Latest news with #GDAXI
CNBC
2 days ago
- Business
- CNBC
Germany's defense industry is booming. Here's where its weapons are going
Germany's defense sector is growing as increasing geopolitical tensions have led to a surge in orders. The value of German military exports hit 13.2 billion euros ($15.5 billion) last year, according to preliminary figures — more than double 2020's 5.82 billion euros . Defense stocks in the country have skyrocketed over the past year as the government passed a historic fiscal package expected to boost defense and infrastructure spending even further. Shares of Germany's largest defense company Rheinmetall , for instance, are up more than 260% over the last 12 months, while Hensoldt's are 168% higher. RHMB-FF .GDAXI 1Y mountain Rheinmetall vs. Dax So, where — exactly — are the record orders going? Country breakdown According to the German government's most recent export log , 80% of arms exports were to "close partner countries" during the first quarter of 2025. These include nations within the EU and beyond, including Japan, Switzerland, Australia, New Zealand, South Korea, Singapore and Ukraine. The remaining 20% of exports were to "other third countries." Germany's Federal Ministry for Economic Affairs does not name these, but told CNBC that Qatar and Israel are major players in this category. Think tank SIPRI notes that between 2020-2024, Germany was the world's fifth-largest exporter of major arms. Its three largest markets over the period were Ukraine (19%), Egypt (19%) and Israel (11%). SIPRI also reveals the types of major arms sold by German companies: over the past five years, 41% were ships, followed by armoured vehicles at 16%, missiles at 11%, and engines at 9.5%. Here's a look at some of Germany's biggest defense companies by market cap — and where their exports go. Rheinmetall Rheinmetall, which specializes in weapons, ammunition and armored vehicles, is Germany's largest defense company and is deeply embedded in the European defense system. According to the company's 2024 annual report , just over a third of its sales were domestic, with the rest of Europe accounting for 46.6%, Asia and the Middle East accounting for 9.6% of sales, the Americas 7.7%, and other regions ("above all Australia") 5.8%. MTU Aero Engines MTU Aero Engines , which creates engines for civil and military aircraft, saw a more-than 13% jump in revenue in its military division in 2024. A main source of sales was EJ200 engines that power the Eurofighter Jet, used by European, Kuwaiti, Omani, and Saudi air forces . In a geographical breakdown of MTU's 2024 revenues, which include civil and military, North America accounted for 70% of sales. In second place was Germany, then Asia and the rest of Europe. MTU's military business is mostly focused on Germany and Europe, a company spokesperson told CNBC. Hensoldt Hensoldt went public in 2020 after spinning off from Airbus. A specialist in electronic defense and sensor technology, the CEO said in his annual shareholder letter that the company continues to see strong demand amid the war in Ukraine, crises in the Middle East and threat from China. "The demand is globally increasing, but with a very high increase from Germany and Europe", Hensoldt's CFO Christian Ladurner told CNBC earlier this year. Breaking down Hensoldt's 2024 revenue , 87.8% came from Europe, 3.7% from the Middle East, 3.5% from APAC, 2.6% from North America and 2.2% from Africa. Renk Augsburg-based Renk creates gearboxes for military vehicles, including tanks and naval vessels. The company says it supplies equipment to over 70 land forces around the world, including the EU, NATO, South Korea, India, and Israel and others. It also supplies the marines of over 40 naval forces. In its 2024 annual report , total revenue came in at 1.14 billion euros. Germany accounted for 27% of sales, the U.S. 20% and South Korea 11%. Thyssenkrupp Marine Systems (TKMS) Industrial conglomerate Thyssenkrupp is Germany's largest steel producer, and its subsidiary ThyssenKrupp Marine Systems is a major player in defense. Just under 30% of TKMS sales in the first half of this financial year were to Germany, Austria, Switzerland and Liechtenstein, while a similar amount went to the rest of Western Europe. South America accounted for 18%, and the Middle East and Africa, 15%. Political controversy Germany's growing role in the global arms trade has not been devoid of controversy, however. Politicians have raised concerns over the country's exports to Israel given allegations of human rights abuses in Gaza. Germany has historically been a staunch supporter of Israel given Germany's role in the Holocaust. In May , Germany's Foreign Minister Johann Wadephul appeared open to the idea of reviewing weapons exports to Israel, although he told CNBC at the recent NATO summit that arms sales to Israel will continue. German companies exporting to Israel include TKMS, which built the Israeli Navy's Sa'ar 6 frigates , and Renk and MTU , which supply parts for Israeli Merkava tanks. German exports to Ukraine have also been a source of controversy. Since Russia's' full-scale invasion of Ukraine in 2022, Germany has been among Ukraine's biggest military backers . Backlash has come from both extremes of the political spectrum, however. The far-left BSW has called for a halt to German military support of Ukraine , for example, while Beatrix Von Storch, deputy leader of the far-right AfD told CNBC she wants Germany to "stop delivering weapons, stop fueling the war."
