Next week on the stock market

Asian insurance giant Prudential expects to deliver 9-13% growth in new business profit next week when it reports full-year results. Hong Kong and China are key markets, and we expect the former to see continued sales growth as Prudential dials in on customer experience, with profits benefitting from price actions.

In China, where Prudential largely operates through a joint venture, a shift toward higher-margin products weighed on sales growth early in the year. Momentum was improving last we heard, and we expect to see those changes contribute to top and bottom-line growth in the final quarter.

There’s plenty of positive momentum coming into results, so there will be pressure to deliver. China’s economic story and whether stimulus measures work will be key for sentiment and performance as we move through 2025.

M&G offers a range of products, but asset and wealth management are the core focus, with plans underway to increase their weighting to around 50% of group profits. Next week’s full-year results should show continued progress in these two areas, with momentum building, but we will have one eye on net flows. M&G has struggled to attract and retain capital, especially from larger institutions.

Aside from the main event, we’re keen to hear any updates on plans in the Bulk Annuity market, where M&G has recently dipped its toes back in the water after being absent for the better part of a decade. It’s a market that’s seen improving conditions of late, but it eats up a lot of capital, so we’re keen to see how M&G plans to weigh up expansion in the space with shareholder returns, which of course are not guaranteed.

J D Wetherspoon is all set to report its half-year results next week. Like-for-like (LFL) sales growth should land close to 5.1% with momentum slowing in the second quarter despite a strong festive period. Investors will be keen to hear if growth’s picked up again so far in the second half after consumer confidence showed some faint signs of improvement.

Profitability and cost control will be a key focus, with annual labour costs expected to rise around £60mn from April in the wake of Rachel Reeves’ first budget. Together that should give some clue whether the pub group’s on track to hit consensus forecasts, which expect a 2.7% rise in operating profit to £143.3mn this year. Markets will also want some colour on the direction of the dividends which returned after the final results for the first time since the pandemic.