最新ニュース Saab (OTC:SAABF) 株価情報

Saab supplies products and services for military, defense, and civil security. The company operates in four segments: aeronautics, dynamics, surveillance, and Kockums. Aeronautics involves the manufacturing and support of defense and commercial aerial systems. Dynamics produces combat weapons and defense training and management systems. Surveillance supplies security services, and creates traffic management technology and aviation parts. Kockums offers solutions for naval missions. Over three fourths of Saab's sales are from the defense sector. The company sells to multiple geographic regions, but over half of its sales come from Europe.

Saab AB

A Trump presidency<a href="https://europeancapitalinsights.substack.com/p/europe-frets-about-recession-after?r=3nmatg"> has raised concern in Europe that a new round</a> of tariffs under his <a href="https://www.euronews.com/business/2024/11/04/how-much-could-trumps-tariffs-damage-europes-economy">administration will cause a economic recession</a> in Europe.
A trade war during Trump's four-year term would also increase the probability of the European Central Bank (ECB) cutting rates faster to spur growth. Analysts issued pessimistic outlooks for European economic growth after Trump won the election.
On election day, the US dollar rallied sharply, sending the euro to a four-month low and boosting Bitcoin by 10% to a record high. 
European stocks exposed to the US have already shown their vulnerability. A Barclays basket of 28 <a href="https://markets.businessinsider.com/news/stocks/europe-trump-win-outlook-trade-war-tariff-crypto-djt-election-2024-10">European stocks sensitive to US tariffs</a> has underperformed the broader STOXX600 index by 15% this year.
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXct8vnUjY-sPthKAo54TyYzmMYbFqSL4UEAYKQ92gAtCRQgUelVyEGMtqrSv5-U9J6NvK7t574p40MtP_A5qNqhIcmcpalKh6Mo9wsCHR4vajc8gXwstW6pEO71UptWP9JJCG9DNX2_i2uFfEmKYzcnqF5rE03Y8J96wUCGAoSoj95B14a5yVE?key=heoBp3pffbhAPsc75vkVjtPK" alt="" style="width:624px" /></figure>
European stocks vulnerable to Trump tariffs, Source: Barclays Equity Research&nbsp;
&#8220;Tariff concerns have been a drag on EU equities&#8217; relative performance year-to-date,&#8221; Barclays analysts led by Emmanuel Cau wrote in a note on October 23. A basket of European stocks at risk of Trump tariffs declined compared to those geared toward Democrat policies.&nbsp;
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfLgvwadHYOazAM9Zi-a21uG9w7SBpC9fl_QTuUaoa3Zmta_kqPhfkbiEU1xgFnSvUYlS6ptCm16qeL0eKpnr4tl4Pj77Qz28PN6Gn4NPCI-aS736Rq-lP9TRf94MPI5aXAeKN_myLiVpshQNhbRPYpEacxegs_pBRx9iSN?key=heoBp3pffbhAPsc75vkVjtPK" alt="" style="width:624px" /></figure>
European stocks sensitive to Trump fall, Source: <a href="https://www.bloomberg.com/news/articles/2024-11-06/european-stock-futures-drop-over-tariff-worries-as-trump-leads?srnd=phx-fixed-income">Bloomberg</a>
<h3 class="wp-block-heading">Trump Presidency Could Impact Europe's GDP</h3>
The European Union (EU) will need to confront the reality of a much different relationship with its largest trading partner from January 20. Previous <a href="https://www.euronews.com/my-europe/2024/10/24/would-donald-trumps-trade-tariffs-hurt-europe">tariffs on 6.4 billion in EU steel and aluminum</a>, alongside threats on automotive imports, have shown how US protectionism can reverberate through European economies.&nbsp;
Trump&#8217;s potential trade policies in 2025, including a proposed 10% to 20% <a href="https://www.ft.com/content/c0f1d1b9-8348-4b7d-8ab7-186fcf2ebbd1">tariff on European goods</a>, pose a substantial threat to European growth. Following Trump&#8217;s win, Goldman Sachs <a href="https://www.ft.com/content/783a573c-7ff3-461c-86f5-f194a89e3926">downgraded Europe's growth</a> for 2025 from 1.1% to 0.8%, citing limited European auto exports.
