☕️ Deep freeze

What happens after you seize a yacht... [Advertisement] March 23, 2022 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( TOGETHER WITH [Fidelity]( Good morning. If you can believe it, it was one year ago today that the Ever Given got stuck in the Suez Canal, blocking the movement of 12% of global trade for six days. Everything has been smooth sailing for supply chains since. —Jamie Wilde, Max Knoblauch, Neal Freyman MARKETS Nasdaq 14,108.82 +1.95% S&P 4,511.61 +1.13% Dow 34,807.46 +0.74% 10-Year 2.385% +9.1 bps Bitcoin $42,586.71 +3.57% John Deere $427.55 +1.25% *Stock data as of market close, cryptocurrency data as of 5:00pm ET. [Here's what these numbers mean.]( - Markets: Investors are tentatively embracing [tech stocks]( once again after a painful sell-off made share prices more attractive. Meanwhile, John Deere stock hit a record for the fourth straight trading session. Investors are betting that the agricultural squeeze from the war in Ukraine will lead to a jump in demand for farm machinery in the future. - Ukraine: Russian forces are suffering [major losses](, a US senior defense official said, and its combat power has dropped below 90% of its original numbers for the first time. A pro-Kremlin newspaper posted—and then quickly deleted—a report that stated nearly 10,000 Russian soldiers had been killed so far in the war. GEOPOLITICS [So you seize a yacht: Then what?]( [A superyacht in a harbor](Russian billionaire Andrey Melnichenko's yacht, seized by Italian authorities: Anadolu Agency/Getty Images Sanctioned Russian oligarchs are getting serenaded by the world’s smallest violin as the EU, UK, and US band together to [seize their assets](. In his State of the Union earlier this month, President Biden promised oligarchs that the West would “seize your yachts, your luxury apartments, your private jets. We are coming for your ill-begotten gains.” And so far… - Superyachts owned by Russia’s business elites have been impounded in Italy, France, Spain, and the UK territory of Gibraltar. - Italy seized Russian businessman Alexey Mordashov’s real-estate complex, worth about $116 million. What’s the process of seizing an asset? The oligarchs still technically own their yachts and real estate, but cannot sell or transfer them, meaning their mansions are bolted shut and ships are stuck in harbors. But tying a cleat hitch knot is just the first trial governments face on a potential yearslong odyssey to actually [take ownership]( of the assets. The next step in the US and most European countries involves proving the oligarchs’ criminal actions in court. In the US, litigators have to prove that assets were either directly used to commit a crime or were bought or maintained using criminally acquired funds. From there, governments can sell the assets as their own. But it’s a notoriously lengthy process. For example: - It took federal courts nearly a decade to decide that one Manhattan building linked to the Iranian government could be seized. But even then, the case was thrown out two years later due to errors. - A case to seize the assets of former Ukrainian Prime Minister Pavlo Lazarenko, who was convicted of money laundering, lasted more than 15 years. If litigation takes too long, yachts could get the equivalent of super wrinkly fingers from sitting out in the water. Without proper maintenance, their value will deteriorate and become a drag on government resources. To speed things up, some US lawmakers have proposed a shortcut: Congress is currently formulating a bill that would let authorities seize any $5+ million property owned by a sanctioned Russian elite, sell it, and send the profits to Ukraine. It’s called the “Yachts for Ukraine Act.” Bottom line: Turning Russian oligarchs’ properties into funds that can aid Ukrainians might not happen until well after the war is over unless the process is expedited. Until then, these assets will get about as much use as an oven broiler.—JW �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=So%20you%20seize%20a%20yacht%3A%20Then%20what%3F%3A%20utm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A WORLD [Tour de headlines]( [Tesla CEO Elon Musk looks at Tesla cars as he attends the start of the production at Tesla's ](Patrick Pleul/dpa-Zentralbild POOL/AFP via Getty Images Tesla plants its flag in Europe. Elon Musk hit the dance floor as his company held the [grand opening]( of its first European manufacturing hub near Berlin, Germany, after months of delays. The plan is to produce 500,000 vehicles each year, which is more than the 450k battery-electric cars that rival Volkswagen sold in 2021. Tesla’s next “gigafactory” in Austin, TX, is slated to open in April. MacKenzie Scott wrote a big check. The billionaire philanthropist [donated $436 million]( to the homebuilding nonprofit Habitat for Humanity. It’s the biggest public donation Scott has made since she pledged in 2019 to give away most of her wealth. Not that the others haven’t been big—[nearly 90%]( of recipients of Scott’s donations said hers was the biggest they’ve ever received, according to Bloomberg. The union fight comes to Starbucks’s backyard. A location in Seattle voted unanimously to [unionize](, becoming the seventh corporate-owned store in the country to back a union and the first in the company’s hometown. Improving labor relations will be at the top of incoming CEO Howard Schultz’s to-do list: More than 150 company-owned locations have filed for union elections in the past six months. