Mexico’s military blow that killed Nemesio “El Mencho” Oseguera—worth a US $15 million bounty—was followed within hours by arson road-blocks and shoot-outs that paralysed air travel and shut schools across at least seven (some reports say twenty) states. (theguardian.com)

History warns that king-pin removals rarely deliver security dividends. After Joaquín “El Chapo” Guzmán’s 2014 arrest, Mexico’s national homicide rate jumped 30 % within two years as splinter groups fought for territory. CJNG’s franchise model—200+ semi-autonomous cells—makes a similar fragmentation plausible, imperilling the 2026 World Cup in host-city Guadalajara and complicating US-Mexico fentanyl diplomacy just months before the USMCA trade review. (ft.com)

Removing a boss is easier than rebuilding institutions that cartel money hollowed out. Unless President Claudia Sheinbaum pairs hard-edge raids with long-promised police reform and cross-border gun-flow curbs, today’s tactical win may seed tomorrow’s wider war. As analyst Moisés Naím reminds us, “Power is easiest to seize when it has already been eroded from within.”*

The Gist AI Editor

*Naím, The End of Power (2013).

Mexico’s Cartel Crackdown

In a major blow to organized crime, Mexican military forces killed Nemesio “Mencho” Oseguera, a powerful drug kingpin, following sustained pressure from the U.S. to intensify its crackdown (WSJ). The operation immediately triggered significant backlash, with cartel gunmen creating chaos in the Pacific resort city of Puerto Vallarta, a popular enclave for American expatriates. The ensuing violence, which included setting fire to businesses and vehicles, underscores the deep-rooted power of cartels and the inherent instability their presence creates, disrupting both local economies and international relations (WSJ). From a libertarian standpoint, this highlights the violent consequences of prohibitionist drug policies, which create lucrative black markets.

Sovereign Funds & State Spending

Qatar’s massive $580 billion sovereign wealth fund—a state-owned investment pool—is channeling capital into a private credit firm founded by Goldman Sachs alumni, signaling a continued global search for returns outside of public markets (Bloomberg). Meanwhile, Indonesia reported a rare January budget shortfall after government spending surged by 26% (Bloomberg). This deficit, where expenditures exceed revenues, was a deliberate move to stimulate economic activity. This contrast in strategy—one nation leveraging accumulated wealth for foreign investment, the other spending to boost domestic growth—reflects differing approaches to national economic management.

AI Valuations & Energy Innovation

The artificial intelligence sector is witnessing fundraising tactics that increasingly raise questions about true market valuations, as unequal deals for investors become more common in the rush to back promising startups (WSJ). In the energy sector, innovation continues to drive growth, with the U.S. battery market projected to expand by 21% this year despite policy headwinds (Bloomberg). This robust demand for energy storage is crucial for a decentralized and resilient power grid, a key component of a market-driven approach to energy independence and sustainability.

Innovations in Health Tech

In a novel application of wearable technology, U.S. researchers have developed ‘smart underwear’ to monitor intestinal gas as a new frontier in understanding gut health (The Straits Times). The project aims to build a “Human Flatus Atlas,” with early data suggesting healthy adults produce gas an average of 32 times per day, roughly double previous estimates. This venture into micro-data collection showcases how entrepreneurship and scientific inquiry can open up unconventional markets and generate new insights into human biology, moving beyond traditional healthcare models.

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

Mexico Takes on Cartels as Killing of Drug Kingpin Sparks Violence
— Wall Street Journal

Gunmen Wreak Chaos in Mexican Coastal Retreat After Cartel Killing
— Wall Street Journal

Fart for a cause: US researchers develop ‘smart underwear’ that tracks farts to explore gut health
— The Straits Times

The Fundraising Tactic AI Startups Are Using to Juice Valuations
— Wall Street Journal

Qatar Wealth Fund Invests in Goldman Alums’ Credit Firm 5C
— Bloomberg

US Battery Market to Grow Despite Policy Headwinds, Report Says
— Bloomberg

US Trade Pivot

President Trump is escalating global trade tensions, announcing new universal tariffs of 15% set to take effect tomorrow (Ansa, Politico). This move defies a recent Supreme Court ruling that deemed many of his previous measures unlawful, signaling an intensifying clash between the executive and judicial branches in the US. Beijing has already urged Washington to cancel the “unilateral” duties, stating that “no one wins in a trade war” (Ansa). For Europe, this renewed American protectionism creates significant economic headwinds. However, it also presents a strategic opportunity for the EU to assert itself as a more reliable champion of open, rules-based trade, potentially attracting investment and strengthening alliances with other trade-dependent nations caught in the crossfire. The key question is whether Brussels can forge a unified, assertive response.

Germany’s Green Mandate

The German government is relaunching its controversial “Heizungsgesetz,” or Building Energy Act, with new proposals expected this week (ZDF). The law aims to accelerate the decarbonisation of Germany’s building stock, which accounts for roughly one-third of the country’s CO2 emissions. The initial version of this reform was highly contentious, and this second attempt reopens a critical debate on the balance between climate targets and economic burdens on property owners and tenants. As Europe’s largest economy, Germany’s approach to retrofitting its buildings is a bellwether for the entire continent. Its success—or failure—will have significant ripple effects on supply chains for heat pumps and insulation, and will serve as a crucial test case for the practical implementation of the EU’s ambitious Green Deal.

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

Witkoff: Trump wundert sich über ausbleibende “Kapitulation”
— ZDF

Ruling for the rich: Evidence of a pro-wealthy bias on the US Supreme Court
— CEPR

Der Ukraine-Krieg im Zeitraffer
— ZDF

Heiz-Hammer, die Zweite?
— ZDF

Calcio: Gasperini ‘corsa Champions sarà una battaglia, si risolverà alla fine’
— Ansa

Pechino esorta gli Usa ad annullare i dazi unilaterali
— Ansa