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By Sergio Goncalves and Laura Noonan LISBON (Reuters) - Portugal's government and central bank assured investors on Friday that the southern European country's financial system was sound, aiming to quell worry about the spillover effects of trouble at the Espirito Santo business empire. "It is important that Portuguese and foreign investors... remain calm about the bank and our financial and banking system," Portuguese Prime Minister Pedro Passos Coelho told reporters in Lisbon. Recent disclosures of financial irregularities at a web of family-held holding companies behind Portugal's largest listed bank, Banco Espirito Santo , have raised questions about potentially destabilizing losses at the bank and other companies in the family's orbit. In a statement late on Thursday night, BES insisted that any losses relating to the bank's 1.15 billion euros exposure to Espirito Santo holdings would not put it at risk.
Germany's top diplomat said Friday he would urge a revived US partnership based on "trust and mutual respect" in talks with his American counterpart after Berlin's expulsion of a CIA station chief in a spying row. Foreign Minister Frank-Walter Steinmeier said he would tackle the diplomatic fallout from the latest twist in a more than year-long rift with the US over surveillance when he meets US Secretary of State John Kerry for weekend talks on Iran.