Bad news sends Footsie tumbling again

A rash of bad news and job cuts is hitting sentiment in the City, with the Footsie 100 index down 72.3 points after an hour's trading to stand at 5043.7.

Shares in Rolls-Royce initially rose, but then fell 2% or 2¼p to 132p, after it announced 5,000 job losses and warned of difficult market conditions for the next two years.