Overview
- Trump said on Truth Social he wants a $1.5 trillion U.S. military budget for 2027, a jump from roughly $900 billion approved for 2026.
- Defense shares rose on both sides of the Atlantic, with German names such as Rheinmetall, Renk and TKMS advancing and U.S. primes like Lockheed Martin and RTX gaining in early trade.
- Rheinmetall touched its highest level since mid‑October, neared €1,900 and was about 20% higher year to date, while the DAX eased 0.1% at midday on profit‑taking after recent records.
- Jefferies analyst Chloe Lemarie said European contractors with U.S. exposure, including BAE Systems and Leonardo, stand to benefit from higher American outlays.
- Trump pressed contractors to halt dividends and buybacks to fund capacity and floated tariffs to cover spending, a stance that drew skepticism from economists even as sector shares climbed.