The FTSE 100 was trading 1.8% lower at 3pm as US markets slipped at the open following a poor Italian debt auction and signs of division re-emerging among eurozone leaders.

Lloyds Banking Group CEO António Horta-Osório is to return as group chief executive on 9 January 2012 after a period of medical leave.

William Littlewood's £910m Artemis Strategic Assets fund has initiated positions in battered retailers HomeServe and Home Retail Group in the belief their share price falls are overdone.

The FTSE Group is to raise its minimum free float requirement for companies listing in the UK from 15% to 25% after a market consultation.

Nick Hayes has taken over management of the £135m AXA Sterling Corporate Bond fund from global head of fixed income Theodora Zemek.

UK CPI inflation fell from 5% to 4.8% in November, the Office for National Statistics said, in line with economists' forecasts.

Findlay Park CEO James Findlay said US political parties' inability to make difficult decisions is provoking ‘disgust' among corporate management.

JOHCM GEM Opportunities manager James Syme said Vladimir Putin's decision to run for the Russian presidency in 2012 has already proved negative for investors in the country.

George Soros' fund has purchased around $2bn of European government bonds previously held by collapsed brokerage MF Global, according to reports.

Amid all the negative newsflow on Europe this year, the euro has remained relatively resilient.