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ARE YOU ENCOURAGED BY TESCO'S UPBEAT OUTLOOK?

<strong>RICHARD HUNTER </strong>HARGREAVES LANSDOWN<br /> "By definition Tesco comes with high expectations and these numbers have resulted in something of a hung jury. Whilst the well flagged strategy of expanding overseas is intended to offset an increasingly saturated UK marketplace, this comes at a cost."<br /><strong><br />TONY SHIRET </strong>CREDIT SUISSE<br /> "UK trading profit was &pound;1,155m which was slightly ahead of our estimates. Elsewhere, Europe and Asia were both below our expectations and the US was in-line. However, the overall tone seems quite optimistic, as Tesco has now weathered the worst of very tough markets."<br /><br /><strong>SAM HART </strong> CHARLES STANLEY<br />&nbsp;"We believe future growth potential in international and retailing services (Tesco Bank etc) to be significant, and increasingly regard the core UK food retailing business as a &lsquo;cash-cow&rsquo; being used to fund growth in these areas. In the UK, the retail environment remains subdued, but consumers are showing signs of greater optimism."<br />