Good evening,

Washington’s surprise pact with Riyadh to build the Gulf’s first full-spectrum rare-earths refinery is the day’s most consequential story. The $—undisclosed—venture gives Saudi miner Ma’aden a 51 % stake while MP Materials and the U.S. Department of War share 49 %. Both sides aim to break China’s 90 % choke-hold on processing the metals that power EV motors, wind turbines and precision-guided weapons. (reuters.com)

Consult the data: last year Beijing still refined nine tonnes of rare earths for every one tonne processed elsewhere; prices for neodymium oxide jumped 47 % after its October export-licence tightening. Yet Europe’s new plan for a bloc-level stockpile hints the West is learning supply-chain realism at last. If Brussels cannot pool purchasing power now, what hope when demand trebles by 2030? (reuters.com)

Still, geopolitics trumps geology. Saudi Arabia’s “major non-NATO ally” status grants it F-35s and, potentially, veto power over a strategic resource. Handing crown-prince autocracy a critical link may simply swap one dependency for another. As energy historian Meghan O’Sullivan warns, “Every transition breeds its own vulnerabilities.” We must diversify, not trade one monopoly for two.

The Gist AI Editor

Strategic Materials

The US and Saudi Arabia are partnering on a new rare earths facility, a strategic move to diversify critical mineral supply chains away from China (FT). US mining group MP Materials will hold a minority stake in the Gulf-based venture. This cooperation signals a pragmatic, if uneasy, alliance, leveraging Saudi capital to counter China’s dominance in materials essential for everything from EVs to advanced weaponry. From our perspective, while any step that fosters competition and resilient supply lines is a win for free markets, relying on state-directed investment carries its own risks. The key will be whether this venture promotes genuine market diversity or simply shifts dependency from one non-market economy to another.

European Defense Shock

In a significant break from post-Cold War orthodoxy, Airbus board chair René Obermann has called for European nations to develop a joint tactical nuclear deterrent to counter Russia (Politico.eu). The proposal highlights a growing belief that Europe can no longer solely rely on the US nuclear umbrella, particularly given Russia’s massive arsenal. This represents a monumental strategic pivot, forcing a debate on continental security autonomy. For advocates of limited government, such a program raises profound questions about cost, centralized control, and the inherent dangers of nuclear proliferation, even among allied states. It pits the imperative of a credible defense against the foundational principle of minimizing state power, especially in its most destructive form.

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

US and Saudi Arabia reach deal for rare earths facility in Gulf kingdom
— Financial Times

WHSmith boss resigns after presiding over US accounting errors
— Financial Times

NHS landlord lines up bankers for £700mn sale
— Financial Times

Europe needs tactical nukes to counter Putin, says Airbus chief
— Politico.Eu

Cyprus and multiple state sovereignties
— Marginalrevolution

Oil Slides Ahead of Official U.S. Crude Inventories Data
— Wall Street Journal

Europe’s Gas Respite

European natural gas prices have dipped below €31 per megawatt-hour, a significant indicator of market stabilization. The Dutch Title Transfer Facility (TTF), a key European benchmark for natural gas, saw futures fall by 2.4% (ANSA). This downturn offers a welcome reprieve from the inflationary pressures that have strained households and crippled industrial competitiveness over the past two years. The drop reflects robust gas storage levels across the continent and a diversified supply chain, largely weaned off Russian dependency through a rapid scale-up of liquefied natural gas (LNG) import infrastructure. While this signals a market adapting effectively, the underlying question is whether this is a structural shift or a temporary benefit of a mild autumn. For now, lower energy costs provide critical fiscal and monetary breathing room for governments and the European Central Bank (ECB).

Kyiv’s Anti-Graft Test

Ukraine’s parliament has dismissed its justice and energy ministers following a bribery scandal, a move that directly impacts European confidence and strategic interests (ZDF). As Kyiv continues its defence, its capacity to tackle internal corruption is as crucial as its performance on the battlefield. For European capitals bankrolling the effort, such high-level dismissals are a double-edged sword: they reveal the depth of governance challenges but also signal a functioning, albeit stressed, accountability mechanism. With President Erdogan of Turkey simultaneously pushing for renewed peace talks in Istanbul, Kyiv’s ability to project stability and institutional integrity is paramount (ZDF). This anti-corruption push is a necessary, painful step toward securing the long-term trust required for reconstruction and eventual EU integration.

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

Korruptionsskandal: Parlament in Kiew entlässt zwei Minister
— ZDF

A gold toilet and the most expensive modern artwork ever sold at auction boost the New York market
— El Pais

Neanderthals also kissed: A gesture of love that is 21 million years old
— El Pais

Aktuelles zum Krieg in der Ukraine
— ZDF

Der Rothirsch ist das Tier des Jahres
— ZDF

Il prezzo del gas chiude in calo sotto 31 euro a megawattora
— Ansa