A Brief Look At The Week Ahead

This week's round of retail updates and results seems sure to show why the sector is screaming for a reduction in interest rates. The British Retail Consortium (BRC) releases its September sales growth data on Monday and it is unlikely to make pleasant reading. Marks & Spencer, reinvigorated by new CEO, Stuart Rose, is seeking to prove that a few weeks of solid trading, a new autumn line and some new stores are having the right effect. With shares approaching the 400p mark, the price Philip Green said he would offer in mid-2004, M&S clearly needs to bounce back from the dull Q1 sales result. This week's trading update is management's first hurdle. The real test will be the group's interims on 8th November. Burberry is due to produce a trading update on Tuesday and may also be facing the loss of its CEO, Rose Marie Bravo. Rumours flooded the market last week that the well-regarded American would step down in 2006 after the long-promised selldown by its majority shareholder, GUS. Her departure threatens to overshadow what promises to be an upbeat Q2 sales update. This week should, finally, see an end to the Somerfield take-over saga. The Takeover Panel has set a deadline of this Friday for those interested in the supermarket chain to "put up or shut up". London & Regional withdrew last week, leaving the way clear for Robert Tchenguiz, Apax Partners and Barclays Capital. WH Smith reveals its full year profits on Thursday. Williams de Brois forecasting a pre-tax profit of 71m. Investors will doubtless focus on the group's outlook statement, particularly the all-important "back to school" trading and what plans there are for the Christmas period. Also on Thursday, Mothercare will be looking for a non-UK boost for its sales update. While UK sales figures are likely to be down on a like-for-like basis, the market expects a far stronger showing from the international division. A busy week for retailers also sees JJB Sports, Moss Bros and Body Shop publishing interim results this week. Airports operator, BAA, is likely to produce improved September traffic figures, bouncing back from August's Gate Gourmet disruption. During 2006, BAA is forecasting 3% growth in passenger numbers. With online gambling such a hot topic at the moment, investors are looking for an upbeat outlook statement from SportingBet when it reports figures on Wednesday. Whatever the outcome, it is likely to have repurcussions throughout the sector. Other BB favourites taking the stage this week include Northern Foods, ADVFN, Fibernet, Carphone Warehouse and Orbis. Plenty there to sate a few appetites. Good luck in all you do! Please note: I am in the process of moving house and don't yet have a telephone line installed at the new place. Until that happens, I will be starting off the daily Traders Threads early each morning instead of the night before. I hope you will bear with me on this for a while. I'll return to the evening startup as soon as I can. Greystone (Greystone is Alan English, City Editor at MoneyAM.)

Good morning traders!

No Tokyo trading today because of a holiday but in Hong Kong, the Hang Seng ended the morning up 24.25 points at 14,872.04.

Oil prices rose in Asia after falling sharply in the US. New York's main contract, light sweet crude for delivery in November, was at $61.99 a barrel, up 15 cents from its close of $61.84 in NY last Friday.

Early broker calls:

GLOBAL OIL SECTOR DOWNGRADED TO 'UNDERWEIGHT' VS 'NEUTRAL' AT LEHMAN
CADBURY SCHWEPPES ADDED TO MERRILL LYNCH EUROPEAN ONE LIST

Happy trading!

G.

End of day market summary