The Market News Reel for the week of September 20th! Get the most important market news & updates for the week ahead each Monday!
Major headlines, excerpts from news sources and a link to the full article are shown below. "Our Thoughts" section is purely our opinion.
Chinese real estate giant, Evergrande, nears collapse
"Growing investor angst about China’s real estate crackdown rippled through markets on Monday, adding pressure on Xi Jinping’s government to prevent financial contagion from destabilizing the world’s second-largest economy.
The repercussions from Evergrande’s prospective collapse will likely contribute to China’s ongoing economic deceleration, which in turn anchors global growth and inflation, and casts a pall over commodity prices" - read more on BNN Bloomberg here
Our Thoughts: Chinese stocks, especially its prized tech giants (BABA, TCEHY, BIDU, TME, DIDI, JD, WB, NIO etc.), have been battered all year due to an ongoing government crackdown.
The potential collapse of a real estate giant with $300B of debt could not have come at a worse time for investors in China's markets. There is a potential for contagion to spread and effect the entire Chinese economy (as well as the world to a lesser extent), and it's likely to get worse before it gets better.
While we would stay away from Chinese financials or real estate firms, the additional selling pressure could present some attractive entry points into the China tech giants for those that have been waiting to buy in. As Buffett would say "be greedy when others are fearful."
Canadian Federal Election Today
"Millions of Canadians will vote today, casting their ballot to help decide which party will form the next government.
The CBC's Poll Tracker shows a statistical tie between the Liberals and Conservatives in the popular vote, but today is when that political cliché becomes the truth — the only poll that matters is the one on election night." - read more on CBC here
For Live Results & Election Coverage this evening follow the link: https://newsinteractives.cbc.ca/elections/federal/2021/results/
Major Earnings This Week
Tuesday September 21:
Adobe (ADBE): Expected Q3 earnings of $3.01 per share
FedEx (FDX): Expected Q1 earnings of $4.98 per share
Wednesday September 22:
BlackBerry (BB): Expected Q2 earnings of $-0.07 per share
Thursday September 23:
Accenture (ACN): Expected Q4 earnings of $2.19 per share
Costco (COST): Expected Q4 earnings of $3.55 per share
Nike (NKE): Expected Q1 Earnings of $1.11 per share
Major IPOs Expected This Week
Wednesday September 22:
Toast (TOST) restaurant tech company raising up to $700M at a $16B valuation
Friday September 24:
Clearwater Analytics (CWAN) software firm raising up to $480M at a $4B valuation
See you next week!
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