Grim news from US dominates London trading

The Footsie index of 100 leading stocks is off 73.8 points by lunchtime to stand at 5402.7, having fallen by more than 90 points in the first hour of trading.

Heavy losses in tech and telecoms shares follow the release of the US Federal Reserve's "beige book". It warned that growth in the US was at a near standstill and also highlighted concerns over retail sales, export orders and the spread of the downturn beyond the manufacturing sector.