1 August 2019
Question: According to an MSN: Money titled “Buffett: This is the biggest mistake parents make when teaching kids about money”, what did Warren Buffett say when asked what he thinks is the biggest mistake parents make when teaching their kids about money?
India outlaws instant divorce – Pg. 1
- India’s parliament passed a bill this week that makes “triple talaq” – a controversial custom that allows Muslim men to end marriage by saying talaq three times – a criminal offence punishable by up to three years in jail
- Triple talaq is already banned in more than 20 Muslim-majority countries, including neighbouring Pakistan
Fed cuts rates by a quarter point and signals more easing if needed – Pg. 1
- In its policy statement, the US central bank suggested the monetary easing was justified by “uncertainties” stemming from weakness in the global economy and simmering trade tensions
- The one-notch cut in interest rates was widely expected by investors and economists but was accompanied by a dovish decision to halt the reduction in the Fed’s balance sheet on August 1, two months earlier than planned
- The FOMC statement hinted that more monetary easing could be coming this year
- Even though unemployment remains near record lows, and consumption has been remarkably resilient, they have been worried by other data, including a second-quarter slowdown in US growth, weakness in investment, and persistently low inflation, which is running below the Fed’s 2% target
Slowing Eurozone raises stimulus prospects – Pg. 2
- The Eurozone economy showed further signs of a slowdown yesterday, raising the chances that the ECB will launch a big package of stimulus measures in September
- The flash growth estimate was down from 0.4% for the first three months of the eyar, and in line with the expectations…
- Slower growth is weighing on price pressures….core inflation fell from 1.1 to 0.9% in July
Mexico narrowly avoids slipping into recession – Pg. 4
- Mexico has reported second-quarter growth of just above zero, narrowly beating market expectations of a technical recession….
- GDP expanded 0.1% from April to June, ….
- The anaemic growth increases pressure on the Bank of Mexico to start reducing interest rates when its board meets on August 15
Saudi stocks attract billions of dollars following inclusion in benchmarks – Pg. 17
- Investors have flooded into Saudi stocks this year after the Kingdom’s sthare market was included in widely followed benchmarks that guide trillions of dollars in assets
- The surge in assets reflects the heft that index providers wield in guiding assets across global financial markets
Answer: “Sometimes parents wait until their kids are in their teens before they start talking about managing money – when they could be starting when their kids are in preschool”