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12 My Christmas “Money Movies”.

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This article is the latest part of FT campaign for financial literacy and inclusion

School may be out for most people, but if you’re settling in to watch a movie with the family this Christmas, here are some easy ways to supplement screen time with some discreet financial education.

It has been a really dismal year for our personal finances and it is likely to become even more difficult in 2023. The need to teach our children and grandchildren good money habits has never been more important, but finding ways to do so Engage them It can be a challenge.

Movies provide valuable reference points for children to learn about what is happening in the world around them. So I asked my social media followers to recommend movies that could spark meaningful conversations about money with kids (and adults) of all ages.

As you’ll see from the selection below, not all of them are festive. Some of them are very old – you may remember them from your childhood. But they all contain valuable lessons about our money and our lives.

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A scene from a movie
James Stewart and Donna Reed in “It’s a Wonderful Life” (1946) © Alamy

What better place to start than with a classic Christmas It’s a wonderful life? (yo)? Definitely one to watch when the grandparents come over, it’s a useful primer on how banks work – and what happens when people can’t pay back what they’ve borrowed. Older children can be encouraged to associate scenes of financial panic with the recent run on cryptocurrency exchanges.

commercial places (15) is a Christmas comedy with a serious financial message. Starring Eddie Murphy as a street con artist who, as a result of an elaborate bet, swaps places with wealthy dealer Dan Aykroyd. Watching this can raise questions about financial privilege (“the best way to hurt the rich is to make them poor”) as well as the blurry line between money-making schemes and outright deception.

There are plenty of movies that explore the ethical dilemma of how money corrupts, Wall Street (15) Being the obvious choice. Despite what Gordon Gekko says, is greed really good? If your child was in Bud Fox mode, would he or she have done something differently?

scene from
Dan Aykroyd and Eddie Murphy in “Places of Trade” (1983) © Alamy

Jumping forward to the 2008 financial crisis, The Big Short (15) Shows what happened when the banks got too greedy. Fast-paced enough to attract anyone interested in the economy, with home prices swinging and mortgage rates soaring, there are plenty of ways to tie this into today’s news agenda.

With financial fraud at record levels, exploiting people’s dreams of becoming rich in order to make their money is a constant theme.

boiler room; (15) Made in 2000, yet the psychology of why we fall for scams hasn’t changed much – only the methods by which cash is extracted. When the credits roll, Ask your child What they know about online investment scams, number impersonation, and money laundering.

While preceding social media, Catch me if you can (12) starring Leonardo DiCaprio as a teenage con artist who pretends to be someone he can’t strike up conversations about influencers Not all it seems. If only the FBI agent playing Tom Hanks could clean up the internet.

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For Older Teens, DiCaprio’s Academy Award-winning performance in… The Wolf of Wall Street (18) He takes the get-rich-quick hustle to a more extreme, adult level. There’s a lot to talk about here, but if Jordan Belfort were a young trader today, I’m sure cryptocurrency would be his asset of choice – there are a lot of synergies.

It’s too early for a movie about Sam Bankman-Fried and the collapse of FTX (although I predict future Hollywood directors will be drooling). Not a movie, but if your kids are interested in cryptocurrency, excellent explained The docu series on Netflix has a great episode about this – and don’t forget Skandal! (The story of how FT colleagues brought down German payments firm Wirecard.)

scene from
Lily Tomlin, Dolly Parton and Jane Fonda in “9 to 5” (1980) © Alamy

For Dolly Parton fans, 9-5 (Rated 15) is the definitive movie that gets kids talking about the gender pay gap, as well as what offices were like before computers, and it has a choppy soundtrack. The obvious question is, how much has it really changed for women since the 1980s?

Another big topic in Hollywood is whether money can buy you happiness — something that really resonates in times of high wealth inequality.

Richie Rich (PG) Starring Macaulay Culkin as the world’s richest kid who has everything – except for friends. Would having your own rollercoaster and McDonald’s really be fun if you had no one to share it with?

Got Disney+? The 1974 animated version of Robin Hood (U) is hooligan, and will make even young children think about the distribution of wealth in society. In addition to exploring the ethical dilemma of whether theft can be justified, you can ask whether the rich should pay more taxes (this would spark an argument at Christmas with relatives).

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For older kids, Ken Loach’s 2016 smash hit I’m Daniel Blake (15) explores the major loopholes in the UK benefits system. Tough watch, but the cost of living crisis has made this even more important.

When your tears dry, it might lead to conversations about politics and the vital role charities and food banks play in society (they might even want to give away some of their Christmas money or junk toys). Digital exclusion is another growing problem. How many everyday things is it now impossible, or very difficult, to do without a smartphone?

