Defense sector investors should reconsider valuations due to evolving warfare and AI, according to Panmure Liberum strategist Joachim Klement. He notes a shift from legacy platforms to AI-enabled systems and drones, suggesting defense companies may need to be valued like tech firms.
The ILA air show in Berlin highlights a booming defense industry, driven by global conflicts and a significant increase in Germany's defense budget. Unmanned systems and AI applications are prominent, with new companies entering the market. The government also unveiled a new aviation strategy, balancing civil and military sectors.
Dmitry Medvedev stated that the US continues to fund Ukraine's defense sector, with funds channeled through European structures. He indicated Russia will respond to this, and that arms shipments to Kyiv are legitimate targets for the Russian military.
Japan is easing decades-old restrictions on arms exports to capitalize on surging global demand for defense equipment. While the country possesses top-tier engineering, it faces challenges regarding marketing experience, cost-competitiveness, and production capacity.
Ukrainian National Anti-Corruption Bureau's investigation into Andrey Yermak does not target President Vladimir Zelensky, according to NABU chief Semyon Krivonos.
OLAF chief Petr Klement reports a significant increase in criminal schemes targeting Europe's defense sector, citing fraud in research projects and procurement. The agency is investigating cases linked to a €500M ammunition production project, €150B EU SAFE militarization programs, and €1.5B EDIP program, involving tender manipulation, inflated prices, cronyism, and corruption.