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Tour%20de%20headlines%3A%20utm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A EDUCATION [Student loans may be entering a deep freeze]( [Mr. Freeze from Batman & Robin](Batman & Robin/Warner Bros. via Giphy Good news for the 37 million Americans who have May 1 marked on their calendar with a skull: The Biden administration has signaled the possibility of once again [extending]( the federal student loan payment freeze. - The Dept. of Education emailed the companies that service federal loans and told them to hold off on reminding borrowers that payments would start again in May. - White House Chief of Staff Ron Klain hinted that another extension was possible on Pod Save America. If the student loan freeze were a band, this would mark its sixth straight encore—something that could make you wonder, “Why not turn this thing into a residency?” The legislation has saved federal student loan borrowers about $195 billion since it was implemented at the beginning of the pandemic, according to a new report by the Federal Reserve Bank of New York. If forbearance were to end, NY Fed researchers predict a steep rise in delinquencies. With midterms looming, Democrats have urged Biden to push ahead with his campaign pledge to cancel a “minimum of $10,000” of student loan debt per person—or at least extend the freeze. Not everyone’s celebrating, though. Private lenders, whose profits have been squeezed during the moratorium, have been aggressively lobbying the administration to restart payments or narrow the freeze to cover fewer borrowers.—MK �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Student%20loans%20may%20be%20entering%20a%20deep%20freeze%3A%20utm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A TOGETHER WITH FIDELITY [You Meta believe it](#) [Fidelity]( If you have yet to see all that the Metaverse has to offer, don’t sweat it. We’ve got a spare golden ticket for ya. Watch [Into the Metaverse: A Crypto Conversation](. Check out a convo between Chris Kuiper, director of research at Fidelity Digital Assets, and Alex Lieberman, cofounder of the Brew himself, where they discuss crypto, the future of $$, and the Metaverse—from inside the Metaverse. Nailed that location. You’ll hear Chris and Alex discuss how the Metaverse can help bridge the gap between people’s understanding of crypto and the digitization of, well, everything. Chris and Alex also cover the impact this’ll have on our lives, plus plenty more. Grab a virtual seat and tune in. ECONOMY [Covid still taking a bite out of the Big Apple]( [An office building with a vacancy poster](Illustration: Francis Scialabba, Photo: James Leynse/Getty Images Manhattan rental costs are the highest in the country. Bars are packed. The rats are asking politely before they steal trash. On the surface, NYC appears to be booming. But several [new]( [reports]( offer a bleaker picture of the city. Why? Because as much as New York City has become a red-hot residential location, its biggest economic asset—office workers—haven’t returned to their cubicles. Consider: Manhattan’s daytime workforce of 2.6 million used to top the entire population of Houston. But now… - Manhattan office availability hit a record 17.4% in February, per the WSJ. - That means office space is less in demand now than following 9/11, when people were afraid to work in skyscrapers. Fewer commuters has nasty spillover effects for the retailers who depend on them. Retail vacancy around Grand Central has doubled to 20% in the last three years. In all, NYC unemployment was at 7.6% in January 2022, nearly double the national rate of 4% and among the worst for major US cities. Zoom out: NYC’s business districts may be as much in need of a reinvention as the Knicks.