Recession

The eurozone faces a "mild" recession in the first half of next year, restricting full-year economic growth in the region to just 0.1%, according to Ernst & Young.

ECONOMIC OUTLOOK

The OECD has warned the UK is teetering on the edge of a double-dip recession, and has called for further quantitative easing to support the economy.

MPC member Paul Fisher has warned the UK is at risk of another recession, less than two years since the last downturn.

Economist Nouriel Roubini believes the unresolved debt crisis in Europe has resulted in more than a 50% chance of a worldwide recession.

The risk of another UK recession is higher now than in recent months, according to Bank of England policymaker Martin Weale, who expects the economy to contract in the final quarter of 2011.

WEIMAR LESSONS

UK business managers are preparing for a double-dip recession and also warn the private sector will fail to replace jobs lost to public sector cutbacks.

The Federal Reserve's latest cunning plan seems to have been misinterpreted by many, but not by Mr Market. This is less of a money-printing exercise, á la QE1 and QE2, than an attempt to flatten the yield curve.

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