You’ve probably heard a lot about Evergrande this week, but if you’re not sure what that is or how it could impact you, CNN has broken down the five key things you need to know. If you’re up to speed, the company missed its more than $83 million interest payment on Thursday. The news sent stocks sliding Friday morning.
Fox Business/Jonathan Garber
Stock futures slide as Evergrande misses payment
U.S. stock futures were under modest selling pressure Friday as worries continued to swirl over the fate of embattled Chinese property developer Evergrande.
Evergrande missed a Thursday deadline to make an $83.5 million interest payment. The company is now in a 30-day grace period that ends in default if the payment is not made.
Dow Jones Industrial Average futures fell 91 points, or 0.26%, while S&P 500 futures and Nasdaq 100 futures declined 0.35% and 0.49%, respectively.
The major averages on Thursday capped off a second day of strong gains after the Federal Reserve laid out its plans for potentially beginning to taper its asset purchases later this year and begin raising interest rates next year.
In stocks, Nike Inc. cut its full-year revenue forecast as the sneaker giant grappled with supply chain disruptions and labor shortages. Quarterly earnings topped estimates while sales came up a bit short.
Read the full story, here.
CNN Business/Michelle Toh
5 things to know about the Evergrande crisis: A simple breakdown
The world is still waiting to find out what will happen to troubled Chinese conglomerate Evergrande and its enormous mountain of debt.
The property developer’s debt crisis is a major test for Beijing. Some analysts fear it could even turn into China’s Lehman Brothers moment, sending shockwaves across the world’s second-biggest economy. Real estate — and related industries — account for as much as 30% of Chinese GDP.
This week, investors experienced whiplash as the firm met one crucial debt deadline, but then failed to address another. Shares shot up one day, and down the next.
The coming days and weeks will be critical. While Evergrande has a grace period of up to 30 days on an interest payment of nearly $84 million that was due Thursday, it’s supposed to make a payment on another bond next week.
Read the full story, here.
Don’t want to fully retire? Here’s when phased retirement may work
Retirement doesn’t have to be a drastic cut from a full-time job to no job at all.
You may still want to work, just not as much — especially if you aren’t financially ready to retire.
The gradual reduction of hours known as “phased retirement” could be the answer, and it can be achieved either through an official policy at your employer or in a more informal fashion.
In fact, 45% of U.S. workers envision reducing their work hours in a phased transition into retirement, according to the latest Transamerica Retirement Survey of Workers. The survey, released in May 2020, was conducted by The Harris Poll from Nov. 6 to Dec. 27, 2019, among a nationally representative sample of 5,277 workers.
Continue reading, here.