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As the U.S. took a break (from wild overhauls in government policies and its bureaucracy), across the Atlantic, Europe was springing into action to carve a place for the continent in this new world order.
On Monday, European leaders hastily assembled in Paris to discuss plans for peace in Ukraine after they were left out of U.S.-led talks, due to begin Tuesday, between Washington and Moscow on the near three-years Russia-Ukraine war.
The gathering of European heads comes just a day after the conclusion of the Munich Security Conference, which ran Feb. 14 to Feb. 16. At the defense summit, European Union President Ursula von der Leyen gave member states the green light to ramp up spending on defense, amid NATO Secretary General Mark Rutte saying Europe needs to do more if it wants to be heard by the U.S.
Investors, however, clearly got the message about higher defense spending. Shares of Europe defense companies jumped on Monday, pushing Europe’s regional Stoxx 600
What you need to know today
Emergency meeting by Europe
European leaders gathered Monday in Paris for an emergency summit, hastily assembled by French President Emmanuel Macron after it appeared that Europe would be left out of the negotiating table in U.S.-led Russia-Ukraine peace talks. Washington and Moscow are set to meet this week in Saudi Arabia. Ukrainian President Volodymyr Zelenskyy, however, said Monday that “Ukraine will not take part. Ukraine did not know anything about it.”
European defense stocks surge
On Monday, the Stoxx Europe Aerospace & Defense index hit a record and shares of Europe defense companies, such as Renk Group and Saab, jumped. They were juiced by European Union President Ursula von der Leyen saying at the Munich Security Conference that member states will be allowed to increase their spending on defense and security without breaching the bloc’s rules on budget deficit spending.
Australia’s central bank cut rates
U.S. markets were closed Monday for Presidents Day.Asia-Pacific markets mostly rose Tuesday. Japan’s Nikkei 225Nissan MotorMitsubishi MotorsHonda MotorS&P/ASX 200Reserve Bank of Australia lowered its benchmark interest by 25 basis points to 4.1%, its first cut in over four years.
Trump-related terms in earnings calls
U.S. companies are fielding growing questions on how U.S. President Donald Trump’s policies on international trade, immigration and diversity will affect business. A CNBC analysis shows words related to those issues are increasingly popping up on the earnings calls of S&P 500how companies are responding to queries around Trump-related words, such as “tariff,” “DOGE” and “Gulf of America.”
[PRO] More defense stocks to watch
At the Munich Security Conference held last weekend, the European Union appeared more open to increase defense spending after pressure from Trump to do so. Aside from the defense stocks that soared on Monday, these are the companies that stand to benefit from the EU’s higher military expenditure, according to Citi.
And finally…
Wind energy just had a record year in Germany — but the federal election could shake things up
2024 was a strong year for aeolian energy in Germany, with permit awards for onshore wind turbines accelerating, according to industry data — but the upcoming Feb. 23 election means the sector now faces uncertainty.
Friedrich Merz, the leader of the center-right Christian Democratic Union, told public broadcaster ZDF late last year that he hoped “ugly” wind turbines could be dismantled eventually, “because they do not fit into the landscape.” The far-right Alternative fuer Deutschland’s chancellor candidate Alice Weidel has threatened to tear down all wind turbines, which she reportedly labeled as “windmills of shame.”
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