The Week Ahead: Recruiters all set to reveal their position

Unemployment trends will come into focus this week, with Hays, the UK's largest staffing group, and Robert Walters set to kick off the recruitment reporting season with quarterly updates on Thursday.

Hays' interim results at the end of February were less than inspiring. At the time, JP Morgan Cazenove highlighted the impact of a weak public sector on the company's dominant UK business, while UBS said the performance in the UK was "even weaker" than it had feared, adding that "recovery prospects have been [stymied] in the near term by the winter weather".

Looking to this week's update, Numis said the risk "lies once again with the public sector". "With further public sector cuts anticipated over the next 12 to 18 months, we believe that Hays' recovery potential will be constrained," the broker explained, adding: "The shares have support from its dividend yield (around 5.5 per cent), but in our view there are better recovery plays within staffing".

For Robert Walters, the Asia-Pacific portfolio should continue to show signs of improvement, according to Altium, which also expects to hear of further improvements in financial services and banking, and sequential growth in southern Europe, led by France. "While the business has momentum, we remain nervous of the level of activity in the UK during the second quarter," the broker said, citing the uncertainty caused by the election. "We therefore do not expect to increase estimates... preferring to wait until the interims, when there is greater clarity on the full year," it added.

Today – Results/Updates – None.

Tomorrow – Upgrades may be forthcoming when the power solutions provider Chloride issues a trading statement tomorrow. Altium expects confirmation that the positive trend in orders has continued, pointing to recent updates from competitors. As a result, profit estimates may be revised up by around 5 per cent, the broker said, adding: "The sector in general has performed strongly over the recent reporting season and is pricing in expectations of future upgrades."

Also tomorrow, the pubs group Marston's – "an unloved hidden gem of the sector", according to Seymour Pierce – is due to issue an update and Numis expects to hear that trading has progressed in line with expectations. Brewing profits are forecast to be flat, and the broker does not expect the statement to prompt a change in forecasts.

Results/Updates – Marston's and Chloride. Other – British Airways' March traffic and capacity statistics.

Thursday – Retail bell-wether Marks & Spencer (M&S) is expected to announce improving trends when it posts a quarterly update later this week, with Deutsche Bank looking forward to some "healthy sales figures". Consensus estimates anticipate a 2.5 per cent rise in like-for-like sales in general merchandise, the majority of which is clothing, while food is expected to see a 1 per cent growth.

Margin erosion is expected to drive an improvement in food, while clothing sales are likely to have been driven by the cold snap, Deutsche said, highlighting the company's strong position in "outerwear, sleepwear and particularly knitwear". M&S should also receive a boost from a "modest amount of trading up" among consumers "after 18 months of trading down". These factors aside, Deutsche warned investors against reading too much into the statement in terms of outlook. "There are no major initiatives under way to drive the general merchandise business, while strategic pressure from the value-clothing retailers is as great as ever," the broker said, sticking to its "hold" stance ahead of the update.

Results/Updates– Vedanta Resources, Marks & Spencer, Robert Walters and Hays.

Friday – Michael Page International will be the last of the recruiters to report this week, with its first-quarter update due on Friday. Royal Bank of Scotland (RBS) is looking for £90m in net fee income, driven by a 3.9 per cent drop in the first-quarter revenue growth rate in constant currency terms.

At the divisional level, the broker expects year-on-year net fee growth to have moved into positive territory in Asia-Pacific and the Americas. "In our view, Emea [Europe, the Middle East and Africa] growth should improve as comparables start to ease," RBS said. "Country revenue trends are unlikely to have changed since the fourth quarter, with momentum strongest in France but weakest in the Netherlands."

Results/Updates – Michael Page International.