Brussels Edition: Reshuffling the deck

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Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. We're keen to hear your views on this newsletter. Please participate in our short survey. Polish Prime Minister Donald Tusk is looking for a quick change in fortune as he continues to reel from the bruising victory of nationalist Karol Nawrocki in the country's presidential election last month. Although he survived a confidence vote, Tusk is struggling to hold his coalition together as it takes a battering in the polls. He'll be hoping his government reshuffle today will provide fresh impetus to carry him through until the next general election in 2027, allowing him time get the country's ailing finances in order: Poland is currently grappling with the second-highest budget deficit in the EU. Here's a lowdown on who he's likely to pick for the key positions.  — John Ainger

What's Happening

Kyiv Sliding | Ukrainian President Volodymyr Zelenskiy approved a law to strip anti-corruption agencies of their powers despite opposition, triggering the first outbreak of popular discontent against his leadership since Russia's full-scale invasion began. Hundreds of people joined rallies in the capital of Kyiv, the western city of Lviv, and the southern city of Odesa. Fighting corruption is central to Kyiv's ambitions to join the EU.  Japan Plan | European Commission President Ursula von der Leyen and Council President Antonio Costa's Asian tour should get off to a flying start in Japan, with the two sides expected to sign agreements on defense industry cooperation and economic security. There's also hope Tokyo could follow Europe in adopting a lower oil price cap on Russia, if not now, then soon. Luring Beijing | The outlook is less rosy for the EU-China summit in Beijing later this week. Even so, a number of European countries are now looking at China in a different light given the tensions with the US on trade. We bring you a deep dive into how Chinese investment in Europe has moved up the value chain, lured by generous government subsidies.  Stockholm Syndrome | Speaking of China, US Treasury Secretary Scott Bessent will meet his Chinese counterparts in Stockholm next week for their third round of trade talks. Here's what the two sides will touch upon. Meanwhile, Europe will be watching closely as it weighs whether to deploy its most powerful trade tool against Washington, which it had hoped never to use.  Israel Deal | Almost two weeks since the EU hailed a deal with Israel to allow more aid to Gaza, the humanitarian situation in the enclave is deteriorating. After a phone call with Israeli foreign minister Gideon Sa'ar yesterday, EU High Representative Kaja Kallas warned Israel that "all options" remain on the table as EU member states mull suspending the EU-Israel Association Agreement. Von der Leyen and Costa also weighed in.

Around Europe

Berlin Visit | French President Emmanuel Macron's whistle-stop tour to Berlin this evening includes a tour of a historical villa and a concert from a renowned trumpet player. The charm offensive from German Chancellor Friedrich Merz underscores their close bond but will do little to mask the pressing need for hard talks on issues ranging from the Mercosur trade deal to Ukraine. Universal Probe | Universal Music Group's $775 million bid for Downtown Music Holdings faces a full-scale investigation by EU watchdogs over concerns the deal could stifle the market for services to artists signed with independent labels. They'll dig into how Universal — home to big stars including Billie Eilish, Taylor Swift and Harry Styles — might leverage advantages to shut out competitors. More, Please |  Ukraine's new prime minister said she's likely to seek more financing from the IMF as she sets out to shore up the nation's fiscal needs with no end in sight to Russia's war. In her first interview since taking office, Yuliia Svyrydenko told Bloomberg she also planned to speak with US Treasury Secretary Scott Bessent in the coming days to discuss potential financial aid. Danish Deluge | The heatwaves that have seared Europe are giving way to violent storms and torrential rain. Red alerts for flooding have been issued across Denmark, threatening transport and homes. Warnings have also been issued for Germany and Poland. Still, Italy and Greece are yet to feel any relief — temperatures are set to hit the mid 40Cs before things change over the weekend.

Chart of the Day

Major tech firms should commit to fully powering data centers with renewable energy by 2030, United Nations Secretary-General António Guterres said. Big tech also must be responsible in its use of water for cooling, Guterres said Tuesday in New York City as he presented the UN's new report on the energy transition, Seizing the Moment of Opportunity, together with the International Renewable Energy Agency.

Today's Agenda

All times CET 7:45 a.m. Doorsteps ahead of EU Justice and Home Affairs informal council in Denmark 11 a.m. Press conference after EU-Japan summit in Tokyo German Chancellor Friedrich Merz hosts French President Emmanuel Macron in Berlin

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