LONDON (AFP) -- Turmoil in global markets this month is expected to have blown a large hole in London bankers' 2007 bonuses, with knock-on effects for the British economy, experts believe.

""The true extent of the exposure to the sub-prime mortgage market is yet to be felt and we still think there's more volatility to come with the markets,"" believes Jonathan Said from the Center for Economics and Business Research.
""We do expect this to have a big impact on jobs and bonuses in the City.""
Bankers in the Square Mile, London's financial district, had been expected to receive bonuses totaling around 10 billion pounds (20 billion dollars, 15 billion euros) thanks to buoyant market conditions and record volumes of mergers and acquisitions.
But the current credit crunch caused by the crisis in the U.S. home loans sector could see banks tighten their belts and reduce these Christmas presents by between 10-15 percent, and even by 25-50 percent for the best paid, experts believe.
And for some bankers a lower bonus is the least of their worries if the recent slowdown in mergers and acquisitions activity continues and causes investment banks to cut jobs.
Some economists predict that up to 5,000 employees could be shown the door.
Out-of-pocket investment bankers also means less money sloshing around the wine bars of the Square Mile and London's luxury goods stores, with ripple effects detectable further afield in the British economy