This is Wall Street Week. I'm David Westin, bringing you stories of capitalism. Gold is all over the place, from setting new records to plummeting, to a partial recovery. What does it mean for investors and for those getting the gold out of the ground? Plus, the US had its China shock 20 years ago. Is Europe in store for its own version this time as China looks to find new markets for its exports? And investing in art can be fun. It can be satisfying. But like any investment, it can go down as well as up. W ...

Military Spending Overview - Global military spending reached a record $2.7 trillion in 2024, with the U.S. accounting for approximately half at $1.48 trillion for 2026, an increase of about $500 billion from 2025 [1] - Germany's defense spending rose significantly, reaching 86 billion euros in 2025 and increasing by 25% to 108 billion euros in the 2026 budget, with a target of 152 billion euros by 2029 [2] Company Analysis: Lockheed Martin - Lockheed Martin has been a key player in military hardware production for the U.S. and NATO since 1994, offering a wide range of equipment for various combat theaters [6] - In 2025, Lockheed Martin's sales grew by 6% to $75 billion, while net cash position increased by 66% to $4.12 billion, and operating cash flow surged by 214% to $3.22 billion [7] - The company's net margin stands at 6.69%, with expectations for significant revenue and profit margin increases due to the larger U.S. military budget in 2026 [7] Company Analysis: Rheinmetall - Rheinmetall, established in 1889, is Germany's equivalent to Lockheed Martin, producing a variety of military equipment including tanks, artillery, and ammunition, and recently entering the space-warfare sector [8] - The company has benefited from Germany's increased military budget, with Q3 2025 results showing a 13% sales growth to 2.78 billion euros, an operating margin of 12.9%, and a 24.8% surge in net income [10] - Rheinmetall's backlog grew by 23% to 63.8 billion euros, indicating strong demand for its products [10]

Core Insights - TTM Technologies reported strong fourth-quarter sales of $774.3 million, exceeding guidance, with a year-over-year increase of 19% driven by demand in data center computing and networking linked to generative AI, as well as growth in medical, industrial, and aerospace sectors [1][4][5] Financial Performance - The company achieved record non-GAAP EPS of $0.70, an adjusted EBITDA margin of 16.3%, and operating cash flow of $63 million for Q4, with full-year net sales rising to $2.9 billion from $2.4 billion [5][6][13] - TTM's book-to-bill ratio was 1.35 for the quarter, with a strong defense segment book-to-bill of 1.46, contributing to a program backlog of approximately $1.6 billion [5][8][12] Market Demand and Growth Drivers - Approximately 80% of TTM's net sales are associated with artificial intelligence and defense, highlighting the strategic focus on Advanced Interconnect technologies and integrated modules [2][6] - The aerospace and defense sector represented 41% of Q4 sales, with a 5% year-over-year growth, while data center computing saw a remarkable 57% growth in Q4 [7][9] Guidance and Future Outlook - Management guided for FY26 net sales to increase by 15% to 20%, with Q1 2026 net sales expected to range from $770 million to $810 million [5][16][17] - The company plans significant capital expenditures of approximately $240 million to $260 million for 2026, alongside targeted investments of $200 million to $300 million in data center capacity [5][20] Capacity Expansion and Strategic Initiatives - TTM is expanding capacity in Syracuse and Eau Claire, with the Syracuse facility expected to generate revenues in the second half of the year [18][19] - The company is focusing on organic growth and aims to double earnings from 2025 to 2027, leveraging demand and capacity investments [21]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Asia Pacific industrial sector**, highlighting its significant role in the global economy, accounting for almost **50% of the world's industrial value-add** and **33% of Asia's GDP** [6][11]. Core Insights - **Industrial Production Growth**: Asia ex China's industrial production growth has reached a **42-month high**, with a **5.1% year-on-year growth** recorded in December 2025, marking the fastest pace since June 2022 [5][10][12]. - **Drivers of Growth**: Key drivers for industrial production growth in 2026 include: - Increased spending on **AI infrastructure**, **energy transition**, and **defense** [36]. - A rise in **non-tech exports** due to increased spending from economies outside Asia [5][6]. - **Broad-Based Improvement**: All economies in Asia ex China are now in expansionary territory, with manufacturing PMI readings above 50 for the first time since April 2022 [10][14]. Economic Indicators - **PMI and Trade Data**: Incoming industrial production, PMI, and trade data indicate a consistent improvement in industrial activity, particularly in Asia ex China [9]. - **Commodity Prices**: Rising industrial commodity prices, with the CRB industrial commodity price index reaching a **3.5-year high**, reflect increased demand and tight supply conditions [9][21]. Export Dynamics - **Non-Tech Exports Recovery**: Non-tech exports have increased by **4% compared to December 2024**, with a **7.6% annualized rebound** in December 2025 [26]. - **New Export Orders**: The new export orders sub-index within PMI rose to a **seven-month high of 52.3** in January 2026, indicating a broadening recovery across the region [26]. Future Projections - **Power Demand Growth**: Global power demand is expected to grow at a **3.8% CAGR** from 2025 to 2030, with Asia's power demand projected to grow at **4.6% CAGR**, necessitating significant investments in energy infrastructure [37][39]. - **AI Infrastructure Spending**: Continued growth in AI infrastructure spending is anticipated, with significant capex required for construction and equipment [42]. - **Defense Spending Increase**: Asia's defense spending is projected to rise to **US$1 trillion annually by 2030**, up from **US$600 billion in 2024**, driven by geopolitical tensions [53]. Conclusion - The industrial cycle in Asia is showing signs of improvement, supported by increased spending in key sectors and a broad-based recovery in manufacturing and exports. The outlook for 2026 appears positive, with several tailwinds expected to drive further growth in the industrial sector [6][36].

