Cyprus tax plan hits FTSE

<p>Worries over Cyprus’ tax plan has hurt the FTSE this morning.</p>

The FTSE 100 fell one per cent during early morning trading today (March 18th) on the back of concern that Cyprus' planned bank deposits tax will hurt the eurozone.

Reuters reports the index was down 62.31 points at 08:29 BST, putting it on 6,427.34 points. Banks were among the biggest fallers and analysts at Liberium Capital predicted Lloyds Banking Group, Barclays and Royal Bank of Scotland could see sell-offs of between four and seven per cent.

Cyprus plans to implement a levy on savers in the country in order to fund a €10 billion (£8 billion) bailout and investors are concerned the move will have a knock-on effect on banks operating in the eurozone.

Elsewhere on the FTSE, there was an eight per cent rise for Marks & Spencer amid speculation the retailer may be subject to a bid from the Qatar Investment Authority.

The Sunday Times reported the sovereign wealth fund is interested in putting a consortium together to fund a £8 billion takeover.

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