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Climate change has led Earth to reach its first “tipping point”: the world’s coral reefs are dying off and won’t recover unless countries take drastic action, according to a new report from 160 scientists around the world. We know the climate crisis can make some of us feel hopeless, but there are entrepreneurs, farmers and scientists who are working to build a greener future. Our podcast “How We Survive,” which looks at the business of climate solutions, just launched a new season about our food system and how we can make it more sustainable. In today’s newsletter, we’ll talk about the business of lab-grown food and how one Colorado college is training the climate workforce.

We’ll also delve into the holiday spending habits of Gen Z consumers, who have to grapple with inflation, housing costs and a tough labor market. — Janet Nguyen, digital reporter

Shoppers bustling in out of stores during the holiday season.

Spencer Platt/Getty Images

Gen Zers are scaling back their holiday budget

Younger consumers are making the biggest budget cuts, but they’ve discovered that CDs can be a cheap, fun gift. Marketplace’s Matt Levin reports on the financial struggles that they face.

With the absolutely necessary caveat that it is way too early for anyone in their right mind to start their holiday shopping in October, a question for you: what’s your gift budget going be this year?

If you’re planning on skipping a stocking stuffer or two, you’re not alone. Apparently, holiday shoppers say they’re going to spend about 10% less than they did last year, according to a survey from the consulting company Deloitte.

Gen Z in particular is feeling thriftier; the youngest generation in the workforce is slashing the gift budget by 33%. Last year for the holidays, 25-year-old Somer Bryant and her roommate bought each other CD’s, those easily scratched compact discs older millennial dinosaurs put in a Sony Discman on the way to Blockbuster Video.

“I think one of them was Surfa Rosa, the Pixies. She really loves PJ Harvey, Fiona Apple, that sort of thing,” Bryant said.

Gen Z’s love affair with all things 1990s is well documented, but there’s another reason a CD is a great Gen Z gift in 2025: it’s relatively cheap. At least compared to the rising price of groceries or rent (Bryant pays $2,000 a month for her room in a New York apartment).

“I think that it's probably a common understanding among most people my age that, like the gifts are going to be cheaper,” Bryant said.

It’s not just housing costs and inflation hitting Gen Z especially hard this year, it’s also job security.

News you should know

Let’s do the numbers

There was volatility on Wall Street today, although most stocks ended the day higher. The S&P 500 rose 0.4% and the Nasdaq composite jumped 0.7%, but the Dow dropped a smidge by about 0.1%. Earning reports from the big banks and ASML, a major semiconductor supplier, fueled gains.
The Fed’s balance sheet, a list of all the things the Fed owns and owes, has shrunk by $2 trillion now that it’s letting Treasurys expire and doesn’t see the need to buy new ones.
There are signs that U.S. supply chains are slowing down. The Logistics Managers’ Index, which measures changes in areas like inventory levels and transportation capacity, fell to its lowest level since March.

Climate

A new study out this week says that the world’s coral reefs are dying off, a trend that’s considered the first climate tipping point. Coral reefs provide a habitat for a quarter of marine life and contribute billions to the U.S. economy.
Our food system is contributing to climate change, but some companies are finding ways to produce sustainable alternatives. In our new season of “How We Survive,” we spoke to companies that can make salmon out of salmon cells and grow chocolate in a petri dish.
In the rural mountains of Colorado, one company is partnering with a local college to train the “climate workforce.” Students are learning how to use heat pump technology, which includes energy-efficient heating and cooling systems.

Arts and education

Broadway musicians have overwhelmingly voted to authorize a strike. While Broadway shows are bringing in more money than ever, everything also costs more, which means there’s less money to go around.
Books that U.S. universities have lent to other countries are now trapped there thanks to President Donald Trump’s tariff policies. Back in August, he ended the de minimis exemption , a loophole that allowed packages under $800 to enter the U.S. without tariffs. One of the reasons the countries can’t send them back is because some postal services have refused to ship to the U.S.
The publishing industry is struggling right now, but there is one bright spot: romance novels have inspired legions of passionate readers. They’re the reason print books as a whole have managed to turn a profit. Over the past year, romance book sales have increased 24%.

QUOTE OF THE DAY

“If institutions don't improve while technology improves, you're giving more and more power to people who are likely to abuse and misuse it.”

— Joel Mokyr, one of this year’s Nobel prize winners in economics

Mokyr said he doesn’t think artificial intelligence will replace the human race and that AI can be a helpful research tool. But it all depends on how institutions wield it.

A Boeing jet takes off from the airport.

Stephen Brashear/Getty Images

Final note

Should you postpone your flight?

You shouldn’t change your travel plans just yet. The government shutdown has already led to delays at some airports after essential workers called out sick due to the government shutdown. But while they aren't widespread, we could see more delays and eventual cancellations as the shutdown goes on, which would be disastrous as we head into the holidays. Experts shared some tips on how you can navigate the upcoming weeks.

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— Marketplace Investor Garrett from Los Angeles, California

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