Evening Briefing: Europe

European leaders are said to be working with Ukraine on a 12-point proposal to end Russia's war along the current battle lines. It pushes back against demands by Kremlin leader Vladimir Putin that Kyiv surrender territory in return for a peace deal.

While details of the plan are being finalized and could still change, the implementation would be overseen by a peace board chaired by US President Donald Trump. Once a ceasefire is agreed to and both sides commit to halting territorial advances, there would be security guarantees for Ukraine along with funds to repair damage from conflict and a pathway to join the European Union.

The proposals echo calls by Trump last week to immediately freeze the conflict along current lines before starting negotiations. The White House now says he has no plans to meet Putin in the immediate future, after Russia said no plans had been finalized. Trump's first attempt at a summit with Putin in Alaska ended in failure.

Barring Kremlin acquiescence to demands for an immediate ceasefire, leaders including Germany’s Friedrich Merz and the UK’s Keir Starmer said Europeans must be prepared to “ramp up the pressure on Russia’s economy and its defense industry, until Putin is ready to make peace.”

Europe’s defense industry is already gearing up. Swelling military budgets are fueling a new generation of continental startups, with a handful already valued at more than a billion euros. We profiled eight of the highest flying defense-tech companies to watch, including drone, satellite and software manufacturers.

Even without direct European Union engagement on the battlefront, more member states are becoming alert to the hybrid warfare threatening their security. In a joint operation with NATO, Poland and Romania last week detained individuals suspected of collaborating with Russian spies. — Jonathan Tirone

What You Need to Know Today

Global investors are looking at the 54 nations that make up Africa with fresh eyes -- not only for their vast natural resources but also for the region’s role in the realignment of trade worldwide. Our investors guide to Africa takes readers inside six industries on the rise in the continent’s most-investable economies. From agriculture, to critical minerals and renewable energy, we’ve crunched the numbers to show where money managers are looking.

Photographer: Illustration by George Wylesol

Britain busted its budget again, with the government borrowing £7.2 billion ($9.6 billion) more than forecast in the first six months of the fiscal year. The overshoot highlights the challenges faced by Chancellor of the Exchequer Rachel Reeves. Much of the deterioration was due to surging debt-interest costs. And it’s not just the UK’s public purse that has some investors on edge. The Bank of England has begun industry outreach about stress testing the private credit market, underlining rising concerns that the sector could be harboring systemic threats to financial stability.

The Swiss franc closed in on its highest levels in a decade against the euro as haven demand rippled through global markets because of renewed tariff and political concerns. Traders will be combing through a monetary-policy publication later this week to determine whether the currency appreciation has further room. Watch exports — a closely watched economic barometer — fell for a second consecutive month, a victim of the Trump administration’s 39% tariff on Swiss exports to the US.

Nicolas Sarkozy entered prison. The former French president arrived at Prison de la Santé trailed by TV crews and a crowd of supporters. Sarkozy’s five-year jail sentence capped a spectacular fall from grace. For security reasons, he’ll be held in solitary confinement — he’ll be permitted to do one hour of outdoor exercise a day, alone in a fenced yard, his lawyer told us. While Sarkozy probably won’t have to serve his full sentence, his conviction is another reminder of France’s malaise that extends beyond politics. Bond funds run by some of the world’s largest asset managers are avoiding forced sales of French debt holdings by changing their investment rules.

Nicolas Sarkozy on Oct. 21. Photographer: Julien De Rosa/Getty Images

Novo Nordisk Chairman Helge Lund quit after a boardroom dispute over the Danish drugmaker’s strategy. He’s being replaced by Lars Rebien Sorensen, a previous leader of the company who now heads its biggest shareholder. The move is part of a wider shakeup at the maker of Wegovy and Ozempic drugs, with more than half of the board members set to depart. It also comes not long after the company replaced its chief executive officer following a slump in the shares. Denmark’s fiscal watchdog warned the downturn at Novo Nordisk could deal a new blow to Danish consumer confidence, with the drugmaker’s stock rout threatening to deepen pessimism and cloud the economy’s otherwise strong fundamentals.

A changing of the guard is trying to revitalize the ailing fashion industry but a successful turnaround is anything but certain. Not since the 1990s have luxury brands gone to such lengths to reverse their tumbling fortunes. Almost 30 years later the luxury fashion business is going through a similar creative renaissance - or disorienting upheaval — depending on whom you ask.

Modeling Dior’s ready-to-wear spring-summer 2026 collection Photographer: Julien De Rosa/AFP

Convivial wine bars have become a booming business in capitals from London to Paris as people seek more casual dining. Gathering spots have a few things in common. They’re invariably small, rarely seating more than 40 guests, with menus written on chalkboards or something else that signals constant change. There are always snacks and small plates, and sometimes larger ones too. The trend could become a fillip for vintners who’ve been faced with more people turning away from alcoholic beverages.