Latest news with #defencespending
CNA
31-07-2025
- Business
- CNA
Satellite group SES beats forecasts as defence spending rises in Europe
European satellite company SES reported second-quarter results above market expectations and confirmed its 2025 guidance on Thursday, buoyed by its strong backlog of government contracts. "We have a robust pipeline of Government opportunities supported by increased defence spending in Europe," CEO Abdel Al-Saleh said in a statement. SES recently completed its $3.1 billion acquisition of rival Intelsat, aiming to position itself as a key European competitor to Elon Musk's Starlink and Amazon's Project Kuiper alongside French peer Eutelsat. It has forecasted 1.8 billion euros in annual operating profit for the newly-merged entity, and recently appointed David Broadbent, formerly with Intelsat, to lead the combined government and defence divisions. The Luxembourg-based company signed 690 million euros ($789.15 million) worth of new contracts in the first half of 2025, with a gross backlog of 4.2 billion euros at the end of the period. Its total revenue reached 469 million euros in the second quarter, ahead of analysts' 464 million euro forecast provided by SES. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at 241 million euros, which also beat market forecast of 232 million euros. ($1 = 0.8744 euros)
France 24
15-07-2025
- Business
- France 24
French PM unveils budget expected to slash govt spending by €40 billion
French Prime Minister François Bayrou will outline €40 billion in budget cuts on Tuesday, with opposition parties already threatening to topple his minority government if they feel the savings cut too close to the bone. President Emmanuel Macron has left Bayrou the task of repairing public finances with the 2026 budget after his own move to call a snap legislative election last year delivered a hung parliament too divided to tackle spiralling spending and a surprise tax shortfall. Long-time debt hawk Bayrou has tried to warn the French that broad sacrifices are unavoidable, although defence spending will be allowed to increase next year. The cuts, detailed in a late afternoon news conference, will likely involve freezing social benefits while some tax breaks will likely be capped. Bayrou, a veteran centrist, must persuade the opposition ranks in France's fractured parliament to at least tolerate his cuts or risk facing a no-confidence motion like the one that toppled his predecessor in December over the 2025 budget. Bayrou has so far survived eight no-confidence motions. The far-right National Rally party has indicated it will not back the new budget cuts and has already called for another vote on his government. Calling for a new hike in defence spending on Sunday, Macron urged lawmakers not to trigger another no-confidence motion, saying that the one in December had hurt companies and set back a defence build-up by delaying the 2025 budget. "That vote has delayed the defence budget. It is now up to the government to allocate the necessary funds in a timely manner so we can continue to innovate more quickly, to produce more quickly," he said. Left-wing parties will likely baulk at welfare cuts, while the far right warns a broad spending freeze is unfair to French citizens and could prompt them to oppose Bayrou's plans. In the final two years of his second term, the dramatic deterioration of public finances may tarnish Macron's legacy. A political outsider, he was first elected in 2017 on promises to break the right-left divide and modernise the eurozone's second-biggest economy with growth-friendly tax cuts and reforms. Successive crises – from protests, Covid-19 and runaway inflation – have shown he has failed to change the country's overspending habit, however. Bayrou aims to reduce the budget deficit from 5.4 percent of GDP this year to 4.6 percent in 2026, ultimately targeting the EU's 3 percent fiscal deficit limit by 2029. With interest payments potentially becoming the biggest budget outlay, financial markets and ratings agencies are keen to see whether Bayrou can get his plans through parliament without triggering another political collapse.