Whilst not a film, the Channel 5 reality series Rich House, Poor House It sees families of different income levels trade in homes, budgets, and lifestyles (“In six weeks, they spend as much as you do in a year.”) This offers a slightly less bleak glimpse into the class divide—and it sure raises plenty of practical questions.

A scene from a movie
Academy Award-winning Korean film “Parasite” (2019) © Curzon / Artificial Eye

For older teens, the hit Korean movie parasite (15) This is seen in a darker light, as the struggling family seizes the opportunity to deceive and exploit a rich family. Whose side are you on?

That’s enough movies to see you through the new year, but I’ll catch another one for good measure. friends with money (15) It offers a more relaxed view on different levels of income. Jennifer Aniston plays Olivia, who quits a lucrative job only to find out how awkward things can get when your friends have a lot more money than you do.

If your kids like friendsHave them watch “The One with Five Steaks and an Eggplant,” which tackles the chronic problem of dividing restaurant bills. what he is The fairest way to do this?

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Add your own suggestions in the comments below. And before you settle with popcorn, as a final lesson, get your kids to look for streaming services that will let you watch for less or for free.

Claire Barrett is the Consumer Editor for the Financial Times author From “What They Don’t Teach You About Money”. claer.barrett@ft.com; Twitter and Instagram: @employee


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Economic

We need to pay more attention to skewed economic signals

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The writer is chair of Queen’s College, Cambridge and advisor to Allianz and Gramercy

Inflation was the dominant economic and financial issue of 2022 for most countries around the world, especially for advanced economies that have a consequential impact on the global economy and markets.

The effects have been seen in declining living standards, increasing inequality, increasing borrowing costs, stock and bond market losses, and occasional financial mishaps (fortunately small and so far contained).

In this new year, recession, both actual and feared, has joined inflation in the driving seat of the global economy and is likely to replace it. It’s a development that makes the global economy and investment portfolios subject to a wide range of possible outcomes — something that a growing number of bond investors seem to be aware of more than their equity counterparts.

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International Monetary Fund iYou will likely review soon Her economic growth forecasts again, predicting that “a third of the world will be hit by recession this year”. What is particularly notable to me about these worsening global prospects is not only that the world’s three major economic regions – China, the European Union and the United States – are slowing down together, but also that this is happening for different reasons.

In China, a chaotic exit from the wrong Covid-19 policy is undermining demand and causing more supply disruptions. Such headwinds to domestic and global economic well-being will continue as long as China fails to improve the coverage and effectiveness of its vaccination efforts. The strength and sustainability of the subsequent recovery will also require that the country more vigorously renew a growth model that can no longer rely on greater globalization.

The European Union continues to deal with energy supply disruptions as the Russian invasion of Ukraine continues. Strengthening inventory management and reorientation of energy supplies is well advanced in many countries. However, it is not yet sufficient to lift immediate constraints on growth, let alone resolve long-term structural headwinds.

The United States has the least problematic view. The headwinds to growth are due to the Fed’s struggle to contain inflation after mischaracterizing rate increases as fleeting and then initially being too timid to adjust monetary policy.

The Fed’s shift to an aggressive front-load of interest rate hikes came too late to prevent the spread of inflation in the services sector and wages. As such, inflation is likely to remain stubborn at around 4 percent, be less sensitive to interest rate policies and expose the economy to greater risk for accidents from additional policy errors that undermine growth.

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The uncertainties facing each of these three economic areas suggest that analysts should be more careful in reassuring us that recessionary pressures will be “short and shallow”. They need to be open, if only to avoid repeating the mistake of prematurely dismissing inflation as transient.

This is especially important because these diverse drivers of recessionary risk make financial fragility more threatening and policy shifts more difficult, including potentially Japan. Get out of interest rate control Policy. The range of possible outcomes is extraordinarily large.

On the one hand, a better policy response, including improving the supply response and protecting the most vulnerable populations, can counteract the global economic slowdown and, in the case of the United States, avert a recession.

On the other hand, additional policy errors and market turmoil can lead to self-reinforcing vicious cycles with rising inflation and rising interest rates, weakening credit and compressed earnings, and stressing market performance.

Judging by market prices, more bond investors are better understanding this, including by refusing to follow the Fed’s interest rate guidance this year. Instead of a sustainable path to higher rates for 2023, they believe recessionary pressures will lead to cuts later this year. If true, government bonds would provide the yield and potential for badly missed portfolio risk mitigation in 2022.

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However, parts of the stock market is still weakly bearish pricing. Reconciling these different scenarios is more important than investors. Without better alignment within markets and with policy signals, the positive economic and financial outcomes we all desire will be no less likely. They will also be challenged by the risk of more unpleasant outcomes at a time of less economic and human resilience.

