The UK is back in recession, according to the latest growth projections from the OECD, while the recovery in the G7 economies remains ‘fragile'.
Legal & General IM's Ben Gill expects the Bank of England may be forced to intervene to weaken sterling as it explores other forms of QE.
The German finance minister, Wolfgang Schäuble, is pushing to let Athens default, creating a split in the German government, according to reports.
Fourth quarter eurozone GDP has come in fractionally ahead of expectations but the 0.3% drop will do little to dismiss predictions of a new recession.
Investors can continue to buy 10-year debt issued by safe haven governments in 2012, with the risk of losing vast sums diminished, said Kames Capital's David Roberts.