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February 7, 2026

Continental Breakfast — Saturday, February 7, 2026 (Weekend Edition)

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Continental Breakfast

What Europe is reading this morning

Saturday, February 07, 2026

Weekend Edition

Good morning from London. This week felt like an inflection point. The last US-Russia nuclear treaty expired and the Ukraine war is set to drag on, with little to show from talks in Abu Dhabi. More Epstein files gave us the gory detail of a transatlantic culture of abuse and entitlement, linking Mayfair and Manhattan, and now threaten Keir Starmer's premiership. And on Tuesday, the AI company Anthropic showed how its models might make routine corporate legal work a thing of the past. The market responded, as it does, by wiping a trillion dollars off traditional software stocks. Oh, and the Olympics started.

📅 What Defined the Week

Reckoning

Epstein files exposed a transatlantic elite culture

Stalemate

Abu Dhabi talks ended with the gap unchanged

Disruption

A trillion dollars wiped off software stocks

Void

NEW START expired; no limits on nuclear arsenals

Story 1

The Transatlantic Reckoning: What the Epstein Files Revealed

The files weren't just about one predator. They exposed a culture of impunity that stretched from London to New York, where a certain class believed the rules simply did not apply to them.

Peter Mandelson, once the most powerful unelected figure in British politics, now faces criminal investigation. But the files suggest he was part of a broader ecosystem: emails show market-sensitive government information shared casually, holiday homes offered for unnamed "guests," and a relationship with Epstein that persisted long after warning signs were obvious.

🇬🇧

UK · BBC News

Mandelson suggested holiday home for 'privacy' of Epstein 'guests'

→ The email that changed everything

🇬🇧

UK · The Guardian

How the Epstein scandal has shaken the British government to its core

→ Full accounting of Labour's crisis

🇩🇪

Germany · Der Spiegel

Peter-Mandelson-Affäre erschüttert Großbritanniens Regierung

→ "Explosive reach into Starmer's inner circle"

🇫🇷

France · Le Monde

Starmer fragilisé par les révélations sur Epstein et Mandelson

→ Crisis for "la caste transatlantique"

Story 2

Abu Dhabi: A Week of Talks, a Prisoner Swap, and Nothing Else

The second round of US-Russia-Ukraine talks ended Friday as they began: with the gap on territory unchanged, and a single prisoner exchange as the only concrete result.

🇬🇧

UK · The Guardian

Peace talks end without breakthrough

→ Senior military officials sent; gap remains vast

🇬🇧

UK · BBC News

Russian general Alexeyev shot several times in Moscow

→ GRU deputy chief shot in apartment building Friday

🇪🇺

EU · Politico EU

Russia breaks Trump-brokered energy ceasefire

→ Barrage timed for -20°C to maximize civilian harm

Story 3

End of an Era: Nuclear Arms Control Enters the Void

At midnight Thursday, NEW START expired. For the first time since 1972, no treaty limits what the world's two largest nuclear powers can deploy.

World Nuclear Arsenals

Total warheads by country

🇷🇺 Russia5,459
🇺🇸 USA5,177
🇨🇳 China600
🇫🇷 France290
🇬🇧 UK240

Source: Federation of American Scientists

🇬🇧

UK · The Guardian

Expiry of nuclear weapons pact risks new arms race

→ Obama: lapse "pointlessly wipes out decades of diplomacy"

🇺🇸

US · NPR

Why New START's expiration matters

→ 15 years of mutual monitoring now gone

Story 4

A Fistful of Dollars for a Folder of Text Files

On Tuesday, Anthropic released example instructions for AI to perform routine corporate legal tasks. Within 48 hours, nearly a trillion dollars had been wiped off software stocks worldwide.

The trigger was almost comically mundane: a collection of prompts showing how an AI agent could draft contracts and handle due diligence. No new technology, just better packaging. But investors saw it as a template for replacing entire categories of professional software.

The SaaS Selloff

6-month stock price change

🇺🇸 ServiceNow−43%
🇩🇪 SAP−32%
🇺🇸 Salesforce−32%
🇫🇷 Dassault−19%
🇺🇸 Nvidia+42%

Source: TradingView, 6-month returns as of Feb 7, 2026. Nvidia (AI infrastructure) rises while SaaS falls.

🇩🇪

Germany · Handelsblatt

Neue KI-Anwendungen lassen Software-Aktien abstürzen

→ "Frontal assault" on classic software business model

🇪🇺

EU · TrendingTopics

Claude Cowork triggers tech stock selloff as AI threatens SaaS

→ "Picks and shovels" thesis holds—for now

🇺🇸

US · Futurism

Anthropic sent shockwaves through the stock market

→ "Tech workers worried for years; now their bosses are too"

Story 5

Europe vs Musk: The Regulatory Counteroffensive

While Washington cozies up to its richest citizen, Europe's regulators took a different approach this week. France raided X's offices. Spain announced an under-16 ban. The battle lines are being drawn.

🇫🇷

France · Le Monde

Paris prosecutors raid French offices of Elon Musk's X

→ Grok AI deepfakes, Holocaust denial, child safety failures

🇪🇸

Spain · El País

Spain set to ban children under 16 from social media

→ Musk calls PM Sánchez a "tyrant"

Also Noted

  • Milan-Cortina 2026: Winter Olympics opened Friday. Italy's athletes shine in biathlon; the real competition is infrastructure projects racing to finish.
  • Germany: Election campaign enters final stretch. Merz leads polls but coalition math remains murky.
  • Vatican: Pope Leo XIV named Élisabeth de Portzamparc to redesign St. Peter's Square accessibility.

Department of Geography

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