FTSE 100 hits 5 year low

The FTSE 100 yesterday, fell to its lowest point since April 1997, sparked by a combination of fears surrounding accounting irregularities and poor financial results. The FTSE was down around 3.4 percent to close at 4392.6.

The losses were headed by Vodafone (VOD.L), which shed 6.4 percent to close at 80.5p. The drop in Vodafone's shares were sparked by fears that the company might be involved in accounting malpractice and that it might buy the mobile phone subsidiary of troubled media company Vivendi. Vodafone has reportedly denied that it is involved in any accounting scandals.