Hopes rise of avoiding a double dip

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BRITAIN may avoid a double dip recession, despite the economic squeeze caused by the crisis in Europe, a leading Yorkshire lawyer predicted yesterday.

Research by DLA Piper, which polled some of the most influential participants in the European acquisition debt market, has revealed a mood of cautious optimism.

DLA Piper’s third annual European Acquisition Finance Debt Report reveals that liquidity in the markets is still restricted. Eighty per cent of respondents acknowledged that liquidity will never return to pre-September 2007 levels. Sarah Day, head of banking at DLA Piper in Leeds, said: “Despite some optimism at the start of last year, the ongoing economic strain appears, from responses in this survey, to be taking its toll.

“It’s clear the eurozone crisis stalled business confidence, particularly when coupled with what were already fragile debt and capital markets. The results of this survey highlight these concerns will continue to resonate. That said, it is encouraging to see there is still an appetite for deal activity. Perhaps the respondents were already anticipating what has since been confirmed; we may well yet avoid the double dip recession.”