SIR TERRY LEAHY - Chief executive, Tesco

"The good news is that food inflation is coming down and that is good for consumers. That leaves room for interest rate cuts. We need to see the rate come down. We also need to see the banks get back to doing their job which is lending money to the real economy so it can invest and grow."

DAVID KERN - Economic adviser to the British Chambers of Commerce

"This is a setback, but I do not think it is the end. The markets will force the politicians to get a deal so we will not go into meltdown. Congress will not go home until there is a deal. It is quite possible some of the changes that will happen to the deal that eventually goes through will improve it, maybe make it less indiscriminate. From here, some banks will survive and some will have to go, but at the end there will be an American banking system that is viable."

PHILIP SHAW - Chief economist, Investec

"I was very surprised the vote didn't go through last night. But the heavy fall on Wall Street last night could be a reality check for those members who voted against it. It may well be that the Bill comes back with one or two modifications and the House passes it. At least that is what one hopes will happen."

PETER HAHN - Former Citigroup banker and fellow at Cass Business School

"Many of the Congressmen who felt that their election votes were most at stake voted no because there is a feeling the population do not support it, but the population will find out it is affected through pensions, businesses and jobs. This is not just a Wall Street problem."

CHRIS HOSSAIN - Senior sales manager, ODL Securities

"We are facing a pivotal moment in global economics. The rejection of the bail-out means a chance of sharp declines on the world's major indices, with sources close to Hank Paulson allegedly saying behind closed doors that we could see falls of 3000 to 4000 points on the Dow over the next few sessions. As opposed to reform, it would appear that America has voted for punishment. Markets will be hamstrung until the US government can agree a way forward."

ALEX POTTER - Banking analyst, Collins Stewart

"The margin of defeat was relatively small, so some small concessions would appear likely to secure the Bill. HSBC, RBS and Barclays may have directly benefited. The US government is hoping that, with cleaner balance sheets, liquidity will return to the US banks and the wholesale money markets will become functional again. There would clearly be collateral benefits to the UK and Europe. We believe the Paulson failure will exacerbate weakness in the near term and would only buy the safehaven stock: HSBC."

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