Update: Lloyds TSB and HBOS plummet amid FTSE Crisis

November 16. Shares in Lloyds TSB (LON:LLOY) tumbles 5.3 percent or 8.8p and HBOS (LON:HBOS) falls 4.16 percent or 3.6p as The Confederation of British Industry (CBI) warns that we are heading for a more prolonged and deeper recession that was originally thought.

The FTSE 100 plummeted 0.54 percent or 22.90 points by mid-morning trade, following the news that in 2009 the British economy is expected to shrink by 1.7 percent, back in September the prediction was 0.3 percent a dramatic change. With unemployment figures currently at 1.8 million and with this figured estimated to reach 2.9 million by 2010, Britain faces an even gloomier outlook next year.

Japan’s Nikkei 225 sank nearly 250 points in early trade but regained to close 60 points, or 0.71% higher, reaching 8523, up on its previous close of 8462.

All eyes will be on the Dow Jones today after losing 337.94 points or 3.82 percent on Friday closing at 8491.31.

Source: IFA