Posted on 03/04/2025 7:43:55 AM PST by SeekAndFind
European defense stocks surged again on Monday as the UK, France, and Ukraine agreed to work on a peace deal following Volodymyr Zelenskyy's clash with President Donald Trump.
European leaders met with the Ukraine president in London on Sunday.
Expectations of rising demand for weapons and other military equipment are behind the stock surges on European markets.
UK Prime Minister Keir Starmer said last week that Britain would raise defense spending from 2.3% of GDP to 2.5% by 2027. Germany's likely next chancellor, Friedrich Merz, has vowed to prioritize European security and continue supporting Ukraine.
Ben Heelan, a Bank of America analyst, said in an email that raising the defense spending target to 3% of GDP was "becoming the base case for the NATO leaders summit" in late June.
Analysts at Deutsche Bank said in a note that speculation had increased over special funds for defense and infrastructure being established by the existing German parliament following last month's election.
Germany's biggest defense firm makes armored fighting vehicles and personnel carriers.
Rheinmetall opened a joint production and repair facility in Ukraine in June 2024.
The CEO, Armin Papperger, said the company also planned to open a new air defense facility in the country.
The stock has soared more than 1,300% since 2019, valuing Rheinmetall at 48 billion euros.
(Excerpt) Read more at msn.com ...
Not a side effect. That was always the point.
I thought about the effect it would have on certain stocks.
I just dont know that sector at all
Sheer idiocy. Read Arms of Krupp.
These tools are in for the rudest possible surprise if they actually get this party started.
Yes, we used slave labor while supplying Hitler, and our current arms trafficking is shady... but just look at our short-term dividends!
With an emphasis on horse drawn carts
That wasn’t the point of “Arms of Krupp”.
This is the predictable side effect of demands to increase Euro military spending. And this is a very positive sign that the increases are actually happening.
Pro-Trump people should cheer; pro Putinists should lament.
Now Ursula can finance all of them.
https://x.com/vonderleyen/status/1896843678028628309
“ReArm means:
• More fiscal space for national public funding for defence through the escape clause
• A new instrument for loans to EU countries for defence capabilities most needed
• More flexible use of EU funding towards defence investment
• More private capital mobilised via the Savings and Investment Union and the
@EIB”
The only way to do this is to cut social welfare spending. That means pensions, support, healthcare and a host of other programs along with all the illegal migrant goodies.
I wish them luck because they have been a massive drag on the American economy.
A week from now, the kerfluffle over the Tariff imposition will have dissipated.
Paper tigers
Zelensky came to Washington as a spoiler, he came in bad faith. And those should be the operative words. He came in bad faith.
Zelensky, the Ukrainian parliament, Trump and other notables had come to an agreement and Zelensky came knowing full well this was to be a ceremonial signing of the agreement. And what does he do. He reneges and wants to re-negotiate in front of the cameras.
Zelensky came to Washington in bad faith and the world should condemn him for it.
“European leaders” reads as an oxymoron.
So the European countries who for years have shortchanged their payments to NATO now all of a sudden find plenty of coin to “protect Ukraine?”
“Zelensky came to Washington in bad faith and the world should condemn him for it.”
What is worse he did what the Democrats told him to do to sabotage Trump and his peace efforts. That is not the act of a friend.
Europe can rearm and cut their social spending or pray the US doesn’t leave and continues to protect them in which case their defense spending will tank again, otherwise this is a temporary blip on their defense industries radar.
I think the point of Arms of Krupp was if we make them we will use them. What do you think the point of Arms of Krupp was?
The history of German industrial development and its close association with the German state.
The Euros were always providing lots of cash as aid to Ukraine. Much more so than the US, which provided 50% as equipment from its military stockpiles.
The change now is the Euros will be investing in military industries, and their own militaries. If all goes as stated.
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