Aerospace group Thales reaffirmed financial targets on Thursday as it posted higher than expected nine-month revenues and new orders, led by defence spending and demand for avionics. ...

“Because we have this higher top-level figure, countries might reassess whether they are including everything that they can under the NATO definition,” argues one think-tank.Is the 5% pledge on defence spending encouraging budget-fudging? https://t.co/I2RhWr2hI9 ...

Core Viewpoint - Several companies on the Singapore Exchange have shown impressive year-to-date gains, with Singapore Technologies Engineering Ltd, DFI Retail Group, and Jardine Matheson Holdings being notable performers [1][2]. Group 1: Singapore Technologies Engineering Ltd (SGX: S63) - The company reported a profit of nearly S$403 million for 1H2025, marking a 19.7% increase from the same period in 2024 [3]. - Year-to-date returns for ST Engineering are approximately 86%, driven by increased global defense spending and strong demand for digital solutions and cybersecurity [3][4]. - The aerospace segment saw a 5% year-on-year revenue growth, contributing to overall positive returns [4]. - ST Engineering secured S$9.1 billion in new contracts for 1H2025, resulting in a robust order book of S$31.2 billion [5]. - The company faces risks related to its cyclical exposure in aerospace and dependence on government contracts, which may be affected by global economic conditions [5][6]. Group 2: DFI Retail Group (SGX: D01) - DFI Retail Group's total underlying profit attributable to shareholders for 1H2025 reached US$105 million, a 39% year-on-year gain [9]. - The stock has shown approximately 64% year-to-date returns, largely due to the retail recovery in Asia [9]. - The Food division profit grew 14% year-on-year to US$24 million, while the Health & Beauty sector saw a 4% growth [10]. - The company is restructuring and divesting non-core assets, including a S$125 million divestment of its Singapore Food business, which supports its strong performance [10]. - DFI faces intense competition and cost pressures, which could challenge its profit margins [11][12]. Group 3: Jardine Matheson Holdings (SGX: J36) - The company reported a 52% year-to-date return and an underlying net profit of US$798 million for 1H2025, a 45% increase from the previous year [14]. - Astra International was the largest contributor to profit, with US$388 million in underlying profit for 1H2025 [15]. - The property arm, Hongkong Land, saw an 11% increase in underlying profit to US$320 million, driven by contributions from Singapore residential projects [16]. - Jardine Matheson is focusing on higher-growth sectors while reducing exposure to weaker sectors, such as China's Build-to-sell property [16]. - The company’s reliance on the Asian market presents risks related to economic shifts and currency fluctuations [17][18].

Geopolitical Strategy - Donald Trump expresses a desire for "denuclearisation" [1] - Donald Trump proposes talks with China and Russia to halve defence spending [1] International Relations - China and Russia do not appear interested in Donald Trump's proposal [1]

Using defence spending for economic objectives would be a costly mistake. Politicians hope that it might counter the effects of deindustrialisation, but they are likely to be disappointed https://t.co/mGobxpbfPt ...