Google-parent Alphabet’s $4.75 billion buy-out of Intersect embeds more than a niche energy play; it locks up 10.8 GW of future capacity—twenty Hoover Dams’ worth—to feed AI data-centres that already pushed global tech bond issuance to a record $428 billion this year. (reuters.com)

The deal crystallises a new geopolitical chokepoint: electrons. As Washington frets over Chinese batteries and European regulators stall offshore wind on security grounds, Big Tech is quietly national-securing its own supply chains—own the megawatts and you dictate the algorithmic frontier. That Alphabet left Intersect’s Texas assets outside the transaction hints at regulatory trip-wires ahead. (ft.com)

History rhymes: rail barons once grabbed land to control commerce; today’s platform barons annex kilowatt-hours. Unless antitrust and energy policy converge, we risk an AI oligopoly powered by private grids, not public oversight—proof that the digital revolution’s bottleneck is increasingly physical. “Technological progress is not about gadgets but about mastering flows of energy,” warns systems thinker Vaclav Smil.

— The Gist AI Editor

US Energy Policy Jolts Markets

The Trump administration has halted five major offshore wind projects along the U.S. East Coast, citing national security risks identified in classified Pentagon reports. The move immediately impacted European energy stocks, with shares in Ørsted, the world’s largest offshore wind developer, falling over 14% (FT). This policy pivot injects significant uncertainty into the renewables sector, favoring fossil fuels and potentially chilling institutional investment in green energy infrastructure. Our perspective is that while national security is paramount, such abrupt interventions disrupt market stability and deter the long-term capital commitments necessary for energy innovation.

Tech and Media Consolidation Accelerates

In the tech sphere, Alphabet is acquiring clean energy developer Intersect Power for $4.75 billion in cash, a strategic move to power its energy-intensive AI data centers. Meanwhile, the media landscape continues its dramatic reshaping. Oracle co-founder Larry Ellison has personally guaranteed $40.4 billion in financing to support Paramount Skydance’s bid for Warner Bros. Discovery, escalating a high-stakes battle with Netflix for content supremacy (Bloomberg). These maneuvers highlight a trend toward vertical integration, where content, distribution, and now the underlying energy infrastructure are increasingly controlled by a few dominant players.

China’s Property Crisis Deepens

State-backed developer China Vanke narrowly avoided default after bondholders agreed to extend a grace period for a 2 billion yuan bond repayment until January 27. However, they rejected a proposal to delay the principal payment by a year, signaling deep investor skepticism. Vanke’s struggle, following the collapse of giants like Evergrande, indicates Beijing’s reluctance to enact sweeping bailouts for the property sector, which once constituted a quarter of China’s economy. The ongoing turmoil threatens to suppress consumer confidence in a market already contending with five consecutive years of contracting sales (The Straits Times).

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

China Vanke’s Brewing Crisis Suggests Limited Property Easing to Come
— Wall Street Journal

How to Invest in Gold
— Wall Street Journal

Larry Ellison Personally Backs Paramount’s Bid for Warner
— Bloomberg

Alphabet to Buy Intersect for $4.75 Billion as AI-Investment Plans Grow
— Wall Street Journal

US Unveils Plans for New Ship Under Trump’s ‘Golden Fleet’ Bid
— Bloomberg

Axia Falls Most Since 2020 as Reorganization Fuels Adjustment
— Bloomberg

UK Fiscal Clarity

The UK’s Labour government has injected a dose of certainty into its economic agenda, scheduling its spring forecast for March 3. Chancellor Rachel Reeves will respond to the Office for Budget Responsibility’s (OBR) independent assessment, sticking to a new policy of one “major fiscal event” per year to foster stability (Politico, HMT). This move distances Labour from the fiscal turbulence of prior administrations. For markets and businesses, this signals a welcome, if potentially austere, predictability. The key test will be whether Reeves can maintain fiscal discipline and resist calls for off-schedule spending, thereby reinforcing a credible commitment to limited, transparent government.

Italy’s Demographic Drag

Italy’s economic future is flashing a warning sign, rooted not in markets but demographics. The national statistics bureau, Istat, reveals a concerning decline in citizen’s intentions to have children, falling from 25% in 2003 to just 21.2% in 2024 (Ansa). A third of respondents cite economic hardship as the primary deterrent. This trend points to a deep-seated lack of confidence, where state policy has failed to create an environment where individuals feel secure enough to invest in the future. The long-term ripple effects are stark: a shrinking workforce, unsustainable pension obligations, and diminished entrepreneurial energy, creating a feedback loop of economic stagnation.

European Energy Breather

Continental industry gets a slight reprieve as European natural gas prices continue their descent. Futures on the Dutch Title Transfer Facility (TTF), the continent’s benchmark, closed down 1.6% at €27.6 per Megawatt-hour (MWh), a standard energy measure (Ansa). This price, near its lowest since April 2024, eases inflationary pressures and lowers input costs for manufacturers without distorting subsidies. The drop reflects healthy supply from Norway and record US LNG exports, underscoring the benefits of open trade and diversified energy sources. While a welcome development, it highlights Europe’s continued reliance on external supply for its economic vitality.

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

Dänemark “erzürnt” über Trumps neuen Grönland-Beauftragten
— ZDF

Istat, sempre meno persone vogliono avere un figlio in Italia
— Ansa

ChatGPT fails the test: This is how it endangers the lives of minors
— El Pais

Aktuelles zum Krieg in der Ukraine
— ZDF

König Frederik bastelt Weihnachtsdekoration
— ZDF

Il gas conclude in calo a 27,6 euro al Megawattora
— Ansa