Next PLC on Thursday raised its pretax profit guidance for fiscal 2023 after better-than-expected Christmas sales, but said it expects earnings to fall in fiscal 2024 as the economy is squeezed by inflation and consumers deal with increased mortgage payments as fixed interest-rate deals expire.

The London-listed fashion retailer now expects pretax profit for the year ending January of 860 million pounds ($1.04 billion) compared with previous guidance of GBP840 million, with full-price sales are seen at GBP4.6 billion compared with GBP4.5 billion previously.


U.K.'s Rishi Sunak Pledges to Cut Inflation, Boost Economy in First Big Policy Speech

LONDON-British Prime Minister Rishi Sunak pledged to halve inflation and boost the economy this year as he seeks to overturn a hefty deficit in the polls and shore up a country beleaguered by rising prices, a struggling nationalized health system and rolling strikes.

Mr. Sunak, who has been the U.K.'s prime minister since October, used his first big domestic-policy speech to promise action on five priorities for the British people, pitching himself as a managerial leader who can start to fix the country ahead of a national election expected next year. Mr. Sunak's Conservative Party currently trails the main opposition Labour Party by 20 points in the polls, according to pollster Redfield & Wilton Strategies.


GLOBAL NEWS

Greener, More Secure Supply Chains Won't Come Cheap

As 2023 dawns, the supply-chain snarls that characterized much of 2021 and 2022 are clearly untangling. But the new year brings new challenges: the rise of "green protectionism" and an accelerated effort by multinationals to diversify away from China.

These two interrelated trends both promise substantial long-term benefits-namely a more livable planet and a more resilient global supply chain-but will probably entail significant costs for companies and consumers in the meantime.


Venture Firms' Strategy of Holding Stocks for Longer Backfires During Market Rout

Venture-capital firms that deployed a new strategy of holding stocks for longer have come to regret it amid last year's market rout.

During the recent bull market, venture-capital investors that typically exit a stock after taking it public held on to their shares in the hope of maximizing returns. Instead, the sharp selloff in technology stocks in 2022 has dealt a punishing blow to that strategy. Some of the splashiest startup stocks from 2021 plunged, making it unlikely those investors will recover the value of their earlier positions anytime soon, if at all.


Good News on Taxes Came Too Late for Many SPACs

A rare bit of good news came too late for battered SPACs that were liquidating at a record pace last month.

With the market essentially frozen and the possibility of a new tax worsening their losses, creators of special-purpose acquisition companies closed roughly 85 SPACs in December, taking nearly $750 million in losses.


China Service-Sector Activity Continued to Fall in December

A private gauge of China's service-sector activity improved in December but stayed in contraction territory, as Covid-19 infections swept the country after an abrupt reopening during the month.

The Caixin services purchasing managers index rose to 48.0 in December from 46.7 in November, Caixin Media Co. and S&P Global said Thursday.


Kevin McCarthy's Allies Push to Win Over Republican Holdouts After Six House Speaker Votes

WASHINGTON-Kevin McCarthy and his allies launched a new round of talks late Wednesday with a small but stubborn band of conservative holdouts who have blocked his bid for House speaker, reviving hopes of a possible deal following a second day without a winner.

The discussions heated up after Mr. McCarthy didn't reach the majority in three rounds of voting Tuesday, nor in another three Wednesday, which served to deepen doubts about his prospects and fuel talk of alternative GOP candidates.


Washington, D.C. to Overhaul Criminal Code Despite Mayor's Objections, Council Member Says

A Washington, D.C. council member says officials plan to push through an overhaul of the district's criminal code despite a veto issued Wednesday by Mayor Muriel Bowser, who said the proposed changes would weaken public safety at a time of heightened concern about crime.

Council member Charles Allen, who led the public-safety committee when the district council passed the overhaul bill in November, indicated that the council would vote to override the veto. The body's next legislative meeting is scheduled for Feb. 7, but a representative for Mr. Allen said it is possible a meeting could happen sooner.


WHO Says China Is Undercounting Covid Deaths, Asks for More Reliable Data

The World Health Organization in a briefing Wednesday urged Beijing to be more transparent about its Omicron outbreak, with some officials questioning the accuracy of the country's Covid-19 data.

WHO Director-General Tedros Adhanom Ghebreyesus said the agency is concerned about the surge in Covid-19 infections in China and again urged the Chinese government to deliver rapid and reliable data on hospitalizations and deaths.


EU Members Encouraged to Require Pre-Travel Covid Tests for China Passengers

European Union member states agreed to controls on people entering the bloc from China, with member states encouraged to require a pre-travel negative Covid test for those flying to Europe, although the decision will be left to national authorities.

After lengthy discussions at a crisis response meeting in Brussels on Wednesday, at which some member states voiced caution about demanding pre-travel tests, the bloc issued a statement saying EU countries are "strongly encouraged to" demand a Covid-19 test result taken within 48 hours of departure.


Australia to Deploy U.S. Himars Rocket System Being Used in Ukraine

SYDNEY-Australia said it will acquire a highly mobile, U.S.-built rocket system that can strike targets from far behind the front lines, the latest step by the U.S. ally to beef up its military amid increased competition with China in the region.

The system, the High Mobility Artillery Rocket System, or Himars, has gained prominence after being used effectively by Ukrainian forces against Russia. The system involves trucks that can carry satellite-guided rockets and strike targets up to about 185 miles away with high precision.


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(END) Dow Jones Newswires

01-05-23 0605ET