Core Viewpoint - Global defense spending is increasing, making stocks like Lockheed Martin (LMT) attractive to investors, particularly through the leveraged Direxion Daily LMT Bull 2X ETF (LMTL) designed for short-term trading [1] Group 1: Company Performance - Lockheed Martin's revenue grew by 9.1% to $20.2 billion compared to the same quarter last year, with an operating margin exceeding 11.5% [1] - The company has secured new multiyear missile procurement agreements with the US military, indicating potential for long-term profitable investment opportunities [1] Group 2: Market Dynamics - The U.S. remains a dominant force in defense spending, a trend that has been amplified under the Trump administration, benefiting companies like Lockheed Martin [1] - NATO countries and allies are proposing significant increases in defense expenditures, further supporting the defense sector [1] Group 3: Investment Outlook - Analysts have raised their margin forecasts for several of Lockheed's segments, increasing the fair value estimate for the company's shares from $538 to $660, with current trading at 5% below this revised estimate [1] - The stability of Lockheed's dividend is under scrutiny, especially with proposals to eliminate dividends for contractors failing to meet project deadlines; however, if the dividend remains secure, LMTL could provide short-term gains for traders [1] - Lockheed is increasing internal investments in high-opportunity areas to align with US military priorities, reducing the likelihood of restrictions on shareholder compensation [1]

Canada’s largest space technology company is doubling down on efforts to attract top engineering talent from around the world as it prepares for defense-driven growth https://t.co/h5DqAehBhB ...

Core Viewpoint - The copper market is experiencing significant price increases, reaching an all-time high of $14,268 per metric ton, amidst a broader market selloff, which may complicate a potential $200 billion merger between Rio Tinto Plc and Glencore Plc [1] Group 1: Copper Price Drivers - A weaker U.S. dollar, speculative momentum, and the increasing demand for copper in technology transitions are driving the price surge [2] - The dollar's decline has amplified gains across metals, while sectors like electrification, AI, defense spending, and data center expansion are heavily reliant on copper [2] Group 2: Structural Issues in Copper Supply - The surge in copper prices is now more about future scarcity rather than immediate demand, due to prolonged underinvestment, declining ore grades, and regulatory constraints affecting new mine supply [3] - Glencore reported an 11% decrease in copper output in 2025, totaling 851,600 tons, attributed to weaker ore grades and operational constraints [4] - For 2026, Glencore anticipates copper output between 810,000 to 870,000 tons, significantly lower than previous forecasts, due to issues at the Collahuasi mine in Chile [5] Group 3: Implications for the Merger - The rising copper prices do not guarantee immediate production growth, complicating the rationale for the potential merger between Rio Tinto and Glencore, as copper is a valuable asset but not easily expandable [6] Group 4: Market Volatility - Extreme copper prices are leading to heightened market volatility, with physical demand, especially in China, showing signs of strain [7] - The volatility is creating a narrower market participation, which could self-reinforce as smaller volume increases the potential for further volatility [8] - The Global X Copper Miners ETF has increased by 31.26% year-to-date, while Rio Tinto shares have seen a slight decline of 2.61% in premarket trading [8]

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Rheinmetall’s shares shares have soared more than 1,700% since Russia’s full-scale invasion of Ukraine. As the war drags on and uncertainty in the US-Europe relationship builds, an early investor in the company says more defense spending is coming. https://t.co/19DPIjOY4C ...

A widening defense spending gap is pushing the UK to rethink how it funds key contracts https://t.co/ag28wqyDZd ...