Credit Crisis Hitting London’s Financial Services Sector Hard
The escalation of the credit crunch during the third quarter is taking a big bite out of London’s financial sector, data from International Financial Services London shows. The downturn in financial market activity has become more evident with 11 out of 12 indicators falling between the second and third quarters of 2008, IFSL said.
The CBI/PwC survey reported the largest drop in business in its near 20 year history.
Apart from a rise in equity turnover, a decline was seen across securities markets, with IPOs, mergers & acquisitions and securitisation all falling. Trading at Liffe was also down.
Evidence of the broader impact of the downturn is seen in the jobs market, with an emerging excess of new candidates over new vacancies, as well as a jump in vacancy rates in the office market in central London.
Over the past 12 months 11 out of 12 indicators were down between the third quarters of 2007 and 2008, with only international debt issues bucking the trend.
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