{"id":157153,"date":"2025-06-04T09:43:24","date_gmt":"2025-06-04T09:43:24","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/157153\/"},"modified":"2025-06-04T09:43:24","modified_gmt":"2025-06-04T09:43:24","slug":"dominant-service-sector-returns-to-growth","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/157153\/","title":{"rendered":"Dominant service sector returns to growth"},"content":{"rendered":"

A sports data company involved in the Rio Olympics and the Commonwealth Games is set to become the latest to quit the London stock market, raising concerns about the structural weaknesses in the small-cap market.<\/p>\n

4Global revealed it plans to ditch its listing on Aim, the London Stock Exchange\u2019s junior market, after a shareholder vote later this month.<\/p>\n

The company, which has lost more than 80 per cent of its stock market value since listing in 2021, said it has struggled to raise sufficient capital through public markets, and instead believes it will be able to raise funds as a private business.<\/p>\n

The company argued the low levels of liquidity and the \u201cdisproportionately high\u201d cost of maintaining a listing, outweighed the benefits of being a public company. The costs saved from quitting Aim will provide 4Global with \u201can extended cash runway to capitalise on growth opportunities \u2026 including its expansion into other markets\u201d.<\/p>\n

Airbus set for big order from China \"British<\/p>\n

Airbus has long battled Boeing for market share<\/p>\n

GETTY IMAGES<\/p>\n

Airbus shares were up sharply this morning after Chinese airlines were reportedly considering ordering up to 300 narrow-bodied and wide-bodied jets as soon as next month when European leaders are set to visit Beijing.<\/p>\n

Airbus shares were up 3.86 per cent to \u20ac172.86 in Paris this morning. The order could be even bigger, according to some reports, with up to 500 aircraft sought. China was first reported to be in negotiations over a deal in April while the talks are an extension of discussions first begun in April last year when President Xi visited France. China has previously timed big jet orders to coincide with political visits.<\/p>\n

The order, should it materialise, would represent a blow to Airbus\u2019 US rival Boeing. It would be a timely reminder, perhaps, of President Trump\u2019s observation about Xi this morning when he said on Truth Social: \u201cI like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH\u201d.<\/p>\n

Sorrell\u2019s S4 Capital warns on revenue\u00a0\"Sir<\/p>\n

Sir Martin Sorrell<\/p>\n

THE SUNDAY TIMES<\/p>\n

Sir Martin Sorrell\u2019s S4 Capital warned this morning that annual revenues are set to fall amid customer caution over US tariff increases cause global economy uncertainty.<\/p>\n

Market conditions in the first five months of 2025 reflected the continuing impact \u2014 \u201cto say the least\u201d \u2014 of volatile global macroeconomic conditions, said the company.<\/p>\n

Clients are cautious as a result, particularly in the technology sector that account for almost half its revenues, continuing to prioritise capital expenditure on AI rather than on marketing.<\/p>\n

Full year like-for-like revenue net revenue is now expected to be down by low single digits overall. But like-for-like operational earnings before interest, tax and other deductions remains unchanged and is expected to be broadly similar to 2024. S4 Capital\u2019s shares were up 4.85 per cent at 27p this morning.<\/p>\n

UK services PMI sees return to growth\"City<\/p>\n

The data exceeded City analysts\u2019 expectations<\/p>\n

ALAMY<\/p>\n

The UK\u2019s all-important services economy returned to growth last month, propelling optimism in the sector to a seven-month high, a closely watched survey released on Wednesday showed.<\/p>\n

The final S&P Global purchasing managers\u2019 index (PMI) for the services sector leapt to 50.9 in May from 49 in the previous month. The PMI was revised up from an initial reading of 50.2 and exceeded the 50-point threshold that separates growth from contraction. Analysts had expected an unchanged final reading.<\/p>\n

Analysts said that President Trump softening his punitive \u201creciprocal tariffs\u201d, which sparked a sharp rise in global stock prices, helped drive optimism and output in the services sector higher last month.<\/p>\n

