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Tesco Plc: New CEO Lewis Parachuted In a Month Ahead of Schedule



This morning’s stress to sell Tesco Plc shares (LON:TSCO) is strong

To the dismay of investors, TSCO has fallen 6%. Samuel Springett of Accendo Markets says that traders are discussing 200p per TSCO stock. Many CEOs and profit warnings over the past years have reduced the value of the stock to its lowest points in 10 years. The cut of dividends makes the drop significant.

Tesco’s New CEO Arrives

This degree of dividend cut highlights the problems, which Tesco is experiencing. Phil Dorrel, of Retail Remedy, says that the early arrival of David Lewis shows the gravity of Tesco’s problems. Next week, when Lewis joins, he has a workload to sort through. Dorrell continues that Lewis probably is happy about the gravity of the conditions, which precede his joining the company. Dorrell doesn’t expect a fast turnaround. The company is huge, and any change won’t happen rapidly. Tesco’s business model must be reconsidered.

Companies in the UK are Reviving European Stock

Organisations such as Whitbread, ITV, and Shire showed up as top performers in the FTSE Index.

Although the UK is beating the trend, recent figures highlight that the Europe is in a slow development climate with discouraging unemployment rates. F&C Investments says that investors should look for companies which can prosper independent of the economic climate.

David Moss of F&C European Equity, a high-performance fund, says that UK organisations significantly contributed to the recovery of the European stock market. It reflects the performance and high standards of certain businesses. Instead of taking a sector-led approach, bottom-up stock selection was the key to delivering great returns.

Moss explains that during periods of slow economic growth, some companies can defy the market conditions and offer impressive returns. European companies have performed strongly recently and many opportunities exist in the United Kingdom and in the region.

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