Washington and Beijing have quietly forged a draft accord that would shift TikTok’s ownership—and control of its algorithm—into US hands. The outline, confirmed by Reuters and AP overnight and teased by Donald Trump himself on Truth Social, hands ByteDance a stark choice: accept a US-led restructuring or risk a nationally mandated ban. Treasury Secretary Scott Bessent calls it “a template for tech decoupling.” (reuters.com)

The numbers explain the urgency: TikTok’s 170 million US users generate an estimated $16 billion in annual ad sales, and its AI-driven feed offers unmatched behavioural data. Yet that same data is geostrategic gold. Washington learned from Huawei that network dominance yields leverage; Beijing, still reeling from US chip curbs, now faces a precedent that its own industrial policies helped script.

I see a broader pattern: algorithmic assets are becoming the new critical minerals. Expect Brussels, New Delhi and Brasília to demand similar “localisation” deals, splintering the global internet into sovereign data blocs—what historian Adam Tooze dubs “the polycrisis of techno-nationalism.” As the late Zygmunt Bauman warned, “Power is light, politics is heavy”—and the heaviest politics now lives in the cloud.

The Gist AI Editor

European Alliances Tested

UK Labour leader Keir Starmer is facing internal pressure for his ouster, though a lack of a clear successor is reportedly stifling any immediate challenge (Bloomberg). Meanwhile, Polish-German relations are strained as Polish President Karol Nawrocki is expected to demand WWII reparations during a visit to Berlin, complicating efforts to present a united front against Russia (Politico.eu). This move underscores a rising nationalist sentiment that prioritizes historical grievances over contemporary geopolitical alignment, a trend that could weaken European cohesion at a critical juncture. From our perspective, such internal political maneuvering and bilateral tensions distract from the larger strategic necessity of a unified response to external threats.

Transatlantic Tensions & Ukraine’s Support

President Trump has accused Colombia of failing to cooperate in counter-narcotics efforts, a significant pivot from nearly three decades of bilateral collaboration and a move that could destabilize a key regional partnership (FT). In Europe, the Czech Republic’s initiative to supply Ukraine with artillery shells is now under threat domestically. Former Prime Minister Andrej Babiš, whose party leads in the polls, has called for canceling the program—which has already delivered 1 million rounds this year—arguing the funds should be spent at home (Politico.eu). This shift highlights the fragility of Western support for Kyiv, where domestic political winds can quickly alter foreign policy commitments.

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

Lack of Successor Keeps Starmer Safe as Labour Mulls His Ouster
— Bloomberg

Garuda Said to Tap Singapore Air Executive for Finance Director
— Bloomberg

GCL Shares Climb After Equity Sale for China Solar Reform
— Bloomberg

Top sensor maker Hesai warns world not ready for fully driverless cars
— Financial Times

Trump tilts balance of power from investors to CEOs
— Financial Times

Trump accuses Colombia of failing to co-operate on drugs crackdown
— Financial Times

Washington’s Climate Détente

Two of President Trump’s senior appointees have sent a clear message to Brussels: stop prioritising climate policy. During a recent European trip, officials including Paul Atkins, head of the powerful US Securities and Exchange Commission (SEC), dismissed global warming as a serious threat to financial stability (Politico). This signals a deepening transatlantic rift on regulation, energy, and trade. While the EU frames climate action as an economic imperative, Washington sees it as a drag on growth. The likely ripple effect will be friction over carbon tariffs and competing regulatory standards, forcing European businesses to navigate divergent expectations.

Rheinmetall’s Naval Ambitions

Germany’s premier defence contractor, Rheinmetall, is expanding into naval shipbuilding by acquiring the military division of Lürssen shipyards (ZDF). This move consolidates the German defence sector and positions Rheinmetall as an integrated technology group for land, air, and now sea. The acquisition reflects Europe’s shifting geopolitical landscape and the renewed focus on sovereign defence capabilities. By becoming a single-source provider for complex naval systems, from platforms to electronics and weaponry, Rheinmetall is betting on rising procurement budgets and the continent’s drive for strategic autonomy (Rheinmetall).

Berlin Re-calibrates Energy Subsidies

In a significant policy shift, German Economics Minister Reiche is overhauling the country’s renewable energy subsidies to avoid “over-funding” and align growth with grid capacity (ZDF). The plan aims to move away from guaranteed payments and toward a more market-oriented system, scrutinising existing subsidies and linking new projects to actual grid capabilities. This pragmatism marks a departure from the previous government’s approach. While Berlin maintains its goal for renewables to supply 80% of electricity by 2030, the new focus is on economic viability and supply security, a clear nod to industrial competitiveness.

IMF’s Prescription for Italy

The International Monetary Fund (IMF) is urging Italy to accelerate reforms to boost flagging productivity and rein in public spending (ANSA). The Fund highlighted that interest payments on Italy’s public debt are set to outpace economic growth, a precarious fiscal position. While acknowledging the economy’s resilience, the IMF recommends a “more substantial fiscal consolidation” than currently planned, alongside measures to increase labour force participation to counter the effects of an aging population. This is a familiar call for structural change, but one that gains urgency as financing conditions tighten.

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

Reiche zu Energiewende: “Über-Förderung vermeiden”
— ZDF

Trump lieutenants tell Europe to stop worrying about climate change
— Politico Europe

The Pitt, primo potente medical drama post pandemia
— Ansa

Urteil: Lebenslange Haft für Sulaiman A.?
— ZDF

Warum Rheinmetall auch Schiffe bauen will
— ZDF

Il gas chiude in calo sul mercato di Amsterdam
— Ansa