RTÉ News
07-05-2025
- Automotive
- RTÉ News
BMW keeps 2025 outlook, but warns US tariffs will bite this quarter
German premium carmaker BMW has today confirmed its 2025 outlook and said it expected some of US tariffs on car imports to decline from July, but warned the duties will have a "notable" second-quarter impact on its business. "The geopolitical and macroeconomic uncertainty has reached a level we have rarely seen before," BMW's Chief Financial Officer Walter Mertl told journalists during a first-quarter earnings call, adding that the carmaker was "closely monitoring" the impact on consumer sentiment. Most of BMW's rivals, including Mercedes-Benz, Ford and Stellantis, have all pulled their 2025 forecasts, saying it was too difficult to come up with proper guidance in light of far-reaching import tariffs in the US, the world's second-biggest auto market. But BMW said its 2025 outlook provided in March that had factored in all tariffs announced up to that point, still stood. The carmaker has forecast earnings before tax on par with 2024 and an operating margin at its automotive segment of 5-7%. BMW said while it could only estimate the potential impact of tariffs in the current year based on certain assumptions, it expected "some of the tariff increases to be temporary, with reductions from July 2025". BMW shares were 2.1% higher at the top of Germany's blue-chip index .GDAXI at 0702 GMT, as the company reported better-than-expected first-quarter EBIT of €2.02 billion at its auto unit, which came in above the €1.85 billion LSEG poll of banks and brokerages. Citing strong orders and cost discipline, the unit's operating margin reached 6.9%, down from the 8.8% in the same period of last year, but beating the 6.3% LSEG poll forecast. "The current pressure on the automotive industry is well known and has left its mark on some industry giants," said Helge Rechberger of Raiffeisen Research. "It is therefore all the more remarkable that BMW is able to meet its targets for the time being." BMW still included the caveat that its actual business performance may deviate if tariffs increase or remain in place for longer than anticipated, also flagging the risk of potential supply bottlenecks for specific parts or raw materials.
Reuters
06-05-2025
- Business
- Reuters
VIEW Merz fails to be elected chancellor by German parliament
LONDON, May 6 (Reuters) - German conservative leader Friedrich Merz failed to garner the parliamentary majority needed to become chancellor on Tuesday in an unexpected setback for his new coalition with the centre-left Social Democrats. German blue chip shares extended their fall slightly on the news and was last down over 1% (.GDAXI), opens new tab, while the broader European share index was down around 0.5% (.STOXX), opens new tab. CARSTEN BRZESKI, GLOBAL HEAD OF MACRO RESEARCH, ING, FRANKFURT: "Well, it (stock markets) reacted but with a delay, showing investors exactly what it is: namely that the government still needs to convince its own supporters that it will be able to deliver. The failed vote is clearly a sign that not everyone in the CDU (Christian Democratic Union) agrees with the fiscal U-turn." HOLGER SCHMIEDING, CHIEF ECONOMIST, BERENBERG, LONDON: "This is a significant negative. He (Merz) is still likely to get elected but this shows that the coalition is not united, which could weaken his ability to pursue policies." STEFAN KOOPMAN, SENIOR MARKET ECONOMIST RABOBANK, AMSTERDAM: "The market still sees Merz eventually becoming Chancellor. While (this is) a bit of an embarrassment, he fell only six votes short this time, and under Germany's constitutional playbook, a Chancellor candidate who fails to secure an absolute majority in three rounds can still squeak through on a relative majority in the fourth." "But it's not a good sign as he already suffers from low approval ratings among voters and the AfD looks to be strengthening."
