Investors flee amid Italy fears

Investors have fled from the markets as Italy's borrowing costs surged into "bailout territory" and thrust the country into the heart of the eurozone debt crisis.

The FTSE 100 Index was 1.6% lower as the yield on Italian 10-year bonds rose from 6.37% to a euro-era high of 6.64% - a sign investors are losing confidence in the country's creaking finances.