The rial’s crash to 1.4 million per US dollar—down from 430,000 three years ago—has pushed headline inflation near 50 percent and triggered the largest street mobilisations since Mahsa Amini’s death in 2022. Shopkeepers from Tehran’s Grand Bazaar to Shiraz closed their shutters, President Pezeshkian fired his central-bank chief, and the prosecutor-general warned of a “decisive response.” (reuters.com)

Iran’s dilemma is structural: sanctions choke hard-currency inflows, yet decades of subsidy-fuelled populism make austerity politically suicidal. By courting dialogue rather than immediate repression, Pezeshkian breaks with the playbook of 2019—but history offers a cautionary rhyme. In 1978, Bazaar strikes helped topple the Shah; in Latin America during the 1980s, triple-digit inflation consistently unseated incumbents regardless of ideology. (theguardian.com)

The unrest therefore tests not just Tehran’s fiscal plumbing but the Islamic Republic’s social contract—trade loyalty for livelihoods—at a moment when oil revenue is flat and youth unemployment tops 20 percent. As economist Mariana Mazzucato reminds us, “Markets alone do not solve public-purpose crises; states must earn legitimacy through shared prosperity.” —The Gist AI Editor (apnews.com)

The Gig Economy Adapts

The surge in e-commerce is creating novel micro-economies, exemplified by the outsourcing of holiday gift returns. Gig-work platform Taskrabbit reported a 62% year-over-year increase in bookings for gift-return services during the recent holiday season (WSJ). This illustrates a classic free-market adaptation: as online shopping creates new logistical hurdles for consumers, entrepreneurs and platforms innovate to fill the demand. It’s a direct, decentralized response to shifting consumer behavior, providing both convenience for shoppers and flexible work for individuals without top-down regulation.

Markets Drive Resilient Growth

Global financial markets are closing out a third consecutive year of double-digit gains, shrugging off geopolitical instability and trade tensions (FT). Wall Street’s S&P 500, a broad measure of large US companies, is up approximately 17% for 2025, beating many initial forecasts (FT). This sustained performance, driven in part by the technology sector, demonstrates investor confidence in corporate earnings and continued innovation. Such robust market health is the engine for the risk-taking and capital investment that fuels technological breakthroughs and economic expansion.

The State Falters

In sharp contrast to market-led resilience, state-managed economies are showing severe strain. In Iran, widespread protests over soaring inflation and the collapse of the rial have forced the government to replace its central bank governor (FT, WSJ). The demonstrations, initially led by merchants, have spread to multiple cities, underscoring the profound consequences of monetary mismanagement. It’s a stark reminder that political stability is inextricably linked to sound economic policy, a domain where centralized control often fails catastrophically.

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

Mamdani Faces Early Tests at City Hall
— Bloomberg

Iran Vows to Address Economic Problems as Protests Enter Fourth Day
— Wall Street Journal

BCA Research Hires PGIM’s Weisberger as Chief US Equities Strategist
— Bloomberg

Opinion | Private Airports Could Beat Snow Delays
— Wall Street Journal

You Can Now Hire Someone to Return All Those Unwanted Gifts
— Wall Street Journal

Cold Snap Lifts French Nuclear Output to Highest Since 2019
— Bloomberg

Kyiv’s Deep-Strike Drones

Ukraine’s drone offensive is evolving from a tactical battlefield tool into a strategic economic weapon, targeting Russia’s core revenue stream. The Ukrainian General Staff confirmed fresh strikes on an oil refinery in the port of Tuapse and a terminal in the Krasnodar region, demonstrating an expanding capacity to hit critical infrastructure deep inside Russia (ZDF). This asymmetric strategy pits innovative, lower-cost technology against Russia’s vast but vulnerable energy assets. The goal appears to be inflicting direct economic pain and disrupting the Kremlin’s war machine at its source. Moscow’s response—alleging a drone attack on Putin’s residence—was swiftly dismissed by the EU’s foreign policy chief as “unfounded” and likely designed to distract from its own battlefield realities (Politico). This escalation signals a new phase where technological ingenuity is leveraged to challenge a conventional superpower’s economic foundations, a development with significant implications for global energy stability and the future of asymmetric warfare.

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

Piantedosi: ‘Nei primi dieci mesi del 2025 delitti in calo del 3,5%’
— Ansa

Iran, regista Panahi ‘le proteste faranno la storia’
— Ansa

Welcome to the post-religion era: The idea of Christianity as the absolute truth has become obsolete
— El Pais

Aktuelles zum Krieg in der Ukraine
— ZDF

Tour de Ski: Doppelsieg für USA bei neuem Massenstart-Format
— ZDF

Schüsse auf Taxi: Fahrgast lebensgefährlich verletzt
— ZDF