Deutsche Bank is multiplied by defense investment as a broader European campaign to reformulate fresh capital in the region.
Speaking to Annette Westernity from CNBC at the Tag Der Industrie conference in Berlin on Monday, the CEO of Deutsche Bank Christian Sewing said that the German lender had increased his exposure to the defense industry of up to “one billion size”.
“We have actually achieved not only a wallet appetite, but also the resources we provide in order to advise our customers,” he said.
Speaking on a broader scale about this industry, the sewing noted that “it is clear that, in particular on the European side, they were under investment,” stressing that “the defense is one of the main topics of a country, (and I believe that we always underestimate the positive impact of defensive spending.”
His comments come in the main NATO summit in which members are looking to agree to increase the goal of spending on the defense’s contribution to 5 %. NATO members have According to what was reported, he agreed to this height In principle before an annual summit this week, with Spain appearing as outside.
US President Donald Trump began to float the idea Again in JanuaryAnd his coalition’s colleagues also called for more responsibility for their security.
Since then, the European Union has owned He pledged to mobilize 800 billion euros (928 billion dollars) to help member states “enhance defense spending on a large scale”, while the United Kingdom also has PledgeAnd the parliament of Germany He passed a historical reform This paved the way for more investment in national security.
Financial drive financing
Sewing said that you should now work with Deutsche Bank with public institutions to know how to take advantage of government money.
“At the end of the day, you need money to go to the middle of the maximum and suppliers companies,” he said. “Here we need to work smartly with institutions such as (Development Bank) or (European Investment Bank).”
Sewing said that if the European Union “is recently working on” the Capital Markets Union – its plan to create one capital market to allow investments and savings to flow freely across the mass – Deutsche Bank and its partners will be well prepared to finance “defensive spending.
The head of the German lender agreed that the mood in Europe has motivated the momentum among the defensive startups in the region, noting that the European Union’s design to raise defense spending can serve as an incentive for innovation.
He said that the creativity that supports the Silicon Valley in California is the result of the United States’s long -term desire to invest in defense.
European defense shares in the Taurus round for most year were amid the broader spending campaign, with many market monitors Seeing more trend go forward.
The Stoxx EUROPE AEROSPACE and defense increased by almost 50 %, as some companies in the sector doubled.
As of the settlement of Monday, the German tank spare parts manufacturer color Its shares have seen increasing 259 % since the beginning of the year. During that time, the German defense giant RheinmetallHis arrow jumped by 183 %, while Germany Hensoldt 168 % has emerged.
On Tuesday note, Deutsche Bank strategies raised their target price AirbusThe arrow gave the “purchase” and promoting the NATO goal by 5 % as a step that will be soon “will benefit the defense companies.”
They said: “The United States turns its concentration into the India and the Pacific region, which creates the power gap in Europe for transportation, carrier aircraft and helicopters, which is placed Airbus and space (ADS) well to fill it.” “The growth and profitability of ads will be achieved after 2018, specifically when the Airbus commercial company reaches a plateau. Moreover, Airbus remains affordable for everyone compared to its commercial peers and defense.”
In the June 10 note, at the same time, the lender analysts said that Europe “has a rare opportunity to take advantage of the developed global scene.”
They said: “With inflationary pressure and a new wave of defense and industrial motivation, I gained traction, the economic momentum is gradually returning.”
At the European Defense and Security Summit in Brussels earlier this month, EIB Declare Deutsche Bank will lend 500 million euros to facilitate the provision of financing for small and medium -sized companies operating in the European Union security supply and defense chain. Funding will be available for military infrastructure and police, such as training facilities.
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