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Brussels Edition: A deal, finally

Brussels Edition
Bloomberg

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

At the end of an excruciatingly long and acrimonious summit, Europe's exhausted leaders finally agreed to co-finance their economic recovery efforts. In typical EU fashion, compromises and trade-offs left the final package short on ambition compared with initial proposals. Grants intended to boost research, finance the transition to a low-carbon economy and shield healthcare systems were cut. Still, a unanimous decision to let the EU's executive arm issue debt on behalf of the entire bloc is a decisive step forward in the European integration process. And, crucially, it may offer just enough reassurance to financial markets to allow the leaders who negotiated the package to enjoy a relatively quiet summer.

—  Nikos Chrysoloras and John Ainger

What's Happening

Buoyant Markets | The euro rallied to a four-month high on the prospect of a deal, and the move could extend should the region's economy start to outperform  the U.S. Italy's bonds — pummeled at the height of the crisis in March — surged, showing risk may be dissipating from the bloc.

Virus Update | There's some good news on the hunt for a coronavirus vaccine. A widely-watched one the University of Oxford is developing with AstraZeneca showed promising results in early human testing, while Moderna released results showing its inoculation increased virus-fighting antibodies. Here's the latest.

Brexit Trade | After leaving the EU  at the end of the year, Britain will have to renegotiate trade deals it enjoyed as a member of the bloc. Boris Johnson faces a rebellion from members of his Conservative Party seeking to give Parliament a veto on new agreements.

Wirecard Woe | German Chancellor Angela Merkel promoted Wirecard during a state visit to China, the latest revelation about the government's links with the fallen tech darling. Opposition lawmakers are threatening a parliamentary investigation. Here's the background.

In Case You Missed It

WTO Leadership | There's a frontrunner in the race to lead the World Trade Organization. After the eight candidates wined and dined delegates and made their case for why they're best placed to right a sinking ship, it looks like Kenya's nominee, Amina Mohamed, ticks all the boxes.

Air Combat | The U.K. and Sweden moved a step closer to jointly developing a combat air system, allaying fears that Brexit may stifle cross-border defense cooperation. The decision follows a memorandum of understanding signed 12 months ago.

Good Halloumi | A battle over a trademark for halloumi is maturing in a London court.The Foundation for the Protection of the Traditional Cheese of Cyprus is challenging the ability of a Hungarian dairy company, Babel Sajt Kft, to register a trademark named "Hadjú Halloumi."

Wrong Pallets | They've played a boring but essential role in business for almost a century. Now, a shortage of wooden pallets threatens to derail Britain's cross-border trade with the EU after Brexit. Here's why.

Chart of the Day

French business starts surged in June, quickly returning to pre-crisis levels after a slump during the lockdown. The figures also showed how the coronavirus pandemic could change the shape of the economy, with a particularly strong surge in the number of new fast-food companies and home delivery services.

Today's Agenda

All times CET.

  • 12 p.m. Press conference after German Foreign Minister Maas meets Greek counterpart Dendias in Athens

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