British transport firm Arriva today said talks with France’s national rail operator about creating a new European industry giant had come to nothing.

The London market is on the back foot after overnight falls on Wall Street and continued interest rate fears hit blue chip stocks.

The increasing prospect of higher interest rates cast a shadow over property and retail stocks on the London market today.

Hopes of a strong start to the week from London’s leading shares evaporated today as the FTSE 100 Index fell back from earlier gains.