(Sharecast News) - The chancellor will use his Budget this week to protect pensioners and those saving for their retirement, as he announces plans to shield nearly 1m people from paying income tax. John Healey is expected to confirm on Wednesday that the full state pension will rise by £489 to £13,036 - equivalent to 3.9%. However, the rise will push about 1m people on low incomes who rely on the state pension above the £12, 570 personal allowance threshold, meaning they would be dragged into paying income tax. To retain the principle that the state pension is not taxable, Healey is expected to announce a rise in the tax-free allowance for low-income pensions to £13,036. The move will cost taxpayers £200m a year by 20230 - The Times
Financial markets are wrong to predict the Bank of England will raise UK interest rates by a full percentage point or more by next summer, City economists believe. According to market-implied interest rate expectations, the BoE is likely to raise interest rates at least four times over the year next, lifting Bank Rate from 3.75% today to 4.75% by the end of July, and possible to 5% - meaning five rises - by December 2027. But a number of City experts believe such a sharp tightening cycle is unlikely given there is little sign that the rise in energy costs is pushing up other prices sharply - The Guardian
Top European luxury groups have shed about €250bn of market value this year as spending by Chinese consumer wilts and AI-driven of stock market wobbles depress demand for high-end shoes and handbags. Results from LVMH, Hermes and Gucci-owner Kering this month all missed market expectations that had already been cut significantly, confirming fears that the luxury industry remains in the grip of a multi-year downturn - Financial Times
Audi has said it will spend $4bn to build its first factory in the US, as its parent company, Volkswagen, struggles with the impact of steep tariffs imposed by Donald Trump. The German brand's chief executive, Gernot Dollner, joined Trump on stage at a campaign rally on Saturday night to announce the factory in Macon, Georgia in an unusual brand by a big European brand just days before the US mid-term elections - The Guardian
NatWest is facing questions over its banking of a second alleged 'mini bond' scam after an intervention by the City regulator. The bank handled tens of millions on behalf of a sole trader accountant who, according to allegations from the Financial Conduct Authority, played a key role in a big Ponzi scheme. It has now emerged that the bank is also exposed to Hunter Jones, a group which the FCA is asking the High Court to tackle over its fundraising for HJ Collection, a property investment business. The regulator claims Hunter Jones operates a Ponzi. A NatWest spokesperson declined to comment on the cases but said banks could not tackle financial crime alone - The Times