Next has warned its shoppers they face price rises of up to 5% in the year ahead, with a series of cost pressures potentially knocking annual profits by as much as 14%.
The retailer confirmed a story by Sky News hours earlier by admitting further "challenging" times were ahead while updating the City on its Christmas trading performance, which missed forecasts.
Its share price fell as much as 14% in early trading on the FTSE 100 - following on from a 4.3% loss in the previous session - while other retail stocks also came under pressure.
Next reported that its branded full price sales over the 54 days to Christmas Eve were down -0.4% on the same period last year, though total sales over the year to date were 0.4% up - aided by discounting.
As a result, Next cut its central profit guidance for its current financial year, the 12 months to January 2017, to £792m from £805m.
It warned that both sales and profits would come under pressure in the following year, as the devaluation of the pound forced up its import costs.
It also cited household budgets facing a squeeze from wider inflationary pressures such as higher grocery and fuel prices.
A separate retail report on Wednesday warned that clothing and footwear costs, while still down on a year ago, were starting to rise for the first time in nearly two years as a result of sterling's collapse after the vote to leave the EU.
Next's chief executive, Lord Wolfson, was a prominent Leave campaigner though he has argued for a so-called soft Brexit which maintains EU trade arrangements.
The company said it expected profits to fall in its 2017/18 financial year by between 2% and 14% because of the "tougher times" ahead though it expected its price rises, which it had previously flagged, would only depress revenue by 0.5%.
The retailer's performance is closely watched because it has been one of the most consistent performers in UK retail over the past decade.
Primark's owner Associated British Foods, M&S and Tesco were among others to endure share price pain in the wake of Next's trading update.
It has more than 500 stores in the UK and Ireland - with 200 more overseas.
Its statement insisted it was "well placed to weather a downturn in consumer demand" and added it would maintain its policy of returning surplus cash to shareholders through a series of special dividends.
Wednesday, January 4, 2017
Tuesday, January 3, 2017
Serial killer Charles Manson 'seriously ill' in hospital
Convicted serial killer Charles Manson has been moved from prison and taken to hospital, according to US media reports.
The 82-year-old Manson is seriously ill, according to the Los Angeles Times.
The TMZ website reported that Manson was transported to a hospital in Bakersfield, California, about an hour from California State Prison in Corcoran, where he was being held.
Manson, who was sentenced to life in prison, directed his mostly young, female followers - known as the Manson Family - to murder seven people in August 1969 in what prosecutors said was part of a plan to incite a race war between whites and blacks.
In the early hours of 9 August 1969, members of the cult repeatedly stabbed Hollywood actress Sharon Tate, who was then heavily pregnant, and then stabbed or shot to death four other people at her home.
The following night, Manson's group entered the nearby home of grocery store chain owner Leno LaBianca and his wife, and stabbed the couple to death.
Manson was originally sentenced to death but was spared execution and his sentence converted to life in prison after the California Supreme Court declared the death penalty unconstitutional in that state.
Ford cancels $1.6bn Mexico plans amid pressure from Donald Trump
Ford is cancelling plans for a $1.6bn (£1.3bn) plant in Mexico as car manufacturers come under pressure from Donald Trump over jobs.
The announcement came hours after the President-elect threatened Ford's rival General Motors with a "big border tax" over its manufacture of vehicles outside the US.
Ford said it was creating 700 new jobs as it expands a new assembly plant in Flat Rock, Michigan, that will build high-tech self-driving and electric vehicles.
It said the investment was being paid for using money it had previously earmarked to build a new plant in San Luis Potosi, Mexico.
But Ford also said that "to improve company profitability" it would build the next generation of its Focus model at an existing plant in Hermosillo, Mexico.
This would make way for "two new iconic products" at another plant in Wayne, Michigan, safeguarding 3,500 jobs, Ford said.
Chief executive Mark Fields told CNN it looked at factors including a "more positive US manufacturing business environment under President-elect Trump" before making the decision.
He said: "It's literally a vote of confidence around some of the pro-growth policies that he has been outlining and that's why we're making this decision to invest here in the US and our plant here in Michigan."
The U-turn on plans to build a big plant in Mexico follows criticism by Mr Trump over Ford's investments in the country.
It came after the President-elect took aim at GM on Twitter.
He wrote: "General Motors is sending Mexican-made model of Chevy Cruze to US car dealers tax free across border.
"Make in USA or pay big border tax!"
Earthquake strikes off Scarborough coast
An earthquake with a magnitude of 3.8 has struck off the Scarborough coast, according to the British Geological Survey.
The quake was centred 93 miles east of Scarborough at a depth of 18km.
