FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Americans are willing to take on debt to buy loved ones holiday gifts (NerdWallet and TransUnion)
A survey conducted by Harris Poll for NerdWallet and TransUnion found Americans plan to spend $US338 on gifts for their partners this holiday season. According to the results, about one-third of Americans admitted to having taken on credit card debt in the past in order to buy gifts for their loved ones. “If you need to hold onto the debt for more than a month or two, look into getting a card with a 0% introductory APR period,” NerdWallet credit card expert Sean McQuay said. The survey also found men are most likely to spend the largest amount of money on gifts for their significant others while women want to spend the most on their kids. Some tips for responsible holiday spending include setting a holiday budget with your loved one or buying a gift that both of you can enjoy together.
World food prices are on the rise (Food and Agricultural Organisation)
Global food prices rose 3.9% in October, according to the United Nations’ food agency. Sugar prices climbed 17.2% month-over-month as rainy weather in Brazil delayed planting while dryness in India and other parts of Southeast Asia produced crop damage. Dairy prices jumped 9.4% amid concerns output would fall in New Zealand. Meat prices were little changed compared to September.
Lawmakers want more financial protection for enlisted military (Investment News)
Last week, Sen. Sherrod Brown, D-Ohio and 19 other members of the Senate wrote a letter to Defence Secretary Ashton Carter voicing their concerns regarded the safety of enlisted military’s finances and credit. Investment News says data recently released by the Consumer Financial Protection Bureau showed 650 active-duty service members have filed complaints about their credit reports over the past three years. Less than 1% of active-duty members place their credit reports on Active Duty Alert before they are deployed, Investment News noted.
The SEC rewarded a whistleblower (Think Advisor)
The Securities and Exchange Commission awarded a whistleblower $US325,000 for giving a “detailed description of the misconduct” and identifying wrongdoers, leading to enforcement. According to Think Advisor, the whistleblower’s reward would have been higher had they not waited until departing the firm to come forward. “Corporate insiders who become aware of securities law violations are encouraged to come forward without delay in order to prevent misconduct from continuing unabated while investors suffer more harm,” Andrew Ceresney, director of the SEC’s Division of Enforcement, said in a statement. Whistleblowers are eligible to receive between 10% and 30% of the money collected when sanctions exceed $US1 million, Think Advisor says.
The market thinks it’s more likely than not the Fed will hike in December
The market thinks a Fed rate hike could happen in December. Wednesday’s House Financial Services testimony by Federal Reserve chair Janet Yellen has the market believing, at least temporarily, there is a better chance than not that the Fed will raise interest rates in December. After beginning Wednesday at a 50-50 coin flip, the probability of a rate hike jumped to 58%, the highest level for any Fed meeting since 2007, according to CMT’s Charlie Bilello. Yellen suggested December was a “live meeting” and the decision to raise rates would hang on improvement in the labour market and the Fed’s belief whether inflation could reach its 2% target. Yellen also, however, suggested that negative interest rates were possible if the outlook worsened.
Business Insider Emails & Alerts
Site highlights each day to your inbox.