Germany `teetering on edge of recession`; US yield curve inverts - business live
(The Guardian Business News)

Economists urge Angela Merkel to boost spending as Germany suffers a 0.1% drop in GDP in April-JuneLatest: US yield curve inverts in `flashing light´ warningEconomists: Berlin should boost spendingBreaking: German GDP shrank 0.1% in April-JuneExports have fallen as trade wars bite 11.57am BST The BBC´s Faisal Islam fears that the bond yield gyrations show the global economy is in trouble - just as the Brexit crisis intensifies.Gilt curve inverted Klaxon... first time since the financial crisis -- In English, UK Government can currently borrow from markets more cheaply over a decade than it can over 3 months or two years... Rare - normally signals market expectation of weak growth/ recession.Last occurred in UK in mid 2008 (pre Lehman) and then for most of 2007 (ahead of start of crisis)Also seen in US today for first time since 07...if these signals are right, a storm is brewing in global economy, just at the very time UK political crisis resumes: (via @business ) pic.twitter.com/7vkPnbMzOPNot quite at German levels yet, which as I was explaining on Today last week means the German government is being paid by international markets to borrow money from them - even over many years. 11.38am BST European stock markets are heading further south, worried by the drama in the bond market. Germany´s DAX is now down 1.6%, while the UK´s FTSE 100 is down 0.9%. Italy´s FTSE MIB (also hit by political instability in Rome) has lost almost 2%. Continue reading...