President Trump’s bid to sack Fed Governor Lisa Cook—on the basis of unproven mortgage-fraud claims—pierces the legal armor that has protected the world’s most influential central bank since 1913. Within hours, 30-year Treasury yields jumped 17 basis points, the biggest one-day rise since last October, as investors priced in political capture of U.S. monetary policy. (ft.com, wsj.com)

Cook’s ouster would hand the White House a 4-3 majority on the Board, enabling a purge of regional Fed presidents and tilting rate-setting toward electoral expediency. Civil-rights groups call the move “DEI-backlash in disguise,” noting Trump’s parallel removals of Black leaders at the Pentagon and Library of Congress. The Justice Department is already probing whether “cause” exists—an inquiry likely bound for a Supreme Court that has shown new appetite for expanding executive power. (apnews.com, wsj.com)

Markets have learned that when institutional guardrails wobble in Washington, shockwaves travel from São Paulo to Seoul: the IMF estimates that a 100-bp U.S. yield spike shaves 0.3 pp off emerging-market growth within a year. If the Fed’s independence falls, the cost of capital—financial and political—could rise everywhere. As economist Dani Rodrik warns, “Economic policy without credible institutions is a recipe for instability.” (The Gist interview, 2024)

— The Gist AI Editor

UK Borrowing Costs Spike

The United Kingdom’s long-term borrowing costs are approaching their highest levels in over two decades, signaling significant economic strain (FT). The yield on 30-year government bonds, a key indicator of the cost for the government to borrow money over the long term, climbed as high as 5.64%. This surge is attributed to investor concerns about the UK’s economic outlook, combined with a global rise in bond yields influenced by President Trump’s ongoing disputes with the U.S. Federal Reserve. The rising costs place additional pressure on Chancellor Rachel Reeves ahead of the Autumn Budget, potentially impacting public spending and investment.

N26 Leadership Overhaul

German fintech giant N26 is set to appoint former Bundesbank executive Andreas Dombret as the new chairman of its supervisory board in a significant leadership shake-up (FT). This move is part of a broader strategy to resolve internal conflicts between the company’s investors and its founders. N26, valued as Germany’s most valuable financial technology firm, has faced regulatory scrutiny and is now aiming to stabilize its governance. The appointment of a seasoned central banker is intended to bring more robust oversight and experience to the online-only bank, which was established in 2013.

Singapore’s IP Push

Singapore has launched new initiatives to help companies capitalize on their intellectual property (IP), aiming to transform intangible assets into concrete economic value (Strait Times). The government announced guidance sessions and a peer-learning platform as part of its “Singapore IP Strategy 2030.” This national blueprint is designed to bolster the country’s IP regime, assist businesses in leveraging assets like patents and trademarks, and foster job creation. The move underscores Singapore’s commitment to remaining a trusted hub for innovation by helping enterprises commercialize their creative and technological outputs.

Tanzania Election Controversy

Tanzania’s electoral commission has barred the presidential candidate from the country’s second-largest opposition party from participating in the upcoming October 29th election (Strait Times). This decision effectively clears the path for incumbent President Samia Suluhu Hassan to face a field of candidates from smaller parties. The move has raised concerns about the fairness and competitiveness of the electoral process, limiting the choices available to voters and consolidating the power of the ruling party ahead of the critical poll.

Stay tuned for the next Gist—your edge in a shifting world.

Tanzania president cleared to run in October election, key rivals barred
— Strait Times

New initiatives to help Singapore companies unlock economic value from intellectual property
— Strait Times

Archaeologists in Georgia unearth 1.8 million-year-old human jawbone
— Strait Times

Who’s Afraid of the National Guard?
— Wall Street Journal

Cracker Barrel Says It’s Going Back to Its Old Logo After Backlash
— Wall Street Journal

Should U.S. Schools Teach Chinese Students?
— Wall Street Journal

Germany Boots Up a Wartime Economy

Europe’s pivot from peacetime complacency to strategic rearmament is accelerating. Rheinmetall’s inauguration of what is slated to be Europe’s largest ammunition factory in Unterlüß, Germany, marks a significant moment in this technological and industrial shift. The €500 million facility, attended by officials including German Defence Minister Boris Pistorius and NATO Secretary General Mark Rutte, is a direct, evidence-based response to the extreme ammunition consumption seen in Ukraine. Once fully operational in 2027, the plant is projected to produce up to 350,000 rounds of 155mm artillery shells annually, alongside rocket artillery components and explosives. This private-sector-funded initiative aims to create German strategic sovereignty over the entire ammunition value chain, generating over 500 jobs in the process. While increased defense spending warrants scrutiny, this high-tech, automated production ramp-up is a pragmatic step to replenish critically depleted national stockpiles and bolster NATO’s collective defense posture.

Catch the next Gist for the continent’s moving pieces.

Eröffnung Munitionsfabrik in Niedersachsen
— Zdf

Why is central bank independence important and what happens when it is under attack?
— El Pais

Refugees in Germany report more xenophobia
— Dw

Der Ukraine-Krieg im Zeitraffer
— Zdf

Hanning: “Konkurrenzkampf ist so, so groß”
— Zdf

Meloni al Meeting di Rimini lancia un piano casa per le famiglie. ‘A Gaza Israele andato oltre’
— Ansa