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Macro hedge funds end 2022 higher, investors say, while many others take big losses By Reuters

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© Reuters. FILE PHOTO: Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City, US, January 5, 2023. REUTERS/Andrew Kelly

By Svea Herbst Baylis

NEW YORK (Reuters) – Some hedge funds betting on macroeconomic trends have boasted of double and even triple-digit gains for 2022, while other high-profile companies that have long been on technology stocks have suffered heavy losses in volatile markets, investors said.

Rokos Capital, run by Chris Rokos and one of a handful of so-called global macro companies, gained 51% last year. Fund investors this week, who asked not to be identified, said Brevan Howard Asset Management, the company where Rokos once worked, posted a gain of 20.14% and Caxton Associates returned 16.73%.

Haider Capital Management’s Haider Jupiter Fund rose 193%, an investor said.

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Data from hedge fund research showed that many macro managers have avoided crumbling stock markets that have been rocked by rapid interest rate increases and geopolitical turmoil, including the war in Ukraine, to rank among the best performers in the hedge fund industry. The company’s macro index rose 14.2% while the general index of hedge funds fell 4.25%, its first loss since 2018.

Equity hedge funds, where the bulk of the industry’s roughly $3.7 trillion in assets are invested, fared worse with a loss of 10.4%, according to HFR data. And while that beat the broader stock market’s loss of 19.4%, some high-profile funds posted even bigger losses.

Tiger Global Management lost 56% while Whale Rock Capital Management ended the year with a 43% loss and Maverick Capital lost 23%. Coatue Management ended 2022 with a loss of 19%.

But not all companies that bet on technology stocks suffered. John Thaler JAT Capital finished the year with a 3.7% gain after fees after a 33% increase in 2021 and a 46% gain in 2020.

Sculptor Capital Management (NYSE::), where founder Dan Och is fighting the company’s current CEO in court over his salary increase, posted a 13% drop.

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David Einhorn’s Greenlight Capital, which bet that Elon Musk would be forced to buy Twitter, ended the year up 37% while Rick Sandler’s Eminence Capital rose 7%.

A number of so-called multi-manager companies where teams of portfolio managers bet on a variety of sectors also boast positive returns and have been able to deliver on their promise that hedge funds can deliver better returns in distressed markets.

Balyasny’s Atlas Fund (NYSE: Enhanced) gained 9.7%, while Point72 Asset Management gained 10%. Millennium Management gained 12% while Carlson Capital ended the year with a 7% gain.

Representatives for the companies either did not respond to requests for comment or declined to comment.

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German automakers point to easing supply chain problems

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Sales at BMW and Mercedes-Benz jumped in the final months of 2022 as the German premium auto brands indicated supply chain problems plaguing the industry were abating.

Automakers around the world have experienced parts shortages since the pandemic, especially semiconductors, leaving many of them with large fleets of incomplete vehicles that can’t be delivered to customers.

BMW and Mercedes each said their full-year vehicle deliveries fell last year by 4.8 percent and 1 percent, respectively, due to Suppliers Bottlenecks as well as lockdowns in China and the war in Ukraine.

But supply pressures eased in the last quarter of the year, as BMW recorded a 10.6 percent jump in sales, with 651,798 vehicles delivered, and Mercedes fulfilling 540,800 orders, up 17 percent from the same period in 2022.

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BMW He said the main effects of supply chain bottlenecks and continued lockdowns were felt in the first six months of the year, adding that “sales were steadily picking up in the second half.”

Mercedes boss Ula Kallenius told the Financial Times last week that the list of problems in the auto supply chain was declining, but added that long waits for cars would continue into 2023.

“One chip is enough to be vital [ . . .] Missing, and then you can’t finish the car, even if you have everything else.

Both brands recorded strong sales growth electric car. Mercedes, which last week announced a plan to build 10,000 charging docks, said EV shipments grew 124 percent to 117,800 last year compared with its predecessor.

Similarly, BMW reported strong growth in electric vehicle sales, with deliveries of fully electric vehicles doubling last year to 215,755.

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Analysts at Bank of America said that sales of electric vehicles, including hybrid cars, reached a historic peak last November, with 1.1 million units sold. They attributed this largely to the upcoming phase-out of customer subsidies in Germany.

Participate in Mercedes BMW and BMW prices held steady Tuesday morning as investors priced in an image of an improving showing.

Rolls-Royce, a subsidiary of BMW, announced Monday that sales have hit a 119-year record, driven by strong demand in the United States, its largest market.

The luxury brand has been largely unaffected by the semiconductor pressure, mainly because it makes relatively few compounds and therefore needs fewer chips.

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