It hit at around 6.50pm and was initially thought to have had a magnitude of 3.9.
Other recent earthquakes in the UK include a magnitude 0.9 tremor in Kirkbride, Cumbria, on Monday and 0.8 in Blakedown, Worcestershire, on Sunday.
Social media users were not too worried, however, with some responding to the news by posting mocked-up photos of overturned wheelie bins and broken garden gnomes.
According to local media, there were no reports of the quake being felt on land.
But, despite 3.8 being relatively small when compared to the quakes in some other countries, magnitude 4 earthquakes happen on average only every two years in Britain.
The UK has between 20 and 30 earthquakes strong enough to be felt by people each year, with a few hundred smaller ones strong enough to be picked up by sensitive instruments.
The BGS website says earthquakes on the east coast of the UK are relatively rare, although the North Sea is "more active than the mainland".
The quake was centred 93 miles east of Scarborough at a depth of 18km.
It hit at around 6.50pm and was initially thought to have had a magnitude of 3.9.
Other recent earthquakes in the UK include a magnitude 0.9 tremor in Kirkbride, Cumbria, on Monday and 0.8 in Blakedown, Worcestershire, on Sunday.
Social media users were not too worried, however, with some responding to the news by posting mocked-up photos of overturned wheelie bins and broken garden gnomes.
According to local media, there were no reports of the quake being felt on land.
But, despite 3.8 being relatively small when compared to the quakes in some other countries, magnitude 4 earthquakes happen on average only every two years in Britain.
The UK has between 20 and 30 earthquakes strong enough to be felt by people each year, with a few hundred smaller ones strong enough to be picked up by sensitive instruments.
The BGS website says earthquakes on the east coast of the UK are relatively rare, although the North Sea is "more active than the mainland".
Trump insists North Korean intercontinental missile ‘won’t happen,’ berates China
President-elect Donald Trump contended Monday night that North Korea would not be able to develop a nuclear weapon capable of reaching the United States, despite its claims to the contrary, and berated China for not doing enough to help stop the rogue state's weapons program.
Trump's declarations on Twitter came after North Korean leader Kim Jong Un said in a New Year's address that the country had reached the “final stages” of testing its first intercontinental ballistic missile that could reach the United States.
“It won't happen!” Trump tweeted.
The president-elect — who spent Monday with advisers at Trump Tower in New York following his holiday respite in Florida — did not specify what, if anything, the United States might do under his command to stop North Korea from developing the missile.
In a second tweet, Trump sought to shame Chinese leaders for trading with the United States but doing little to help stop North Korea's development of nuclear weapons.
He tweeted: “China has been taking out massive amounts of money & wealth from the U.S. in totally one-sided trade, but won't help with North Korea. Nice!”
Trump's declarations on Twitter came after North Korean leader Kim Jong Un said in a New Year's address that the country had reached the “final stages” of testing its first intercontinental ballistic missile that could reach the United States.
“It won't happen!” Trump tweeted.
The president-elect — who spent Monday with advisers at Trump Tower in New York following his holiday respite in Florida — did not specify what, if anything, the United States might do under his command to stop North Korea from developing the missile.
In a second tweet, Trump sought to shame Chinese leaders for trading with the United States but doing little to help stop North Korea's development of nuclear weapons.
He tweeted: “China has been taking out massive amounts of money & wealth from the U.S. in totally one-sided trade, but won't help with North Korea. Nice!”
Donald Trump warns North Korea over US-aimed nuclear missile
Donald Trump has warned North Korea that its plans to put parts of America in range of a nuclear missile "won't happen".
The US President-elect, who will be inaugurated on 20 January, put out a tweet in response to a claim by Kim Jong-Un that his country is close to testing an intercontinental ballistic missile (ICBM).
ICBMs can travel up to 10,000km (6,200 miles). The United States is around 9,000km (5,500 miles) from North Korea.
The tweet prompted South Korea to say it shows Mr Trump is aware of the threat posed by the North's nuclear programme and will not waver from a policy of sanctions against the isolated country.
Mr Trump tweeted: "North Korea just stated that it is in the final stages of developing a nuclear weapon capable of reaching parts of the U.S. It won't happen!"
South Korea's foreign ministry said Mr Trump's comment - his first mention of the North Korean nuclear issue since the US election in November - could be interpreted as a "clear warning".
Foreign ministry spokesman Cho June-hyuck said: "Because of our active outreach, President-elect Trump and US officials are clearly aware of the gravity and urgency of the North Korean nuclear threat.
"They are maintaining an unwavering stance on the need for sanctions on North Korea and for close cooperation between South Korea and the US."
