Business Bites: Could a Europe-wide recession be on its way?

The prospect of a Europe-wide recession looks more likely with the publication today of some disappointing manufacturing figures.

According to Markit's Eurozone Composite Purchasing Managers' Index - a combination of the services and manufacturing sectors - output shrank to its lowest level since May 2009.

It means the region's private sector shrank for a sixth consecutive month in July.

It follows news that the ratings agency Moody's has changed its long term view on the German economy from 'stable' to 'negative', saying that there is an increased risk of Spain and Italy needing a bailout - which would require German backing.

The BBC's Aaron Heslehurst discusses the key financial stories of the day.