The Great Shift in global defense landscape

Trump’s defense priorities are best understood through a transactional lens focused on international stability. Consequently, its partners within the NATO will have to pay more for their defense while the United States represent two third of the alliance’s spending in defense.5% is the new 2%. During its June 2025 summit, the NATO countries commit to invest 5% of GDP on defense by 2035, including 3.5% on core defense requirements and 1.5% on defense- and security-related investments like infrastructure and industry.To finance this additional defense spending, the ReArm Europe plan would allow ...

Watch out tariffs’ negotiations… before the upcoming earning season

With geopolitical concerns easing in the Middle East while tariff news were positive with the signing of a US-China deal at the end of last week, credits performed nicely last week . High Betas were the main beneficiaries of that lower risk aversion context (with VIX dropping by 4 points last week to 16%), led by AT1s (-11bp) and US HY (-10bp). The latter was also supported by record inflows since November 2023 according to Lipper-FMI ($3.5bn). € Corporate hybrids also performed nicely with an average 6bp tightening vs swap. On the other hand, it’s interesting to see that Bank T2s had more dif...

On course for EU-US tariff agreement before 9 July?