FTSE 250 heavyweight Tate (LON:TATE) is a fair FTSE 100 tracker. That’s due to it having one of the most favourable currency translation effects on the wider market, from a 78% revenue base in the states. This year, the group foresees a £40m mark-up on the bottom line from FX.
Even at constant currencies though, it’s now calling for a performance that’s “modestly ahead of our expectations” at the time of half-year figures in November. That, in our view should help neutralise concerns over NAFTA changes, which the group expects to be “manageable”. Actually, Mexico issues have ebbed and flowed since at least 2006 including trade disputes, and more recently sugar price softening.
The point is that Tate’s focus had long been drifting away from the relatively low-contribution region before the advent of Donald Trump.
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