📬 Daily Brief: Student debt’s lingering limbo

Good morning, Quartz readers!

Here’s what you need to know

The Biden administration extended a student debt repayment pause. The Department of Education is waiting for the Supreme Court to review injunctions from lower courts against the $400 billion relief program before resuming repayments.

Videos uploaded on social media purportedly show unrest at Foxconn’s iPhone factory. Workers appear to be violently protesting pay and working conditions, as well as strict covid regulations.

A mass shooting took place at a Walmart store in Chesapeake, Virginia. Police said six people were killed by a gunman, who has also died.

Donald Trump’s Truth Social got a deadline extension for its SPAC deal. The planned acquisition, which is currently facing regulatory scrutiny, is one of the reasons why the former president has yet to make a return on Twitter.

Meta’s comms director denied a rumor about a possible Mark Zuckerberg departure. There was nothing indicating such a rumor had any substance, but Andy Stone’s public reply put the idea on the table for all to consider.

The UK started investigating Apple and Google’s mobile systems. Antitrust authorities have 18 months to probe potential anti-competitive behavior, with a focus on mobile browsers and cloud gaming.

Cristiano Ronaldo split with Manchester United. The two parties severed their ties after the 37-year-old player publicly criticized the club. In other sports drama, Saudi Arabia declared a public holiday after clinching a historic victory over soccer powerhouse Argentina.

What to watch for

The UK Supreme Court decided Scotland cannot hold a second independence referendum without approval from Westminster.

The ruling gives first minister and Scottish National Party leader Nicola Sturgeon more clarity on the legality of the referendum demands. She will now need to focus her efforts on persuading UK prime minister Rishi Sunak to allow for a vote to take place nearly a decade after 55% of Scots rejected independence. Sunak has repeatedly stated his objection to a second referendum, not just on principle, but also because of the economic damage that he fears uncertainty around the vote would cost the country.

Recent opinion polls have also shown that neither side of the debate would be assured a clear victory. That won’t stop supporters of Scottish independence from showing their desire to leave the UK; more than a dozen rallies are set to take place today (Nov. 23).

Et tu, Genesis?

Genesis Global Capital abruptly halted operations last week, blaming crypto market turmoil and a crisis of confidence in the industry. Three people familiar with operations at Genesis during the recent crypto boom-and-bust period told Quartz that the company’s loans were sometimes unsecured or secured with collateral from other clients.

Sound familiar? These are the same practices that felled Alameda Capital, the hedge fund attached to FTX, which declared bankruptcy this month. Alameda took loans from Genesis using FTX’s now-worthless token as collateral, Reuters reports, though the amount of debt is still unknown.

In a nutshell, Quartz’s investigation of Genesis Global Capital has found:

🤷 Unsecured loans to clients, who then used that money to raise capital during the crypto bull market without having to sell their holdings.

😓 Secured loans that had their collateral lent out as well, a practice known as rehypothecation that is closely regulated in traditional finance after it helped set off the 2008 global financial crisis.

When did luxury brands’ customers get so young?

Image copyright: Screenshot / Getty Images

Once devoted to ballgowns, Balenciaga has undergone a streetwear-savvy makeover, hawking everything from sneakers to trash bags to whatever’s going on in the above picture.

In 2019, millennials and Gen Z accounted for 40% of luxury shoppers in North America, and 44% for the industry globally. These generations are expected to account for as much as 70% of the global luxury market by 2025.

China’s growing, young luxury market is partly responsible for the trend, as is savvy marketing, forays into casualwear, and fashion resale sites. The most fun way to measure the shift, though, is undoubtedly “Who’s dropping what brand name in which Billboard Top 100 song?” Quartz’s Tiffany Ap does just that in her breakdown of luxury consumer trends.

✦ Help keep Quartz free for those who can’t sport Gucci on the regular, and grab a membership now, at 50% off our usual price.

📬 Daily Brief: Student debt’s lingering limbo

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