Crypto News: Brussels Edition: A reckoning for Europe’s carmakers

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

A traditional symbol of German industrial might is in trouble. Volkswagen boss Oliver Blume will face down employees at the automaker's giant plant in Wolfsburg today, as the firm considers the potential closure of factories in Germany and the ending of job guarantees. It's a reminder of the myriad problems running deep in the heart of Europe's sputtering economic engine. VW, faltering against competition from Tesla and Chinese rivals in the transition to electric vehicles, has already announced plans to cut 90% of its 3,000 workers at its Audi plant in Brussels. The standoff in Wolfsburg is just the beginning of a dispute that could stretch for months, with the outcome rippling across the region. Peers Stellantis and Renault will be closely watching for their own savings efforts, while German politicians are bracing for more anxiety amid a populist upsurge. To add to VW's woes, its former CEO is finally standing trial nine years after the company's diesel emissions scandal rocked the carmaker.

— Saim Saeed

French Finances | President Emmanuel Macron's extended deliberations over who to appoint as France's new prime minister are curbing the time available for lawmakers to make any significant changes to the budget, according to the chair of parliament's finance committee. Uncertainty over the country's public finances is growing as Macron struggles to choose a new premier nearly two months after snap elections returned a National Assembly where no group has a majority.

High Costs | The premium France pays to borrow is unlikely to change even as the nation's finances deteriorate, according to Pacific Investment Management. Macron's decision to call the election will likely leave a "weak" government once assembled and imperil budget negotiations with the EU in the fall, the firm said.

Spanish Banker | Spain will today name Jose Luis Escriva, currently the minister for digital affairs, as the new Bank of Spain governor, according to newspaper Expansion, filling a vacancy that's been empty for almost three months. As a member of the European Central Bank's Governing Council, Escriva would join the debate over how quickly monetary policy can be loosened, after an initial reduction in the deposit rate to 3.75% in June.

Lull Over | Two convertible bond deals worth $1 billion in total have broken the summer lull in European equity capital markets amid optimism that such deal activity will start to pick up in an otherwise quiet year.

Illumina Win | Illumina's blocked $7 billion takeover of cancer-detection provider Grail should never even have been probed by the EU, according to a top court ruling that strikes at the heart of the bloc's attempt to vet more global deals. Illumina said it would no longer have to pay a €432 million EU fine for closing the takeover before regulators had examined it.

Sell Down | The German government announced it plans to cut its stake in Commerzbank as it seizes on a recent share rally to initiate an exit from the lender it rescued more than a decade ago.

Soaring Ambition | Latvian flag carrier AirBaltic plans to raise as much as €300 million as part of a planned initial public offering this year. The government owns 98% of the airline, and plans to hold on to a 25% stake.

Burning Ship | Salvage companies ended attempts to tow away an oil tanker in the Red Sea that's been burning for days following attacks by Yemen's Houthi militants, the EU said. The tanker had 1 million barrels of crude onboard and is at risk of becoming an environmental hazard.

Chinese Dairy | China's anti-subsidy probe of dairy imports from the EU comes at a time when the local industry is on its knees. Limiting shipments from the bloc could relieve some pressure on farmers, but the quantities targeted are small and domestic conditions have been worsening for quite a while.

Eastern Partnership | Turkey is working toward teaming up with China to process a deposit of rare earth elements, we're told. Ankara is hopeful that a breakthrough could encourage Chinese companies, including BYD, to consider producing batteries in the country.

Ultra-rich private investors are snapping up German commercial real estate even as institutional investors withdraw. Private investment, including offices, has remained constant despite the sector getting hit by remote work and high interest rates. In 2023, office properties accounted for almost a third of real estate investments made by private buyers, whereas the share of office transactions in the wider German market fell to 17%.

All times CET

11 a.m. Commission President Ursula von der Leyen speaks about a report on Strategic Dialogue on the Future of EU Agriculture
3:30 p.m. Home affairs commissioner Ylva Johansson speaks to European Parliament panel on protecting children from abuse
1 p.m. ECB Governing Council member Francois Villeroy de Galhau speaks on financial-services panel at Bruegel Annual Meetings.
6:30 p.m. Eurogroup President Paschal Donohoe among speakers at Bruegel Annual Meetings

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