defense spending

US Dollar Faces Uncertainty as Government Shutdown Looms

European Equities Gain Momentum Amid Shifting Global Market Dynamics

During the course of 4Q24, European 12M forward earnings estimates started to improve, while they softened slightly in the US after increasing by 13% in 2024, as Chart 2 shows. This was largely driven by expectations of gradually increasing growth in Europe, while growth rates in the US are expected to slow slightly.

European Stock Market Resilience Amid Shifting Global Investment Trends

The European stock market has been outperforming the MSCI AC World since the start of 2025. Despite the solid fundamentals of the US economy, rising uncertainty triggered by the Trump administration is increasing the attractiveness of European stocks.   

Europe's Defense Spending Surge: Challenges and Opportunities

Europe’s defence spending is set to increase significantly in the next few years. If properly channelled towards technological development, this could boost productivity without decreasing social spending. 

Germany at a Crossroads: Economic Challenges and the Path Forward

 The economic prosperity of recent decades is under pressure from geopolitical and technological paradigm changes. The golden years of globalization are over, and increasingly rough winds in global trade are exposing Germany's structural weaknesses.

What do Germany's fiscal plans mean for investors?

Germany’s chancellor-in-waiting Friedrich Merz announced plans for a major increase in defense and infrastructure spending. If passed by the German parliament, the plans would mark a significant fiscal shift that has the potential to boost growth and support Eurozone assets.

Global Economic Trends: Growth Forecasts, Inflation, and Tariffs Impacting Markets

We have just returned from marketing in the UK over the past week (March 3-7th), which overlapped with announcement of Germany’s unprecedented fiscal package and several tariff related announcements. 

Euro on the Brink – Will a Ukraine Peace Deal and Rising Defense Spending Save the Currency, or Will Tariffs Push It Lower?

While simmering trade tensions have been a key driver of FX markets this year, optimism about a potential ceasefire deal in Ukraine and stronger fiscal support, especially from defense spending, have also raised the prospects of a better outcome for European growth.

Goldman Sachs Outlook on EUR/USD: Trade Tensions, Ceasefire Optimism, and Tariff Risks

While simmering trade tensions have been a key driver of FX markets this year, optimism about a potential ceasefire deal in Ukraine and stronger fiscal support, especially from defense spending, have also raised the prospects of a better outcome for European growth.