Deutsche Bank doubles investments in defense, because the wider European pursuit of re -unlocking fresh capital in the region.
In an interview with Annette Weisbach from CNBC at the Tag der Industrie conference in Berlin on Monday, the general director of Deutsche Bank Christian Sewing said that the German lender increased the exposure of the defense industry to adapt the “two -digit billion” euros.
“In fact, the size of our portfolio not only our appetite, but also the resources we introduce to advise our clients,” he said.
Speaking more about the industry, sewing noticed that “clearly, in particular on the European side, by investing,” emphasizing that “defense is one of the basic topics for the country (i) I think that we always underestimate the positive impact of defense expenditure.”
His comments appear in the NATO key weekly week, in which members want to potentially agree to increase the destination of defense expenditure to 5%. NATO members have Apparently he agreed to this journey Basically, before the annual summit this week, and Spain appeared as protruding values.
US President Donald Trump began to raise this idea In JanuaryAs he called on other members of the Alliance, he takes greater responsibility for his own safety.
Since then, the EU has undertook to mobilize EUR 800 billion ($ 928 billion) to help the member states “massively increase defense expenditure”, while Great Britain also has He swore to raise his own expensesand the German parliament adopted a historical reform This paved the way for larger investments in national security.
Driving financing
Sewing said that Deutsche Bank must now cooperate with public institutions to see how to use government funds.
“At the end of the day, the money must go to the middle hat and supplier companies,” he said. “And here we must cleverly cooperate with institutions such as (Bank Development) KFW or (European Investment Bank)”.
Sewing said that if the EU “finally works)” the Union of Capital Markets – its plan to create a uniform capital market to enable the free flow of investment and savings throughout the entire block – Deutsche Bank and its partners will be “well prepared to finance” defense expenses.
The head of the German lender agreed that the mood in Europe has chased the momentum among defense startups in the region, noting that the EU determination to increase defense expenditure could act as an innovation stimulus.
He claimed that the ingenuity underlying California of the Silicon Valley is partly the result of many years of readiness of the United States to invest in defense.
European supply of defense lasted for most of the year among wider expenses, with many market observers Seeing further advantage over the forward.
The Stoxx Europe air and defense indicator is almost 50% year -on -year, and some companies in the sector almost double value.
From Monday settlement, a German manufacturer of parts of tanks Color They have increased by 259%since the beginning of the year. At that time, the German defense giant RheinmetallStocks increased by 183%while Germany Hensoldt jumped 168%.
On Tuesday, the Deutsche Bank strategists raised their target price AirbusGiving the action “Buy” and advertising the goal of 5% NATO as a movement that would soon be “consuming benefits in defense companies.”
“The United States change concentration to the Indo-Pacific region, creating a gap in Europe's ability to transport, tanker aircraft and helicopters, which the defense and space of Airbus (ADS) is well prepared for filling,” they said. “The ADS growth and profitability is expected to materialize after 2028, just when Airbus Commercial can reach the plateau. In addition, Airbus remains accessible compared to both commercial and defensive peers.”
Meanwhile, in the note of June 10, lender's analysts said that Europe has a “rare opportunity to use the evolving global landscape.”
“When alleviating the pressure of inflation and a fresh wave of defense and an industrial stimulus gaining adhesion, the economic shoot gradually returns,” they said.
At the European Summit and Safety in Brussels at the beginning of this month EIB announced He would show Deutsche Bank EUR 500 million to facilitate the financing of small and medium -sized companies working in the security and defense supply chain in the EU. Financing will also be available to military and police infrastructure, such as training facilities.