The Week Ahead: UK Q3 GDP, China Trade, ARM Holdings, and Disney Results.

In this article, we’ll take a closer look at the key economic events and corporate results anticipated in the week ahead. From the UK’s Q3 GDP figures to developments in China’s trade sector, ARM Holdings, and Disney’s performance, we’ll delve into each of these topics in detail.

UK Q3 GDP – 10/11

The United Kingdom’s economic performance in the second half of 2023 is raising concerns. After a robust start to the year, the country is now facing significant challenges, primarily driven by rising interest rates and elevated prices. While there have been reports of declining inflation recently, it’s essential to note that food prices continue to rise at nearly double-digit rates, exerting pressure on household incomes. The economy expanded by 0.1% in Q1 and 0.2% in Q2, but Q3 is expected to face difficulties, potentially even a modest contraction of -0.1%. The weakness in retail sales figures since July and other sectors’ performance indicate a potential slowdown.

RBA Rate Decision – 07/11

The Reserve Bank of Australia (RBA) has been vigilant about any deterioration in the inflation outlook. Despite the economic uncertainty, interest rates remained at 4.1% during the last meeting in October. This decision was influenced by persistent inflation in services. The Australian dollar’s value is closely linked to the Chinese economy, and the demand for commodities remains weak. While there’s a possibility of a 25bps hike, the prevailing message suggests that significant rate cuts are unlikely before 2025.

China Trade (Oct) – 07/11

China’s Q3 GDP figures show increased economic activity, but global demand remains sluggish, and domestic demand isn’t faring much better. The lackluster domestic demand has led to deflationary pressures, reflected in both the Consumer Price Index (CPI) and the Producer Price Index (PPI). Exports have declined by -6.2%, and imports are down by -6.3%, highlighting ongoing challenges in the global trade sector.

ARM Holdings Q2 24 – 08/11

ARM Holdings’ stock price has experienced fluctuations since its initial public offering (IPO). Q1 results revealed a loss of -$65.5 million, mainly due to a 19.3% drop in royalty revenues. ARM depends significantly on licensing its intellectual property, and the slowdown in sales of electronic devices has impacted its earnings. Q2 is expected to see revenues reach $749 million, with royalty revenue contributing $449 million.

Disney Q4 23 – 08/11

Disney’s shares hit their lowest levels in years due to efforts to reduce losses in its streaming business and cut costs. The company has shifted its focus to profitability, resulting in price hikes and a decline in subscription numbers. In Q3, Disney lost 11.7 million subscribers, reducing the total to 146.1 million. The streaming business saw losses decrease to $512 million as higher prices boosted revenue to $5.5 billion. Q3 revenues amounted to $22.33 billion, driven by the parks division. Disney has also decided to raise prices by up to 20% from October. Q4 revenues are expected to reach $21.42 billion.

In conclusion, the upcoming week is filled with significant economic and corporate events that could shape the future of these entities. It’s crucial to stay updated with these developments, as they have the potential to impact various markets and industries.