Latest news with #armsmanufacturers
Reuters
26-06-2025
- Business
- Reuters
Danish pension fund lifts ban on investments in European defence stocks
COPENHAGEN, June 26 (Reuters) - Danish pension fund AkademikerPension has lifted a self-imposed ban on investment in six of Europe's largest arms makers and some smaller groups, it said on Thursday, citing a worsening security situation and the need to boost European defences. Many of the continent's investment funds exclude weapons manufacturers from their portfolios on ethical grounds, such as their involvement in the manufacture of components for nuclear arms. AkademikerPension's decision to end its ban comes as Europe faces its largest military build-up in recent history, the fund said in a statement. "We believe it is the most responsible thing to do - both in terms of return and social responsibility in the current situation," CEO Jens Munch Holst said. "We don't want a small turnover from nuclear weapons-related activities to prevent us from providing capital to support the building of a European defence," he said. The fund manages 157 billion Danish crowns ($24.61 billion), it said on its website. NATO leaders on Wednesday backed the big increase in defence spending as demanded by U.S. President Donald Trump, and restated their commitment to defend each other from attack as tensions with Russia rise. But there are question marks over how member nations will afford the targeted 5% of output on defence, leading to potentially difficult budget choices. AkademikerPension's change of policy meant that the fund can again invest in Airbus ( opens new tab, Babcock International (BAB.L), opens new tab, Dassault Aviation ( opens new tab, Leonardo ( opens new tab, Safran ( opens new tab and Thales ( opens new tab, it said. Britain's Babcock said it expected to benefit from more UK government spending on defence as it lifted its medium-term forecast on Wednesday. Serco Group, Ultra Electronics and Groupe Reel were also removed from AkademikerPension's blacklist, but it maintained a ban on 46 defence groups globally over links to controversial weapons or human rights violations. ($1 = 6.3788 Danish crowns)
Russia Today
16-05-2025
- Business
- Russia Today
Being Russia's enemy could cost European allies $1trn
European NATO members would face a $1 trillion bill over 25 years to replace US military contributions if Washington exited the bloc, according to a study published on Thursday by a British think tank. The EU is planning a militarization drive, which it claims is necessitated by an alleged Russian threat. Western European leaders have said member states must reduce their dependence on US weapons while implementing a massive increase in military spending. The proposed hike comes amid claims that Russia could attack a NATO member in the coming years. Moscow has denied the allegations and has accused the West of 'irresponsibly stoking fears' of a fabricated threat. The report by the International Institute for Strategic Studies (IISS) outlines the challenges nations would encounter in the event the US withdraws from NATO to focus on confronting China. According to the IISS, European nations – including the UK – would need to replace some 128,000 American troops, along with a wide array of weapon systems and command infrastructure currently provided by the Pentagon, particularly for air and naval forces. 'European states would need to invest significant resources on top of already existing plans to boost military capacity,' the report stated. The estimated price tag for replacing American weaponry alone ranges from $226 billion to $344 billion. Domestic arms manufacturers would face difficulties securing contracts, financing, and skilled labor, while also grappling with regulatory and supply chain hurdles, the report warned. In certain sectors – such as stealth aircraft and rocket artillery – European NATO members currently lack viable alternatives, prompting the IISS to suggest outsourcing production to countries outside the bloc. Beyond hardware, the study highlighted intangible but critical costs associated with command-and-control functions, space intelligence, and filling high-level leadership roles traditionally held by US officers. The think tank questioned whether European governments possess the political will to ensure the vast spending required. The administration of US President Donald Trump has accused European NATO nations of taking advantage of American military protection without contributing enough in return. On Thursday, German Foreign Minister Johann Wadephul stirred controversy by vowing to increase defense spending to 5% of GDP, well above Germany's existing level of 2.1%. The statement, made following a NATO meeting, drew backlash, including from members of Chancellor Friedrich Merz's coalition. Defense Minister Boris Pistorius later stated that the exact percentage was 'not so important' and that Berlin considered 3% to be a more realistic level.
Reuters
14-05-2025
- Business
- Reuters
Renk's revenue slightly misses expectations but grows yearly
May 14 - Germany's Renk ( opens new tab reported revenue for the first quarter slightly below market expectations on Wednesday but a growing pipeline of orders supported its growth. The company, which makes gearboxes for the Leopard 2 tanks sent to Ukraine, posted 273 million euros ($305 million) in sales in the first quarter, a slight miss of 279 million euros seen in a Vara consensus. As it confirmed its yearly and mid-term guidance, it posted an order backlog worth 5.5 billion euros. European arms manufacturer are reporting solid results but order backlogs are a concern. Governments in the region are trying to expand their spending in the sector but have to face decades of underinvestment. Order intake for Renk for the first quarter came in at 549 million euros, more than the 500 million euros in a Vara consensus and more than doubled on a yearly basis. ($1 = 0.8937 euros)
