Crypto News: Brussels Edition: Banking on Paris

Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union.

For decades, London was the linchpin of European banking. But two years after Brexit became a reality, there's been clear shift across the Channel — with Paris emerging as a new hub. The unprecedented relocation of money and brains is shifting into the next phase, creating a European financial marketplace where shares trade in the Netherlands, corporate lawyers pore over deals in Frankfurt and Dublin and Milan and Warsaw play important supporting roles. The spoils shared across several cities is creating a more fragmented financial world. Banking of all stripes, meanwhile, gets done in Paris, the one city that can hope to succeed London as the EU's new pre-eminent financial hub. Read more about what makes bankers flock to the French capital.

— Katharina Rosskopf

Chips Deal | EU negotiators agreed on a final version of a €43 billion bill to boost the bloc's production of semiconductors. "The European vision to double our global market share by 2030 to 20%, and produce the most sophisticated and energy-efficient semiconductors in Europe, is already attracting substantial private investment," Commissioner Thierry Breton said Tuesday.

Facing China | Ursula von der Leyen called for unity in the EU's stance towards China. "I believe we can and we must carve out our own distinct European approach that also leaves space for us to cooperate with other partners," the Commission President told the European Parliament, following her trip to Beijing two weeks ago.

Building Bridges | French President Emmanuel Macron has endured some recent diplomatic blunders and setbacks, but now he wants to reverse the trend with a foray that aims to bring Russia and Ukraine to the table. Macron has tasked foreign policy adviser Emmanuel Bonne to work with China's top diplomat, Wang Yi, to establish a framework that could be used as a basis for future negotiations, according to people familiar with the plans.

Easier Ending | The European Union proposed making it easier to wind down small and medium-sized banks as it seeks to regain momentum in deadlocked talks over forging closer banking ties in the region. The bloc's executive arm suggested tapping national deposit protection funds to bridge gaps at banks that don't have sufficient reserves. The aim is to limit any hit to taxpayers or savers.

Emission Sign-Off | The European Parliament signed off on a deal to overhaul of the bloc's emissions trading system, the carbon border adjustment mechanism and the social climate fund. Those files will now enter into law.

Dutch Intelligence | Beijing is an important trading partner of the Netherlands, but it "poses the greatest threat to the Dutch economic security," the country's General Intelligence and Security Service AIVD said in its annual report. It comes as the Netherlands announced plans to expand restrictions on semiconductor equipment under pressure from the Biden administration

Grocery Thumbscrews | French Finance Minister Bruno Le Maire called on large food companies to renegotiate with retailers in the coming weeks. "Today, we're seeing wheat prices come down and shipping costs drop," Le Maire said in a TV interview. "I'd like to see that in shopping baskets, too." If negotiations haven't restarted by the end of May, Le Maire said he would call both sides to a meeting at the Finance Ministry.

Court Decision | The Moscow City Court rejected an appeal by Wall Street Journal reporter Evan Gershkovich against his detention on allegations of espionage in a high-profile case that's highlighted the growing pressure on journalists in Russia. Charged with spying, which carries a 20-year maximum penalty, Gershkovich is being held in Moscow's Lefortovo prison.

Absolutely Not | The Absolut Company, the Swedish maker of Absolut Vodka, has stopped all exports of its branded liquor to Russia with immediate effect following a consumer backlash. The drinks manufacturer's parent, Pernod Ricard SA, said earlier this month that product shipments to Russia had resumed, which sparked an outcry in Sweden.

Oil Shock | A 27% jump in the price of olive oil is prolonging the cost-of-living shock on Italian families already reeling from lasting increases in cooking staples. The overall cost of making a pizza at home remains 20% higher than a year earlier.

Investor sentiment in Germany's economy deteriorated on concern about the banking sector and elevated inflation. The ZEW institute's gauge of expectations dropped to 4.1 in April from 13 the previous month. That's far worse than the 15.6 median estimate in a Bloomberg survey of economists. "Experts expect banks to be more cautious in granting loans," ZEW President Achim Wambach said Tuesday in a statement. "The still-high inflation rates and the internationally restrictive monetary policy are also weighing on the economy."

All times CET

10:30 a.m. Luxembourg's Prime Minister Xavier Bettel addresses European Parliament
10:40 a.m. Energy commissioner Kadri Simson speaks at Conference on European Energy Security
2:30 p.m. European Parliament debates crypto asset law, followed by debate on digital euro
4:15 p.m. Commission President Ursula von der Leyen, Council President Charles Michel among speakers at 25th anniversary of Good Friday Agreement in Belfast
4:30 p.m. NATO chief Jens Stoltenberg briefs after a meeting with Czech President Petr Pavel
Bank of France Governor Pablo Hernandez de Cos, Europe Group President Paschal Donohoe, European Commission Chief Trade Enforcement Officer Denis Redonnet among speakers at Bloomberg New Economy Gateway conference in Dublin
EU environment ministers meeting in Stockholm

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