Rich Crypto Kids Flunk Basic FinanceMarket Sizzle: Teens Flunk Finance, Nike Slips, Inflation Cools, SEC Loses Power
Summer's heating up, but it looks like our teens' financial skills are cooling down. A new report shows that today's teenagers are missing out on basic money knowledge, and it's causing quite a stir. Teens' Money Crisis Exposed
Teens in rich countries lack financial skills. An OECD report shows 15-year-olds struggle with key financial terms. Many can't calculate percentages. Despite more teens opening bank accounts, most aren't financially literate. Only 36% can read bank statements confidently. The digital economy's rise means they face new financial products, like cryptocurrencies. Experts see a big gap between teens' knowledge and financial needs. Around 18% can't use division for finance. They struggle with simple decisions, like choosing the best value when shopping. Few students, about 11%, can handle complex money problems. Only a third of adults are financially literate, says the OECD. Stronger financial education in schools and homes is needed. Parents play a key role in teaching vital money skills. Inflation Slows, Hopes Soar
The Fed's favorite inflation measure slowed in May. This supports the case for rate cuts soon. Consumer spending rebounded after April's dip. Incomes grew well too. The core personal consumption expenditures price index, excluding food and energy, rose 0.1%. This was the smallest rise in six months. Spending on goods grew due to income boosts. Slow price increases and strong spending offer hope to the Fed. Bill Adams from Comerica Bank said the economy shows growth and balanced inflation. Treasury yields fell, and stocks opened higher. The PCE price index rose 2.6% from last year. Real consumer spending increased 0.3%. The savings rate hit 3.9%, the highest this year. Despite a cooler labor market, wage growth remains strong, fueling spending. An employment report on July 5 will give more insights. SEC Loses Major Court Power
The Supreme Court ruled against the SEC using in-house courts for fraud cases. Defendants must have jury trials, protecting their Seventh Amendment rights. The 6-3 decision limits the SEC's power. Chief Justice John Roberts said the SEC's antifraud rules mimic common law fraud, needing a jury trial. The ruling, split along ideological lines, could affect many federal agencies using internal courts. The case involved George Jarkesy, charged with fraud by the SEC in 2013. Jarkesy argued that in-house courts deny jury trials and upset the separation of powers. Justice Sonia Sotomayor warned this decision has major impacts. She said it upends long-standing government practices. The SEC can still bring cases in federal courts, but it’s harder than using their own. Nike's Running Struggles
Nike is losing ground in the running market. Competitors like Hoka and New Balance are stepping in. Brendan Eng's Portland running group rarely sees Nike reps. But Hoka is a frequent visitor. Run clubs grew post-Covid, yet Nike's presence faded. Nike's sales declined unexpectedly, dropping shares by 10%. Competitors took advantage, targeting eager runners. Nike plans a comeback with new shoes for the Paris Olympics. CEO John Donahoe admits they underinvested in running. The company aims to reconnect with local runners. Other brands, like New Balance, engage deeply with the running community. Nike must reinvest to regain its market share. Quick Sizzles
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Jumat, 28 Juni 2024
Rich Crypto Kids Flunk Basic Finance
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