Some worse-than-expected US inflation figures have spooked the markets on both sides of the Atlantic. Rising producer prices last month have led to suggestions the US Federal Reserve may need to increase rates.
So with Wall Street opening around 100 points lower, the FTSE 100 is now down 118.2 points down at 6258.3.
Back to Yell for a moment, following the directories group's post-results meeting with the City.
Lorna Tilbian at Numis, who put a reduce recommendation on the shares, said: "The Yell analysts' meeting did not go well in our view. The key issue at the meeting was whether the group would be able to remain within its banking covenants going into fiscal 2010, or if it may have to pass its dividend or raise equity. We calculate that a 1:1 rights issue at 80p would raise £628m, thereby reducing debt to more manageable levels. The group is exposed to a deteriorating economic outlook in its core markets (the US, UK and Spain), structural challenges and has high leverage."
