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What’s going on here?

Disney’s giant sports network ESPN is taking a gamble on betting, according to news out on Wednesday.

What does this mean?

With streaming firms chomping away at ESPN’s once-hefty subscriber pie, Disney has been hunting for fresh revenue sources. And its latest play is a far cry from princesses and fairytale castles: it’s taking a punt on sports gambling instead. The firm’s cool $2 billion handshake with Penn Entertainment, the casino and online gambling giant, promises to inject some much-needed cash into ESPN. And in return, Penn gets the keys to the kingdom, with an exclusive license for ESPN Bet. That could be a smart marriage, too: after all, sports betting is now legal in 34 states, and sports fans might find the betting-and-watching experience a seriously tempting proposal – but a very responsible one too, of course.

Why should I care?

Zooming in: Everyone’s dollars are green.

Disney’s foray into sports betting with Penn is a bit of an about-face. After all, the firm once deemed it too risqué to house high-stakes gambling and the whimsical world of Cinderella under one roof. So Disney tiptoed around the issue for a while, making deals with various gambling outfits rather than nailing its colors to the mast. But as challenges mount for the House of Mouse, it seems Disney’s finally ready to roll the dice in earnest.

The bigger picture: Magic or mirage.

Disney’s once-sparkling future seems a bit clouded lately. While its streaming service has been guzzling cash without meeting expectations, the traditional cable side is shedding subscribers too. True Disney believers are still holding out hope, trusting in the company’s storied content creation and robust theme park business. But skeptics are questioning if Disney can ever recapture its golden era. And right now, it’s hard to say whether this will wind up a story with a fairytale ending, or a riches-to-rags one instead.

What’s going on here?

Data out on Wednesday showed that China’s consumer prices fell in July – including the cost of the country’s favorite meat.

What does this mean?

With over six months of tepid Chinese economic data behind us, July’s dip in prices wasn’t entirely unexpected. And that 0.3% drop from the same time last year was mostly down to food and energy costs taking a hit – with pork prices plummeting a hefty 26%. And sure, if you strip out volatile items like that, then prices actually still climbed. But those staples are a porky part of Chinese households’ expenses, and if they stay weak, falling prices could become a regular fixture in China.

Why should I care?

For markets: Deflation dread.

The mere whisper of deflation sends shivers down economists’ spines. Just ask China’s neighbor, Japan: after the late ’80s property bubble, the nation grappled with persistent price drops. And that meant consumers and businesses clutched their wallets tighter and tighter as time went on, awaiting future bargains – which ultimately caused a spending freeze that wreaked havoc on Japan’s economy and stock market. Spotting parallels between China now and Japan then is easy – from the countries’ aging demographics to their property market ups and downs – so China’s leaders will be desperate to avoid a repeat of Japan’s so-called “lost decades”. But, hey: maybe this data will finally shock them into making some serious economy-boosting moves.

The bigger picture: Watch closely.

Leaders in the West will be paying close attention to China’s inflationary trajectory. For one, it could be a sign of things to come: if the world’s second-biggest economy is any indicator, then the West could wind up grappling with declining prices too. And for another, lower prices in China might percolate through the world in the form of cheaper exports. And if both those things happen, a swifter-than-expected interest rate pivot just might be in the cards in the West.