Trump's economy remains pretty strong, but some warning signs are flashing
The country's economy has remained relatively stable and upbeat under Trump, according to many metrics, although economists caution that they see potential warning signs ahead.
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CNBC
26 minutes ago
- CNBC
Trade deadlines and oil drama set the stage for a crunch week in global markets
CNBC's assignment desk has a conundrum this week: how to approach July, 9. Why does this specific date matter? It's the deadline for trade negotiations between the U.S. and European Union before the tariffs axe (maybe) falls once again. But President Donald Trump's tendency to move deadlines makes it tricky to commit to a big coverage plan when the date could become redundant. However — as we saw with the surprise framework agreed between the U.S. and China in Geneva back in April — you also can't afford to underplay the deadlines' significance. What we do know is that a full trade deal is "impossible" before the deadline, in the words of European Commission President Ursula von der Leyen, and that the best Brussels can hope for is an "agreement in principle." As CNBC anchor Silvia Amaro reported last week, the EU is banking on at least a bare-bones deal to show progress and avoid the 50% levy on products exported from the bloc. We should get some clues from Brussels on Tuesday and Wednesday, as European finance ministers gather for their regular meeting in Brussels. Another assignment that is much more definitive: the OPEC Seminar. The circus rolls back into Vienna as the oil producers' International Seminar takes place at the city's grand Hofburg Palace on Wednesday and Thursday. The meeting offers delegates two days of discussion and analysis on energy security and investment. It's a far cry from the days of the OPEC media scrum at the concrete headquarters on the other side of the Austrian capital. As a junior producer, I was lucky enough to cover OPEC with CNBC Anchor Steve Sedgwick. Before Covid, these manic biannual meetings saw journalists fight for soundbites from the world's most influential OPEC ministers. In those days, the scrum was affectionately known by a much less polite term… OPEC+ members — a wider group that includes non-OPEC oil producers, including Russia — meet this weekend to decide on another (highly anticipated) output hike amid a volatile month for crude prices. At the Seminar, ministers will also be joined by the CEOs of some of the world's largest energy companies, including BP and Shell. CEOs Murray Auchincloss and Wael Sawan will be the center of attention as market watchers and journalists alike look for any clues that a much-denied takeover could still be in the cards.
Forbes
30 minutes ago
- Forbes
Nudging Gen Z To Make Sound Financial Decisions
A Walmart's staff member works on a display of the No Boundaries collection at a store in Secaucus, ... More New Jersey, Thursday, July 11, 2024. The Bentonville, Arkansas-based retailer has revamped its 30-year-old mainstay store brand for young adults called No Boundaries, which generates annual sales of $2 billion. (AP Photo/Eduardo Munoz Alvarez) The majority of members belonging to Generation Z are financially illiterate. A majority are in financial trouble because of their spending and borrowing behavior. The combination of financial illiteracy and problematic money management leads many to be unaware of the ticking time bombs which underlie their financial circumstances. At the same time, there is hope for Gen Z. This is because behavioral economics-based nudging techniques are helping some members of Gen Z to make wise decisions about saving for retirement and using Buy Now Pay Later plans. Low Financial Literacy And Problematic Behaviors The concept of financial literacy refers to consumers' understanding of basic financial principles. In this regard, economists Annamaria Lusardi and Olivia Mitchell study financial literacy by focusing on three specific dimensions: 1. compound interest; 2. inflation; and 3. stock market risk. Lusardi and Mitchell assess people's degree of financial literacy using multiple choice survey questions, such as the following: 1. If you invest $10 in an asset which pays 1% per day of interest for 72 days, how much will your investment be worth in 72 days? 2. Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account? 3. Does buying a single company's stock usually provide a safer return than buying a stock mutual fund? The answers to the three questions are, respectively, 1. $20; 2. less than today; and 3. No. Lusardi and Mitchell report that the percentages of those deemed to be financially literate on the three dimensions are respectively 67%, 75%, and 52%. The 2025 TIAA Institute-GFLEC Personal Finance Index consists of 28 survey questions on financial literacy. The findings from this survey indicate that members of Gen Z, who were born between 1997 and 2012, have an average financial literacy score of 38%, the lowest of any generation. In this regard, Gen Z scored lowest on every dimension, and scored especially poorly on issues related to insurance. Relative to others, Lusardi and Mitchell point out that people with lower scores on financial literacy engage less in retirement planning and accumulate less wealth to finance retirement. The two economists also note that those with lower scores do a worse job of managing debt and establishing 'rainy day funds' to deal with emergencies. Notably, a report appearing in Newsweek pointed out that Gen Z holds more personal debt than other generations. As a point of contrast, consider that the average financial literacy score for prior generation millennials is 46%, considerably higher than Gen Z's 38%. Newsweek reported that the average amount of debt for Gen Z is $94,101, while for millennials, it