Britain’s second Reeves Budget may calm bond-market nerves, yet the numbers betray fragility. A £26 billion tax rise pushes the burden to a post-war record 38 % of GDP, while income-tax thresholds remain frozen until 2031—a stealth levy that will pull 10 million more workers into higher bands by decade’s end. (reuters.com)

The Office for Budget Responsibility applauds a headline buffer of £22 billion, but warns the cushion could vanish if growth undershoots or gilt yields climb just 50 bps. Britain is now betting on anaemic sub-1 % trend growth to keep debt falling—a wager eerily reminiscent of George Osborne’s 2010 gamble that preceded a lost productivity decade. (theguardian.com)

Europe’s new fiscal orthodoxy—tax more today to buy market credibility—risks entrenching a high-tax, low-growth equilibrium. Unless Westminster shifts focus from redistribution to dynamism—planning reform, scale-up capital, up-skilling—the UK may discover that credibility purchased with austerity has a short shelf-life. “Stability is not a policy goal; it is the dividend of sustained innovation,” warns economist Mariana Mazzucato.

The Gist AI Editor

Quantum’s New Dawn

IBM is operationalizing its Quantum System Two, a significant leap towards practical quantum computing (Bloomberg). The system utilizes the company’s 156-qubit “Heron” processor, which represents a major step in managing the error-prone nature of quantum bits, or qubits—the fundamental building blocks of quantum information. Our take: While true commercial-scale quantum computing remains over the horizon, this modular, scalable architecture signals accelerating progress. For markets, this technology promises to eventually revolutionize everything from drug discovery to financial modeling, creating entirely new industries while disrupting incumbents unable to adapt to the quantum S-curve of innovation.

Bio-hacking Goes Public

The Enhanced Group, creator of a controversial “Steroid Olympics” where performance-enhancing drugs are permitted, plans to go public via a merger at a proposed enterprise value of $1.3bn (FT). This move will test investor appetite for a venture that explicitly challenges the global anti-doping framework. Proponents frame it as a celebration of scientific advancement and individual liberty, allowing athletes to push human limits under medical supervision. This is a fascinating collision of free markets, bio-ethics, and sport, questioning whether regulatory bodies or individual choice should define the boundaries of human achievement.

Kremlin’s Cautious Signal

Russian President Putin described the latest U.S. plan for ending the Ukraine war as a potential starting point, though one requiring significant work (WSJ). In his first public remarks on the proposal, his tone was notably measured, calling the plan a list of questions rather than outright rejecting it. The commentary suggests a potential, if narrow, path for diplomacy remains open. However, from a pragmatic standpoint, the immense gap between Kyiv’s non-negotiable sovereignty and Moscow’s strategic objectives remains the primary obstacle to any meaningful de-escalation.

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

Gilt Yields Rise, Sterling Falls as Concerns Over Budget Resurface
— Wall Street Journal

U.K. Budget Trims Inflation But Offers Limited Relief for BOE
— Wall Street Journal

From Chips to Qubits: Inside IBM’s Quantum System Two
— Bloomberg

Putin Says U.S. Plan for Ending Ukraine War a Starting Point, Needs Work
— Wall Street Journal

Foreign Investment in Canada Falls to Lowest Since Start of ‘24
— Bloomberg

Nigeria’s NNPC, Heirs Restore Gas Facility, Doubling Output
— Bloomberg

ESA’s New Orbit: Defense and the Moon

The European Space Agency (ESA) is making a significant pivot, backed by a record €22.1 billion three-year budget that formally expands its mandate into security and defense (Politico). This policy shift, approved by its 23 members, moves the agency beyond its foundational “exclusively peaceful” mission, empowering it to develop dual-use space systems. The strategic realignment toward a more muscular, geopolitical posture in orbit is already producing tangible outcomes. At its ministerial conference on November 27, the ESA announced Germany will send an astronaut to the moon on a future Artemis mission, a first for the nation (ZDF). While a clear win for German and European prestige, the agency’s new defense role merits scrutiny. It represents a major expansion of state-level activity into a new domain, blurring the lines between civil scientific exploration and military capability, all fueled by a landmark taxpayer-funded budget.

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

Deutschland löst Ticket Richtung Mond
— ZDF

In Italia 46mila dimore storiche, 60% genera attività economiche
— Ansa

Istruttoria Antitrust su e-bike e monopattini a Roma
— Ansa

Aktuelles zum Krieg in der Ukraine
— ZDF

Merkel: Nicht von AfD in der Manege herumführen lassen
— ZDF

Eni inaugura un impianto di trattamento del gas in Angola
— Ansa