The Confederation of British Industry (CBI), which represents near 240,000 companies, said on Monday that U.K. financial services are expecting a drop in 2010. The boom seen since the second quarter of 2009 is not anticipated to continue this year as firms are predicting business volumes to slump in the first quarter due to uncertainty surrounding the ability of the British economy to emerge from recession.

U.K. private businesses are forecasting gloomy outlook for 2010, while securities traders are projecting a decline in the first 3 months of the New Year. Also, the new tax on bank's bonuses exceeding 25,000 pounds may cut 1 million pounds a year from roughly 5,000 bankers, adding to the pessimistic climate.