The news at a glance

Euro crisis: More economic pain in Spain

Spanish leaders unveiled sweeping spending cuts and new taxes last week, in the latest bid to get the euro zone’s fourth-largest economy back on track, said Michael Birnbaum in The Washington Post. Spain’s new budget is designed to sharply cut its deficit in order to meet strict EU targets, but with unemployment already at 25 percent amid a deepening recession, austerity-weary Spaniards “are increasingly questioning how much more budget pressure they can take.” Prime Minister Mariano Rajoy faces a mounting social and political backlash, with thousands of demonstrators taking to the streets in Madrid to protest the latest budget measures.

It may be only a matter of time before Spain requests an EU bailout, said Catherine Boyle in CNBC.com. The government’s belt-tightening efforts, while wildly unpopular at home, have been well received by global markets. But analysts say the measures haven’t done enough to halt the rise in the country’s borrowing costs, which will make it increasingly hard for Madrid to meet its financing needs and could ultimately force the government’s hand. “Whether or not Spain asks this week or the week after,” said Jane Foley, a strategist with Rabobank, “the market does anticipate that [a bailout] will come.”

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Economy: Big revisions on jobs and growth

The U.S. economy added 386,000 more jobs than previously thought in the 12 months ending in March, said Peter Schroeder in The Hill. The Labor Department’s annual revision of employment data found that the economy created a monthly average of 194,000 jobs between April 2011 and March 2012, up from 162,000. That positive news was tempered by the Commerce Department’s announcement that the economy in the second quarter grew by just 1.3 percent, down from an earlier estimate of 1.7 percent.

Tech: Apple’s mea culpa for map mess

Apple CEO Tim Cook apologized to customers for the iPhone 5’s error-ridden map app last week, said Andrea Chang in the Los Angeles Times, and in a very un-Apple move, encouraged people to use competitors’ maps while Apple fixed the flaws. We “fell short,” Cook said in a statement. Users have loudly criticized the decision to drop Google Maps from the iPhone 5, citing Apple Maps’ inaccuracies, which included locating the Buenos Aires train station in the middle of a river and showing New York’s Brooklyn Bridge as melting.

Wall Street: JPMorgan sued for mortgage fraud

A new fraud lawsuit against JPMorgan Chase could mean “significantly more financial pain for the big banks” suspected of wrongdoing during the financial crisis, said Jean Eaglesham and Dan Fitzpatrick in The Wall Street Journal. New York state’s attorney general alleged that Bear Stearns, which JPMorgan bought in 2008, defrauded investors by selling faulty mortgage securities, resulting in $22.5 billion in investor losses. A task force of federal and state prosecutors, formed by President Obama earlier this year, intends to use the suit as a “blueprint to bring other cases” against big banks.

Banking: Cyberattacks frustrate bank customers

Six major U.S. banks were hit with day-long cyberattacks last week, said Nicole Perlroth in The New York Times. A hacker group with Middle Eastern ties claimed responsibility for the unsophisticated but effective denial-of-service attacks, which it said were in retaliation for an anti-Islam video that mocks the Prophet Mohammed. Accounts at Bank of America, JPMorgan Chase, Citigroup, U.S. Bank, Wells Fargo, and PNC were reportedly not compromised, though customers could not access their money or pay bills online.