—NF �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Covid%20still%20taking%20a%20bite%20out%20of%20the%20Big%20Apple%3A%20utm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A GRAB BAG [Key performance indicators]( [Clicking the 'always skip intro' button on Netflix](Bianca Bosso via Giphy Stat: People hit Netflix’s “Skip Intro” button 136 million times per day, which is equivalent to 195 years in cumulative time saved, the company recently [reported](. Conversation starter: What’s a TV intro you never skip? Quote: “Rarely has so much fear and anger been directed at so few. I don’t understand what they are going through or why they feel the way they do. But I want them to live.” Utah Gov. Spencer Cox, a Republican, explained why he [vetoed]( a bill that would ban transgender kids from participating in girls’ sports. 11 other GOP-led states have passed similar laws recently, but just this week two Republican governors (Cox and Indiana’s Eric Holcomb) have vetoed them. Read: How the NYT has changed its map symbology as the Russian war in Ukraine has unfolded. ([Levi Westerveld]() Ask: Should the US government forgive student loan debt? Vote below and we’ll share the results tomorrow. [Yes—all of it]( [Some, but not all]( [No]( �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew%21&body=Key%20performance%20indicators%3A%20utm_campaign%3Dmb%26utm_medium%3Dnewsletter%26utm_source%3Dmorning_brew%0A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%20%E2%80%94%20Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley%2C%20daily.%0Ahttps%3A%2F%2Fwww.morningbrew.com%2Fdaily%2Fr%2F%3Fkid%3D4904f90a%26utm_source%3Demail_share%0A WHAT ELSE IS BREWING - [Takeaways]( from the first full day of questioning in the SCOTUS confirmation hearing of Judge Ketanji Brown Jackson. - [Alcohol-related deaths]( in the US soared 25% in 2020 from a year earlier, a new study showed. - [The global recorded music market]( surged 18.5% in 2021 to hit $25.9 billion in revenue in 2021. BTS was the top global artist. - [The Lollapalooza]( lineup was announced, featuring Doja Cat, Machine Gun Kelly, and Goldman Sachs CEO David Solomon (DJ D-Sol). BREW'S BETS Electricity map: Browse this [interactive site]( that shows electricity’s climate impact in various countries. A video you didn’t know you needed: Someone stuck a [GoPro inside a dishwasher]( to show how this wonderful appliance gets the gunk off of your dishes. Lunch plans? Join us today for Retail Brew’s The Checkout. We’re talking omnichannel strategies with Ace Hardware’s Bill Kiss, who serves as head of digital and retail strategy. We’ll delve into shifts in consumer preferences, plus how to coordinate marketing efforts across channels. [Register here](. Eye makeup so good, it’s got over 20K 5-star reviews. This mascara mimics the look of lash extensions (without the salon prices) and lasts all day without clumping, flaking, or smudging. Brew readers [get 15% off their lusciously long lashes here](.* A new world of work. Tune into “As We Work,” a new podcast from The Wall Street Journal about the changing dynamics of the workplace and how to navigate them. Each week, host Tess Vigeland speaks with business leaders, experts, and workers like you. [Listen now]( wherever you get your podcasts.* *This is sponsored advertising content. GAMES [The puzzle section](#) Word Search: Ditch the parka and get in the spring spirit with today’s flower-themed Word Search. [Play it here](. Guess the Wikipedia article Here are the section headings for a particular Wikipedia article. Your goal is to guess the topic of the article. - Measurement - Definitions and standards - Philosophy - Physical definition - Travel - Perception - Use FROM THE CREW [Become an expert number cruncher]( [MB/Q promo image]( They say data is the new oil, which is true in the sense that it’s only valuable if you know how to refine it. Learn how to translate data into better business decisions with Morning Brew Quantitative (MB/Q). In this seven-week career accelerator, you’ll learn the best ways to use data and finance strategically alongside a community of eager professionals who are also ready for more. [Apply now]( and save $300 off of tuition. ANSWER [Time]( � � � � � Written by [Neal Freyman](, [Jamie Wilde](, and [Max Knoblauch]( Was this email forwarded to you? Sign up [here](. WANT MORE BREW? Industry news, with a sense of humor → - [Emerging Tech Brew](: AI, crypto, space, autonomous vehicles, and more - [HR Brew](: analysis of the employee-employer relationship - [Marketing Brew](: the buzziest happenings in marketing and advertising - [Retail Brew](: retail trends from DTC to "buy now, pay later" Tips for smarter living → - [Money Scoop](: your personal finance upgrade - [Money With Katie](: manifest your financial freedom - [Sidekick](: lifestyle recs from every corner of the internet Podcasts → [Business Casual]( and [Founder's Journal]( [YouTube]( Accelerate Your Career → - [MB/A](: virtual 8-week program designed to broaden your skill set [ADVERTISE]( // [CAREERS]( // [SHOP]( // [FAQ]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright © 2022 Morning Brew. All rights reserved. 22 W 19th St, 4th Floor, New York, NY 10011