Burnham Fuels Brexit Reset Talk Ahead of Summit

Welcome to the Brussels Edition. I’m Suzanne Lynch, Bloomberg’s Brussels bureau chief, bringing you the latest from the EU each weekday. Make sure you’re signed up.

UK Prime Minister Andy Burnham has doubled down on his plan to reset relations with the European Union – the latest sign that reshaping Britain’s relationship with Brussels has become one of his key priorities since taking the premiership three months ago.

Burnham said this morning he wants the UK to rejoin the EU during his lifetime, while also raising the prospect of adopting free movement rules — a lightning-rod issue in the UK. His comments come as discussions between Brussels and London step up ahead of an EU-UK summit on Nov. 20.

Among the issues to be discussed at next month’s gathering in Brussels are border checks on food and drink products, linking cap-and-trade emissions programs and access for young people to live and work in each others’ jurisdictions.

Talks on those three topics have been ongoing since last year’s summit. But negotiations in recent months have been overshadowed by increasing UK concern about the the bloc’s push for European preference across a range of legislative files, from cars to public procurement, as it seeks to bolster its industrial base.

The latest flashpoint is in tech. The EU is debating whether to limit contracts under its forthcoming Cloud and AI Development Act to European companies as it seeks to reduce its dependence on non-European providers, like the US.

The proposal is the centerpiece of a sweeping “tech sovereignty” package which will create a tiered system for cloud computing services and software providers — dictating that European governments rely exclusively on EU vendors to handle their most sensitive data. The UK, which is already relatively integrated into the EU’s technological sector, argues it should be included.

As the UK seeks a carve-out from the new rules, any special deals that may be agreed at this week’s EU-Canada summit will be closely watched in London. Ottawa and Brussels are expected to cement their plan for Canada to become the EU’s first associate member at the gathering.

The UK and Canada are very different kinds of partners to the EU. The UK, for example, could ultimately choose to rejoin the bloc, something that’s not possible for Canada. But Friday’s summit in Montreal could give a sense of how far the EU is willing to go to deepen its alliances with like-minded partners.

Around Europe

Europe’s five biggest defense spenders are set to warn that Russia represents the most acute and long-term threat to the continent’s security at a meeting in Paris today. The EU is planning to use safeguard measures to cut imports of products from sectors including chemicals, furniture and machinery from China, according to people familiar with the matter.The EU will propose new rules obliging member states to put climate resilience plans in place to deal with average global temperatures rising 3C above pre-industrial levels by the end of the century, according to a document seen by Bloomberg News.Giorgia Meloni ally Matteo Salvini was reelected leader of his far-right party League, part of Italy’s ruling coalition, after he promised to push the government to stop supporting Ukraine.Serbian longtime leader Aleksandar Vucic conceded defeat in a snap vote, handing a surprise victory to a student-led movement that built mass support by pledging to fight graft and reverse democratic backsliding.

Chart of the Day

Tech giants valued at more than $10 trillion are scheduled to report earnings this week, including major AI spenders like Alphabet, Microsoft and Amazon.com. All three are expected to post double-digit percentage gains in revenue for the quarter. But investors will be most interested in their comments on how much they plan to spend on AI and the degree to which those investments are proving to be profitable.

Market SnapshotBanco Santander SA€11.12-3.4%Market data as of 09:29 AM ET. Data is subject to provider delays.

Shares in Santander fell today after Brazilian President Luiz Inácio Lula da Silva pulled off a stunning comeback to defeat Flávio Bolsonaro, who had been favored by many investors. Brazil is Santander’s second-largest market, contributing approximately 15% of group earnings in 2025.

Coming up

Press Conference following meeting of agriculture ministers later today Press Conference following meeting of E5 defense ministers in Paris later todayIsraelis go to the polls tomorrow

Final Thought

One of Europe’s biggest real estate companies argues that Germany has become “uninvestable” over proposals to seize privately owned apartments in Berlin. Heimstaden Bostad won’t allocate more capital to Germany while the proposal remains, Co-Chief Executive Officer Christian Fladeland said in an interview. The Swedish property group owns about 20,000 apartments in Berlin valued at roughly €5 billion ($5.6 billion), representing 15% of its portfolio. Germany’s anti-capitalist Left party is coming closer to forming a government in the German capital after last month’s election and has agreed to pursue legislation that would force private landlords with more than 10,000 apartments to transfer holdings above that threshold into public ownership. Compensation would be capped at €16 billion, with legislation planned for 2028 and implementation the following year.