In any murder mystery film, it pays to watch the boring gray man (or woman) in the corner; quiet, unobtrusive characters can be deadly. So, too, in finance. Four years ago, the giant US money market funds seemed some of the dullest actors in the global financial scene. But in 2007, they quietly helped to spark the crisis in the mortgage-backed securities world.
Chris Wheeler, bank analyst at Mediobanca joined CNBC to discuss the latest news on the European markets and what would happen if the Greek bailout fails.
"Greece has most definitely been cut loose by the markets, the question is whether it will now be cut loose by the politicians," Steve Barrow, head of G10 research at Standard Bank, told CNBC.
The Swiss Franc has become the "new gold" as investors turn to money markets in an environment governed by fear, Jon Cox, Head of Swiss Research at Kepler Capital Markets told CNBC.1st paragraph of story should go here
Barclays is comfortable with its exposure to Europe and now has more cash on its balance sheet than before the 2008 financial crisis, CEO Robert Diamond told CNBC Wednesday.
Austria insisted Wednesday it will seek collateral from Greece for participating in bailing out Athens as long as Finland has the same deal.
Post-Gaddafi Libya could begin pumping oil in the next few months, as rebels secured oil infrastructure around Tripoli and edged closer to taking complete control of the country. However, oil markets are shifting their attention to concerns that the US might undertake further fiscal stimulus.
European stocks are expected to make small gains at the open on Wednesday on hopes that Federal Reserve chairman Ben Bernanke will on Friday signal further support for the ailing US economy.
There will be improvement in the U.S. economy in the second half of the year, according to Barclays Capital managing director Larry Kantor, but there will be an overhang from continued uncertainties in Europe.
Oil companies are understood to be preparing to move back into the North African country, which used to pump 1.6 million barrels per day before the uprising against Muammar Gaddafi's government began six months ago.
On July 21, EU leaders agreed to a second bailout for Greece, one that was supposed to draw a line under the euro zone debt crisis and give the new government in Athens a chance come to grips with the huge debts it inherited when it was elected. One month later, and the situation appears to be getting worse rather than better, according to Simon Derrick, the head of currency research at Bank of New York Mellon.
"I think the German PMI announcement will have an impact on spread widening, because investors will see it as an indication that the world is slowing, Germany is slowing, and in general, risk is increasing," Adrian Schmidt, FX strategist at Lloyds Bank Corporate Markets, told CNBC.
European stocks are expected to open slightly higher on Tuesday as investors wait for key data from the euro zone and speculate over whether the Federal Reserve is about to pump more money into the system in a bid to boost sentiment and economic growth.
European leaders are being pushed into closer fiscal union sooner than they had anticipated by volatile markets concerned over a dearth of ideas on how to solve the sovereign debt crisis in the euro zone, analysts and investors told CNBC.
The question facing every investor on the planet is simple enough: When will this sell-off come to an end? Because when it does, the risk-on trade will mean big returns.
Euro bonds are exactly the “wrong answer” to the current crisis and would merely lead the euro zone to a "debt union" rather than a “stability union” according to German Chancellor Angela Merkel.
Europe’s economic and monetary union as constructed does not work and the euro zone needs some collective and determined leadership according to Jim O’Neill, the chairman of Goldman Sachs Asset Management.
European stocks are expected to open lower on Monday following heavy selling of equities on Thursday and Friday of last week.
Traders in the City of London, one of the financial districts of the UK capital, see a market environment where trust has all but evaporated and the best course of action is often to do absolutely nothing.
The US and European Union pose divergent threats to a global economic recovery and despite weak growth in the United States, the euro zone debt crisis is more likely to impede a recovery, Paul Donovan, deputy head of Global Economics told CNBC.