Tim Moore, economics director at S&P Global Market Intelligence, said: \u201cThe service sector regained its poise in May as receding concerns about US tariffs, recovering global financial markets and greater confidence among clients all helped to support output growth.\u201d<\/p>\n

WH Smith sale remains on track \"The<\/p>\n

The famous brand will disappear from the high street<\/p>\n

PHILIP TOSCANO\/PA<\/p>\n

WH Smith said it remains on track to complete the sale of its UK high street chain to Hobbycraft owner Modella Capital by the end of the month. <\/p>\n

The \u00a376 million deal will see the WH Smith name disappear from British high streets to be replaced by the brand TGJones. In an update ahead of the sale completing WH Smith said its remaining travel division \u2014 its shops at airports and railway stations \u2014 had performed well with like-for-like sales up 5 per cent in the quarter to May 31. <\/p>\n

In the UK, its travel business delivered a 6 per cent rise in like-for-like sales over the third quarter with airport shops doing best with a 7 per cent rise.<\/p>\n

In North America, its performance was less strong, with comparable store sales up 2 per cent, though they were up 7 per cent on a constant currency basis.<\/p>\n

UK markets open with mining companies up<\/p>\n

The FTSE 100 is flat this morning at 8,787.53 while the FTSE 250 opened up slightly by 69.80 points, or 0.33 per cent, at 21,087.77. <\/p>\n

Mining companies, including precious metals miner Fresnillo, are towards the top end of the leaderboard. While the strong showing of Fresnillo, the gold miner, could be explained since it ought to be spared the effects of President Trump\u2019s 50 per cent steel tariffs, the reason for other mining group\u2019s healthy share price rises are less clear. <\/p>\n

The likes of Anglo American and Glencore may be benefiting from the market\u2019s belief that the tariffs are another example of a Trump \u201ctaco\u201d trade \u2014 \u201cTrump always chickens out\u201d. <\/p>\n

Meanwhile defence group Babcock was still riding the wave of investor optimism following publication of the government\u2019s strategic defence review on Monday.<\/p>\n

Germany\u2019s DAX was up 185.46 points, or 0.78 per cent, at 24,278.43 while France\u2019s CAC 40 was up 22.17 points, or 0.29 per cent, to 7,786.6.<\/p>\n

R\u00e9my Cointreau abandons sales targets amid tariffs \"R\u00e9my<\/p>\n

R\u00e9my Cointreau\u2019s US sales have taken a hit<\/p>\n

FABRICE DIMIER\/BLOOMBERG VIA GETTY IMAGES)<\/p>\n

French spirits maker R\u00e9my Cointreau has abandoned its 2030 sales growth targets saying tariffs, persistently slow US sales and high levels of uncertainty could derail plans for next year and beyond.<\/p>\n

It said its 2030 goals were no longer realistic amid such uncertainty. \u201cRemy Cointreau believes the conditions required to maintain its 2029-2030 targets are no longer in place.\u201d<\/p>\n

The drinks maker also said sluggish US sales and tariffs affecting its cognac in both China and the US could reduce its 2025\/26 operating profit by a high-teens percentage in a \u201cworst case scenario\u201d.<\/p>\n

The company also reported a smaller than expected 30.5 per cent drop in annual organic operating profit in the year to March to \u20ac217 million compared with a 31.7 per cent drop expected by analysts.<\/p>\n

Rita-Rose Gagn\u00e9 steps down as Hammerson chief\"Rita-Rose<\/p>\n

Rita-Rose Gagn\u00e9<\/p>\n

ANDREW FOX FOR THE TIMES<\/p>\n

Rita-Rose Gagn\u00e9 is to step down next year as chief executive of the FTSE 250 property company that owns the Bullring in Birmingham and Cabot Circus in Bristol.<\/p>\n

Gagn\u00e9 has been widely credited with turning around Hammerson, which was heavily indebted and on the brink of collapse when she joined in 2020.<\/p>\n

