Topic: Austerity

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".

There has been no global recession but negative sentiment and maximum uncertainty are clouding the reality of the situation, Frank Appel, Deutsche Post’s CEO told CNBC on “Worldwide Exchange.”

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.

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.

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.

However bad their prospects, many Greeks seem to think that since money to bail them out was found in the past, it will be found again.

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.

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”.

Government spending cuts in developed countries are hurting job creation and exacerbating global youth unemployment, which remains close to the peak hit during the 2009 crisis, the International Labour Organization said on Tuesday.

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.

How much interest would you want back if you lent to huge amounts of money to someone on an unsecured basis, and if that person had unaudited accounts and a history of playing dirty when the chips are down?