The U.S. could have gone for the jugular, but it decided to make an issue of it banana imports, without causing massive problems.
London is still seen as the crossroads of all markets. Europe is roughly on its doorstep, one hour distant, New York is five hours distant and there's the cross-over with the Asian markets.
This is a market that will not do what may be obvious. It's sentiment-led, rather than value-led. If we stabilize, people may try to cherry-pick in blue-chip and growth stocks, but if we head lower investors may get defensive again.
It would seem the bank now realizes that we are falling into a bit of a deep hole.