FTSE dragged down by L&G tax woes

L&G fell 2.84% to 111.00p after it warned it could face a £500m tax bill if new legislation proposed by the government to tax reserves in life funds comes into force. On the upside, Telecoms stocks dialled in gains after mobile group O2 continued higher on persistent bid hopes and upbeat broker comment increasing 1.4% to 163.50p. In the US, the Dow Jones Industrial Average has gained 23.62 points, or 0.2%, to 10,559.10 as oil prices dropped in morning trading by almost $2 a barrel and a government report suggested the economy is expanding faster than expected. Gains have been limit...