European economy is expected to shrink in 2012: Lloyd Bank

Jeavon Lolay, director-global research of Lloyds Bank is of the opinion that we will see a slowdown in China in the first half of this year, but to actually pick up a GDP growth in the second half of this year. The concern for China is particularly if the world economy were to slow significantly from here then he expects it to be slower otherwise domestically there is no real need for them to act aggressively on their policy.

Regarding the Eurozone, there is no rally. He was hoping a few months ago that Germany probably could pull euro zone out of recession in Q1 and get a positive reading for overall euro GDP. He believes that the patient is out of the emergency room but still in ICU. He hopes that some of the LTRO money to make its way into the real economy. They agree with the fact that ECB don