The Federal Reserve’s 25-basis-point cut—down to 3.75-4.00%—and its decision to freeze quantitative tightening on 1 December, halting Treasury roll-offs of a $6.6 trillion portfolio, matters far beyond Washington. When the world’s de-facto central bank steps off the brake, liquidity ripples from Hong Kong (which mirrored the move within hours) to São Paulo, reshaping dollar funding costs and emerging-market capital flows. (reuters.com)

Yet Chair Jerome Powell likened policy-making to “driving in the fog”: the U.S. shutdown has blacked-out official jobs and inflation data, forcing the Fed to navigate by imperfect private indicators. History warns what happens when stimulus meets data blindness; in 1995 and 2019, late-cycle cuts stoked asset bubbles that later burst. (ft.com)

I read this as another sign of our AI-amplified, liquidity-hungry economy: Nvidia crossed a $5 trillion valuation the same day, a reminder that cheap money still fuels concentrated tech bets while real-world productivity gains lag. Unless Congress restores statistical transparency, the Fed risks underwriting speculation rather than cushioning workers. As economist Adam Tooze observes, “Ignorance is the most expensive commodity in markets.”

— The Gist AI Editor

AI’s Soaring Costs & Scrutiny

Meta is preparing a colossal $25 billion bond sale to finance its aggressive artificial intelligence investments, a move that follows a $200 billion drop in market value as investors recoiled from the high spending (FT). This underscores the immense capital required to compete in the AI arms race. Meanwhile, OpenAI faces heightened legal and regulatory pressure. Delaware’s top lawyer has warned of legal action if the company strays from its public interest mission, a commitment Sam Altman made to secure official approval for its unique corporate structure (FT). This reflects a growing governmental desire to ensure powerful AI technologies remain accountable to society, a principle classical-liberals would endorse to prevent unchecked corporate power.

Geopolitical Chess: Subs & Chips

In a significant strategic pivot, the U.S. will support South Korea in developing a nuclear-powered submarine to counter rising threats from China and North Korea (WSJ). President Trump confirmed the approval, framing it as a move to reduce the burden on American forces and bolster a key ally. This decision enhances deterrence but also raises regional proliferation concerns. Concurrently, the tech standoff between China and the Netherlands is escalating. Wingtech Technology, the Chinese owner of Dutch chipmaker Nexperia, is demanding the reinstatement of its ousted CEO as a precondition for resuming exports from China (Bloomberg). This hardline stance highlights the weaponization of critical supply chains in geopolitical disputes.

European Political Shifts

In the Netherlands, liberal leader Rob Jetten is poised to become the next prime minister after his centrist D66 party emerged victorious in parliamentary elections, signaling a shift away from the far-right (FT). In Italy, Prime Minister Giorgia Meloni’s government won a key Senate vote for a major overhaul of the justice system, a move she hailed as a “historic milestone” but which the opposition decries (Politico.eu). Further east, Germany’s BSW party, founded by Sahra Wagenknecht, faces a leadership crossroads as speculation mounts about her potential successor (Politico.eu). These developments reflect ongoing realignments within European politics.

The Politics of Innovation

An emerging populist-left movement is beginning to weaponize anxiety over AI-driven job displacement, particularly among white-collar workers (Politico.eu). This mirrors how fears of automation previously fueled right-wing populism. For libertarians, this trend is a crucial reminder that the narrative surrounding innovation is as important as the technology itself. Failing to address legitimate concerns about economic disruption risks creating a political backlash that could stifle progress through restrictive regulation, undermining the very dynamism that drives prosperity and opportunity.

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

Liberal leader poised to become next Dutch prime minister
— Financial Times

Meta readies $25bn bond sale as soaring AI costs trigger stock sell-off
— Financial Times

Nexperia’s Chinese Owner Demands Reinstatement of Ousted CEO
— Bloomberg

Delaware top lawyer warns of legal action if OpenAI fails to act in public interest
— Financial Times

Update: Wer folgt nach Sahra Wagenknecht im BSW?
— Politico.Eu

As China Raises Pressure, U.S. to Support Seoul in Building Nuclear-Powered Sub
— Wall Street Journal

Economic Engine Stalls

While the European Central Bank (ECB) holds its key interest rate at a steady 2%, citing resilient Eurozone growth of 0.2% in the third quarter, the bloc’s powerhouse is sputtering (Politico). Germany’s GDP, a critical barometer for the continent’s industrial health, registered 0% growth in the same period, signaling a worrying stagnation (ZDF). This divergence highlights a core vulnerability: aggregate EU figures are masking deep structural issues in its largest economy. A concurrent sharp drop in natural gas futures, which closed down at €31.05 per Megawatt-hour on the Amsterdam exchange, provides some relief but cannot fix the underlying industrial malaise (Ansa). The data suggests the ECB’s “good place” may be a precarious one, overly reliant on rosier averages that obscure problems at the core.

Huawei’s Strategic Power Play

The EU’s green transition is colliding with the raw exercise of corporate power. SolarPower Europe, the bloc’s most influential solar lobby, buckled under pressure and readmitted Huawei after the Chinese tech giant threatened legal action following its expulsion (Politico). Huawei is a dominant manufacturer of inverters, which are essential for converting solar power for the grid. This capitulation is a stark reminder of Europe’s dependency on non-EU technology for its climate ambitions. It demonstrates that strategic supply chains and the legal leverage they provide can effectively override political or security-driven attempts to diversify away from Chinese manufacturing dominance. Market access, it seems, remains a potent geopolitical weapon.

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

How Frans Timmermans’ EU job destroyed his Dutch political career
— Politico Europe

ECB keeps interest rates unchanged as economy withstands trade shock
— Politico Europe

Arrested by ICE and deported in a vegetative state: A Costa Rican man’s family seeks answers after his death
— El Pais

BIP: Das Ergebnis eines Giftcocktails
— ZDF

Merz: An Partnerschaft mit Türkei “führt kein Weg vorbei”
— ZDF

EU solar power lobby buckled under legal pressure from Huawei
— Politico Europe