M&S continues its recovery

Morgan Stanley is forecasting a rise of 3.4 per cent for third quarter trading by M&S, which announces its figures for the quarter on January 10, with food sales buoyant. Profits of £705 - £720 million are forecast for 2006, and of £765 million to £847 million in 2007.

Tesco will announce its Christmas trading results on 17 January, Sainsbury will update the market on 12 January, while Wm Morrison has yet to set a date for its update announcement. Tesco and Asda started a price war last week by slashing prices on hundreds of food and non food lines. Tesco is cutting prices by up to 50 per cent and Asda is making £40 million worth of price cuts.