In a recent Lunch with The Times interview<\/a> she said her resilience and resolve comes from being the second-youngest of eight children growing up in Qu\u00e9bec City. \u201cThere was a spirit of ambition in the family and competition to a certain extent. When there are eight kids, you want to have your place in the conversation at the table.\u201d<\/p>\n

Profits down at FTSE 250 discount chain owner <\/p>\n

The FTSE 250 owner of discount chain B&M and Heron Foods has said it is \u201cstrongly positioned to \u2026 generate significant long-term value for shareholders, despite sector-wide challenges of increased minimum wage costs, higher employee national insurance and other taxes\u201d.<\/p>\n

B&M European Value Retail reported a 13 per cent fall in annual pre-tax profit to \u00a3431 million this morning on revenue up 3.7 per cent to \u00a35.57 billion.<\/p>\n

Shares in B&M, a stock market darling during the Covid-19 pandemic, have fallen almost 40 per cent over the last year as the retailer has been hit by inflation and increased competition, putting pressure on profit margins and customer spending. The FTSE 100 has risen 6 per cent over the same period.<\/p>\n

Markets shrug off steel tariffs\"Japan\u2019s<\/p>\n

Japan\u2019s Nikkei rose 0.8 per cent<\/p>\n

EUGENE HOSHIKO\/AP<\/p>\n

Markets have shrugged off America\u2019s doubling of tariffs on steel and aluminium in overnight trading in Asia. Another case of the Taco \u2014 \u201cTrump always chickens out\u201d \u2014 trade?<\/p>\n

The tariff increase<\/a> comes ahead of a self-imposed Trump deadline for trading partners to deliver their \u201cbest offer\u201d in bids to avoid punishing import tax rates on other goods from taking effect in early July.<\/p>\n

The FTSE 100 is forecast to open just 4 points higher today, despite Britain getting a five-week exemption to give ministers time to finalise details of a trade deal with the United States. In Asia, Japan\u2019s Nikkei rose 0.8 per cent and China\u2019s SSE Composite is up 0.4 per cent.<\/p>\n

Results from the high street<\/p>\n

B&M European Value Retail, owner of the B&M discount stores, and WH Smith will update investors about conditions on the high street at 7am. <\/p>\n

Other companies updating the market include Paragon Banking Group, one of the biggest lenders to buy-to-let landlords.<\/p>\n

On the economics front, we get the closely watched services PMI data. The sector makes up more than 80 per cent of the economy and the flash reading of 50.2 in May suggested a return to growth after a period of contraction.<\/p>\n

Today\u2019s top business stories<\/p>\n

\u2022 President Trump has exempted British steel and aluminium exports<\/a> from new 50 per cent tariffs while giving ministers five weeks to finalise details of a trade deal with the United States.
\u2022 KKR, the American private equity firm that withdrew its offer to pump \u00a34 billion of equity into Thames Water, did so after talks at a senior government level failed to allay fears<\/a> that the deal was becoming politicised.
\u2022 The founder of the British glasses manufacturer Inspecs, whose customers have included Brad Pitt and Johnny Depp, is to step down as chairman<\/a>. Robin Totterman started the business almost four decades ago.
\u2022 The European Central Bank is \u00adexpected to cut interest rates again<\/a> this week after eurozone inflation fell below its 2 per cent target.<\/p>\n","protected":false},"excerpt":{"rendered":"A sports data company involved in the Rio Olympics and the Commonwealth Games is set to become the…\n","protected":false},"author":2,"featured_media":157154,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[51,66644,1195,9461,2441,53193,39771,14835,6093,16,15],"class_list":{"0":"post-157153","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-dominant","10":"tag-growth","11":"tag-live","12":"tag-markets","13":"tag-returns","14":"tag-sector","15":"tag-service","16":"tag-to","17":"tag-uk","18":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114624450180377479","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/157153","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=157153"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/157153\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/157154"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=157153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=157153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=157153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}