Make defense industry great again..
France Armies Minister Sébastien Lecornu encourages the French “to invest money patriotically to finance Defense”.
Europe's high-debt countries - like France, Italy and Spain - cheer Germany's fiscal expansion.
They're not doing that out of the goodness of their hearts. Germany now can't possibly say no to more joint EU debt issuance. A win for high-debt countries and their muddle through... Source: Robin Brooks
EU defence stocks so far this year....
Source: Koyfin
2025 returns by country:
Germany +21% Italy +19% France +17% UK +12% US -0.5% Source: Ben Carlson @awealthofcs
Is D.O.G.E going global ???
➡️ “What Europe needs is a DOGE,” Deutsche Telekom CEO Tim Höttges told an audience at the Mobile World Congress in Barcelona. ➡️ Höttges made a renewed call for Europe to cut down on barriers to market consolidation in Europe’s telecoms industry and consider charging U.S. tech giants to use mobile carriers’ networks. ➡️Elon Musk’s Department of Government Efficiency has looked to slash spending at federal government agencies, making huge job cuts at various different departments. https://lnkd.in/eJDZc4DS
Europe has AI regulations without AI companies.
Europe has crypto regulations without crypto. Europe wants to censor social media without social media companies. Source: Michel A.Arouet
Germany political situation summarized in one chart
A CDU/CSU and SPD coalition holds a clear majority w/328 out of 630 seats. However, fringe parties AfD and Linke have a blocking minority of 216 seats, making it harder to revise the debt brake. Still, defense spending can be arranged through European mechanisms, bypassing the German debt brake, and the Left Party is likely to support changes for infrastructure investment in Germany. Source: HolgerZ, Goldman Sachs
The mid-cap MDax is significantly outperforming the benchmark Dax, driven by optimism for economic reforms after the election.
Since the MDax is heavily tied to the German economy, it benefits the most from these expectations. Source: HolgerZ, Bloomberg
