FTSE up slightly on opening

The London Stock market has opened slightly up this morning, despite a warning by the Governor of the Bank of England that the economy could be in the grip of the worst financial crisis in history.

But the FTSE promptly dropped again after the credit ratings agency Moody's downgraded 12 UK banks and building societies.

They include Lloyds, Santander, the Nationwide and RBS- whose shares fell 5% on the news.