The FTSE 100, Tate & Lyle, Go-Ahead and Daily Mail

A mid-week session took a little froth off overheated markets, but such is the appetite for equites currently that the blood-letting has been brief. The possibility of a hugely damaging trade war is still very real, but at least the odds of things getting out of hand are longer now than they were, which is positive. Minutes from the Federal Reserve's latest meeting published last night also appear to reduce the risk of a policy mistake in the US. Inflation is no reason for sleepless nights and there seems little chance that rate-setters will hike more than three times this year.

The FTSE 100's inverse relationship with sterling is less obvious currently, both moving in the same direction the past few sessions, but the pressure is definitely on the pound. This week's consumer price inflation data pushes the next increase in UK interest rates further out, possibly beyond August. Bank of England governor Mark Carney's comments in a scheduled speech later today will be closely watched, but it's difficult to imagine he'll have anything to say that's remotely supportive of sterling.

Source: interactive investor            Past performance is not a guide to future performance

TalkTalk

Boss Tristia Harrison and executive chairman Charles Dunstone certainly have the gift of the gab, but TalkTalk is accident prone and both are guilty of over egging its potential.

Heavy investment lost TalkTalk money last year and the skinny dividend means there's no longer yield support. Focusing on core, fixed connectivity is sensible, the customer base is growing, and chiefs predict higher headline revenue in the current year and 15% growth in profit. But they've got it wrong in the past. Question for investors now is whether they believe the hype.

Go-Ahead

Go-Ahead shares are in the process of recovering from a sell-off triggered by doubts that free cash flow will cover the generous dividend over the next few years.

Go-Ahead has not had it easy the past few years, first with the complete overhaul of London Bridge station, then last weekend's biggest timetable change in decades. Slowing revenue growth at the Southeastern franchise has squeezed margins, and it's hard to see any reversal in a long-term shift toward home working, which will put further pressure on profits. However, the rail business should still make more money than expected this year as an ongoing efficiency programme delivers.

Anaemic growth at the bus business, be it London or out in the sticks, is little to shout about, although a reward for better service from TfL is another welcome boost to the bottom line.

Tate & Lyle

These first set of results for chief executive and former finance boss Nick Hampton are a good start. Annual sales fell slightly for Tate & Lyle, but a double-digit increase in adjusted profit is respectable, and there are plans to grow even faster. Divisions and commercial teams are being reorganised, the portfolio developed quicker, and the business simplified to cut costs. One possible fly in the ointment is China where rising production will likely hit market prices for the sucralose artificial sweetener.

Source: interactive investor     Past performance is not a guide to future performance

Daily Mail & General Trust

Daily Mail & General Trust has demonstrated impressive powers of recovery. Six months ago it was flailing after warning its media division was struggling, now the shares are as high as they've been in over a year. This is supposed to be a "year of transition", yet the market is clearly happy to price in a good chance of success in generating growth in both profits and the dividend.

Half-year profit met expectations and there are no big nasties here. These results are unremarkable and management is right to be cautious about the outlook, but it's the £640m windfall from the sale of its 30% stake in ZPG that is exciting. Top brass give the impression they will not get carried away, but income seekers will certainly benefit here.