The German economic institute IW believes the <a href="https://www.reuters.com/markets/europe/trump-presidency-could-deal-heavy-blow-germanys-flagging-economy-2024-10-24/">Eurozone&#8217;s GDP could decline by 1.5%</a> in 2027 and 2028. Goldman Sachs expects a 1% reduction if a 10% universal tariff is implemented instead.
Historically, Trump&#8217;s tariffs have hampered European growth due to steep declines in exports, a trend that could repeat. Major exports to the US accounted for ~90% of all European transatlantic exports in 2023 to €502.3 billion, European Commission (EC) data showed.&nbsp;
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcvDK80Z1hUJyXyvBBoAMMZeFNr-xIVF1HOlXtj5f6tyZXetVpHGPs9afu43LAEz62sGA2rBTRYFExGxZIpot6NEMoR9FSz8MZpQOWeaegFSiq-af0hbjlqRKJQcifBBKtRYdpvm-brz9WvSj6543imX5QpjbXn9iE8MSyrl2c9XKSTRVJvkWo?key=heoBp3pffbhAPsc75vkVjtPK" alt="" style="width:624px" /></figure>
EU trade with the US by product, Source: European Commission
<h3 class="wp-block-heading">Trump Presidency Could Cause Eurozone GDP Loos</h3>
The blow to the Eurozone from a potential 1.5% GDP reduction could translate to a €260 billion loss on an estimated GDP of €17.4 trillion for 2024. This is over half the entire transatlantic exports registered in 2023.
"The direct effects and the indirect effects and the <a href="https://www.bloomberg.com/news/articles/2024-11-06/ecb-s-guindos-warns-of-huge-implications-of-trump-tariff-plans">deviations of commerce will be huge</a>, ECB Vice-President and French central bank head Francois Villeroy said on Wednesday.
Even the lower end of the proposed tariffs would compel ECB policymakers to cut rates more aggressively in 2025 if Trump implements his economic policies. Sven Jari Stehn of Goldman Sachs said in a note on Wednesday that he expects the ECB to cut an additional quarter-point in July.
&#8220;The American election must sound like <a href="https://www.reuters.com/markets/ecbs-villeroy-trump-election-means-more-risks-world-economy-2024-11-06/">a wakeup call for Europe</a>,&#8221; Villeroy said.&nbsp;
<h3 class="wp-block-heading">Germany At Greater Risk From Trump Presidency</h3>
Nations with large trade surpluses with the US face significant risks from policies that have strained transatlantic economic relationships in the past.&nbsp;
&#8220;Half of Germany&#8217;s growth always comes from exports and if you look at what&#8217;s going on in the world, you have to say that this pillar is under attack,&#8221; Germany's Economy Minister Robert Habeck said in October.&nbsp;
Germany exported over €157.7 billion of goods to the US in 2023. However, exports to the US contracted by 0.3% amid slowing demand and geopolitical escalation.&nbsp;
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcunKZmSO2PXjTxoH5i3tumZTnE67LZaCy7n4plCOQCM-KaRa1NuHKfI4lwpeo7MwLbb0Aqn3RC9uLnOkJStOR3w4q2RuS55tghIU6m7QH1DLzfjJN5JdP3W4yQjJtarOqVnK06z5h7keeKLRkVAAEVOWJuwmL_gOl6HSiH65l3dYNqP9_E8Tc?key=heoBp3pffbhAPsc75vkVjtPK" alt="" style="width:624px" /></figure>
Germany Exports to the US, 2012-2023, Source: Tradingeconomics
Dirk Schumacher, head of European macro research at Natixis Corporate &amp; Investment Banking Germany, says a 10% tariff increase could reduce Germany&#8217;s GDP by approximately 0.5%. A study by the Hans Boeckler Foundation macroeconomic institute suggests a <a href="https://www.reuters.com/markets/europe/trump-presidency-could-deal-heavy-blow-germanys-flagging-economy-2024-10-24/">1% GDP erosion by 2026 if Trump implemented a 20% tarif</a>f.&nbsp;
<h3 class="wp-block-heading">Germany Is Only G7 Nation Without Growth For Two Years</h3>
Germany remains the only G7 nation that has <a href="https://www.euronews.com/business/2023/07/30/germany-expected-to-be-only-major-economy-not-to-grow-this-year">failed to grow for two years</a> due to higher energy prices, borrowing costs, and a slow rebound in China. Europe&#8217;s largest economy would suffer if its largest trading partner reduced output and imposed tariffs on China.
