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"Six (the US, Japan, Germany, France, UK and Italy) out of seven of the biggest economies on the planet will show 0 percent growth for this third quarter and with Europe likely to go into recession we need to have a much longer-term horizon, otherwise we'd be well advised to step aside for the moment," Parsons added.
Global gross domestic product is around $62 trillion, with the six economies making up $31 trillion of this total.
The latest ISM Manufacturing report for the US for August, which detailed falling production, orders and exports but rising inventories, is a great lead indicator that a recession is imminent, he said.
The risks to Europe come from Germany, he argued, suggesting that to date Germany has been the glue in the euro zone holding the euro together but if doubts creep in about the country and German growth, Europe would suffer.
"If we get any doubts about the willingness and ability of Germans themselves to pay for sovereign bailouts in the periphery then I think we are in real trouble," Parsons said.
Source: https://www.cnbc.com/id/44404780