Rate cut sparks FTSE nose-dive

Despite rates being cut to their lowest level since 1951, investors had hoped for an even bigger cut and London's blue chip index fell from earlier highs, but remained in positive territory in the late afternoon. Shortly after 3pm, the FTSE100 climbed 20.63 points (0.49%) to 4,190.59, but had climbed above 4,250 shortly before the Bank of England's decision. Friends Provident shares climbed 8.53% to 73.8p, while HBOS gained 6.66% after taking over part of beleaguered fund manager New Star. Private equity firm 3i Group dropped 9.27%, while Stagecoach fell 8.59% to 130.9p after saying r...