The Great Debate UK

Post stress tests: lending conditions likely to remain tough

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SnipImage-Jane Foley is research director at Forex.com. The opinions expressed are her own.-

The financial markets have been pre-occupied with all aspects of the EU bank stress tests over the past few weeks.
For the man on the street, however, the debate boils down to just one question: when will credit become cheaper and more readily available?

The Bank of England recently reported that the stock of lending to business contracted by £2.3 billion in May.  Data from major UK lenders has indicated that net lending remained weak in June.

The lack of new credit is frequently blamed for stifling the pace of economic recovery.

Double dip a done deal?

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UNEMPLOYMENT/

-Jane Foley is research director at Forex.com. The opinions expressed are her own.-

Earlier this week the S&P 500 was down 15 percent from its April 2010 high.   The ongoing debate on whether the U.S. economy is poised for a double dip recession can be linked with these falls.

False dawn or risk recovery?

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-Jane Foley is research director at Forex.com. The opinions expressed are her own.-

What began at the start of the year with an acknowledgement from Greece that it had been living way beyond its means soon turned into a more universal re-appraisal of the risks of sovereign default.

Is the re-pricing in stocks and oil complete?

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-Jane Foley is research director at Forex.com. The opinions expressed are her own.-

The better tone in stock indices and oil prices that has appeared this week begs the question as to whether the bout of re-pricing is complete.

Risk aversion comes screaming back

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-Jane Foley is research director at Forex.com. The opinions expressed are her own.-

The Greek fiscal crisis has forced investors to weigh up the risks of sovereign default very carefully.

Subject of Europe set to trip Liberal Democrat Nick Clegg

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Jane Foley- Jane Foley is research director at Forex.com. The opinions expressed are her own. -

Over the past week the British electorate has taken a shine to Liberal Democrat leader Nick Clegg.

UK election boils down to one issue for markets

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JaneFoley- Jane Foley is research director at Forex.com. The opinions expressed are her own. -

Whether the financial markets will view the outcome of the UK general election as a positive or negative depends almost entirely on one issue: the budget deficit.

What’s next in EMU after Greece deal?

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Jane Foley-Jane Foley is research director at Forex.com. The opinions expressed are her own.-

The European Union has finally agreed that an Economic and Monetary Union member country in serious fiscal difficulties will be able to receive bi-lateral assistance from its Eurozone partners as well as draw support from the International Monetary Fund.

Better public finance data may be sterling Trojan horse

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Jane Foley
- Jane Foley is research director at Forex.com. The opinions expressed are her own.-

Finally UK monthly public finance data has brought better than expected news.  Not only was the net borrowing figure for February  better than expected but the January data was revised lower from 4.3 billion pounds to just 43 million pounds, taking the total for the fiscal year to date 131.9 billion pounds.

The Greek story is not over yet

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Jane Foley- Jane Foley is research director at Forex.com. The opinions expressed are her own.-

By rushing extra austerity measures through parliament last week and finding very good support for its bond sale Greece last week pulled its way clear of the edge of the abyss.  This is not the end of the story, however, but rather just another chapter in the fledging system which is European Monetary Union.

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