Interest rates are set to hit a record low this week as the Bank of England grapples with a deepening recession.

Manufacturers facing pressure from falling sales and rising raw material costs have been cutting jobs at the fastest rate for two years, it emerged today.

London shares notched up their sixth consecutive day of progress today despite spending most of the session in the red.

A surge in shares across the Atlantic helped the FTSE 100 Index close above the 5,000 barrier for the first time since mid-March today.

Interest rates are set to remain on hold tomorrow as the Bank of England reacts to the sharp slowdown in consumer spending, economists predict.

The FTSE 100 Index held its own above the 4900 level today despite another reserves downgrade by Shell and a poor start on Wall Street.

The London market shook off further weakness in the US dollar to recoup a chunk of its recent losses today.