Telegraph
15-07-2025
- Business
- Telegraph
Asylum hotel costs push foreign aid to lowest in 50 years
The UK is spending so much money on housing asylum seekers that the amount of foreign aid for poorer countries will fall to its lowest level for 50 years, a watchdog has revealed. About a fifth of the foreign aid budget is being used to put up asylum seekers in hotels and other accommodation and give them financial support, according to the Independent Commission for Aid Impact (ICAI). Sir Keir Starmer has also committed Labour to reducing foreign aid from 0.5 per cent of national income to 0.3 per cent, to pay for increased defence spending. These two factors mean the money left for poorer countries will hit its 'lowest level relative to national income in more than 50 years', according to the ICAI. The watchdog calculated it would amount to just 0.24 per cent of the UK's gross national income, less than the previous record low of 0.3 per cent in 1999. The cost of asylum accommodation and support is projected to be £1.8 billion in 2027/28, down from £2.2 billion in 2026/27 as ministers seek to scale back the use of hotels. Sir Keir Starmer has pledged to stop using them by the end of the Parliament in 2029. The most recent Home Office figures show that there were about 32,000 asylum seekers in hotels at the end of March, down from a high of more than 50,000 at a cost of £6 million a day in June 2023. Under the international rules, some of the costs involved in supporting refugees and asylum seekers during their first year in a donor country can count towards a country's foreign aid budget. The amount spent from the foreign aid budget on asylum costs has ballooned from £628 million (4.3 per cent of total) in 2020 to £4.3 billion (27.9 per cent) in 2023. It is expected to be £2.8 billion (20.1 per cent) in 2024. The ICAI blamed large refugee visa schemes such as those for Ukrainians and Afghans and the small boats crisis that has seen more than 140,000 migrants arrive in the UK after crossing the Channel. 'However, the biggest factor was the widespread and long-term use of hotels to house asylum seekers and Afghan refugees,' the ICAI said. 'Before the Covid-19 pandemic, hotels were used only occasionally, as short-term bridging accommodation. By October 2022, lengthy stays in over 400 hotels were costing £6.8 million per day.' The watchdog noted that while other European countries had seen large rises in their use of foreign aid for housing asylum seekers, the UK was double the average of 33 OECD donor countries. In 2023, the UK's use of foreign aid money on asylum seekers was triple that of other European donors such as France, Germany and Sweden, due mainly to the high cost of hotel accommodation. Harold Freeman, the ICAI commissioner, said: 'The UK's development programme is at a turning point, with budget reductions coming against a backdrop of increasing global conflicts, climate threats and rising humanitarian needs. 'At the same time, UK asylum costs are likely to continue to absorb a significant proportion of our aid funding. 'The Government has already taken steps to address some of the flaws in the system for managing aid identified by past ICAI work. 'But further changes will likely be needed to maximise the impact and value for money of the remaining development budget.'
CTV News
07-07-2025
- Business
- CTV News
Carney cabinet called to find day-to-day operational savings by end of summer
Prime Minister Mark Carney speaks during Canada Day celebrations at LeBreton Flats in Ottawa, on Tuesday, July 1, 2025. THE CANADIAN PRESS/Spencer Colby Finance Minister François-Philippe Champagne, along with Treasury Board President Shafqat Ali, issued letters to Prime Minister Mark Carney's cabinet on Monday, asking them to present plans by the end of summer to find day-to-day operational savings, according to a spokesperson from Champagne's office. The move comes as the federal government prepares a 2025 budget set to be tabled this fall. CTV News has learned ministers must find 7.5 per cent savings for the 2026-27 fiscal year that begins on April 1, 2026, followed by 10 per cent in 2027-28 and 15 per cent in 2028-29. A spokesperson for Champagne tells CTV News the goal is to find 'long-term savings.' In recent weeks, the Carney government has faced criticism over how it will reach its fiscal targets despite new spending promises, including a middle-class tax cut and a $9.3 billion boost to meet NATO's defence spending target of two per cent of GDP by this fiscal year. Carney also pledged last month to hit NATO's new five per cent of GDP target by 2035, which the prime minister told CNN International could cost $150 billion annually. A new report from the C.D. Howe Institute released last week said it projects Canada's deficit could top $92 billion this fiscal year alone, in part due to new defence spending commitments. 'The new 5 per cent defence commitment, even if its fiscal impact will be felt mostly in the later years, further highlights the need for difficult tax and spending trade-offs,' the report writes. 