Recession will last the year, but it will be shorter and much shallower than the Great Recession.
Strait of Hormuz will be sign of Iran army exericises, Iran official says, sending oil prices up immediately. Although 30 percent of world's seaborne oil exports is shipped through the Strait of Hormuz, analysts doubt Iran would act.
Stock market prices in Europe and much of Asia are buoyed as Merkel and Sarkozy meet in Paris to discuss closer political, economic union. But the stock market in China fall on its worsening economic outlook.
Stocks drop 1 percent or more on major European indexes because of concerns about Italian debt. Japan limits losses with yen intervention. US stocks expected to open lower.