Next lifts full-year guidance, GSK drug gets new breakthrough designation

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UK clothing retailer Next lifted full-year guidance after better-than-expected December sales but warned UK growth is likely to slow, as employer tax increases, and their potential impact on prices and employment, begin to filter through into the economy . Full-year guidance for the 12 months to January was lifted by £5m to £1.01bn after underlying full-price sales rose by 5.7% against expectations of a 3.5% increase. For 2026, Next anticipates full-price sales growth of 3.5% and profit before tax of £1.046bn, up 3.6%.

GSK announced on Tuesday that its B7-H3-targeted antibody-drug conjugate, GSK'227, had been granted breakthrough therapy designation by the US FDA for relapsed or refractory osteosarcoma, a rare and aggressive bone cancer with no approved treatments after two prior lines of therapy. The FTSE 100 pharma giant said the designation, supported by data from the ARTEMIS-002 trial, reflected the potential of GSK'227 to provide significant clinical benefit over existing options in the high-need area. It marked the third regulatory milestone for GSK'227, following similar designations in Europe and the US for other cancer indications.

Newspaper round-up

A company that has worked closely with the UK government on artificial intelligence safety, the NHS and education is also developing AI for military drones. The consultancy Faculty AI has “experience developing and deploying AI models on to UAVs”, or unmanned aerial vehicles, according to a defence industry partner company. – Guardian

The luxury tights and lingerie brand Wolford has apologised after heavy criticism from customers over delays to orders and refunds, admitting its delivery services were overstretched. Shoppers have taken to the reviews site Trustpilot to warn others against making orders, with some saying they had waited for more than a month for their goods to arrive and had been unable to obtain a refund. – Guardian

Britain has become Europe’s largest electric car market for the first time ever as tough net zero sales targets prompt manufacturers to offer steep discounts. The UK outsold Germany last year and surged ahead of France after a rise in electric vehicles (EV) registrations at the end of 2024. It came as the Government confirmed plans to bring forward Britain’s petrol and diesel ban from 2035 to 2030. Heidi Alexander, the Transport Secretary, said the plans, which will exempt some hybrid vehicles until 2035, would “give confidence to consumers considering making the switch”. – Telegraph

Reforms to encourage Britain’s multi-employer pension schemes to merge must not go so far that the industry is reduced to a “sub-optimal oligopoly”, one of the most acquisitive master trusts has warned. Andrew Evans, chief executive of Smart Pension, which after recent acquisitions will soon be looking after the retirement pots of two million people, said it was important that innovative new entrants could still break into the industry. – The Times

Denise Coates is believed to have received more than £150 million from her family’s gambling business, maintaining her position as one of Britain’s richest executives. The total pay for the joint chief executive of Bet365, based in Stoke-on-Trent, was £158.7 million for the year to the end of last March, newly filed accounts suggest, although that is a significant decrease from £270.7 million the previous year. – The Times

US close

US stocks trimmed earlier gains by Monday's closing bell after Donald Trump quashed speculation that his proposed trade tariffs might be pared back, though tech shares still put in a strong performance to propel the Nasdaq higher.

The Nasdaq and S&P 500 rose for the second straight day, gaining 1.2% and 0.6% respectively, while the Dow slipped 0.1%.

Markets initially jumped on reports that Donald Trump's proposed tariffs might be less severe than initially feared, raising the outlook for international trade and corporate prospects worldwide.

The Washington Post cited people close to the matter who said that duties would be imposed on every country but only applied to imports critical to economic or national security – a major shift from the US president-elect's initial campaign pledge.

However, in a post on Truth Social, Trump denied the "incorrect" rumours and labelled the speculation as "just another example of Fake News", causing stocks to come off their intraday highs.