The health of Europe's largest economy is in trouble as Germany teeters on the brink of a recession.
A decline in exports dampened the German economy, which shrunk by 0.1 percent in the second quarter of 2019.
"Germany is in terrible shape with negative GDP this week, and with their expectations looking for a new negative GDP in the third quarter, the Germans will be forced to open their pockets and make fiscal stimulus, "said NatAlliance, world interest rate, fixed income head Andy Brenner FOX Business & # 39; Liz Claman on Friday.
" In Europe, its crisis mode. "
Concerns for a recession are reportedly under pressure by the German government to ditch its self-imposed balancing budget, or Black Zero rule, and finance more fiscal stimulus with new debt. Bottom-up returns, which hit a record low earlier in the day, responded to the stimulus and popped up a bit.
"In Europe, it's crisis mode," Brenner said. "And you even had one of the European guts the eagles came out earlier this week and said they were going to give us a shock and awe September 1[ads1]2. "
Brenner added Europe's lack of control over the US trade war and China is most likely to create a global recession.
"I think Europe is going to do a lot of damage and I don't see a solution in the short term," he said.
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