Crypto News: Brussels Edition: Just a bystander

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

Israel so far is stopping short of a ground invasion of Lebanon, but its latest round of airstrikes had the EU's top diplomat warning that "the worst expectations are becoming reality." Almost 500 people died in one day alone. But Borrell — like most of the EU — remains a bit player in the conflict. EU foreign ministers had another tense meeting in New York, where they discussed the crisis, but it's been months since the bloc has issued a substantive statement. Quietly, some European diplomatic efforts are underway. France's special envoy to Lebanon, Jean-Yves Le Drian, is in Beirut seeking a de-escalation on behalf of the US and France. For now, as the military activity intensifies on both sides, it's unclear if anyone is listening.

— Saim Saeed

Still Talking | The EU may vote in the coming days to impose definitive tariffs on Chinese-made electric vehicles, but even so, the EU and China will continue negotiations to find an alternative solution, we're told. A provision will be added to draft legislation, which is likely to get voted on in early October, that will allow the talks to continue.

Meta Snub | Later today, when the EU announces the list of companies pledging to follow its AI rules before they actually become law, one big name will not be on it. Meta isn't joining the so-called AI Pact Initiative, the company confirmed. Neither is France's AI darling Mistral.

'China Problem' | The EU won't allow China to threaten its industry by flooding the market with cheap products during the transition to a cleaner economy, the bloc's climate chief told Bloomberg Television. "We do face a China problem," Wopke Hoekstra said. Watch the interview here.

Seeking Deal | Indonesia wants to conclude a free trade deal with the EU by the end of next month, covering around $30 billion of trade between the two sides, Indonesia's vice minister for trade told us. Major issues in the negotiations including how to deal with government procurement have been resolved, Jerry Sambuaga said.

Growing Backlash | The EU will issue a warning today that progress towards LGBTQ equality is fragile and increasing polarization in society "threatens to undermine hard-won progress," according to a draft we've seen. Subscribe to the Bloomberg Equality newsletter here.

Unwanted Takeover | Finance Minister Christian Lindner is the latest German official to voice displeasure at the way UniCredit amassed a stake in Commerzbank, which he said "raised questions," highlighting the government's irritation at the Italian lender's surprise move. the German bank named a new CEO as it contends with the takeover challenge.

Muted Reception | Western countries were cool to Volodymyr Zelenskiy's new plan to end the war in Ukraine, which he is presenting at the UN in New York this week. As the Ukrainian president struggled to prompt enthusiasm from his allies, Russian strikes in Kharkiv killed three people and injured at least 31.

Finance Raids | Deutsche Boerse and Nasdaq were raided by EU antitrust watchdogs who suspect the firms may have been involved in a cartel related to "financial derivatives." Such raids can be a precursor for fines of as much as 10% of companies' global sales.

Record Rainfall | Record rainfall leading to flooding that killed 24 people in Europe this month September was twice as likely due to manmade climate change, a study found. The flooding hit central Europe after Storm Boris stalled over the region between Sept. 12 and 16, inundating Poland, Romania, Slovakia, Austria, the Czech Republic and Germany with the heaviest rainfall ever recorded in some areas.

Eurobonds Plan | Euroclear, the Belgian-based clearinghouse holding €173 billion in immobilized Russian assets used to support Ukraine, is proposing ideas to attract more issuers and investors to the bloc. It's suggesting using Eurobonds as a model for overcoming national fragmentation among public and private issuers, according to an outline of of its ideas for the EU's capital markets union that we've seen.

Greek Finance Minister Kostis Hatzidakis predicts that government borrowings will shrink to "close to 130%" of gross domestic product by the end of 2028, bolstered by an economy that has been outperforming its peers. The projection presents a remarkable turnaround for a country that was once a virtually bankrupt pariah within the euro zone, and almost left the single currency.

All times CET

11:15 a.m. European Parliament President Roberta Metsola participates in a panel discussion on the Mediterranean region
5 p.m. EU foreign affairs chief Josep Borrell speaks at a meeting of G20 foreign ministers in New York. At 11:45 p.m. he will attend a meeting on the conflict in Sudan hosted by the EU, Germany and France
9 p.m. Council President Charles Michel delivers a speech at the UN Security Council open debate on leadership for peace
EU antitrust chief Margrethe Vestager meets Canadian industry minister François-Philippe Champagne in Montreal

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