Hard to say which was the biggest news at noon: an expected 25 basis point cut in UK interest rates or a profit warning from GlaxoSmithkline.
Glaxo said lower Avandia sales in 2008 and increased generic competition would lead to "a mid-single digit percentage decline in business performance earnings per share".
The shares, which were higher earlier on, slumped 5% to £11.05p on the shock news.
Meanwhile the rate cut came alongside a hawkish statement from the Bank of England warning of inflation risks.
Both these factors helped push the FTSE 100 - which was down around 40 points before noon - even further into negative territory. It is now 86.2 points lower at 5789.2.
Meanwhile Alliance & Leicester lost 7% to 606p as mooted bidder Santander ruled out making an offer.
