According to Evolution, the UK is most likely to follow Switzerland and implement higher minimum Core Tier 1 ratios. Barclays will have a roughly 8.7 per cent Core Tier 1 by 2012: if the “UK finish” is a 10 per cent ratio, Barclays will be £7bn short of capital. The broker warns a “deal-cum-rights-issue” is the most likely option but it could be very dilutive.

Shore Capital says that with annual trading profit growth of around 10 per cent forecast in the medium term, coupled with the ongoing extraction of working capital benefits and the continuation of the sale and lease programme, its analysis points to Tesco being an increasingly cash generative business. It says “buy”.

S&P Equity Research maintains its strong sell recommendation. The broker sees greater risk to the downside, believing it is 12 months away from seeing tangible evidence of operational initiatives working. S&P says it has operationally deteriorated, with its focus back on France leaving the 25 per cent P/E multiple premium to peers unwarranted.