tesco

Tesco has scrapped its full-year trading update and its chairman is to step down as it deals with the fallout from the accounting scandal which left a £263m black hole in its balance sheet.

An investigation into Tesco's profit overstatement has uncovered evidence of "inappropriate behaviour" by staff, although the shortfall may be less than first feared, according to reports.

Other large caps may follow Tesco in cutting dividends

Two senior executives are to join Tesco's board as non-executive directors as the supermarket attempts to restore confidence following its accounting scandal.

I am still not ready to move negative duration

Tesco shares have fallen as much as 4% on reports it is considering a rights issue to shore up its balance sheet.

Tesco's third largest shareholder Warren Buffett has described his investment in the supermarket as a "huge mistake".

Shares in Sainsbury's fell further today after it became the latest supermarket to cut its sales forecast for the full year, following a slump in trading in the second quarter.

Tesco has said the Financial Conduct Authority (FCA) has started an investigation into its accounting error, after the supermarket revealed last month it had overstated its half year profits by £250m.

Tesco has created £2.5bn in credit reserves as senior management seek to deal with a £250m accounting error, falling shares, and the potential for ratings downgrades.