European defense stocks are experiencing a sharp rally, drawing comparisons to past investment bubbles like the tech boom. Six of the top 10 performers in the Stoxx 600 this year are defense firms, while a Goldman Sachs industry basket has surged over 60% in 2025. Investors are pouring money into the sector, expecting a major increase in military spending as European leaders boost defense commitments to support Ukraine. The rally shows no signs of slowing, with continued pledges for expanded military budgets across Europe. The surge reflects growing demand for defense capabilities amid ongoing geopolitical tensions.
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- 14/03/2025
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European asset managers are reconsidering investment policies in the defense sector due to client pressure and escalating geopolitical tensions. Legal & General, the UK’s largest investor, stated that defense’s importance has “risen dramatically,” prompting a review of its exposure to defense stocks. Other major firms, including UBS and Allianz Global Investors, are also reassessing their positions, signaling a broader shift toward military investments. Some funds have already begun increasing their allocations to defense, reflecting growing acceptance of the sector amid rising security threats in Europe. This trend highlights a changing investment landscape, as defense spending becomes a strategic priority for […]
MilDef to supply computers for operator stations for CV90s
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- 31/10/2024
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MilDef’s recent SEK200 million contract with BAE Systems Hägglunds marks a significant step in enhancing the CV90 combat vehicles with ruggedized IT equipment. This partnership will equip Central European forces with advanced operator stations, with deliveries spanning from 2025 to 2029. With options, the contract’s total value could rise to SEK280 million, reflecting MilDef’s growing role in European defense modernization. The CV90’s success across 10 nations, notably in Afghanistan and Ukraine, underscores its battlefield reliability, further strengthening the vehicle’s appeal. MilDef’s ongoing support, including a recent contract with Norway, positions them as a key technology provider in European defense initiatives. […]
Europe’s ‘Green’ Agenda Could Be a Godsend to Russia
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- 19/12/2024
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NATO and defense industry leaders, including BAE Systems, have expressed concerns that environmental, social, and governance (ESG) criteria are restricting investments in Europe’s defense sector. Admiral Rob Bauer criticized financial institutions for denying support to defense companies due to moral and ESG concerns, warning this undermines Europe’s military readiness amid rising security threats. BAE Systems and Saab highlighted that ESG restrictions hinder investment in critical skills, technologies, and innovation, while smaller supply chain businesses face even greater financial challenges. Bauer proposed reevaluating credit rating criteria, suggesting defense investments be treated with the same urgency as climate change mitigation. As Europe […]