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The ruling by a court in Paris comes after a 14-month legal wrangle dubbed 'the battle of the handbags'.

The court said further compensation will be awarded later to LVMH, which is seeking a total soccer jersey wholesale of [pounds sterling]70m.

LVMH, whose expensive Louis Vuitton leather is toted by celebrities, claimed that Morgan Stanley analyst Claire Kent issued research that was biased against it.

The French group argued that she favoured Morgan Stanley client Gucci, whose high fashion labels include Stella McCartney, Yves St Laurent and Alexander McQueen.

LVMH chairman Bernard Arnault brought his case against a background of claims by US regulators that analysts had indulged in biased research to help their employers to drum up brochure printing corporate finance business.

Morgan Stanley president Stephan Newhouse ralph lauren polos said the ruling was 'completely wrong and dangerous'.

He added that the bank would 'stand fully behind Claire Kent'. It intends to pursue a vigorous appeal.

Pierre Gode, adviser to Arnault, said: 'For the first time in France, a court has upheld the principle of the necessary independence of financial analysts from investment banking services.'