Crypto News: Brussels Edition: Targeting Russian diamonds

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

A potential new round of EU sanctions designed to target the Kremlin for its war against Ukraine could affect up to €5 billion in trade. Goods that might be hit by export restrictions include diamonds, welding machines, chemicals, technologies for military use and software licenses, we've been told. The diamond ban would be contingent on a G-7 agreement to track and trace the precious stones across borders, which is expected to be finalized soon. The package of measures, which would be the 12th since Russia's invasion, is also expected to add more than 100 individuals and four dozen entities to sanctions lists. While such penalties have failed to end the war, they have destroyed the standing of many wealthy Russians abroad.

— Lyubov Pronina and Alberto Nardelli

Rate Views | The ECB would need to see a "very dramatic turnaround" in the region's economic prospects to lower interest rates, Governing Council member Martins Kazaks told us yesterday after data showed euro-zone inflation plunged to its lowest level in more than two years. His colleague Francois Villeroy de Galhau said the central bank was fully justified in pressing pause on hikes last week.

Climate Countdown | An influential alliance that includes several EU countries has backed the global phaseout of fossil fuels, potentially pitting it against China at the COP28 climate summit in November. The High Ambition Coalition said the summit should conclude to end new coal production and the expansion of existing mines, and to reduce methane emissions to near zero.

Balkan Pushback | Serbia's leader Aleksandar Vucic pushed back against the call by Commission President Ursula von der Leyen for his country to deliver on a "de-facto" recognition of Kosovo. On her trip through the Balkan region, von der Leyen said in Pristina on Monday that Serbia and Kosovo must move decisively to normalize relations to join the EU.

Privacy Crackdown | Meta Platforms is set to be hit by a Europe-wide ban on leveraging the trove of personal data of Facebook and Instagram users to target them with ads — a move the social network giant says ignores its recent moves to give people more control. The curbs will extend temporary measures already in place in Norway.

High Charges | Apple could be forced to cut its App Store fees for developers after the Dutch Authority for Consumers & Markets said that its commissions violate the bloc's rules. The Dutch regulator said Apple's set-up unfairly targets companies offering subscription services, such as Match Group's dating app Tinder, which has to pay high commission rates on in-app sales.

NATO Aspirations | Sweden still expects Hungary to ratify its NATO application before Turkey and is focused on making sure that Ankara doesn't hold up the Nordic country's accession to the western military alliance, Foreign Minister Tobias Billstrom said yesterday. While Hungary's government has submitted its ratification bill to parliament more than a year ago, no vote has been scheduled.

Spanish Telecom | Spain is considering whether to shield its "most strategic" company from foreign takeovers in what could be its most significant protectionist move in more than a decade. The government is weighing a potential stake purchase in Madrid-based Telefonica nearly two months after state-controlled Saudi Arabia Telecom announced plans to buy 9.9% of the company.

German Challenges | Some of Germany's biggest industrial firms have started to make deep and lasting cuts in an acknowledgment that higher energy costs and muted economic growth require structural changes. Companies including BASF and Volkswagen are adjusting to this new reality after profiting for decades off of cheap Russian gas, low interest rates and China's insatiable demand for German goods.

British Return | London's luxury food emporium Fortnum & Mason has started delivering to customers in the EU again nearly two years after it stopped exporting to the bloc due to Brexit-related red tape. It now has a warehouse in Belgium and a dedicated EU website. Before the halt, EU deliveries represented over 15% of Fortnum & Mason's online sales.

Flight Constraints | Dutch flag carrier KLM will have to reduce its European route network by 17 daily flights for the summer season following slot constraints at the main Amsterdam airport, CEO Marjan Rintel told us. The Dutch government plans to cut annual flights at Schiphol by 10% to reduce noise pollution, a measure that airlines say undercuts its position as one of Europe's premier transfer airports.

Euro-area inflation slowed to its lowest level in more than two years as the region's economy shrank following an unprecedented ramp-up in interest rates, according to Eurostat data. Consumer prices rose year-on-year 2.9% in October — down from the previous month's 4.3% and better than the 3.1% median estimate in a Bloomberg survey of analysts. Meanwhile, the third-quarter gross domestic product fell 0.1% — missing estimates for stagnation. Yesterday's data show that while the ECB's 10 back-to-back rate hikes are helping to bring inflation back toward the 2% goal, they're also taking a toll on households and firms by sending loan costs sharply up.

All times CET

11:30 a.m. Commission President von der Leyen press conference in Sarajevo, Bosnia and Herzegovina
NATO chief Jens Stoltenberg, Nordic prime ministers and foreign ministers hold Nordic Council in Oslo
Commission Vice President Vera Jourova speaks at AI Safety and Security Summit in London