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(AWP Alliance News) - Germany's private sector slid into decline in April as the US-Israel war on Iran raises company costs, according to preliminary purchasing managers' index survey results from S&P Global on Thursday.

The flash PMI composite output index registered 48.3 points in April, falling below the 50-point mark that separates growth from contraction from March's reading of 51.9 points. The April score was the lowest in 16 months, S&P Global noted.

The service sector was the main source of weakness, as the services PMI business activity index fell to 46.9 points from 50.9 in March, hitting a 41-month low.

The manufacturing output index remained in growth territory, though the pace of growth slowed to 51.7 points in April from 54.0 in March, and was at its slowest in three months. The manufacturing PMI also saw growth slip to 51.2 points from 52.2. Phil Smith, economics associate director at S&P Global, noted 'warning signs that it too could soon slip back into contraction, with growth of both production and sales slowing sharply'.

'Notably, business expectations turned negative as confidence suffered another marked setback. Employment meanwhile fell at a rate that was little-changed from the month before, with cutbacks being made in line with reduced pressure on business capacity,' S&P Global said.

'Reports from surveyed firms indicated that uncertainty associated with the geopolitical backdrop was causing reluctance,' it added, citing 'cost pressures facing businesses due to the war in the Middle East, with surveyed firms widely commenting on increases in energy, fuel and transport costs.'

Input price inflation was at its highest since November 2022.

Smith commented: 'The recovery in the German economy has been stopped in its tracks by the war in the Middle East. A 10-month sequence of growth came to an end in April as business activity contracted against a backdrop of heightened uncertainty and sharply rising prices.

'Faced with rapidly increasing costs, firms raised average prices charged for goods and services at the quickest rate in over three years in April, in a sign of widening inflationary pressures.'

By Holly Munks, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.

(AWP Alliance News) - Roche Holding AG on Thursday reported constant currency sales growth for its first quarter, and said it expects to make a further dividend increase this year.

The Basel, Switzerland-based pharmaceutical company said group sales totalled CHF14.72 billion, or USD18.82 billion, for the first three months of 2026. This was down 4.7% from CHF15.44 billion the previous year, but up 6% at constant exchange rates and up 9% in US dollar terms.

For Roche's Pharmaceuticals division, sales fell 4.2% on-year to CHF11.47 billion from CHF11.95 billion, rising 7% at constant rates and 10% in dollar terms. Roche noted 'continued high growth in sales of medicines for the treatment of severe diseases', such as Ocrevus for multiple sclerosis and Xolair for food allergies and chronic hives.

US Pharmaceuticals sales increased 5% at constant exchange rates but fell 8.5% at reported rates to CHF5.69 billion from CHF6.22 billion. Europe sales fell 3.7%, or 1% at CER, to CHF2.23 billion, while Japan sales fell 3.3% to CHF649 million but climbed 14% at constant currency, and International sales rose 5.8% with 16% CER growth to CHF2.89 billion.

For Roche's smaller Diagnostics division, sales fell 6.8% but rose 3% at constant currency, to CHF3.25 billion from CHF3.49 billion.

'We delivered a strong start to the year...Our pipeline continued to advance in areas where patients face significant unmet need,' commented Chief Executive Officer Thomas Schinecker, 'including multiple sclerosis, obesity and a severe autoimmune disease that can lead to kidney failure.

'We also received EU approval for [the new Elecsys NfL blood test] to detect neuroinflammation in multiple sclerosis, marking a meaningful step forward in disease management.'

Looking ahead, Roche confirmed that it expects mid-single-digit sales growth at constant currency for the full year, as well as high-single-digit growth on the same basis for core earnings per share.

'Roche expects to further increase its dividend in Swiss francs,' the firm added.

Schinecker commented: 'Our diversified portfolio across both divisions, together with continued pipeline progress, positions us well for sustained future growth in a dynamic geopolitical environment.'

Shares in Roche were up 2.4% at CHF330.70 in Zurich on Thursday morning.

By Emma Curzon, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.

(AWP Alliance News) - London Stock Exchange Group PLC on Thursday hailed a 'record performance' in the first quarter of 2026 and raised its annual guidance.

The London-based exchange operator and data provider said total income, excluding recoveries, rose 9.8% on an organic constant currency basis in the recent quarter from a year before. This included 6.3% growth in its subscription businesses and 'very strong growth' in trading volumes.

Revenue from Data & Analytics was up 5.1% in the first quarter on year, from index provider FTSE Russell up 8.8%, from Risk Intelligence 10% and from Markets up 16%.

Looking ahead, LSEG now expects 2026 organic constant currency total income growth excluding recoveries to be in the upper half of its guidance range of 6.5% to 7.5%. It forecasts an improvement in its constant currency earnings before interest, tax, depreciation and amortisation margin of between 80 and 100 basis points.

The company completed GBP1.1 billion worth of share buybacks in the first quarter and said it is 'well on track' to finish its GBP3 billion buyback by February 2027.

'We have had a great start to 2026 across the board: our leading, multi-asset class trading venues have been critical sources of liquidity, price discovery and risk management for customers, while engagement with our trusted data to inform decision-making has been at record levels,' said Chief Executive Officer David Schwimmer.

'We are confident in the outlook and the delivery of all of our financial targets for the year.'

Addressing investor concerns that LSEG's business could be undermined by artificial intelligence, Schwimmer highlighted the company's 'LSEG everywhere' strategy to provide AI-ready data 'to use wherever our customers are working'.

The CEO said: 'Our customers recognise that our solutions are more valuable in an AI world. With our unmatched data, infrastructure and partnerships, we are uniquely positioned to partner with customers to seize new growth opportunities, significantly enhancing our products and opening up powerful new distribution channels for our data and analytics.'

Max Harper, a senior analyst at research house Third Bridge, noted market concerns that 'LSEG could see income compression as clients shift from per-seat licenses to usage-based AI revenues'.

However, 'LSEG could be better positioned, based on their LSEG everywhere strategy, as LSEG and competitors such as Bloomberg, S&P, and Factset, adapt to a AI usage-driven world,' Harper said.

'Despite this, concerns exist around LSEG's allocation of capital, with share buybacks potentially signalling LSEG as a value play, over a tech play. Our experts believe capital required for share buybacks would be better spent on consolidating its position in the financial infrastructure space to help build a five to ten-year competitive moat around its technology.'

LSEG shares were up 0.6% to 9,810.00 pence in London early Thursday. The stock is down 15% over the past 12 months.

By Tom Waite, Alliance News editor

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.