Iran’s 48 % inflation and a rial at 1 .39 million per dollar have ignited the biggest street protests since 2022. Shopkeepers of Tehran’s Grand Bazaar—historic king-makers of 1979—closed shutters and chanted “We can’t breathe,” hours after Central Bank chief Mohammad Reza Farzin resigned. (reuters.com)

Tehran promises “open dialogue,” yet the rial has lost 68 % of its value since Farzin took office in 2022; wages measured in dollars are back to the Iran-Iraq war era. Each 10 % slide strips roughly $6 bn from household purchasing power—an unsustainable hemorrhage for an oil economy already under sanctions and selling only 1.2 m bpd, half its 2017 level. (reuters.com)

History suggests currency-driven uprisings rarely stop at economics: Russia 1998 toppled Kirienko’s cabinet, and Egypt 2011 saw the pound crash weeks before Tahrir Square. If Pezeshkian cannot arrest the spiral, Iran risks a repeat of those cascades—this time in a nuclear-shadowed Middle East. As philosopher Byung-Chul Han warns, “When trust erodes, rage seeks new forms of community.”

— The Gist AI Editor

Meta’s Calculated AI Gambit

Meta is acquiring Manus, a Chinese-founded AI startup, in a deal valued at over $2.5 billion (WSJ). The move signals a potential new era for U.S. investment in AI companies with links to China, navigating a complex geopolitical landscape. Manus, which relocated to Singapore, developed a “general AI agent” capable of executing complex tasks with minimal human input, a technology Meta plans to integrate across its platforms. This acquisition underscores a strategy of buying versus building to accelerate AI dominance and stay competitive with rivals like OpenAI and Google. For consumers, this could mean more powerful AI features embedded within apps like WhatsApp and Facebook.

Diverging Paths in State Support

Two of Asia’s largest economies are taking different routes to bolster their industrial bases. China plans to cut power contract prices in its two largest industrial hubs in 2026, a direct intervention aimed at shoring up its manufacturing sector’s recovery (Bloomberg). This move to lower energy costs for producers reflects Beijing’s strategy to stimulate its economy from the supply side. In contrast, India is extending tariffs on steel imports for another three years, shielding its domestic industry from a global supply glut (Bloomberg). This protectionist policy aims to secure local producers’ market share but may lead to higher steel prices within India.

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

Oil Edges Lower; Near-Term Gains Likely Limited
— Wall Street Journal

Basic Materials Roundup: Market Talk
— Wall Street Journal

Warner Bros. Plans to Reject Paramount Offer
— Bloomberg

How Meta’s Newest Acquisition Target Got Around Worries Over Its Ties to China
— Wall Street Journal

Trump Mobile delays plan to launch gold-coloured smartphone this year
— Financial Times

China’s Industrial Hubs to Cut Power Prices to Support Recovery
— Bloomberg

EU’s Biotech Gambit

Brussels’ pre-holiday legislative rush reveals a familiar pattern: policy favouring entrenched players. The EU’s new “Biotech Act,” published on December 16, is being framed as a win for public health, yet the fine print suggests a significant victory for the established pharmaceutical and food industries (Politico). While aiming to simplify regulations, the measures risk cementing the market power of large corporations. From my vantage point, this isn’t fostering a truly competitive landscape for agile startups. Instead, it looks like a classic case of regulatory capture, where complex rules become a moat protecting incumbents from the disruptive challengers who drive genuine progress. The real test is whether it can reverse the slide in Europe’s share of global clinical trials, which has already dropped from 25% to 19% in recent years (European Commission).

Milan’s Market Momentum

While Rome’s political class passed a contentious 2026 budget, Italian markets are sending a different signal. Milan’s FTSE Mib stock index—a benchmark for Italy’s 40 largest companies—surged 1.14% to close at 44,944 points, capping a year with over 30% gains, the best since 2000 (Ansa, MarketScreener). This rally suggests investor confidence that transcends political noise. More importantly, the BTP-Bund spread, a key gauge of Italy’s perceived credit risk versus Germany’s, held steady near 69 basis points (Ansa). A buoyant, capital-rich market is essential fuel for the tech ecosystem. This financial confidence could provide the firepower for Italy’s next wave of entrepreneurs, regardless of state intervention.

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

Il governo incassa la manovra. Scontro sui salari
— Ansa

Iran: Students join economic protests, president seeks talks
— Deutsche Welle

How the EU’s stack of health files was a big win for industry
— Politico Europe

Zweiklassen-Gesellschaft im deutschen Team
— ZDF

So wird Silvester für Familie und Freunde abwechslungsreich
— ZDF

Borsa: Milano corre verso i 45mila punti, bene le banche
— Ansa