Evening Briefing: Europe

Simmering tensions with China look poised to deliver another blow to European industry. In the latest flashpoint, the Dutch government’s move to sideline chipmaker Nexperia’s Chinese owners has triggered a response from Beijing that threatens to restrict key supplies for carmakers.

As China cut Nexperia’s Chinese factory off from the Dutch parent, the company has warned Japanese automotive customers that it may no longer be able to guarantee supply. Nexperia’s products also end up in vehicles made by carmakers like Volkswagen. Chip shortages will likely hit European automotive suppliers within a week, we’re told.

The Dutch-China spat comes as Beijing today unveiled a five-year plan focused on increasing self-reliance in technology, seeking to insulate itself from foreign pressures.

Some Europe-based carmakers are already under severe strain. Stellantis’s ousted CEO Carlos Tavares wrote in a new book that the maker of Jeeps and Fiats faces a potential breakup, with the group’s French, Italian and US operations going their separate ways. --Philip Lagerkranser

What You Need to Know Today

Russian officials are confident they’ll find ways to soften the impact from US sanctions against the country’s biggest oil producers, although there will be a hit to the state budget. US President Donald Trump’s blacklisting of Rosneft and Lukoil will be countered by deploying Russia’s network of oil traders and its shadow fleet, an official said. India’s oil refiners indicated today that they’ll all but stop buying.

Separately, Ukraine said it struck Rosneft’s refinery in Ryazan, one of the biggest in Russia. Bloomberg couldn’t immediately verify the claim. Also today, the European Union adopted a new suite of sanctions targeting Russia’s energy infrastructure, which includes banning LNG imports from 2027.

A slightly greater share of CFA Level III test-takers passed the exam in August — although the percentage of people passing still trailed the historic average. The rate was 50%, compared with a 10-year average of 51%. Test-takers sitting for the August final exam select from three “specialized pathways,” choosing among private wealth, private markets or the traditional portfolio-management path. The pass rate for the Level II test is also below the long-term average.

A massive storm is pummeling Europe, causing power outages and travel disruptions. Benjamin, as the storm is named, produced gusts as strong as 161 kilometers (100 miles) per hour in northwest France, and has also brought heavy rains. It caused flight cancellations and delays from Corsica to to major airports in the UK, Belgium, France, Germany, Italy and Switzerland.

Tesla’s difficulties finally caught up with the high-flying stock, which fell today after it reported third-quarter earnings that missed estimates. This time around, rising costs overshadowed a record quarter for vehicle sales. CEO Elon Musk nevertheless spent much of the earnings call discussing humanoid robots and artificial intelligence programs — while pleading for his trillion-dollar compensation package to be passed.

Saudi Arabia is funding a new top-tier men’s tennis tournament, seeking to grow its influence in the sport. The event is poised to debut on the ATP Tour as early as 2028 and become the first Masters 1000 tournament added since 1990. It arrives just as tennis players are frequently speaking out about the physical and mental strain caused by one of the longest schedules in sports.

South Africa’s 440 billion rand ($25 billion) transmission grid expansion program has attracted interest from Indian and Chinese firms. Among those vying for the work are Adani Power’s Middle East unit and China Southern Power Grid International. South Africa is bringing in private partners to install 14,000 kilometers (8,699 miles) of new power lines, and aims to add almost 60 gigawatts of wind and solar capacity to end years of rolling electricity outages.

Turkey’s central bank cut the benchmark rate for a third straight time, while slowing the pace of easing. The rate-setting committee acknowledged the risks from food and pricing behavior, but added “recent data suggest that demand conditions are at disinflationary levels.” The one-week repo rate now stands at 39.5%.