The U.S. will join the European Union this week in slapping new economic sanctions on Russia for its continued support of separatists in Ukraine.» Read More
The region is utterly dependent on the health of the richer EU members. This is why, analysts said, when things will turn for the better, investors stand to gain from a faster recovery than in Western Europe.
Growth in Central and Eastern Europe hinges on developments in the euro zone and a slowdown in the CEE region is already underway, European Bank for Reconstruction and Development (EBRD) chief economist Erik Berglof told CNBC on Wednesday.
"Hungary is a red flag, we have to watch very carefully what's happening in Hungary but it's a little bit different from the other countries," Erik Berglof, the chief economist at the European Bank for Reconstruction and Development, told CNBC.
The IMF cut its growth outlook for Europe today, warning that the euro zone could enter a mild recession this year. Although the IMF kept its outlook unchanged, it wasn't enough to boost stocks, with CNBC's Sue Herera and Steve Liesman.
Hedge funds have been known to use hardball tactics to make money. Now they have come up with a new one: suing Greece in a human rights court to make good on its bond payments.
Investors are bracing for a return to volatility when markets in the United States reopen on Tuesday, the New York Times reports.
As Europe’s debt turmoil enters its third year, no clear solutions are yet in sight — despite recent signs that a new lending program by the European Central Bank might be easing pressures.
As difficult as the last two years have been for Europe, 2012 could be even tougher. Each week, countries will need to sell billions of dollars of bonds — a staggering $1 trillion in total — to replace existing debt and cover their current budget deficits, the New York Times reports.
As talks between Hungary and its international creditors heat up, sharp European Union criticism of the country's lack of progress in tackling its high budget deficit added to pressure on Hungarian negotiators, who already seemed to be softening their tough stance.
A Hungarian delegation prepares to resume talks with the International Monetary Fund this week, hoping to secure a credit lifeline while investors continue to push up the country’s borrowing costs.
Hungary's economy is approaching "meltdown," analysts warn, adding another financial crisis within Europe and raising concerns about more extreme populist moods gaining ground. The Christian Science Monitor reports.
"Concerns over rising default risk in Hungary do translate via Austrian banks relatively rapidly into Austrian sovereign debt risks," Richard McGuire, Senior Fixed Income strategist, Rabobank, told CNBC.
There is a lot of negativity priced into Hungary, whereas Poland is considered the "darling" of Central and Eastern Europe, Bartosz Pawlowski Emerging Market Strategist at Barclays Wealth Management, said. "Before the month ends we're going to have more clarity and it's going to be a good investment," he said.
Fitch became the third ratings agency to downgrade Hungary's debt to "junk" status on Friday, invoking further deterioration in the country's fiscal and external financing and growth outlook and the government's "unorthodox" economic policies.
Tai Hui, Regional Head of Economic Research, SE Asia, Standard Chartered Bank, Singapore, says the first half of the year will be extremely challenging for markets due to lingering concerns about Europe.
Russian Prime Minister Vladimir Putin has a vision for a Soviet Union-lite he hopes will become a new Moscow-led global powerhouse. But, his planned Eurasian Union won't be grounded in ideology: This time it's about trade.
Stung by souring loans and troubled government bond portfolios, many European banks are being forced by regulators to raise money to build up their cash cushions against future losses.
Jean-Francois van Boxmeer, Chairman & CEO of Heineken, says the company is still generating solid profits from its Europe business despite the economic turbulence.
Hold the condolence cards, but the recession cost the rich. The share of income received by the top 1 percent — that potent symbol of inequality — dropped to 17 percent in 2009 from 23 percent in 2007, according to federal tax data. The New York Times reports.
Russian stocks and the rouble held above their two-week lows, but analysts said that, at least until Dec. 24, investors would be better off staying away from Russia.