Job losses and dire forecasts hit Footsie

The Footsie index of 100 leading stocks is down 76.1 points at mid-morning to stand at 5039.9, pulling back from an earlier 112-point slump.

Further news has emerged about the weakening economy, as aero-engine group Rolls-Royce announced 5,000 job losses and warned of difficult market conditions for the next two years.