Topic: Recession

On the same day official figures showed the biggest slide in retail sales figures in two years and one member of the Bank of England’s interest rate-setting committee indicated it would restart its asset purchase program if the economy weakened significantly, 10-year sovereign debt yields fell to record lows.

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.

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.

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.

The markets have been oversold amid intense pessimism and a relief rally will be on its way within the next month, David Murrin, chief investment officer at alternative investment firm Emergent Asset Management, told CNBC’s “Worldwide Exchange”.

The Institute of Directors has endorsed a radical proposal that recommends replacing part of the UK tax system with a single income tax rate of 30 percent and reducing the government’s share of the national economy to one-third, the Financial Times reports.

World leaders backed keeping Greece in the euro zone on Saturday and vowed to take all steps necessary to combat financial turmoil while revitalizing a global economy increasingly threatened by Europe's debt crisis.

Leaders of the Group of Eight major economies are making progress on addressing the two biggest threats to their economies - the euro zone crisis and very high oil prices, British Prime Minister David Cameron said on Saturday.

A "ring of defense" has to be built around eastern European neighbors Romania, Bulgaria and Serbia to help them cope with the fallout from a possible Greek exit from the euro zone, bankers said on Friday.

Average U.S. rates for 30-year and 15-year fixed mortgages fell to record lows for the third straight week. The steady decline has made home-buying and refinancing more affordable than ever for those who can qualify. The Christian Science Monitor reports.

Spain's borrowing costs shot up at a bond auction on Thursday and Spanish banks suffered a double blow as 16 had their credit ratings cut by Moody's.

Spain officially slipped in to recession in the first quarter, final figures confirmed on Thursday, leaving the country threatened with a prolonged slump as the turmoil-wracked euro zone struggles to balance austerity with growth.

A growth compact to sit alongside the existing fiscal compact is a certainty for the euro zone as it battles the flames of discontent fanned by the harsh austerity measures implemented in struggling economies, one expert told CNBC Thursday.