Just as all eyes were on Greece, the credit rating agency Moody's announced a downgrade of 26 Italian banks, including Italy's two biggest lenders. And it is expected that the rest of Europe will not fare much better on the markets today.

Sony Kapoor, managing director of think tank Re-Define, told Today's business presenter Simon Jack that we are caught in a "downward spiral". He also warned that, although Germany may narrowly escape recession, it is "just a matter of time" before it is pulled in.

Get in touch with Today via email , Twitter or Facebook or text us on 84844.