Must Read Money Stories for Wednesday, June 1

by June 1, 2016


Breach of Myspace

The antiquated social media platform Myspace made the news this week and not for a good reason. The website’s owner Time, Inc., announced that more than 360 million accounts have been hacked, Tech Crunch reports. The hacker, who has been linked to LinkedIn and Tumblr breaches, has made the usernames and passwords available on an online forum for hackers. Some experts have said that this is the biggest data breach ever.

Consumer Spending

U.S. consumer spending rose by the largest amount in six years last April. Data from the Department of Commerce shows that the rate of households buying goods and services increased by 1 percent, Reuters reports. Spending on durable goods increased 2.3 percent while spending on services increased by 0.6 percent. The Washington Post writes that those numbers have led some experts to say the economy is growing at 2.5 percent, as opposed to 0.8 percent in the first quarter of 2016. However, those positive April numbers came alongside statistics that show decreased consumer confidence for the month of May.

Donald’s Energy

There has been no shortage of speculation regarding Republican presidential nominee Donald Trump’s plans to aid the oil industry. Trump recently voiced his intention to cut back federal regulations on oil drilling and keep the coal industry afloat. Matt Egan of CNN suggests that an overabundant supply of oil shale, and not federal regulation, are the reason companies are holding back on drilling. Trump has also sought to distinguish himself from President Obama and Hillary Clinton, who have openly opposed the coal industry, but Egan questions whether Trump’s support of “fracking” for natural gas would harm coal.

Failed Merger

The office supplies corporation Staples has gone from attempting to pull off a major merger to losing its CEO. Ron Sargent will be leaving his post as Staples pursues a new “phase of growth,” Forbes reports. Under Sargent’s leadership, the company tried to land a $6 billion merger with Office Depot that drew criticism from regulators. The Federal Trade Commission disagreed with the deal and a federal judge agreed. Office supplies companies like Staples have argued that they must consolidate in order to remain competitive with online and more mainstream retailers.

handheld hacker” by flickr user “Raymond Fruseth Gangstad” cc license CC by-NC 2.0.