Crypto News: Brussels Edition: Challenging China’s carmakers

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

Europe's carmakers are facing a rough ride in China. Weak consumer demand and competition from local rivals on electric vehicles have sent BMW and Mercedes' sales plunging in the world's biggest auto market, with VW's latest numbers due to land this morning. Trade tensions could inflict even more pain — Beijing is considering raising duties on large-engine vehicles following the EU's decision to impose tariffs on EVs. Meanwhile, Chinese automakers have been gaining ground in Europe, which has pushed the industry to get competitive on pricing. With major carmakers set to showcase their latest budget EVs at the Paris car show next week, the stakes are high.

— Max Ramsay

French Finances | Wealth and tax advisors are warning that Prime Minister Michel Barnier's plan to raise taxes on the rich could prompt some to leave France. Barnier's 2025 budget, unveiled late yesterday, places a 20% tax floor on individuals earning €250,000 annually, or couples earning double that amount. The measure is meant to counter the effects of tax shelters they might otherwise benefit from.

Zelenskiy's Plea | Ukrainian President Volodymyr Zelenskiy said his military is facing a shortage of equipment and called for additional support before winter. He spoke in Paris after meeting French President Emmanuel Macron, and following a sit-down with UK Prime Minister Keir Starmer in London. He'll meet with German Chancellor Olaf Scholz today in Berlin.

Cutting Cycle | The European Central Bank is expected to speed up interest-rate cuts in the coming months, according to our latest survey conducted ahead of next week's policy decision. Analysts see the ECB decreasing its deposit rate by a quarter-point at every meeting from next week through March.

Russia Exit | Unilever offloaded its Russian subsidiary to a local manufacturer after sustained public pressure as the Kremlin's full-scale war on Ukraine enters its third year. The consumer goods giant said the sale includes all of its businesses in the country, including its four factories, and its unit in Belarus.

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Green Bet | A planned green steel megafactory in Sweden has been central to a $100 billion plan to clean up some of the world's most polluting sectors. Yet a liquidity crisis at battery-maker Northvolt is sowing doubts about the ambitious project.

Bank Disposal | Greece's rapid divestment from the country's banks has effectively transferred an entire sector from public to private ownership. With other European governments also cashing in on soaring valuations to plug budget holes, the potential for bank consolidations is increasing.

Debt Pile | In an effort to reduce its €24.4 billion in debt, embattled telecommunications giant Altice France is floating a proposal that would give secured creditors a stake in the company — so long as they agree to have their holdings trimmed.

Literature Nobel | South Korean author Han Kang was awarded the Nobel Prize in Literature "for her intense poetic prose that confronts historical traumas and exposes the fragility of human life." Kang, 53, will receive an 11 million-krona award from the Swedish Academy. The winner of the Nobel Peace Prize will be announced later today in Oslo.

AI is already starting to replace European banking jobs. One Italian lender is using artificial intelligence-enabled "process optimization and automation" to cut its headcount by 10% through 2027. Citigroup has predicted that the technology is likely to displace more jobs across the banking industry than in any other sector.

All times CET

Justice ministers meet in Luxembourg, with doorsteps from 8:15 a.m. and press conference at 3 p.m.
Commission President Ursula von der Leyen joins MED9 leaders (Croatia, Cyprus, France, Greece, Italy, Malta, Portugal, Slovenia and Spain) for a summit in Cyprus
Council President Charles Michel is in Laos for the East Asia Summit

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