Crypto News: Brussels Edition: Tariffs for China

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

Trade tensions between the world's leading export powers could rise as higher EU tariffs on electric vehicles from China — which peak at 45% — kick in today. The move is a setback for Chinese producers already effectively shut out of the US market and it comes after months of talks, threats and lobbying by major European carmakers against the levies. The standoff raises the risk of retaliation in a relationship that generated €739 billion in bilateral merchandise trade in 2023. While discussions go on, Chinese automakers will continue to expand in the region and are building a team of European executives. Chinese EV maker BYD recently hired former UK chief of Stellantis, we've learned.

— Lyubov Pronina

Ignore 'em | Hungarian Prime Minister Viktor Orban said Georgia's disputed parliamentary elections were democratic and urged the government to ignore criticism from his EU colleagues, in a move designed to engineer another diplomatic divide in the bloc. His comments came after tens of thousands of Georgians joined protests in Tbilisi to reject the vote, which the nation's president called a "total fraud."

Eastern Flank | European leaders are growing concerned as elections in the region's east counter a decades-long march toward Western integration. Election results in the last month in Moldova, Georgia and even EU member state Bulgaria have showcased Vladimir Putin's efforts to reverse the westward drift. Moscow has repeatedly rejected allegations of interference.

Massive Fines | When YouTube blocked three Russian channels two years ago it didn't expect disputes to be resolved outside of California, and maybe England. That was proven wrong when Google, YouTube's parent, was challenged by Russian media companies trying to collect billions in fines through South African courts. Read our review of how multinationals are now finding themselves exposed internationally to the Russian legal system.

Finance Tools | EU leaders will explore "the possibility of developing new tools'' such as joint investments and equities to finance a new deal to enhance competitiveness in the bloc, according to draft conclusions we've seen from a summit in Budapest. Leaders are expected to endorse Mario Draghi's call to implement such plans.

Suing Regulator | Deutsche Bank, UniCredit Suisse and two other lenders have sued German industry watchdog Bafin to reclaim their shares of a €2.3 billion restructuring fund they were forced to contribute to in the wake of the 2008 financial crisis. About 400 lenders have asked Bafin to pay back the money, but the government has plans to move it to its financial market stabilization fund.

Moroccan Deals | French President Emmanuel Macron attempted to ease relations with Morocco in a visit that included signing deals potentially worth up to €10 billion. The agreements span sectors including infrastructure, energy and Morocco's high-speed railway, and included companies such as Alstom, Engie and TotalEnergies.

Diplomatic Move | In the clearest sign yet of improved relations between Argentina and Spain, Prime Minister Pedro Sanchez named a new ambassador to the country. Ties with President Javier Milei had turned so rocky that Spain pulled its top diplomat. The row between the historic allies dates back to the presidential election late last year, when Sanchez endorsed Milei's left-wing rival, Sergio Massa.

Finnish Plea | Finnish President Alexander Stubb raised the issue of "Russian aggression" with Chinese President Xi Jinping during a three-hour talk yesterday, becoming the latest Western leader to put Beijing under public pressure for supporting Moscow. The more China supports Russia, the more difficult the relationship with Europe and especially with the EU becomes, he said.

In positive signs for eurozone data, Ireland's economy rebounded in the third quarter while Belgium kept expanding. Irish gross domestic product rose 2% in the three months through September, after a contraction of 1% in the prior period, the statistics agency in Dublin said on Tuesday. Belgian momentum slowed slightly, growing 0.2% — down from 0.3%. The GDP numbers could potentially support expectations of eurozone expansion.

All times CET

10:30 a.m. Meeting of the College of Commissioners
Press conference by European Commission President Ursula von der Leyen and Former Finnish President Sauli Niinisto
Von der Leyen meets Antonio Costa, incoming Council President
7 p.m. European Parliament President Roberta Metsola visits Madrid
EU antitrust chief Margrethe Vestager participates in conference in Paris
Nordic Council in Reykjavik

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