China–EU hybrid-car arrangements were discussed as a possible quota deal, but the operative details—and therefore the trade impact—remained contested.
The period’s EU Policy & Trade coverage centred on China–EU hybrid-car trade, with China reporting an understanding while the EU view was that an export quota had effectively been accepted; the details remained unresolved.411 Canada also received substantial attention through a sharp employment contraction linked by Bloomberg to the trade war with the US, alongside investor unrest at a large Canadian REIT.101317 Other EU-related items covered a proposed windfall-profit-tax analysis, markets-supervision reform, European diesel exposure, grain-import pressures and rising sovereign-yield concerns.7961415 The followed topics Mark Joseph Carney and Ursula von der Leyen received no attention in this pool, while Financial Times appeared mainly as a referenced source rather than a directly speaking source.1516
AT
+1217 voicesWhat happened
The EU believed China had in effect accepted a quota that would substantially cut Chinese hybrid and plug-in-hybrid exports, though details matter.4
1 of 17China said it had reached an "understanding" with the EU on hybrid-car exports but provided no details, leaving the scope of any restriction unspecified.11
1 of 17Canada lost 68,300 jobs in September, a sharp employment contraction Bloomberg linked to the trade war with the US.1013
2 of 17Show 1 moreShow fewer
The European Commission will analyze impacts of a bloc-wide windfall-profits tax on energy firms.7
1 of 17“the details matter”
Where they disagree
Whether China had accepted a meaningful hybrid-vehicle export quota
EU: quota effectively accepted4
1 voice
China: only an 'understanding'11
1 voice
The desk
Brad Setser
The EU believes China has effectively accepted a quota that will substantially reduce its hybrid and plug-in-hybrid exports, but the details matter.4
Bloomberg
China says it reached an "understanding" with the EU on hybrid-car exports but offered no details, leaving the scope of any restriction unspecified.11
Walter Bloomberg
Canada's economy shed 68,300 jobs in September, far worse than expected, with the unemployment rate rising to 6.5%.13
Raphael Bulascoschi
Europe faces one of its largest crop losses, increasing import needs and making the U.S. and Brazil more important suppliers as Ukraine can't export normally.6
Daniel Lacalle
If you complain of refining margins, blame politicians who closed 20% of EU refineries for environmental reasons (via Bloomberg).8
Peter Boockvar
Rising investor concern about deficits and debt is pushing up yields across Europe, with French budget worries spilling into the region.15
1 of this desk's 2 voices spoke · Quiet: Michael Every
More from the desk
China–EU hybrid-car tradeChina said it had reached an understanding with the European Union on hybrid-car exports, but supplied no details. Brad Setser reported that the EU believed China had effectively accepted a quota that would substantially reduce hybrid and plug-in-hybrid exports, while stressing that the import baseline made the details material.
China said it had reached an understanding with the European Union on hybrid-car exports, but supplied no details.11 Brad Setser reported that the EU believed China had effectively accepted a quota that would substantially reduce hybrid and plug-in-hybrid exports, while stressing that the import baseline made the details material.4
Canada’s weakening economy amid trade tensionsBloomberg reported that Canadian employment fell by 68,300 and linked the deterioration to the trade war with the US. Walter Bloomberg’s account added that unemployment rose to 6.5%, both full-time and part-time employment declined, and wage growth accelerated to 2.3%, complicating the inflation outlook. Investor opposition was also reported at one of Canada’s largest REITs.
Bloomberg reported that Canadian employment fell by 68,300 and linked the deterioration to the trade war with the US.10 Walter Bloomberg’s account added that unemployment rose to 6.5%, both full-time and part-time employment declined, and wage growth accelerated to 2.3%, complicating the inflation outlook.13 Investor opposition was also reported at one of Canada’s largest REITs.17
EU policy, supervision and energy interventionThe European Commission was reported to be assessing the effects of a bloc-wide windfall-profit tax on energy companies. EU member states reached a deal to revise markets supervision after a decade-long effort aimed at reducing national barriers and encouraging private financing.
The European Commission was reported to be assessing the effects of a bloc-wide windfall-profit tax on energy companies.7 EU member states reached a deal to revise markets supervision after a decade-long effort aimed at reducing national barriers and encouraging private financing.9
European supply and financial pressuresRaphael Bulascoschi said European heat and drought were expected to produce major crop losses, increasing EU import needs as Black Sea disruption constrained Ukraine and Russia. Peter Boockvar argued that fiscal concerns were driving higher European yields, identifying France as the main problem and warning that pressure could spread to Italy, Spain and elsewhere. Adam Tooze attributed diesel stress to disrupted Middle East traffic and Ukrainian strikes on Russian refining capacity, while describing Europe’s historical diesel policy as a combination of industrial interests and Commission policy.
Raphael Bulascoschi said European heat and drought were expected to produce major crop losses, increasing EU import needs as Black Sea disruption constrained Ukraine and Russia.6 Peter Boockvar argued that fiscal concerns were driving higher European yields, identifying France as the main problem and warning that pressure could spread to Italy, Spain and elsewhere.15 Adam Tooze attributed diesel stress to disrupted Middle East traffic and Ukrainian strikes on Russian refining capacity, while describing Europe’s historical diesel policy as a combination of industrial interests and Commission policy.14