Wealth managers and private banks will be looking East for new business: to the City of London, where a record £8.8 billion ($16.7 billion) ...

Wealth managers and private banks will be looking East for new business: to the City of London, where a record £8.8 billion ($16.7 billion) is forecast to be paid out in bonuses at the 2006/07 pay round, up 18.3 per cent from the £7.4 billion paid out last year. The forecast, by the Centre for Economics and Business Research for bonuses attributable to 2006 and paid in the 2006/07 bonus round, has been revised up from their July prediction of £8.1 billion. According to the authors, the upward revision comes as the City easily shook off the tumble in the stock market last May. They believe that the growth of private equity and hedge funds activity has helped boost the FTSE to a five and a half year high despite higher interest rates and worries about a US economic slowdown. The latest forecast also sees a strong increase in the number of City jobs in 2006. Jobs in the City are estimated to have hit a record high 335,000 in 2006, up from 324,000 recorded in 2005. According to the authors, the professional services sector in the City, which includes law and accountancy firms centred on City-activity, will see the largest job increases, accounting for 5,000 new jobs in London. International banking and securities will account for a further 3,000 and 1,000 new jobs this year, respectively.