The Great Debate UK

Bank of England Inflation report offers markets a reality check

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-Mark Bolsom is Head of the UK Trading Desk at Travelex Global Business Payments. The opinions expressed are his own.-

Sterling tumbled to a one week low against the dollar in trading this morning, after the Bank of England delivered its latest quarterly inflation and growth forecasts today.

In his speech, Bank of England Governor Mervyn King downgraded his economic growth forecasts and raised inflation expectations, saying he expected inflation would fall well below its 2 per cent target in two years, even if interest rates stay low.

While markets had expected growth forecasts to be lowered, the Quarterly Inflation Report has been a bit of a reality check. The preliminary reading of Quarter 2’s GDP figure had put the markets in a good mood, as it looked like the economy was back on track.

Sluggish U.S. economy may threaten UK business development

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- Paddy Earnshaw is the Director of Customer Relations at Travelex Global Business Payments. The opinions expressed are his own.-

British importers and exporters’ confidence in the economy leapt in July, as positive economic data fuelled hopes for a return to strong economic growth. According to the Travelex Confidence Index (TCI), which jumped 12 points in July to 116, from 104 in June, strong gains were driven by quarter 2′s GDP figure, as it showed the UK grew at its fastest pace in four years.

“Impossible” balancing act to perform with stress tests

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-Tiffany Burk is the European Market Analyst at Travelex Global Business Payments. The opinions expressed are her own.-

Commentators have suggested that the hype surrounding the release of the EU bank stress tests has made it feel more like a PR campaign than a credible financial analysis.

Importers and exporters lack confidence in recovery

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-David Sear is the global managing director at Travelex Global Business Payments. The opinions expressed are his own.-

Despite the UK officially emerging out of recession in the first quarter of 2010, the confidence of importers and exporters in a sustained recovery remains extremely volatile.

Pound recovers as Osborne outlines fiscal plans

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- Mark Bolsom is head of the UK Trading Desk at Travelex Global Business Payments. The opinions expressed are his own. -

As widely expected, Chancellor George Osborne took a tough stance in his first budget and unveiled some “unavoidable” cuts and taxes.

UK economy’s make-or-break budget

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- Mark Bolsom is the Head of the UK Trading desk at Travelex Global Business Payments. The opinions expressed are his own-

Later today, Chancellor George Osborne will unveil his first budget, where he is widely expected to take a tough stance. To the financial markets, this emergency budget is the agenda-setting piece of this parliament. Markets, media, consumers and businesses alike have all braced themselves for what has been billed as the sharpest fiscal tightening since the end of the Second World War.

Businesses face concerns over a hung parliament

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- Paddy Earnshaw is customer director at Travelex business payments. The opinions expressed are his own.-

The fears of many British businesses were confirmed today after the first hung parliament in three decades was declared on Friday.

Darling’s “lame-duck” budget

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Mark Bolsom- Mark Bolsom is the Head of the UK Trading Desk at Travelex, the world’s largest non-bank FX payments specialistThe opinions expressed are his own. He will participate in a Reuters Budget live blog at noon GMT on Wednesday, March 24, 2010. Please tune in and join the discussion. -

While the UK’s financial media has billed the 2010 budget as Chancellor Alistair Darling’s most important – due to their assumption it will be his last – it seems that the financial markets have taken a more relaxed view, feeling its importance has been somewhat overstated by the media.

An alternative view of the crisis in Greece

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Mark Bolsom1-150x150.jpg-Mark Bolsom is the Head of the UK Trading Desk at Travelex, the world’s largest non-bank FX payments specialist. The opinions expressed are his own.-

Greece has been dominating the headlines lately with many commentators heavily criticising its burgeoning deficits and perceived threat to eurozone stability. But is such heavy criticism really justified, or are the Greeks simply being made scapegoats for systematic failings? After all, Greece did not cause the current financial crisis, but is instead one of the major victims.

QE pause shows there is a long way to go

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- Mark Bolsom is the Head of the UK Trading Desk at Travelex, the world’s largest non-bank FX payments specialist. The opinions expressed are his own. -

Thursday’s decision by the Bank of England to keep both interest rates and its asset purchasing programme on hold was hardly a surprise and had been largely priced in to markets.

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