Global equities lost their nerve overnight: the Nasdaq slid 2.3 %, the S&P 500 1.7 %, and Asia’s tech-heavy indices fell up to 2.8 % as the odds of a December Fed cut collapsed from 70 % to about 50 %.(reuters.com) With $10 bn already pulled from Asian funds this month and Treasury yields edging higher, a rate-sensitive sell-off has finally bled beyond Wall Street.(reuters.com)

What matters is not today’s red ink but why: investors are waking up to an “AI bubble” whose capital commitments dwarf its cash flows. OpenAI’s $1.4 trn spending plan and Oracle’s $300 bn debt-fuelled venture echo the late-1990s telecom binge—when excess fibre met scarce demand and valuations halved in 18 months.(wsj.com) Michael Burry’s quiet fund closure suggests that even contrarians fear the exit door is too narrow.(ft.com)

The deeper story is monetary: six years of real rates below zero financed speculative scale-ups; now positive yields are forcing a reckoning. Unless productivity quickly matches capex, the market’s correction is only a prologue to a policy pivot nobody can stage-manage. “In finance, illusions last until the first margin call,” warns economist Daniela Gabor.

— The Gist AI Editor

AI Stocks Tumble, Spooking Markets

A tech-led sell-off is rippling through global markets, with Asian AI-related stocks bearing the brunt. Chipmakers SK Hynix and Samsung, along with tech investor SoftBank, saw significant drops, signaling investor anxiety over sky-high valuations (FT). This downturn reflects a classic market correction, where frothy expectations meet economic reality. While innovation in artificial intelligence is undeniable, the immediate path to profitability for many firms remains uncertain. Our view is that markets are healthily recalibrating, punishing hype and rewarding tangible value—a necessary discipline for sustainable growth. The key takeaway is the fragility of sentiment-driven rallies, a reminder that fundamentals ultimately anchor long-term investment.

Streaming Wars Escalate

The media landscape is bracing for another consolidation wave as Warner Bros. Discovery initiates an auction, with Paramount, Comcast, and Netflix reportedly preparing bids (WSJ). This move underscores the immense pressure on streaming services to achieve scale and profitability. The “winner-takes-all” dynamic intensifies as content libraries and subscriber bases become the primary metrics of success. From a market perspective, this consolidation is inevitable. It will likely lead to less consumer choice and potentially higher prices, but also financially stronger companies better able to invest in high-quality productions. The outcome will reshape how entertainment is created and consumed globally.

Oil Prices Inch Higher

Crude oil prices saw a modest increase in Asian trading, a move attributed to technical position adjustments by traders rather than a significant shift in supply-demand fundamentals (WSJ). The energy market remains on a knife-edge, balancing geopolitical tensions in key production regions against forecasts of slowing global economic growth. This slight uptick serves as a reminder of oil’s inherent volatility. For consumers, even minor price adjustments on the global stage can translate to shifts in fuel costs over time, impacting household budgets and inflation metrics across developed and emerging economies alike.

Democracy’s Discontent

A new international Ipsos poll reveals a worrying trend: nearly half of voters across nine Western nations believe democracy is broken (Politico.eu). This widespread disillusionment is fueled by fears of extremism and the corrosive effect of misinformation. With the notable exception of Sweden, a majority in the countries surveyed expressed anxiety about the future of their governmental systems. This sentiment is not merely academic; it signals a potential breakdown in the social contract, which could empower authoritarian movements and destabilize market economies that rely on predictable governance and the rule of law.

Catch the next Gist for the latest global insights.

Scotland to pay borrowing premium in £1.5bn bond market push
— Financial Times

Global markets extend sell-off
— Financial Times

Paramount, Comcast, Netflix Prepare Bids for Warner as Deadline Approaches
— Wall Street Journal

The electrification of everything
— Financial Times

Under Armour Ditches Curry Brand Amid Restructuring Effort
— Wall Street Journal

Oil Rises Amid Possible Position Adjustments
— Wall Street Journal

Siemens’ Record Haul Fuels Deregulation Plea

Siemens is leveraging a record financial year, which included revenues of €10 billion, to challenge the EU’s regulatory framework (ZDF). CEO Roland Busch, while announcing major investments in AI, argued that excessive oversight is throttling the continent’s innovative capacity. His public declaration that “Regulation is the opposite of what we need” adds a powerful corporate voice to the growing chorus warning that Brussels’ preference for control over competition is self-defeating (ZDF). The planned spin-off of its Healthineers unit further signals a strategic refocusing on core industrial technology, a move designed to enhance agility in a market where speed is paramount. This is a clear signal from one of Europe’s industrial titans: lighten the regulatory burden or risk falling further behind.

Paris Accord Promises Wilt Under Record Emissions

A decade after the Paris Agreement, the gap between climate rhetoric and reality is widening into a chasm. Projections from the Global Carbon Project (GCP), a collective of international scientists, presented at the COP30 climate summit show global greenhouse gas emissions are on track to hit a record 38.1 billion tonnes in 2025 (Ansa). This represents a greater than 1% increase over 2024, highlighting the failure of top-down, state-managed climate policy. For markets, these figures undermine the stability of ESG (Environmental, Social, and Governance) investment frameworks but also underscore the immense opportunity for scalable, private-sector innovations that can achieve what political consensus has not. The data suggests that market-driven technological solutions, not multilateral accords, may hold the key to decarbonisation.

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

Pentagon kündigt Militäreinsatz in der Karibik an
— ZDF

Produttori e distributori, Italia ad American Film Market di LA
— Ansa

“Regulation ist das Gegenteil von dem, was wir brauchen”
— ZDF

Mbappé führt Franzosen zur WM
— ZDF

Bazoli presenta ‘Vita eterna’, racconto i dubbi sulla fede
— Ansa

Allarme alla Cop30, emissioni globali verso il record nel 2025
— Ansa