Brussels Edition: Unsettled differences

Follow Us Get the newsletter Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. As talks between the EU and the U.K. over a trade deal go to the wire, negotiators are back in London today, rushing to hammer out a deal. Optimism has been replaced by nervousness that there's still much to work through, with the two sides far apart on major issues. The EU is ready to ignore Boris Johnson's Oct. 15 deadline, daring him to walk way. Any concessions from the European side won't come until later, and only if the British prime minister moves first. But it might be down to Emmanuel Macron too, with the French president's hardline stance on fisheries looking increasingly like the toughest nut to crack. — Ian Wishart and  Nikos Chrysoloras What's Happening Ghost Town | Resolving the Cyprus dispute is a key piece in the puzzle of normalizing ties between the EU and Turkey. Now, a controversial plan to resettle a ghost town may derail a potential new round of reunification talks on the island before they even begin. Spanish Risks | It used to be Greece, then Italy. Yet for a growing number of investors, Spain is now the real problem child of the EU. John Ainger and Michael Msika explain why markets are getting nervous. Italian Cash | Meanwhile in Italy, Prime Minister Giuseppe Conte is about to embark on the country's most experimental stimulus of the coronavirus crisis yet in a bid to wean citizens off cash. The plan promises automatic refunds, and even lottery money, to those who pay with plastic (and therefore don't evade taxes). Climate Interest | Did you know that our planet's overheating is bad for monetary policy? A European Central Bank working paper argues that climate uncertainty keeps interest rates low, as it increases precautionary savings, lowering overall demand in the economy. The paper is very technical, so read our more accessible summary instead. Russian Retaliation | Angela Merkel and her European allies are preparing to retaliate against Vladimir Putin's government over the poisoning of one of his top critics but their plans might not make much of an impression on the Kremlin. EU action could consist of asset freezes and travel bans for Russian officials, while the Nord Stream 2 gas pipeline between Russia and Germany is likely to be spared. In Case You Missed It Flatlining France | The French economy is set to stagnate in the last three months of the year, as the risk of lockdowns stifles investment and consumer spending in the euro area's second-largest economy. The country's statistics agency cut its growth forecast to zero from 1% and said sentiment surveys are "tinged with worry." Intelligence Agencies | British and French spies can only be given access to the personal data of phone and internet users when there's a "serious threat" to national security, the EU's top court ruled. It's the latest in a long line of cases seeking to rein in the rights of authorities to keep tabs on citizens. Orban Ruling | Hungary's crackdown on foreign-funded colleges, such as the George Soros-linked Central European University, was illegal under EU rules, the bloc's top court said, in a ruling that refocused attention on the erosion of the rule of law under Prime Minister Viktor Orban. But it's too late now, isn't it? Virus Update | Berlin's municipal government is weighing restrictions on what remains of the city's storied nightlife, Belgium announced new, stricter measures, and in Italy, there are so many lawmakers in quarantine, that Parliament can't even vote. Here's the latest. Buying Influence | After he shrewdly acquired an armada of luxury brands — from Dior and Fendi to Louis Vuitton, Hennessy Cognac and Dom Perignon Champagne — France's most successful banker now wants a piece of the country's media industry. Why? For Bernard Arnault, it's all about political influence. Chart of the Day Bank of Spain Governor Pablo Hernandez de Cos calls his country's labor market "dysfunctional," and a look at the data explains why. Spain has had a double-digit unemployment rate for years and euro-area officials are increasingly nervous that Spain doesn't have a grip on the health crisis, which could worsen the economic outlook. Today's Agenda All times CET. 9:15 a.m. EU foreign policy chief Borrell debates with EU lawmakers about the hostilities between Armenia and Azerbaijan in relation to Nagorno-Karabakh 10:30 a.m. The EU Parliament is set to decide on the appointment of Commissioner-designate McGuinness and on the new portfolio allocated to Executive Vice-President Dombrovskis 11 a.m. Eurostat to publish retail trade reading for August 11 a.m. Press conference by EU Commission Vice-President Jourová and Commissioner Dalli on a new 10-year plan to support Roma in the EU MEPs will vote on a more ambitious 2030 emissions reduction target The EU Parliament will vote on a legislative initiative that envisages a permanent EU mechanism to protect and strengthen democracy, the rule of law and fundamental rights Like the Brussels Edition? Don't keep it to yourself. Colleagues and friends can sign up here. We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K.'s departure from the EU.  For even more: Subscribe to Bloomberg All Access for full global news coverage and two in-depth daily newsletters, The Bloomberg Open and The Bloomberg Close. How are we doing?  We want to hear what you think about this newsletter. Let our Brussels bureau chief know.   Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more.   You received this message because you are subscribed to Bloomberg's Brussels Edition newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022