Update: FTSE set for worst week in six months

The blue chip index was down 1% at 5,621 by mid-afternoon, its lowest level since 27 July, leaving it down 2.5% for the week. That would represent the worst weekly fall since 20 May 2012, when the FTSE fell some 5.5%, and would leave the index up just 0.9% for 2012 as a whole. The index was taken lower today by Melrose, the manufacturing buyout specialist, which said revenue trends have slowed and the sales outlook for 2013 has become more uncertain. The stock dropped 13.6% on the news, making it the largest faller in the index. Elsewhere, Lloyds was also down 2.4% at 44.62p, as a ...