London 'may shed 29,000 jobs'

UK financial services companies may cut fewer jobs than forecast as the government's bailout of the banking system and interest-rate cuts restore confidence, the Centre for Economics & Business Research Ltd said.

Banks and insurers in London may eliminate about 29,000 jobs this year, 9 percent of the total, before employment growth resumes in 2010, the CEBR said in a report. The estimated losses are lower than the firm's October forecast of 34,000.

"The financial crisis has turned the corner," the CEBR said. "The bank recapitalization, asset protection scheme and sharp cut in interest rates have all helped to restore confidence in financial markets."