Yahoo
16-04-2025
- Business
- Yahoo
US stocks drop after Nvidia warns over hit from controls on China exports
US stocks moved lower on Wednesday as trader sentiment took a downturn after a warning from artificial intelligent (AI) giant Nvidia (NVDA) that the US was limiting chip exports to China. London's FTSE (^FTSE) was retreating during the day, but made headway later in the afternoon following gains from mining and energy stocks. The index was up 26.48 points, or 0.32%, to close at 8,275.6. Germany's Dax (^GDAXI) index also staged a recovery on Wednesday afternoon, gaining 0.27% at the end of the day. France's Cac 40 (^FCHI) was treading water, closing 0.07% lower. US stocks were declining when trading began on Tuesday, with the technology-focused Nasdaq (^IXIC) index tumbling about 2%, dragged lower by losses of around 7% for Nvidia. By the time European markets closed, the S&P 500 (^GSPC) was down about 1.2%, and the Dow Jones (^DJI) was 0.5% lower. Nvidia told investors on Tuesday evening that it is expecting to face a 5.5 billion US dollar (£4.2 billion) hit from charges relating to a new licence to ship its chips to China, including Hong Kong. The company said it been informed by the US government that it needs a licence to export its H20 AI chip to China. The requirement will be in place for the 'indefinite future', Nvidia said. Tensions between the US and China have been escalating, with the world's two largest economies steadily increasing tariffs on each other's goods since Donald Trump raised tariffs on dozens of countries. Russ Mould, investment director at AJ Bell (AJB.L), said the update from Nvidia 'marks a new chapter in the escalating tit-for-tat between Washington and Beijing'. He added: 'The deteriorating relationship between the two countries means China's better-than-expected GDP (gross domestic product) figures for the first quarter may not attract too much attention given they cover a period before the Trump administration unleashed its trade policy.' Meanwhile, the price of Brent crude oil soared about 1.6% to 65.70 US dollars per barrel. The pound was continuing to rise against the US dollar, and was up 0.1% to 1.324. However, sterling dropped about 0.8% against the euro, to 1.164. In company news, shares in FTSE 100-listed Bunzl (BNZL.L) plummeted by more than a quarter after the distributor said it had seen weaker sales in its North American business, and flagged a 'significant decline' in its adjusted operating profit. The business, which has its largest market in the US, blamed a 'more uncertain macro environment' following the swathe of new tariffs introduced by Mr Trump on goods entering the country. Bunzl said it was ramping up cost-cutting efforts to try and improve its financial performance. Shares in the company were 25.9% lower at close. Elsewhere, Britain's biggest housebuilder Barratt Redrow (BTRW.L) said its forward home sales were down 10%, compared with the same point last year. Nonetheless, the company said it was on track to complete between 16,800 and 17,200 homes this year, in line with previous forecasts. Shares in the firm closed 2.6% higher. The biggest risers on the FTSE 100 (^FTSE) were Endeavour Mining (EDV.L), up 132p to 2,184p, Shell (SHEL.L), up 63p to 2,434.5p, AB Foods (ABF.L), up 55p to 2,159p, Barratt Redrow (BTRW.L), up 10.9p to 438.6p, and Admiral Group (ADM.L), up 78p to 3,258p. The biggest fallers on the FTSE 100 were Bunzl (BNZL.L), down 788p to 2,290p, Diploma (DPLM.L), down 136p to 3,824p, Intermediate Capital (ICG.L), down 60p to 1,756p, Informa (INF.L), down 23.6p to 691.4p, and Melrose Industries (MRO.L), down 13.2p to 419.4p. Sign in to access your portfolio
Yahoo
15-04-2025
- Automotive
- Yahoo
FTSE 100 LIVE: Stocks rise as JD Vance says 'good chance' of UK trade deal
