Monday, June 11, 2012

Morning Brief: Spain's bailout deal is not without strings; Euro 2012 provides much needed diversion; looks like the U.S. will soon have new commerce secretary

Saturday Spain agreed to a €100bn deal to recapitalize its debt-laden banks. Spain congratulated itself on having swung a deal without having to sign a memorandum such as Greece did. The financial community applauded the deal and today European markets are up.

But Reuters and other news agencies are reporting today that in fact Spain will face supervision by international lenders.

The EU Competition Commissioner Joaquin Almunia was quoted by Spanish radio as stating "Of course there will be conditions. Whoever gives money never gives it away for free."

The Spanish state is taking the loans, Spain will be responsible for them... There will likewise be a troika. There will of course be supervision to ensure that the program is being complied with, but this refers only to the restructuring of the banks," German Finance Minister Wolfgang Schaeuble said, according to the Reuters report.

While European stock markets opened higher, and bond yields fell, the market has moderated now, with most government bonds pretty much unchanged. The Euro, which rose at open, is now around $1.26, about two pennies higher than levels seen last week.

The attention of the European media, and the public, is split between the events in Greece, Spain and other countries in the Eurozone, and the Euro 2012 soccer tournament.

Euro 2012 opened this weekend and today the last of the 16 teams play their first matches. The marquee match up this morning (U.S. time) is between England and France. Spain and Italy have already played to a draw, and the Greeks and Poles drew, as well.

The hopes of the Irish were dashed yesterday by a 3 to 1 thumping at the hands of Croatia.

If soccer isn't a diversion enough, there is this: David Cameron accidentally leaves daughter in pub.

Back in the States, it appears the Obama administration will soon be looking for a new Commerce Secretary.

The man currently in the post, John Bryson, was cited in a felony hit-and-run case in California this weekend. According to reports, Bryson rear ended a vehicle waiting for a train in the city of San Gabriel – stopped and spoke to the passengers of the car, then drove off. Bryson was then found unconscious behind the wheel of his car after it apparently struck yet another vehicle.

One would think there may be intoxicants at play here, but reports currently say this is not the case.

Update: Turns out the culprit was a seizure, according to Talking Points Memo. This still doesn't explain leaving the scene of an accident, though it would explain being found unconscious behind the wheel. We'll see how this shakes out.

While Europe is obsessed with the Eurozone mess and soccer, the tech media world will be looking to San Francisco today as Apple kicks off its Worldwide Developers Conference (WWDC). While the event does have the glamour of an iPhone or iPad launch event, it usually proves to be far more important due to the new software introductions.

There are the usual rumors about hardware and software updates, but it is most likely the case that Apple CEO Tim Cook will try and narrow down the focus of his keynote which will start at 10AM PDT / 1PM EDT.

Tech sites such as Ars Technica, Engadget, The Verge and others will be live blogging the event. TNM will have its reaction to the WWDC opening soon after Cook leaves the stage.