HSBC Cuts Europe's 2009 Growth Forecast on Turmoil

By Patrick Rial

(Corrects number of euro currency members in second paragraph.)

Oct. 6 (Bloomberg) -- HSBC Holdings Plc cut its forecast for European growth next year as global financial turmoil spreads.

The 15-member Euro region may expand 0.4 percent in 2009, economists led by Janet Henry at HSBC, Europe's biggest bank, wrote in a note to clients dated Oct. 3, cutting their earlier 0.9 percent prediction.

The recent nationalization of lenders such as Fortis and tightened lending that caused rates in the interbank market to soar are likely to be a drag on the so-called Eurozone's economy, they said.

To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net