Crypto News: Bloomberg Edition: EVs Limbo

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

China is making a last-ditch effort to convince Europe to drop tariffs on electric cars, but so far there is little to show for it. During a meeting between senior trade officials yesterday, the two sides only agreed to intensify discussions. The bloc is aiming to vote next Wednesday on whether to place tariffs of up to 50% on China-made EVs, although the date may slip. While duties might give European carmakers some breathing room, Europe is also risking retaliatory tariffs on its products. Against a backdrop of falling demand — especially in Germany, where the EV market plunged last month — carmakers are also asking Brussels to reconsider key climate targets. Highlighting the dire situation, late last night Mercedes-Benz issued a profit warning, citing rapid deterioration of its business in China.

—Lyubov Pronina

Brexit Delays | The UK and EU are discussing whether to postpone implementing new regulations on parcel deliveries from Great Britain to Northern Ireland that were agreed upon as part of a deal last year to ease trade across the Irish Sea. The openness suggests that UK Prime Minister Keir Starmer may be making good on his pledge to improve EU relations.

Negotiations | French Prime Minister Michel Barnier met with President Emmanuel Macron last night to propose a new government after two weeks of tense consultations with rival political groups. Barnier's office said the talks with the president were "constructive" and that the final makeup of his team would be announced by Sunday.

Last Words | Jens Stoltenberg, the outgoing NATO chief who will pass the baton to Mark Rutte on Oct. 1, took a moment yesterday to reflect on his decade helming the alliance. He said allies need to "spend significantly more" on defense and warned the EU — which just named its first defense commissioner — against building NATO alternatives.

Hotel Charges | Booking.com's terms risk hurting competition by preventing hotels from charging less on their own websites, according to a preliminary report from the EU's top court. The finding is likely to have wider ramifications, and could make it harder for online platforms to impose restrictions on suppliers.

Fine Alert | The EU warned Apple to open up its highly guarded iPhone and iPad operating systems to rival technologies, or eventually risk significant fines under the bloc's flagship digital antitrust rules. The company has six months to comply.

Bank Probe | The German government has launched an internal probe into its Commerzbank share sale, which allowed UniCredit to take a major stake in the lender. The chancellery is looking into why nobody involved seemed to anticipate the possibility of a strategic investor buying the entire 4.5% tranche of the German lender's stock, we have been told.

Musk Effect | Voters in the German state surrounding Berlin head to the polls on Sunday to elect a new regional government. Chancellor Olaf Scholz's Social Democrats have long ruled in the state of Brandenburg but their dominance is being tested by the far-right AfD, which is currently polling in first place. Read our piece on how Elon Musk and Tesla are playing an outsize role in the election.

Latvia's Urge | Latvia's President Edgars Rinkevics said NATO needs the ability to shoot down Russian drones that stray into member states' territory as part of a call for increased air defenses on the alliance's eastern flank. This month, Russian drones veered into Latvian and Romanian airspace, prompting authorities to demand stronger defenses.

Floods Damage | As central Europe recovers from its worst flooding in decades, attention is turning to the economic and political costs. Commission President Ursula von der Leyen promised to provide the region with as much as €10 billion to cope with the aftermath. Read our story on how Poland and the Czech Republic are dealing with the disaster, which left more than 20 people dead.

Diesel imports into the EU and the UK are poised to climb to the highest rates in about 1 1/2 years in September — to about 1.36 million barrels a day. That's the highest since April 2023, when Europe started drawing more on other regions for diesel following the bloc's embargo on Russian fuels. The current bounce has also been helped by a rebound in shipments from the Middle East, offsetting a small dip in US flows.

All times CET

11:15 a.m. von der Leyen hold news conference with Ukrainian President Volodomyr Zelenskiy in Kyiv
EU foreign affairs chief Josep Borrell participates in Cotec Europe Symposium in Gran Canaria, Spain
EU transport ministers meet in Budapest

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