The London market failed to build on the week’s early recovery today as a flurry of corporate updates disappointed traders and sent the FTSE 100 Index into the red.

Hopes that the London market could build on yesterday’s rally were dashed today as investors gave the thumbs down to updates from Whitbread and BP.

London shares surged ahead today as traders expressed relief that Hurricane Rita caused less damage than originally feared.

The London market ended the day just shy of the key 5000 level after takeover talk surrounding Whitbread buoyed spirits.

Leisure group Whitbread said today that it was giving up control of its Marriott UK hotels in a deal that will raise at least £1bn (€1.43bn) over two years.

Travelodge today moved to capitalise on the rapid growth in the budget hotel sector by announcing plans to double in size over the next six years.

British pubs and hotels group Whitbread today announced plans to create about 8,000 jobs and to quit its London head office.