'Given the scale of the new defence commitment, on top of the fiscal challenges created by the old one, it is all the more important for the government to ensure proper accountability.' During the federal election, Carney promised to divide the federal budget into two new categories – operating costs and capital investments. He also committed to balancing the operating budget by 2028. According to its platform, the Liberal Party promised to 'bring revenues in line with total operating spending and eliminate this gap – currently estimated at about $15B a year – by Budget 2028.' Meanwhile, in a post to X on Monday, Carney reiterated his pledge to 'spend less so we can invest more.' 'Canada's new government will spend less on government operations so we can invest more in Canada — to create high-paying careers, build up our country, and grow our economy,' Carney wrote. Speaking to reporters in Trenton, Ont. on Monday, Defence Minister David McGuinty acknowledged he had received a letter on the directive to find operational savings. 'I haven't had a chance to talk to my colleague, but I have been part of no discussions with respect to, for example, significant social services cuts at the federal level in order to achieve our defence priorities,' McGuinty said. Champagne is expected to table a federal budget later this fall after the House of Commons returns in September. The federal government faced criticism in May after Champagne initially said the Liberals were not planning on tabling a budget this year – a decision that was quickly reversed by Carney just days later. Last December's Fall Economic Statement was the last update Canadians received on the state of the federal government's finances – which showed the federal government under former prime minister Justin Trudeau hit a $61.9 billion deficit in 2023-24, blowing through its own fiscal guardrail. The statement also projected a $48.3 billion deficit in 2024-25 and a $42.2 billion deficit in 2025-26.
Yahoo
06-07-2025
- Business
- Yahoo
The Rolls-Royce share price hit an all-time high last week. Too late to buy?
Last week – as has happened quite often in the past few months – Rolls-Royce (LSE: RR) hit another new all-time high. The trajectory of the Rolls-Royce share price over the past several years has been simply spectacular. The share has soared 951% over the past five years. That has made a lot of investors very happy. The question for me is, am I too late to join them? Normally, if I hear of a large business that has seen its share price grow by anything like that amount, I wonder whether the share price has got carried away with itself. When it comes to the Rolls-Royce share price however, I do think a case can be made for why it has risen so much. During the pandemic, the company was on its knees. Civil aviation flying hours had slumped and with it Rolls' order book, not just for engine sales but also in the lucrative servicing market. Since then, aviation demand has come back in a big way. Defence spending has also grown in a way few people would have expected even just a few years ago. Meanwhile, a change of management at the storied aeronautical engineer has seen it extend an aggressive cost-cutting programme as well as setting ambitious medium-term targets. It even met some of those ahead of schedule and so set more ambitious goals. That has been music to the City's ears. Still, while the business has improved markedly, that soaring share price means that Rolls-Royce shares now trade for 32 times earnings. I do not see that as cheap. In fact, it is too expensive for my tastes. I do not think it would offer me sufficient margin of safety for another unexpected event like a pandemic or terrorist campaign suddenly wiping out air travel demand again. So at the current price, I will not be investing. Different investors strike their own balance between risks and potential rewards however. I can see why a price-to-earnings (P/E) ratio of 32 might look reasonable. After all, Rolls' efficiency programme combined with strong end markets ought to push up earnings per share significantly in coming years. On that basis alone, the prospective P/E ratio could be well under 32. That alone could help the Rolls-Royce share price. The more management delivers on its promises, the more willing I think investors will be to assign a premium when valuing Rolls-Royce's shares. I also think that the FTSE 100 firm will likely benefit from significantly higher customer spending in all three of its divisions in coming years. Airlines have been buying lots of new planes over the past year, defence spending has soared and power generation is also an industry seeing ongoing growth. So do I think today's Rolls-Royce share price is a bargain? No. However, do I think it could move up even from its current levels in years to come? Yes, I do. But the risks sit uncomfortably with me at the current valuation, so I will not be investing. The post The Rolls-Royce share price hit an all-time high last week. Too late to buy? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool C Ruane has no position in any of the shares mentioned. The Motley Fool UK has recommended Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
