JP Morgan predicts 40,000 city job losses

Analysts from JP Morgan have predicted 40,000 jobs will be lost in the city during the next two years.

The forecast dwarfs estimates from the Centre for Economics and Business Research that up to 20,000 city jobs will be lost during the next two years.

In an interview earlier this week Harm Meijer, property analyst at JP Morgan and author of the report, says the figures from the CEBR are simply too optimistic.

The prediction adds 20,000 to JP Morgan’s December forecast of 20,000 job cuts in London’s financial district.

The firm, a leading American investment bank, bought ailing bank Bear Stearns for half its share value last month in an attempt to stave off a Northern Rock-style collapse in the USA.