Business Update – February 14 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
The US economy is crushing it compared to other rich countries
The US economy is expected to outpace Canada and Germany in 2024 despite inflation and interest rate hikes. Growth is fueled by consumer spending and business investments, while the Fed’s aggressive rate increases aim to control inflation.
The Super Bowl is expected to smash betting records. Nearly 68M US adults plan to wager
Nearly 68 million American adults — about 1 in 4 — plan to bet on this year’s Super Bowl, setting a record by a wide margin, according to the gambling industry’s national trade association.
How Boeing put profits over planes
Boeing faced criticism for its corporate culture prioritizing cost-cutting over safety, exemplified by the use of a cheap door plug on the 737 that compromised airplane integrity. Despite warnings from engineers, management decisions driven by market competition and profit maximization led to safety concerns being overlooked.
Judge voids Elon Musk’s ‘unfathomable’ $56 billion Tesla pay package
A Delaware judge ruled that Elon Musk’s $56 billion Tesla compensation package requires a shareholder vote, deeming the board’s approval “unfathomable.” This decision could potentially invalidate Musk’s record-breaking pay package unless it gains majority support from Tesla’s stockholders in a new vote.
Tech Mania: Meta stock has best day in a decade as Amazon shares hit 2-year high
Meta’s stock experienced its most significant surge in a decade following a positive earnings report, while Amazon shares reached their highest level in two years. Investors’ renewed confidence in tech companies contributed to the market rally, signaling a potential rebound in the tech sector.
One group has seen its wealth surge since 2019: Americans under 40
The New York Federal Reserve reports that wealth inequality in the U.S. has intensified since the pandemic. The richest 1% now hold a record 32.3% of the nation’s wealth, while the bottom 50% have just 2.9%. This disparity has widened as asset prices, like stocks and real estate, have surged.
Disney beats on earnings, boosts dividend as streaming losses narrow
Disney surpassed earnings expectations and announced an increased dividend as losses in its streaming services narrowed. The company’s strong performance in its parks, experiences, and products segments helped offset the streaming challenges.
The 20 worst states for saving
The article from Accounting Today lists the 20 worst states for saving money, highlighting regions where individuals may find it more challenging to put aside savings.
Job growth twice as strong as expected in January
In January, the US job market saw a surge, doubling expectations with a significant increase in employment. This robust growth counters recession fears, signaling economic resilience.
Millennials are running up more debt than ever before
Americans — particularly Millennials and those with lower incomes — are becoming increasingly overextended financially: Credit card and auto loan delinquencies have not only surpassed pre-pandemic levels, they’re the highest they’ve been in more than a decade.
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