BUSINESS LIVE: BoE base rate decision; UK-US trade deal talk; Next boosts guidance

Next has upgraded full-year guidance for the second time in two months after first quarter full-price sales rose by a better-than-expected 11.4 per cent, with a spell of warm weather boosting demand for summer ranges.

The retailer, often seen as a useful gauge of how British consumers are faring, is now forecasting a year to January 2026 pre-tax profit of £1.08billion, up from previous guidance of £1.066billion.

It made £1.011billion last year, topping £1billion for the first time.

However, Next warned of uncertainty ahead.

It said: ‘As we mentioned in our March guidance, we are more cautious about sales in the second half because the comparative numbers (in Autumn Winter 2024) were much stronger. 

‘In addition, we believe that the full effects of this April’s National Insurance increases will begin to filter through to the wider economy in the second half.  For completeness, we have shown the two year growth (versus 2023/24) in the right hand column in grey.’

US President Donald Trump will announce a trade deal with the UK later today, according to reports.

Trump touted a ‘major’ upcoming agreement with a ‘big and highly respected country’ on social media late on Wednesday.

The New York Times and Politico reports that Britain will be the trade partner revealed by the President.

Trump is expected to announce the deal at a 10:00am local time (1400 GMT) news conference in the Oval Office at the White House.

Sterling initially climbed as much as 0.5 per cent before paring gains to be up 0.2 per cent in response.

The Bank of England’s Monetary Policy Committee will later today reveal its latest decision on the direction of UK interest rates.

Financial markets expect the MPC to opt for a 25 basis point base rate cut from 4.5 to 4.25 per cent as the bank steps up efforts to reinvigorate an increasingly sluggish British economy.