Spain's bailout loans will not gain seniority status, Joseph reported early Friday morning. This may well represent progress in eurozone leaders" understanding of how bond markets work; a viable plan especially given the crucial movement towards direct official recaps for banks. The agreement from the summit was out, after a marathon session and some tough negotiating tactics from Italy and Spain, Cardiff reported. From the FT's story: "The summit agreement also contained some concessions for Italy, though less than for Spain, setting the stage for Rome to become the sixth eurozone country to request EU assistance as part of the eurozone debt crisis." David has the details and a bucketload of analyst reaction in his post. Eurointelligence had a particularly good list, available here. Eurozone leaders agreed to radically restructure Spain's €100bn bank recapitalisation plan after all-night talks ended at a European summit, the FT reports. The agreement will result in EU bailout funds eventually being injected directly into teetering Spanish financial institutions, meaning Madrid can sweep the burden of the bailouts off its sovereign books. Bob Diamond, chief executive of Barclays, was engulfed in a political firestorm on Thursday following revelations of his bank's attempts to rig market interest rates for financial gain, sending shares in Britain's biggest bank down almost 16 per cent, the FT says. Britain's biggest banks have agreed to compensate small and medium-sized businesses that were mis-sold interest rate swaps in the run-up to the financial crisis after the City watchdog said it had found "serious failings" in the sale of some of these products, reports the FT. News Corp had "moved on" from its bid for BSkyB, Mr Murdoch told Fox Business, adding that he was "much more bullish" about America than the UK, the FT writes. Global investment banks are bracing themselves for a dismal second half, with further cuts in costs and staff, after a sharp drop in dealmaking and capital markets activity pushed down fees in the second quarter to their worst level in three years, the FT says. Credit Suisse was the big winner in the latest auction of assets from Maiden Lane III, a vehicle holding securities related to the US government's bailout of American International Group, adding to the billions of dollars of securities the Swiss bank has bought in similar auctions this year, the FT reports. The US State Department said on Thursday that China and Singapore had "significantly reduced" their crude oil purchases from Iran, qualifying them for the exemption, which must be renewed every 180 days, writes the FT. In an altogether different ruling, the court struck down a law that made it a crime to falsely claim that one had been awarded medals for military service, the WSJ reports. The ruling hinged on rights to free-speech. Markets: The euro, stocks and commodities are surging after European leaders agreed on action to help reduce Italy's borrowing costs and ease the rules on using bailout funds to support Spanish banks, reports the FT's Global Market Overview. This entry was posted by Lisa Pollack on Friday, June 29th, 2012 at 10:49 and is filed under Uncategorised.