The FTSE 100 (^FTSE) and Germany's DAX (^GDAXI) were climbed in early trade on Tuesday, as market watchers parse yet more information being drip-fed by the Trump administration about reprieves on tariffs for car manufacturers and other sectors. President Trump's number two, JD Vance, said there was a "good chance" of reaching a trade deal with the UK. "We're certainly working very hard with Keir Starmer's government," Vance said in an interview on Monday with online publication UnHerd. Trump also hinted that car tariffs may be halted or dialled back. 'I'm looking at something to help some of the car companies, where they're switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time because they're going to make them here,' Trump said, adding that 'they need a little bit of time, so I'm talking about things like that.' The FTSE 100 (^FTSE) rose 0.7% in early trade. B&Q parent company Kingfisher (KGF.L) was among the top risers, up about 2.7% following the announcement of a share repurchase programme. The moves higher come following a jobs report that showed UK pay growth remains high. Germany's DAX (^GDAXI) rose 1% ahead of the ZEW economic sentiment reading. The CAC 40 (^FCHI) in Paris fell 0.4%, dragged lower by luxury brands LVMH ( and Kering ( LVMH reported falling sales on Tuesday, as shoppers cut back on luxury goods. On Tuesday investors will be watching corporate earnings. Bank of America (BAC), Citi (C), Johnson & Johnson (JNJ), and PNC (PNC) are set to report their results before the bell in the US. Asian markets rallied, with Japan leading the surge, after President Donald Trump signalled a possible halt to planned auto tariffs—easing investor nerves already soothed by the decision to delay duties on certain consumer tech products. Paige Tao, economist at PwC UK, said: US stock futures fell as President Trump's rapid trade policy shifts kept investors on edge ahead of the next batch of corporate earnings. Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) slumped 0.1%. Futures attached to the tech-heavy Nasdaq Composite (NQ=F) fell 0.2%. On Monday, US stocks rose on the heels of a remarkably volatile week for markets following news the Trump administration would treat tariffs on key electronics separately from duties on specific countries and would impose them at a later date. The president also floated possible tariff exemptions for car companies, sending auto stocks soaring. But any clarity emerging on Trump's trade continued to remain elusive as the president simultaneously pushed forward with plans to place tariffs on pharmaceutical and semiconductor imports. Auto stocks jumped on Monday afternoon after President Trump hinted tariff relief might be coming. 'I'm looking at something to help some of the car companies, where they're switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time because they're going to make them here,' Trump said, adding that 'they need a little bit of time, so I'm talking about things like that.' Trump didn't say whether relief was coming for the 25% tariffs already in place for foreign auto imports or the 25% auto parts tariffs that will be finalized by May 3. Even auto imports covered by the USMCA between the US, Mexico, and Canada are subject to tariffs, but parts originating from the US can be backed out of the tariff calculation. Shares of Big Three automakers General Motors (GM), Stellantis (STLA), and Ford (F) all popped over 3% Monday. Recently, automakers have been scrambling to respond to the daily drip of tariff escalations that began once Trump started his tariff war in earnest following his April 2 "Liberation Day" event. Read more on Yahoo Finance Vicky McKeever writes: UK pay continued to grow much faster than inflation in the three months to February, though the jobs market showed signs of slowing down. The average regular earnings excluding bonuses rose 5.9% in the period on an annual basis, according to data from the Office for National Statistics (ONS), easily outstripping inflation, which came in at 2.8% in February. Annual growth in real terms — adjusted for inflation — was down slightly, at 2.1%, from the previous year, compared with 2.2% for the 12 months to January. There were 781,000 job vacancies between January and March, according to estimates from the ONS, which was down 26,000 on the previous three months. It was the first time since the period between March and May of 2021 