The rise of the weapons industry does not seem to be reflected in the United States, although the world’s largest weapons manufacturers are still located in the United States.
There are huge losers in the war, but some always benefit.
The winners now seem to be European defense and military companies. Their stock prices have risen considerably since the start of the Russian invasion war – and in recent days, shares have even risen to record records.
As a result, investors believe in the speeches of European leaders and are waiting for a large investment in the defense industry in Europe, saying EPN’s share market experts.
Banking Group Nordea Senior Cross Hertta Alava According to the growth of defense expenditure, it is about “staggering sums”.
Last year, EU defense expenditure was less than two per cent of the EU GDP (GDP). NATO Secretary General Mark Rutte has said that NATO members must, as a new goal, increase their defense expenditure to more than 3 % of the GDP in countries.
“Investors are interested in a pretty sure growth”
There have already been investments in Europe’s defense spending and more are coming. The chairman of the Commission Ursula von der Leyenin today presented its plans for re -arrangement in Europe. The EU strives to release funds for defense investments of EUR 800 billion.
– Investors are now interested in quite a sure growth. These shares are not yet priced astronomically, but the defense industry is about an area where there was no growth for years, Alava says.
– Now a new Renaissance for the European Defense Industry is underway.
Alava, however, points out that strong fast stock markets can also end with disappointment. The stock market tends to get too excited in the short term, but the bottom of the growth story of the European arms industry is still strong, he says.
The biggest rising is, for example, German Rheinmetall, Swedish Saab and Leonardo from Italy.
The value of the Rheinmetallic share has multiplied.
A year ago, the value of the Rheinmetallic share was approximately EUR 425, compared with around EUR 1180 on Monday. For example, the company manufactures tanks and cannons. During this year alone, the value of the share has risen by almost 90 %.
Last week, Rheinmetall told about his plans to move two of its car factory to make defense materials.
In general, the whole sector seems to be doing very well. This is illustrated by the equity index following Europe’s aviation and defense sector. On Monday alone, the index increased by nearly 8 percent, the largest single rising in five years.
There was also a lively day on the Helsinki Stock Exchange on Monday. For example, Bittium’s share of communication and connectivity solutions was still more than 10 % on Tuesday afternoon. The Defense Forces is a Bittium customer.
Trump’s outputs are raining in European lair
In the past, Europe’s problem has been that Member States are mostly defense acquisitions from outside Europe, the United States. Finland has also done so.
The EU Commission has set a target for Member States to make at least half of the acquisitions of their defense budgets within the EU by 2030. After five years, the claim will intensify to 60 %.
Recent Donald Trump The movements have set the United States in the new light in the eyes of many Europeans. Trump quarreled Volodymyr Zelenskyin With Friday and before it has begun to repeat Russian propaganda in its rhetoric. Tuesday to interrupt military assistance to Ukraine for Trump’s news coverage.
Trump’s operations now shows the launch of European weapons manufacturers.
S-Bank Investment Director Mika Leskinen He estimates that over the last couple of weeks in Europe, the United States is not supporting Europe on that scale as before.
“No more speculation about whether we need to invest more in the defense industry, but now we know that he should,” he says.
– It would seem that Europe has a massive wave of investment and two -digit growth figures far into the future in the arms industry.
US companies are not doing so well
The rise of the weapon industry is not reflected in the United States, although the world’s largest weapons manufacturers are mostly located in the United States.
For example, the value of Lockheed Martin’s share has fallen early in the year. At the beginning of the year, the share of the share was approximately EUR 470, compared with approximately EUR 430 on Monday.
According to Leskinen, the expectation of investors is that the European investment wave will be more about European companies. On the other hand, US defense is also subject to efficiency pressure when public expenditure is to be cut, and these plans are also reflected in the stock prices of companies in the industry, Leskinen estimates.
In the past, it was widely thought that the armed industry would not fit into the portfolio of a responsible investor. Now this is changing. For example, Finnish pension companies have changed their line.
This change is also reflected in the appreciation of the European arms industry, says Nordea Alava and S-Bank’s Leskinen.