FTSE slips as economy, Citi job cuts weigh

* FTSE 100 falls 1.6 percent

* Some better-than-expected results temper losses

* Miners down on falling metals prices

* UK CPI data eyed

By Simon Falush

LONDON, Nov 18 (Reuters) - Britain's top share index fell 1.6 percent on Tuesday, as news of hefty job cuts from Citigroup (C.N: Quote, Profile, Research, Stock Buzz) and continued gloom on the global economy offset the positive impact of some better-than-expected corporate news.

By 0903 GMT the FTSE 100 .FTSE was down 67.35 points at 4,064.81 after falling 2.4 percent in the previous session.

ICAP (IAP.L: Quote, Profile, Research, Stock Buzz) rose 2.3 percent after it said its full-year profits would beat consensus.

"There's no particular change in the economic backdrop but the company news has generally been more positive than people were expecting," said Gareth Evans, UK equity strategist at UBS.

Packaging company Rexam (REX.L: Quote, Profile, Research, Stock Buzz) gained 2.1 percent after it said in its interim management statement that its 2008 outlook was unchanged.

This helped to dilute the impact of news that Citigroup (C.N: Quote, Profile, Research, Stock Buzz) will cut 52,000 jobs, the second biggest corporate layoff plan in history.

UK banks were among the heaviest bluechip losers. HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) fell 4.7 percent, HBOS (HBOS.L: Quote, Profile, Research, Stock Buzz) slid 4.8 percent and RBS lost 2.9 percent.

Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) fell 3.7 percent after it moved to quell shareholder anger about a proposed 5.8 billion pound capital injection by Middle Eastern investors. [ID:nLI116051]

Investors will look to CPI data at 0930 GMT for more clues about monetary policy after the Bank of England shocked the market earlier this month by cutting rates by 150 basis points to 3 percent.

Analysts expect CPI to fall to 4.8 percent from 5.2 percent, paving the way for further growth-boosting interest rate cuts.

Meanwhile, Japan's recession could last even longer than feared, the country's economy minister warned, echoing comments from U.S. officials that pain from the global financial crisis was far from over.

Australia's biggest investment bank, Macquarie Group (MQG.AX: Quote, Profile, Research, Stock Buzz), said it was heading for its first fall in annual profit in 17 years -- the latest gloomy news from the financial sector.

Miners were under pressure as metals prices slid further. Anglo American (AAL.L: Quote, Profile, Research, Stock Buzz) fell 3.6 percent and Eurasian Natural Resources (ENRC.L: Quote, Profile, Research, Stock Buzz) fell 4.8 percent.

Lonmin (LMI.L: Quote, Profile, Research, Stock Buzz) fell 7.5 percent after the platinum producer posted a 19 percent rise in annual underlying earnings per share, below estimates, and said it would close uneconomic operations.

Energy stocks were again under pressure with oil prices CLc1 mired near a 22-month low. BP (BP.L: Quote, Profile, Research, Stock Buzz) fell 0.4 percent, BG Group (BG.L: Quote, Profile, Research, Stock Buzz) lost 1.6 percent while Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz) lost 1.8 percent.

Plumbing and heating supplies company Wolseley (WOS.L: Quote, Profile, Research, Stock Buzz) lost 5.1 percent after it said pretax profit had fallen 45 percent and it would close over 200 branches. (Editing by Jon Loades-Carter)