Friday preview: Tate & Lyle to report half-year results

3rd Oct 2013 14:39

British multinational agribusiness Tate & Lyle will on Friday issue a trading update for the half year to end of September.Ahead of the FTSE 100 company's results, Investec said it was facing headwinds in the form of adverse foreign exchange movements and trouble in Mexico.Tate, which provides sweeteners to soft drink manufactures, is expected to see profits hurt by the introduction in Mexico of a 15% tax on "full-fat" soft drinks. The tax could affect the sales of drinks as well as high-fructose corn syrup, the main sweetener in processed foods and beverages.Soft drink bottlers are lobbying in Mexico City, suggesting that they will start to use Mexican sugar instead of importing HFCS."Headwinds are blowing into Tate's H2 & FY15, in the form of more adverse fx, and trouble in Mexico," Investec said in a note issued on Friday."We downgrade estimated fiscal year 2014 by 4%, rising to 8% in fiscal year 2015 (estimated), to a bottom-of-the-market view. Our price target falls, in line, to 825p. But with Tate's lucky streak in bulk in danger of running out, a more decisive shift in favour of [speciality food ingredients] is feeling overdue."Other concerns raised by analysts recently are over the pricing of artificial sweetener Sucralose and sweetener prices across Europe. Associated British Foods has said sugar prices are falling rapidly.Turning to macro-economics it will be a quiet day as the US has cancelled the release of non-farm payrolls data until the government shutdown ends. The shutdown began after Congress missed the Monday midnight deadline for agreeing to a budget, as Republicans pushed for a delay in the introduction of the President Barack Obama's controversial healthcare bill, known as Obamacare.Friday October 4thINTERIM DIVIDEND PAYMENT DATE888 Holdings, Aggreko, Arbuthnot Banking Group, ARM Holdings, Bilfinger Berger Global Infrastructure Sicav S.A.(DI), Camellia, Cineworld Group, Densitron Technologies, Devro, Downing Planned Exit VCT 8, Downing Planned Exit VCT 9, Elementis, Grafton Group Units, Greggs, InterContinental Hotels Group, International Personal Finance, Irish Continental Group Units, Meggitt, Michael Page International, Millennium & Copthorne Hotels, Puma VCT V, Regus, Resolution Ltd., SEGRO, TUI Travel, XaarINTERNATIONAL ECONOMIC ANNOUNCEMENTSNon-Farm Payrolls (US) (13:30)PMI Construction (EU) (09:00)PMI Construction (GER) (08:55)Producer Price Index (GER) (07:00)Unemployment Rate (US) (13:30)IMSSWood Group (John)SPECIAL DIVIDEND PAYMENT DATEInterContinental Hotels GroupAGMSAbbey, Atlantis Japan Growth Fund Ltd., Henderson Smaller Companies Inv TrustTRADING ANNOUNCEMENTSTate & LyleUK ECONOMIC ANNOUNCEMENTSNew Car Registrations (09:30)FINAL DIVIDEND PAYMENT DATEACM Shipping Group, Carclo, Darty, Pennon GroupRD