The next recession could happen within a quarter of a year, one fund manager told CNBC Tuesday, as weak German economic growth figures were announced.
European stock index futures fell in early trade on Tuesday, pointing to a drop in equities, after data showed German gross domestic product growth slowed more than expected in the second quarter. Germany's Angela Merkel meets France's Nicholas Sarkozy later on Tuesday.
"What we see is a soft patch and double dip recession risk three months down the line," Beat Wittmann, CEO of Dynapartners, told CNBC. "The markets are discounting this soft patch, but it could get worse¿ depending on political decisions and whether companies are investing into expansion and whether consumers are spending," he said.
There's a lot going on in this volatile market, but Cramer thinks it's important to monitor the following things in particular.
A preview of tomorrow's meeting between the two leaders and its impact on global markets, with Charles Dallara, Institute of International Finance.
After the turbulence of the summer, there has been plenty of speculation about whether Western economies may suffer a double dip into recession after recovering from the downturn of 2008-09.
The Swiss franc slumps, the yen powers on, and George Soros has some suggestions - time for your FX Fix.
European stocks were expected to open higher on Monday, but investor sentiment remains cautious as concerns over the fragility of the global economic recovery persist.
"The problems in the European markets are based on a lack of clarity and a lack of a long term solution," Gemma Godfrey, head of research at Credo Capital told CNBC. "Things are getting a lot worse......the ECB is using debt to solve a problem of debt," she added.
European leaders are scurrying from one crisis to the next, and it doesn't bode well for the euro, this strategist says.
Economic growth in the euro zone will slow in the second quarter but remain positive, economists told CNBC.com, before it risks stagnating in the third quarter as businesses delay investments and the turmoil that has wreaked havoc in financial markets starts to affect the real economy.
It’s all getting a bit Elizabeth Taylor and Richard Burton in the euro zone recently. The European Union seems to think that if it’s worth doing in the first place, its worth fighting for
Uncertainty over sovereign debt and the volatility in world markets could mark a period of "2008 redux," and the best option for investors is to remain cautious with long-term assets and hold on to cash, Julian Pendock, a partner at Sendock Capital, told CNBC.
As the European markets were braced for another turbulent day, one analyst at Citi warned that a decade of economic slowdown could follow if Italy and Spain default on their debt repayments.
French economic growth ground to a halt in the second quarter of 2011, raising pressure on President Nicolas Sarkozy to cut spending and abolish tax breaks ahead of elections as he tries to convince nervous financial markets that he will deliver on debt reduction targets.
European stocks were expected to open higher on Friday after a late recovery on Thursday following better-than-expected employment data from the United States and with investors digesting a ban on short-selling in four countries.
A 15-day short selling ban , which will be implemented on Friday morning across several European countries, has attracted opprobrium from market participants, who see the restrictions as a superficial move that will do little to solve the underlying problems of the euro zone and stop market turbulence.
August is traditionally a time for financial market crises. The current one isn’t because of the usual “thin markets, long hot summer days, everyone on holiday” scenario though, this time investors have real, concrete issues to worry about, writes Moorad Choudhry,Head of Business Treasury, Global Banking & Markets at the Royal Bank of Scotland.
French minister says broader GDP and deficit-cut targets remain, with CNBC's Ross Westgate.
High labor taxes and low visibility on economic growth and business climate are just some of the reasons that are keeping Italian businesses from offering jobs, especially long term contracts.