The blue-chip index fell 2.1pc to close at 6696.79 on Thursday. The FTSE 100 ended Wednesday at just 90 points shy of the record close of 6930.2 it reached during the 1999 dotcom boom.

Mothercare is crawling towards a recovery as chief executive Simon Calver insisted the UK company was on target to break even within two years.

The boss of Flybe has hit out at "punitive" charges and taxes that have pushed the troubled regional airline to end flights in and out of London from next March.

The updated figures from the Office for National Statistics showed that the UK's dominant services sector, which accounts for three quarters of national output, drove the recovery - growing 0.6pc over the three months.

There was no relief for ARM Holdings today after analysts at Exane BNP provided sceptics with plenty of ammunition for their bear case against the microchip designer.

The annual report from Britain's biggest retailer revealed that Richard Brasher, the former head of Tesco in the UK, was paid �1.3m to leave and Tim Mason, who led the company's US arm Fresh & Easy, collected �1.7m in �liquidated damages�.

Pre-tax profits were �97m in the six months to the end of March, compared with �37m last year. Total turnover was flat year-on-year at �866m.

The new regulator said the unit was unable to show it was giving clients the right advice. "Although no detriment to customers has been identified to date, the failings exposed customers to the risk that they would be given incorrect advice and inappropriate ...

David Cameron has appointed a former lobbyist for British Gas to be his personal advisor on energy and climate change. Tara Singh, whose previous role as public affairs manager at British-Gas owner Centrica involved frequent contact with the Conservative ...

Car parts and cycles retailer Halfords has unveiled a three-year strategy to boost its sales after unveiling a 22 per cent plunge in annual profits.