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfbVgaykBooXaV2_V2tFat4uPtjSxEtqJGbs1aXsckrchdNTyahnrivFRGcxzAeLoaUgFZv01KIV-g8Yk9HsuFFKgTBaSOSnOMknWvtj2G33RbD160IYtL7hnpn4l8SEaHdqM7rlcRtquZTqdr_AIIQEqM4qaXq4XQsubxXGLI35Dt86aCL_ds?key=heoBp3pffbhAPsc75vkVjtPK" alt="" style="width:624px" /></figure>
German Exports to China, 2020-2024, Source: <a href="https://www.ceicdata.com/en/germany/trade-statistics-by-country/exports-china">CEIC</a>
&#8220;Germany isn&#8217;t going to be bailed out by a restoration of growth in China," Jacob Funk Kirkegaard, senior fellow at Bruegel and the Peterson Institute for International Economics, told Reuters.
An Ifo study found that German exports to China and the US could fall by 9.6% and 14.9% in a full-scale trade war scenario in which the US imposes a 60% tariff on Chinese goods. Pharmaceutical and car exports would be hit the hardest, down 35% and 32%, the Ifo said.
Trump's tariffs would substantially trim European exports to the US, possibly creating a cycle of retaliation.
<h3 class="wp-block-heading">Swift Retaliatory Action From Europe</h3>
Nigel Green, CEO of deVere Group, believes that Trump's presidency would initiate a new trade war with Europe but sounded the alarm of swift retaliation.&nbsp;
"The market is <a href="https://www.financialmirror.com/2024/10/29/trump-trade-war-with-europe-would-hurt-us-stocks/">underestimating the risk of swift European retaliation</a> and the pressure this could place on key American stocks," he said.
Retaliatory measures could hit US earnings in the S&amp;P 500 by 1.5% next year. However, European stocks exposed to US tariffs could plunge as much as 7%, according to Barclays.&nbsp;
&#8220;In the event of a full-blown trade war, we could see up to a high single-digit drag on EPS growth with Germany," Barclays' head of European equity strategy, Emmanuel Cau, said. However, Goldman Sachs believes that a 1% GDP loss, if transported, would erase EPS growth for 2025.
Certain European sectors could still gain from a Trump presidency.&nbsp;
<h3 class="wp-block-heading">Defense Will Benefit From Trump Presidency&nbsp;</h3>
In addition to the energy sector, defense companies could see increased demand from European nations under a Trump Presidency. He is likely to push them to increase their NATO defense spending.&nbsp;
Earlier in 2024, <a href="https://www.theguardian.com/world/2024/feb/14/nato-chief-rebukes-donald-trump-and-announces-record-defence-spending">he threatened to "not protect"</a> any alliance members that failed to ramp up their defense spending to the 2% GDP target.&nbsp;
Following the warning, NATO claimed that more than 18 members would <a href="https://www.euractiv.com/section/defence-and-security/news/nato-says-18-members-will-reach-2-spending-target-this-year/">surpass the 2% target </a>this year. The number of allies meeting or exceeding the target soared to 23 this year, prompting <a href="https://breakingdefense.com/2024/10/trump-wants-nato-to-hit-3-percent-gdp-on-defense-the-us-could-fall-short/">Trump to raise the bar to 3% of GDP</a>.&nbsp;
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeZHW4VZpdEt-DWO4ekjR7UlrTXpLl0U3oYjPArwQ23JgwiOyv-MQt9EkTOATSvEu0hHQ9HLnkkQbdG2dmLCJQVZm42BqZNmLcIE_HEdaNGpHnBJJuZWpF2fF_xp61i66oBsWk44hSOdsCcbrEs91RBX3N4R3C_fDi1DQetJh3FM3SV4dgExw?key=heoBp3pffbhAPsc75vkVjtPK" alt="" style="width:624px" /></figure>
NATO members&#8217; defense expenditure as a share of GDP, 2024e, Source: <a href="https://www.nato.int/nato_static_fl2014/assets/pdf/2024/6/pdf/240617-def-exp-2024-en.pdf">NATO</a>
After taking office, Mark Rutte, the new Secretary General of NATO, said, &#8220;thanks to Trump&#8221; NATO increased defense spending. In Europe, <a href="https://www.aljazeera.com/news/2024/7/11/how-much-does-each-nato-country-spend-in-2024">Poland doubled the defense spending target</a> at 4.12% and Estonia by 3.43%, followed by Latvia and Greece.
