Crypto News: Brussels Edition: Starmer's EU pitch

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

Keir Starmer's visit to Brussels today may break ground for what is likely to be a long road to resetting post-Brexit relations between the EU and the UK. Charging through a set of meetings with the bloc's top officials, including Commission President Ursula von der Leyen, the British prime minister will look to start repairing the damage caused by years of fractious talks following Britain's departure. Starmer wants closer defense ties, easing of food checks and a special visa for touring artists. The EU seeks new deals to build on agreements that have already been signed, including a youth mobility pact, energy cooperation and reassurances over citizens rights and fisheries. While the two sides are eager to seize upon positive momentum, they have different priorities, suggesting yet more difficult talks ahead.

— Lyubov Pronina

Revenge Attack | Iran fired about 200 ballistic missiles at Israel only hours after EU foreign policy chief Josep Borrell repeated calls for a cease-fire in the region. Many of the missiles were intercepted, but video indicated some got through the country's vaunted air-defense network. Prime Minister Benjamin Netanyahu vowed to retaliate.

Deficit Delay | Prime Minister Michel Barnier delayed the target date for France to bring its budget deficit within the EU limit of 3% of GDP by two years, until 2029. The freshly installed premier bought time for fiscal consolidation and avoided a major rebuke from investors by announcing plans for spending cuts as well as tax hikes.

EV Hopes | BMW urged Germany to vote against EU tariffs on Chinese-made EVs on Friday, rather than simply abstain. Berlin remains skeptical about levies and is still hoping for a negotiated solution. Meanwhile, Volkswagen's Skoda brand unveiled a €33,000 electric SUV, which the company says will be a "game changer" against tough Chinese competition.

Orban's Clout | Spain's Vox party became the latest far-right group to obtain a loan from a Hungarian bank to finance political campaigns, one of the ways Prime Minister Viktor Orban is building his influence. The financing of political parties is just one of the ways Orban has sought to support fellow nationalists.

Golden Ticket | The so-called golden visas that gave people with a big enough bank account residency are winding down in some EU countries. Concerns about the impact of such programs on criminal activity, corruption and housing crises are making governments think twice about the potential benefits. Read our explainer on the most recent changes.

Largest Lender | Intesa Sanpaolo became the EU's largest lender by market value at €69.6 billion, overtaking Banco Santander for the first time after a surge in the Italian bank's share price this year. The outlook may not be as rosy though, according to Morgan Stanley analysts, who downgraded European banks to in-line from attractive, citing weak macroeconomic data and tighter net interest margins.

Banking Champions | UniCredit CEO Andrea Orcel, who's pursuing a potential takeover of German rival Commerzbank, said Europe needed "pan-EU champions" in the financial industry to cover the bloc's funding needs. Elsewhere, Larry Fink, CEO of BlackRock, which has stakes in both banks, urged a more unified banking system in Europe.

Takeover Fever | A flurry of big-ticket German acquisitions over the past few weeks has taken deal volumes to almost $100 billion, a 90% increase this year, outpacing the rest of Europe. The uptick in takeovers contrasts with the gloomy mood in many German boardrooms, with troubles at top automakers threatening one of the country's most important industries.

Depleted Farming | Romania, which accounts for about a third of all farms in the EU and is one of the continent's top corn exporters, is among the countries seeing climate change wreak havoc on its agriculture. The industry has racked up losses of €2 billion already this year. Read how depleting water supplies are jeopardizing the nation's role in the food-supply chain.

Euro-area inflation fell below the ECB's 2% target for the first time since 2021, backing investor bets that interest rates may be lowered more quickly than previously anticipated. Consumer prices rose 1.8% from a year ago in September, down from 2.2% in the previous month as energy costs fell sharply, according to Eurostat.

All times CET

10:30 a.m. Weekly European Commission College meeting
12 p.m. German Chancellor Olaf Scholz hosts French President Emmanuel Macron
1 p.m. European Council President Charles Michel meets Georgian President Salome Zourabichvili
2 p.m. Commission President von der Leyen meets UK's Starmer
4 p.m. European Parliament President Roberta Metsola chairs Conference of Presidents, focusing on hearings of Commissioners-designate
G-7 interior ministers meeting in Mirabella Eclano, Italy

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