Illustration: Keir Starmer, war helmet, bank note Britain’s plans for defence spending are in trouble. Global threats are rising and the money needed to counter them isn’t keeping pace. As Mark Rutte, the Nato secretary general, warned last summer, Britain and its allies should be prepared to spend more, learn Russian or move to New Zealand. As world leaders – including Donald Trump, Mark Carney and Volodymyr Zelensky – gather in Davos this week for the biggest talking shop of the year, security and def ...

Core Viewpoint - Aerospace group Thales reaffirmed its financial targets following higher than expected nine-month revenues and new orders, driven by increased defence spending and demand for avionics [1] Financial Performance - Thales reported nine-month revenues that exceeded expectations, indicating strong financial performance [1] - The company also secured new orders during this period, reflecting robust market demand [1] Market Drivers - The growth in revenues and orders was primarily led by increased defence spending, highlighting a trend in the aerospace and defense sector [1] - Demand for avionics also contributed significantly to the company's performance, showcasing a positive outlook for this segment [1]

“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]

Economic Impact - Using defense spending for economic objectives is considered a costly mistake [1] - Politicians' hopes of countering deindustrialization through defense spending are likely to be disappointed [1]