Growing optimism about economy could boost banking jobs
Opportunities for those seeking finance jobs in London could be improved as a result of growing optimism about the performance of the UK's economy and financial markets during 2010. A series of reports have indicated that following the downturn and recession of 2008, gross domestic product is improving and markets are expected to rally.
For example, the most recent Lloyds TSB Business Barometer indicated that the balance of companies in the UK feeling optimistic rather than pessimistic rose during the fourth quarter of 2009 compared to the previous three months. "Across the board, businesses are now far more optimistic about the economic outlook that than they were twelve months earlier," Lloyds TSB Corporate Markets chief economist Trevor Williams commented. The figures showed a balance in the number of businesses feeling confident about their prospects of 33 per cent in December and the bank is now one of a number of institutions predicting that the economy will start to recover during 2010.
Additionally, a recent study by Investec Specialist Private Bank and the Entrepreneurs Organisation discovered that 88 per cent of company bosses polled forecast an increase in revenue this year, while the National Institute of Economic and Social Research has claimed that "evidence of a recovery is starting to emerge". New figures from the thinktank indicated a 0.3 per cent rise in output during the final quarter of 2009, marking a return to growth.
Investors are also becoming more optimistic about their prospects for 2010, with a survey of 3,451 small retail investors carried out by the Investment Management Association discovering that although appetite for risk has dipped slightly among older and wealthier individuals, confidence is higher than it was in 2008 and the outlook for UK markets is expected to be brighter this year. Equities and residential property are believed by respondents to be the most attractive asset classes, something that may particularly interest those looking for investment banking jobs.
Those interested in business analysis jobs could also be interested in predictions made by analysts regarding the future performance of the economy. Currencies Direct expert Phil McHugh has suggested that rising consumer prices could see the policy of quantitative easing halted by the Bank of England in order to reduce inflationary pressure, while David Page of Investec Securities has described sterling as "desperately undervalued" and likely to rally over the next couple of years.
As the UK emerges from recession, banks may well start recruiting more heavily over the coming months. The latest figures from the Office for National Statistics revealed that the economy expanded by 0.1 per cent during the three months to December 2009 following six quarters in a row of decline. Growth in gross domestic product was boosted by the services and production industries, both of which saw output rise by 0.1 per cent over the period in question.
Stronger economic results and forecasts are reflected in expectations for the finance jobs market in London during 2010 and the Telegraph recently published details of a report by hedge fund Tosca claiming that around 100,000 new positions will be created in the banking sector over the next decade. This comes after data from High Fliers Research's The Graduate Market in 2010 study indicating that the number of graduate vacancies in investment banking has increased by over one-third since 2009.
All these signs are positive ones for employers and candidates in the financial services sector, as they suggest that this year will be a more buoyant one for the market, with growing demand for professionals as the economy stabilises and recovers in the wake of the global downturn.
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