is considerably lower at $59,181. Significantly Gen Z carries more debt than millennials did when the latter were at Gen Z's stage of life. In addition, 41% of Gen Z report that they do not have a rainy day fund that would cover a $2,000 emergency. For millennials, the corresponding figure is 30%. Helpful Nudging Techniques Gen Z is the first generation of 'digital natives' in respect to the Internet, smartphones, and social media. The issue of whether technology is contributing to Gen Z's low financial literacy scores is unclear and in need of systematic study. What does seem clear is that behavioral economics and technology, together, provide Gen Z with options to make sound financial decisions. According to the New York Times, Gen Z is contributing more to 401(k) plans than millennials did at the same stage of life. The Times suggests a key reason why Gen Z is doing a better job at saving for retirement is an automatic enrollment provision in the Secure 2.0 Act that took effect in 2022. The default position is that potential participants are enrolled in the plan, but can opt out. Because of a psychological phenomenon known as 'status quo bias,' the setting of the default increases participation rates in 401(k) plans more than the alternative in which potential participants must choose to opt in. Economics Nobel laureate Richard Thaler and economist Shlomo Benartzi developed the automatic enrollment approach, which they called 'Save More Tomorrow.' SMT builds on a framework known as the 'Behavioral Life Cycle Hypothesis' which I developed with Thaler to explain why people have difficulty saving for retirement. SMT was the first example of an approach called 'nudging' which uses psychological insights in an effort to help people make better decisions than they otherwise might. The takeaway from this discussion is that in some circumstances, nudging techniques can overcome low financial literacy, a point that comes out of my research. That said, it is important to be aware that nudging techniques are no panacea. In this regard, SMT applies to choices in 401(k) plans, which are only available to some employees. In addition, nudging techniques need to be selected prudently, and tested empirically to ascertain what works in practice, and what does not. A second example of how nudging techniques can help Gen Z and others make better financial decisions involves the use of Buy Now, Pay Later plans. These plans offer consumers alternatives to obtain credit to pay for purchases: These alternatives are not available with regular credit cards. One option features a series of equal installments, to be paid within a matter of weeks, with the first installment due at the time of purchase. Typically, this option does not feature an interest charge to the consumer. Other options also involve equal installments over longer horizons such as six months and twelve months. These longer-term do levy interest charges, with BNPL interfaces making the amount of interest transparent to consumers. Typically, the default option for BNPL is the interest-free option. Consumers who choose to borrow for longer periods than a few weeks, will see exactly how much interest they will have to pay if they opt out of the default. Fair Isaac Corp. is the company that manages and communicates the widely used FICO credit score. FICO recently announced that it planned to add BNPL data to its credit score analysis. Notably, FICO conducted a study jointly with the BNPL company Affirm. The study found that on average, consumers benefitted by using BNPL instead of, or in addition to regular credit cards. I say on average, as BNPL is no panacea, and can create serious problems for consumers who are not careful using it. To conclude: Gen Z is registering the lowest financial literacy scores than any other generation, and experiencing higher levels of debt and lower levels of financial preparedness. At the same time, programs with nudging features, such as SMT and BNPL are helping members of Gen Z make better decisions about retirement saving and short-term credit. The last point is encouraging, and provides a rationale for developing new nudging techniques to help Gen Z and others make sound decisions across the financial spectrum.
Associated Press
32 minutes ago
- Associated Press
ROSEN, A TOP RANKED LAW FIRM, Encourages PepGen Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action
New York, New York--(Newsfile Corp. - July 5, 2025) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of PepGen Inc. (NASDAQ: PEPG) between March 7, 2024 and March 3, 2025, both dates inclusive (the 'Class Period'), of the important August 8, 2025 lead plaintiff deadline. SO WHAT: If you purchased PepGen securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO NEXT: To join the PepGen class action, go to or call Phillip Kim, Esq. at 866-767-3653 or email [email protected] for more information. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 8, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) PGN-EDO51 was less effective and safe than defendants had led investors to believe; (2) the CONNECT2 study was dangerous or otherwise deficient for purposes of U.S. Food and Drug Administration ('FDA') approval; (3) as a result of all the foregoing, PepGen was likely to halt the CONNECT2 study, and PGN-ED051's clinical, regulatory, and commercial prospects were overstated; and (4) as a result, defendants' public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages. To join the PepGen class action, go to or call Phillip Kim, Esq. at 866-767-3653 or email [email protected] for more information. No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome. ------------------------------- Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 [email protected] To view the source version of this press release, please visit