<h3 class="wp-block-heading">European Stocks For Trump Presidency</h3>
Poland, Estonia, Latvia, and Greece have been increasing their defense spending and primarily source military equipment from a combination of US and European defense contractors.&nbsp;
<a href="https://www.nationaldefensemagazine.org/articles/2024/9/24/politics-of-war-color-polands-record-defense-spending#:~:text=Poland's%20recent%20procurement%20deals%20with,loan%20agreement%20announced%20in%20July.">Poland agreed to buy 32 F-35 jets, Apache helicopters and Abrams tanks</a> made by American companies Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>)  and Boeing (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) and <a href="https://www.defensenews.com/global/europe/2024/03/05/saab-wins-polish-mega-order-for-carl-gustaf-recoilless-rifles/">signed a contract with Saab </a>(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SAABF#OTC">SAABF</a>) earlier in the year to supply ammunition, training equipment, and recoilless rifles. It also awaits delivery of Raytehon's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>) LTAMDS radars for its Patriot systems. 
Estonia has<a href="https://www.defensenews.com/global/europe/2023/06/13/estonias-global-arms-buying-spree-seeks-drastic-combat-gains/"> existing ties</a> with Germany&#8217;s Rheinmetall (OTC:<a class="ticker" href="https://www.benzinga.com/stock/RNMBY#OTC">RNMBY</a>), <a href="https://eng.lsm.lv/article/society/defense/04.07.2024-latvia-currently-in-natos-top-four-on-defense-spending.a560311/">Latvia with LMT</a> and <a href="https://www.airforce-technology.com/news/greece-orders-additional-rafale-jets/">Greece with French manufacturer</a> Dassault Aviation (OTC:<a class="ticker" href="https://www.benzinga.com/stock/DUAVF#OTC">DUAVF</a>), along with LMT, <a href="https://www.naval-technology.com/news/us-approves-sale-of-mmsc-ships-greece/?cf-view">BAE Systems </a>(OTC:<a class="ticker" href="https://www.benzinga.com/stock/BAESY#OTC">BAESY</a>)<a href="https://www.naval-technology.com/news/us-approves-sale-of-mmsc-ships-greece/?cf-view"> and repair leader VSE </a>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VSEC#NASDAQ">VSEC</a>).
Disclaimer:
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.
This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content&nbsp;or&nbsp;accuracy.

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Trump Presidency Raises Concerns About European Recession

European defense contractors<a href="https://open.substack.com/pub/europeancapitalinsights/p/european-defense-contractors-will?r=3nmatg&amp;utm_campaign=post&amp;utm_medium=web&amp;showWelcomeOnShare=true"> have focused on their submarine </a>and naval asset production to meet rising demand for advanced underwater systems as geopolitical tensions spur an increase in military spending.&nbsp;
European makers of submarines have benefited from the 6.8% annual increase in global military expenditures to <a target="_blank" rel="noreferrer noopener" href="https://www.sipri.org/media/press-release/2024/global-military-spending-surges-amid-war-rising-tensions-and-insecurity#:~:text=Military%20expenditure%20increases%20in%20all,'">$2.4 trillion in 2023</a>. As geopolitical tensions heighten and defense priorities shift, the global submarine market will reach $13.3 billion by 2029 from $9.21 billion in 2024, according to a<a target="_blank" rel="noreferrer noopener" href="https://www.mordorintelligence.com/industry-reports/submarine-market"> Mordor Intelligence report</a>.&nbsp;
"Governments worldwide are increasingly eyeing advanced submarine systems," Mordor Intelligence said. "The global demand for submarine systems is surging, especially in roles like naval intelligence and mine countermeasures operations."
