Crypto News: Brussels Edition: Shock waves

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

Donald Trump's victory was met in Europe with a strong dose of apprehension and smatterings of applause. France's Emmanuel Macron held talks with Germany's Olaf Scholz to discuss the "new context," which could have its most immediate impact on Vladimir Putin's ongoing war in Ukraine. The region's leaders will discuss the US election results today in Budapest. Ukraine, as well as the risk of new trade tariffs, are likely to feature prominently in the discussions, hosted by a newly gleeful Trump ally, Hungary's Viktor Orban. Here's what to watch. Titans of European business warned that the result could hit Germany, the bloc's largest economy, hard. But first, Germany has to grapple with its own political fallout. Scholz called for a snap election after his fractious, three-way coalition collapsed over how to pull the country out of its deep economic slump. The standoff culminated in the chancellor firing his finance minister.

— Samuel Stolton

Trump Shock | The global economy faces shocks to growth and inflation if Trump implements previously threatened import tariffs, European Central Bank Vice President Luis de Guindos warned. Goldman Sachs expects the result to lead to interest-rate cuts in July 2025.

Swiss Problem | Talks on a new deal between the EU and Switzerland have hit a snag. If no agreement is reached, Switzerland could lose existing treaties with the EU, its biggest export market, threatening business and trade.

Bank Loss | Credit Suisse's new owner UBS and Credit Agricole lost a fight at the EU's lower tier court against multimillion-euro antitrust penalties. The fines were imposed on the banks by the bloc's cartel enforcers in 2021.

Glass Probe | US glassmaker Corning faces an EU antitrust investigation on fears it squeezed out rival makers of smartphone screens. The manufacturer has been a leading supplier to Apple and Samsung devices in the past.

Snap Vote | Irish Prime Minister Simon Harris, eager to capitalize on high poll numbers and the woes of opposition party Sinn Fein, called an early election. Harris said a vote will take place on Nov. 29, even though one isn't required until March 2025, after he offered a giveaway budget in October that was seen as an effort to win over voters.

Ukraine's Future | Estonian Prime Minister Kristen Michal said support for Ukraine in the months ahead will shape the EU's future as he urged his colleagues to do more to protect Kyiv and themselves. Allowing Russia to change Ukraine's borders by force would undermine European values, he told us.

Bond Return | Corporate bonds are back in favor in Europe, after a week-long pause in the run up to the US elections. Credit markets have rallied on the back of Trump's victory, with the cost of protection against corporate defaults in Europe falling.

Getting Hot | 2024 will be the hottest year on record and the first to exceed the Paris targets, according to new EU data. The global warming landmark comes as Trump's US victory empowers him to pursue an agenda against climate policies.

The euro faces a full-frontal assault as Trump's victory in the US presidential race boosts the chance of aggressive European interest-rate cuts, driving the common currency toward parity with the dollar. The euro fell as much as 2.1% on Tuesday, poised for its biggest decline since 2016. "Trump is back and everybody has been fearing this moment," said Michael Strobaek, global chief investment officer at Lombard Odier. "It's very clear this outcome, in relative terms, is not great for European assets."

All times CET

9 a.m. European Parliament hearings with Commissioners-designate Wopke Hoekstra and Marta Kos
2:30 p.m. Hearings with Commissioners-designate Valdis Dombrovskis and Piotr Serafin
Leaders of the European Political Community meet in Budapest
7:30 p.m. EU leaders gather for an informal dinner in Budapest

Don't keep it to yourself. Colleagues and friends can sign up here.

How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know.