that there have been less openings than there were before the pandemic. Early estimates showed that the number of payrolled employees fell by 78,000 in March, following a fall of 8,000 in February. Read more on Yahoo Finance UK Hello from London. Lucy Harley-McKeown here, with the latest news about markets and the economy. This morning we've already had all-important UK jobs and wage data. Later we'll be looking to Germany's ZEW economic survey and earnings from Johnson & Johnson (JNJ), Bank of America (BAC), Citigroup and United Airlines (UAL). Let's get to it. Asian markets rallied, with Japan leading the surge, after President Donald Trump signalled a possible halt to planned auto tariffs—easing investor nerves already soothed by the decision to delay duties on certain consumer tech products. Paige Tao, economist at PwC UK, said: US stock futures fell as President Trump's rapid trade policy shifts kept investors on edge ahead of the next batch of corporate earnings. Futures attached to the Dow Jones Industrial Average (YM=F) and the benchmark S&P 500 (ES=F) slumped 0.1%. Futures attached to the tech-heavy Nasdaq Composite (NQ=F) fell 0.2%. On Monday, US stocks rose on the heels of a remarkably volatile week for markets following news the Trump administration would treat tariffs on key electronics separately from duties on specific countries and would impose them at a later date. The president also floated possible tariff exemptions for car companies, sending auto stocks soaring. But any clarity emerging on Trump's trade continued to remain elusive as the president simultaneously pushed forward with plans to place tariffs on pharmaceutical and semiconductor imports. Auto stocks jumped on Monday afternoon after President Trump hinted tariff relief might be coming. 'I'm looking at something to help some of the car companies, where they're switching to parts that were made in Canada, Mexico, and other places, and they need a little bit of time because they're going to make them here,' Trump said, adding that 'they need a little bit of time, so I'm talking about things like that.' Trump didn't say whether relief was coming for the 25% tariffs already in place for foreign auto imports or the 25% auto parts tariffs that will be finalized by May 3. Even auto imports covered by the USMCA between the US, Mexico, and Canada are subject to tariffs, but parts originating from the US can be backed out of the tariff calculation. Shares of Big Three automakers General Motors (GM), Stellantis (STLA), and Ford (F) all popped over 3% Monday. Recently, automakers have been scrambling to respond to the daily drip of tariff escalations that began once Trump started his tariff war in earnest following his April 2 "Liberation Day" event. Read more on Yahoo Finance Vicky McKeever writes: UK pay continued to grow much faster than inflation in the three months to February, though the jobs market showed signs of slowing down. The average regular earnings excluding bonuses rose 5.9% in the period on an annual basis, according to data from the Office for National Statistics (ONS), easily outstripping inflation, which came in at 2.8% in February. Annual growth in real terms — adjusted for inflation — was down slightly, at 2.1%, from the previous year, compared with 2.2% for the 12 months to January. There were 781,000 job vacancies between January and March, according to estimates from the ONS, which was down 26,000 on the previous three months. It was the first time since the period between March and May of 2021 that there have been less openings than there were before the pandemic. Early estimates showed that the number of payrolled employees fell by 78,000 in March, following a fall of 8,000 in February. Read more on Yahoo Finance UK Hello from London. Lucy Harley-McKeown here, with the latest news about markets and the economy. This morning we've already had all-important UK jobs and wage data. Later we'll be looking to Germany's ZEW economic survey and earnings from Johnson & Johnson (JNJ), Bank of America (BAC), Citigroup and United Airlines (UAL). Let's get to it.
