John Bennett: there is now a risk of a major global crisis

Henderson's John Bennett believes there is now a risk of a synchronised global recession, as the situation in Spain grows darker.

With the yield on 10-year Spanish debt testing 7.5%, the European Focus and Selected Opportunies star warned that while Europe is the nucleus of the crisis, other markets are at risk.

'There is the risk of a major global crisis now.  I never believed it was just a European crisis,' Bennett said, speaking exclusively to Wealth Manager.  'We have an American debt crisis, a Japanese crisis and maybe a Chinese one.  The epicentre clearly is Europe, at the moment.'

Bennett (pictured) said that the team at Henderson has never believed previous initiatives unveiled to ease the crisis - such as the two long-term refinancing operations (LTROs) announced in December and February - would work, adding there may be few who feel that the next 'sticking plaster' will be effective even if markets have until now survived on 'hopium'.

'If Greece goes, they are going to have to come forward and say Spain has been ring-fenced; but that is a big test.  Who is going to believe that?  They are still trying to kick the can down the road but that can no longer includes Greece,' Bennett explained.

He continued: '[Investors should be saying] "wow, look at the indebtedness of the US, wow, look at Japan."  The risk is high of a global, synchronised crisis.  We are entering an inevitable new phase; I think the odds of this are high.'