily podcast" >Business Daily podcast</a> the team examines the thorny issue of executive pay through the eyes of Jerry Greenfield, co-founder of Ben and Jerry's ice cream.

They also speak to Greek actor, Lakis Lazopoulos, who is touring Europe with his show, "Sorry I'm Greek".

And regular commentator Wycliffe Muga reflects on the conflicts between development and sustainability in his homeland, Kenya.