More City jobs to go after drop in M&A activity

Providing advice on mergers and underwriting deals provide the mainstay of investment banking income. According to Dealogic, a financial markets research company, this has nearly halved. It notes that the value of deals announced to the end of September was $1,500bn (€1,650bn) compared with $2,800bn for the same period in 2000.

European deals fell 52% by value to $493.1bn. The only UK deal to make the global top 10 was the Bank of Scotland and Halifax merger with a value of just over $15bn, according to Dealogic.

Such a significant fall in business is certain to result in deep cost cutting at investment banks. The recent terrorist attacks have inevitably put a lot of restructuring on hold but with business unlikely to pick up in the fourth quarter, it could still be a cold Christmas for many City workers.