Mr Trump is yet to outline a policy on North Korea, but during the election campaign he suggested he would be willing to talk to Kim if he had the opportunity.
The US' policy for several years has been that North Korea must disarm first before talks can take place.
When North Korea carried out two nuclear tests and various missile launches last year, the US and South Korea responded with even tougher sanctions.
In a subsequent tweet, Mr Trump went on to criticise China for not doing enough to stop the North's nuclear programme.
He tweeted: "China has been taking out massive amounts of money & wealth from the U.S. in totally one-sided trade, but won't help with North Korea. Nice!"
China responded by saying that its hard work in trying to ensure the denuclearisation of the Korean peninsula is obvious to all.
Foreign ministry spokesman Geng Shuang also urged the US to appreciate the sensitivity of the Taiwan issue after Mr Trump left open the possibility of meeting Taiwan's president.
Such a move would be a reversal of Washington's longstanding "One China" policy, which means the US recognises Beijing's assertion that Taiwan is a part of its territory.
Rail fares eat up 14% of commuters' wages, study finds
Train passengers in Britain are spending six times more on rail fares than their counterparts in the rest of Europe, a study has found.
After higher prices kicked in this week, workers would spend 14% of their income on a monthly season ticket in some parts of the country, the Action for Rail campaign said.
Commuters into London pay an average of £387 a month, the study found - compared to £61 in Paris or Rome.
Rail fares have increased twice as much as wages and inflation over the past decade, sparking calls for a return of the railways to public ownership.
The latest average increase, of 2.3%, is the highest in three years. And the figure varies between operators, with fares on Virgin Trains East Coast services up by 4.9%.
The trade union-backed Campaigners Action For Rail have organised demonstrations at more than 100 train stations throughout Tuesday, including in London, Birmingham, Manchester and Glasgow.
Mick Whelan, of the drivers' union ASLEF, was one of several union leaders and transport campaigners to express outrage.
"It is scandalous that the Government is allowing privatised train companies to make even more money for providing an ever-poorer service," he said.
"We have the most expensive railway in Europe and the train companies, aided and abetted by this Government, are about to make it even more costly for people to travel."
Last year has been miserable at times for commuters, especially on Southern Rail, which has been plagued by strikes and other issues.
Separately, a study by the Campaign for Better Transport (CBT) found that season ticket holders travelling from Stevenage to London pay 27p a minute, the steepest fare, while Bath Spa to Bristol tickets cost 25p a minute.
The group's Lianna Etkind said commuters were being charged "at a similar level to a premium rate phone number for their season tickets".
But the Rail Delivery Group, which represents train operators, said about 97p in every pound paid by passengers goes back into running and improving services.
A spokesman said: "CBT appears to be suggesting that because a journey is fast it is worse value for money - a logic not many passengers would agree with."
Transport Secretary Chris Grayling says the hikes help fund the railways' biggest modernisation in over a century.
After higher prices kicked in this week, workers would spend 14% of their income on a monthly season ticket in some parts of the country, the Action for Rail campaign said.
Commuters into London pay an average of £387 a month, the study found - compared to £61 in Paris or Rome.
Rail fares have increased twice as much as wages and inflation over the past decade, sparking calls for a return of the railways to public ownership.
The latest average increase, of 2.3%, is the highest in three years. And the figure varies between operators, with fares on Virgin Trains East Coast services up by 4.9%.
The trade union-backed Campaigners Action For Rail have organised demonstrations at more than 100 train stations throughout Tuesday, including in London, Birmingham, Manchester and Glasgow.
Mick Whelan, of the drivers' union ASLEF, was one of several union leaders and transport campaigners to express outrage.
"It is scandalous that the Government is allowing privatised train companies to make even more money for providing an ever-poorer service," he said.
"We have the most expensive railway in Europe and the train companies, aided and abetted by this Government, are about to make it even more costly for people to travel."
Last year has been miserable at times for commuters, especially on Southern Rail, which has been plagued by strikes and other issues.
Separately, a study by the Campaign for Better Transport (CBT) found that season ticket holders travelling from Stevenage to London pay 27p a minute, the steepest fare, while Bath Spa to Bristol tickets cost 25p a minute.
The group's Lianna Etkind said commuters were being charged "at a similar level to a premium rate phone number for their season tickets".
But the Rail Delivery Group, which represents train operators, said about 97p in every pound paid by passengers goes back into running and improving services.
A spokesman said: "CBT appears to be suggesting that because a journey is fast it is worse value for money - a logic not many passengers would agree with."
Transport Secretary Chris Grayling says the hikes help fund the railways' biggest modernisation in over a century.
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