Europe in crisis mode, Germany's in trouble: Andy Brenner
Europe is in crisis mode: Andy Brenner
NatAlliance global fixed income head Andy Brenner on the economic concerns in Europe.
The health of Europe's largest economy is in trouble as Germany teeters on the edge of a recession.
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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 another negative GDP in the third quarter, the Germans are going to be forced to open up their pockets and do fiscal stimulus,” NatAlliance global fixed income head Andy Brenner told FOX Business' Liz Claman on Friday.
“In Europe, its crisis mode.”
Concerns over a recession have the German government reportedly under pressure to ditch its self-imposed balance budget, or Black Zero rule, and finance more fiscal stimulus with new debt. The country’s 10-year Bund yield, which hit an all-time record low earlier in the day, responded to the stimulus, bouncing up slightly.
“In Europe, its crisis mode,” Brenner said. “And even you had one of the European governors come out earlier this week and say they are going to give us a shock and awe on September 12.”
Brenner added Europe’s lack of control over the trade war between the U.S. and China will most likely create a global recession.
“I think that Europe is going to have a lot of hurt, and I don’t see a solution in the near term,” he said.
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