The exit poll projection is worse than the most pessimistic forecast for the Israeli Prime Minister. If correct, he has lost seats to the centre and the far right and will need to do deals with both sides to form a coalition government. No easy task.
The exit poll suggests that predictions that Israel would take a decisive lurch to the far right have been confounded. The centre and centre left have performed better than expected. One seasoned Israeli pundit just told me; "The voters have just saved Israel from itself."
More top news
The PM promises to double to 200,000 the number of homes built under an existing scheme aimed at easing Britain's housing shortage.
The Met Office has weather warnings in place for snow and ice until 10am in the north and west.
The plan, which would effectively strip banks of the benefit of recent corporation tax cuts, forms part of the party's election manifesto.