Next week on the stock market

Recent HSBC results have been filled with one-off charges that need to be stripped out to get an idea of underlying performance. HSBC’s focus in Asia sets it apart from many of its UK peers, but its Chinese operations have caught headlines after the group wrote down the value of its stake in Chinese bank, BoCom, by $3bn. Investors will be hoping there are no more surprise write-downs on the cards.

Having a good chunk of its income linked to US and Asian rates has helped HSBC emerge as one of the stronger performers recently.The potential for rates in the US to stay higher for longer could act as a boost to current expectations. There should also be a big cash inflow from the sale of its Canadian business which was completed in the quarter. Aside from the proposed special dividend of $0.21 per share, the capital freed up is set to help grow the core business – any details here would be welcome.

Coca-Cola served up a strong performance in 2023, with full-year organic revenue growth of 12%. This uplift came from a healthy mix of both volume growth and higher prices. And despite inflationary pressures and increased marketing spending, tight cost controls in other areas meant that underlying operating profits grew at an even faster pace of 20% last year.

In 2024, Coca-Cola expects to see organic revenue growth slow to a 6-7% range. Next week’s first-quarter results will give us an opportunity to gauge whether that’s too conservative. Continued refranchising of its bottling partners also looks set to boost the company’s profitability, and we’re keen to see just how much it’s moved the dial in the first quarter.

Apple’s iPhone sales have fallen by 19% in China, with the worst quarter since 2020 set to be unveiled in next week’s results. There are some broader economic reasons people may hold off from buying a new device, but there are some Apple specific causes too. This includes the technological gap between Apple and alternative brands getting smaller, meaning it’s losing market share to rivals like Huawei. One area to watch next week which will likely move the dial, is the outlook statement. Because while China has been weak for some time, other regions have been pretty robust. Signs of that continuing would go down well. This isn’t a guarantee though – we’ve heard rumblings lately of stalling demand for consumer electronics.

The more profitable Services division will also be focus. This is the real growth engine of the future and helps underpin the group’s wider ambitions.

One thing investors should be aware of is that the market’s holding Apple to very high standards. A hint of negativity could be taken quite seriously.