China’s economy didn’t start the week sunny side up, which is due to set the tone for global markets for much of the rest of the week. Evergrande (HKG: 3333), a major property company that has been through many months of struggles, announced that it was facing difficulties restructuring debt, owing to poor sales and a sluggish environment. The importance of the real estate sector for the Chinese economy is not to be underestimated and will likely weigh heavily on global markets for the week, with mining stocks on the FTSE 100 opening the day already in the red.
Shares of Disney (NYSE: DIS) , Warner Bros (NASDAQ: WBD) , Netflix (NASDAQ: NFLX) and other entertainment companies may be ready to breathe a sigh of relief as it seems that a tentative agreement has been reached between the striking writers and the major Hollywood studios. The deal needs to still pass through guild members and the Union’s board before writers will return to work, but it is nonetheless a step in the right direction. If successful, many would expect an uptick in the share prices of affected entertainment companies.
The Japanese Softbank (LON: 0R15) has been hitting the headlines for recent weeks due to its ownership of the recently listed chip company Arm (NASDAQ: ARM). This week, it’s back in the headlines, due to the potential announcement that it will aim to raise ¥120 billion ($809 million) in Japan’s first public offering of bond-type class shares. It’s hoped that the raised profile of the bank will generate greater interest in this offering.
Sources: Bloomberg, Nasdaq, AJ Bell, Yahoo Finance