HSBC PLC (LON:HSBA) will continue the blue-chip bank’s full-year reporting season on Tuesday, with investors looking for some reassurance over the ongoing trade spat between the US and China as the global banking giant’s focus is increasingly geared towards Asia.
Around 43% of HSBC's profits come from Hong Kong and increasing investment in China, so there is a clear need for the uncertainty to be removed.
As ever with banks, however, there will also be a focus on costs, the performance of HSBC’s investment banking division and the group’s outlook for the year ahead.
Analysts at UBS are forecasting HSBC to report full-year adjusted pre-tax profit of US$4.775bn, with its CET1 ratio at 14.1%.
Special dividend eyed from Intercontinental Hotels
Investors will also have money on their minds as Holiday Inn-owner Intercontinental Hotels Group PLC (LON:IHG) is expected to include plans for a US$500mln special dividend payment with its full-year results.
The FTSE 100-listed group said in October that a payment was planned for early 2019 and that it would reflect what it said was the “rapid” implementation of its strategic initiatives.
For the results themselves, investors will be watching the firm’s performance in its US and Middle East markets, having seen a slowdown in those segments previously that helped push revenue per room down to just 1% for its third quarter.
Analysts at UBS forecast IHG reporting full-year revenue of US$4.305bn, up from US$4.075bn in 2017, with underlying earnings (EBITDA) seen at US$911mln, up from US$862mln.
UK employment to rise, but wages to dip
On the macro front, the latest UK labour market report is still likely to show little impact from the ongoing Brexit uncertainties, as the figures only run to the end of December.
Economists at RBC Capital expect another healthy gain in employment after last month’s 141,000 rise, which would see the unemployment rate hold at 4%.
Despite that, there could be a dip in wage growth this month, with base effects seeing a slowing in pay growth excluding bonuses to 3.2% on the three-month year-on-year basis.
However, given the drop in inflation numbers for January to below the Bank of England’s 2% target figure, this shouldn’t worry investors too much.
Significant events expected on Tuesday February 19:
Finals: HSBC PLC (LON:HSBA), Intercontinental Hotels Group PLC (LON:IHG), Spectris plc(LON:SXS), Bank of Georgia Group PLC (LON:BGEO)
Interims: BHP PLC (LON:BHP), Dotdigital Group PLC (LON:DOTD), Blancco Technology Group PLC (LON:BLTG)
Trading update: Walker Greenbank plc (LON:WGB)
Economic data: UK unemployment; UK average earnings; US NAHB housing market index