Economics / Markets

The Chancellor will use the Budget to hike capital gains and inheritance taxes to fund Gordon Brown's pledge today not to cut front-line services, Legal and General predicts.

The Prime Minister today pledges not to "let down" the people of Britain on the economy, but warns there is still danger ahead.

The FTSE 100 was up 11 this morning at 5,613 points, with financials peppering both sides of the gainers and losers tables.

Gordon Brown has confirmed 24 March as the day for the 2010 Budget ahead of a May General Election.

Tax hikes or spending cuts to the tune of an extra £20bn will be needed by 2013/14 to close the fiscal gap, according to PricewaterhouseCoopers.

Prudential rushed last night to complete a Hong Kong listing for its shares amid doubts investors would approve its record $35.5bn acquisition of AIA, the Asian division of American International Group (AIG).

China could end its near two-year currency peg on the dollar as soon as next month, according to respected economist Professor Nouriel Roubini.

The FTSE 100 opened flat following a mixed performance in the US overnight. The UK index was up 0.07% or 3.07 points to 5,610.

The FTSE 100 edged past the 5,600 mark in early trading Monday, helped in part by a 2% gain for Prudential which has accelerated its plans for a listing on the Hong Kong Stock Exchange.

Sharp rises in savings rates for 2009 were driven by lower tax payments, low mortgage interest payments and higher social security payments, not long-term increases in savings, PricewaterhoouseCooper (PwC) analysis suggests.