Germany

European leaders are working on a scheme to tackle the eurozone crisis which, if implemented, would see a continent-wide rescue fund seize control of struggling banks.

Slowing industrial production is the largest headwind facing Northern Europe in the near term, according to Newton's bond manager Paul Brain.

German Chancellor Angela Merkel and other senior European Union (EU) officials last night called on Greece to shelve plans to quit the single currency and urged it to see out its austerity programme.

Berlin is to sell up to €5bn of two-year Schatz notes (treasury notes) at auction today with a 0% coupon, as investors' flight to safety gathers pace and heightens 'market dislocation'.

The eurozone reported zero growth in the first quarter, beating forecasts of a 0.2% contraction and narrowly escaping a technical recession.

As the eurozone crisis continues to batter markets today, we highlight the five key challenges facing the continent.

Patrick Sumner, head of property equities at Henderson Global Investors, has warned investors the market is pricing in a substantial fall in property values across Europe.

Yields on German government bonds have fallen to a new record low amid weaker than expected jobs data from the US.

SPECIAL REPORT

Insight's currency specialist Dale Thomas has reversed his underweight to the US dollar as he repositions his fund for further euro weakness.