Topic: Europe

The euro zone debt crisis will continue to dominate European stocks in 2012, with even well-run companies in danger of being sucked into the morass, according to S&P Capital IQ.

Four years of economic crisis and market turmoil that have sent German bund yields to record lows now have half of the top bond strategists and economists polled by Reuters fearing a Japan-style "Lost Decade".

Joint bonds issued by the euro zone, also known as Eurobonds, are one of the possible solutions to Europe’s debt crisis, Joaquin Almunia, vice president of the European Commission told CNBC, “but many conditions would have to be met” before they were introduced.

British insurer Aviva is putting its South Korean and Sri Lankan businesses on the auction block, sources with knowledge of the matter said on Thursday, as part of a wider retreat from sub-scale Asian markets in a deal that could fetch around $150 million.

Ever wondered why European politicians appear so calm when attending summits in Brussels or G8 meetings despite all the talk of a “Grexit” and economic Armageddon?

Germany's manufacturing sector has been shrinking at the fastest rate in three years in May, renewing concerns about the stamina of Europe's largest economy, which likely propped up the euro zone in the first quarter but is beginning to show signs of strain.

European shares closed higher on Thursday as investors snapped up bargains after steep falls the previous day, despite regional data showing a deterioration in economic activity.

"He is not in a confrontational mindset. He didn't arrive brandishing a
Kalashnikov and saying 'you must accept euro bonds'," one aide said. "It's a
different approach."

While money pours out of Greek banks and Europe debates whether or not Greece deserves its next handout, the people potentially in the best position to help shore up the nation’s finances are mainly keeping their heads down, the New York Times reports.

To the frustration of Mario Draghi the European Central Bank is once again being eyed as a possible saviour of Europe’s monetary union. The FT reports.

State Street Chairman Jay Hooley has sent a not-so-subtle message to European banks: He's ready to buy their custody and trust operations.

Strong demand for Germany’s two-year bonds, which offer nothing in return, shows that opening Pandora’s Box in Europe has sapped investor confidence, Jim O'Neill, chairman at Goldman Sachs Asset Management told CNBC’s “Worldwide Exchange.”

European leaders meet in Brussels this evening for an informal dinner being billed as a showdown between German Chancellor Angela Merkel and French President Francois Hollande over the tricky issue of Eurobonds—bonds issued by the EU and backed by euro zone members collectively.

European shares extended losses in afternoon trade on Wednesday, taking their cue from a sell off on Wall Street and closing sharply lower on fears that an EU summit may fail to come up with concrete, new measures to tackle the region's sovereign debt crisis.

Germany dismissed a French-led call for euro zone nations to issue common bonds, a day before a European Union leaders' summit which investors are looking to for new measures to counter the bloc's debt crisis.