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Merkel-Sarkozy Summit Will Cause Sell-Off: Economist

Wednesday, 17 Aug 2011 | 5:00 AM ET

"I think the markets will test the resolve of the Euro zone politicians. It is a game of cat and mouse, and unless the markets push the politicians, they do not do anything. I think we are going to enter our third wave of selling," Chris Watling, chief executive at Longview Economics, told CNBC.