<figure class="wp-block-image is-resized"><a href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fec561aa9-2acd-482e-8b50-9238754b2971_770x393.png" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fec561aa9-2acd-482e-8b50-9238754b2971_770x393.png" alt="" style="width:624px" /></a><figcaption class="wp-element-caption">Submarine Market Size, 2019-2029, Source: Mordor Intelligence</figcaption></figure>
A <a href="https://www.mordorintelligence.com/industry-reports/submarine-market" target="_blank" rel="noreferrer noopener">spike in terrorism on international waters</a> and the need for underwater reconnaissance in rival territories are also driving the demand for naval assets, according to Mordor's report. "A notable trend is the adoption of crewless submarines for enhanced threat detection," it said.&nbsp;
The ongoing war in Ukraine and military strikes between Iran and Israel have spurred European defense spending. <a target="_blank" rel="noreferrer noopener" href="https://www.euronews.com/2024/04/22/military-spending-in-western-and-central-europe-higher-than-end-of-cold-war-data-shows">It increased 16%</a> to €552 billion in 2023, according to the Stockholm International Peace Research Institute (SIPRI).&nbsp;
<figure class="wp-block-image is-resized"><a href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F88161dd1-9665-4388-b5f7-ab4b948e8bec_672x419.png" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F88161dd1-9665-4388-b5f7-ab4b948e8bec_672x419.png" alt="" style="width:624px" /></a><figcaption class="wp-element-caption">European Military Spending, 2023, Source: Stockholm International Peace Institute</figcaption></figure>
<h3 class="wp-block-heading">European Defense Spending Increases After Trump Pressure</h3>
Overall, <a target="_blank" rel="noreferrer noopener" href="https://www.iiss.org/online-analysis/military-balance/2024/07/nato-defence-spending-a-bumper-year/">NATO spending increased by 11% in 2024,</a> compared to 3% in 2023, according to the International Institute for Strategic Studies. Growth was even stronger among NATO's European members, who increased their combined military spending by 19% in real terms in 2024, it said.&nbsp;
NATO countries have accelerated their military expenditures to combat Russian threats in Eastern Europe. They did so after Donald J. Trump criticized them for missing their defense spending commitments.
If the former president wins the US elections today, NATO members worry that Trump may take a hostile or isolationist approach if the alliance's members do not increase spending.
So far, the number of NATO members reaching their 2% of GDP defense spending commitment has increased. Only four NATO members had reached the alliance&#8217;s target in 2017, compared to the 23 expected this year.&nbsp;&nbsp;
<figure class="wp-block-image"><a href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F08fedab7-aff5-4c3a-baac-cead3132afed_681x420.png" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F08fedab7-aff5-4c3a-baac-cead3132afed_681x420.png" alt="" /></a><figcaption class="wp-element-caption">Number of NATO memes meeting 2% commitment, Source: <a target="_blank" rel="noreferrer noopener" href="https://www.nato.int/nato_static_fl2014/assets/pdf/2024/6/pdf/240617-def-exp-2024-en.pdf">NATO</a></figcaption></figure>
Underscoring the European shift, Germany and the United Kingdom signed on October 22 a defense agreement to strengthen security in Europe in "<a target="_blank" rel="noreferrer noopener" href="https://www.gov.uk/government/news/landmark-uk-germany-defence-agreement-to-strengthen-our-security-and-prosperity">the face of growing Russian aggression and increasing threats</a>."&nbsp;
"We must not take security in Europe for granted," German Defense Minister Boris Pistorius <a target="_blank" rel="noreferrer noopener" href="https://www.gov.uk/government/news/landmark-uk-germany-defence-agreement-to-strengthen-our-security-and-prosperity">said</a>. "With projects across the air, land, sea, and cyber domains, we will jointly increase our defense capabilities, strengthening the European pillar within NATO."
The Trinity House Agreement includes a Rheinmetall (OTC:<a class="ticker" href="https://www.benzinga.com/stock/RMBY#OTC">RMBY</a>) artillery gun barrel factory using British steel produced by Sheffield Forgemasters, in the UK. It will support more than 400 jobs and nearly half a billion-pounds boost to the British economy.&nbsp;
<h3 class="wp-block-heading">European Submarine Spending Rises In Dangerous World</h3>
The UK has also bolstered its defense investments with a £560 million contract for the <a target="_blank" rel="noreferrer noopener" href="https://www.gov.uk/government/news/560-million-investment-to-modernise-nuclear-submarine-supporting-more-than-1000-jobs">modernization of HMS Victorious</a>, a Vanguard-class ballistic missile submarine, in March.
Awarded to Babcock International, a leading provider of naval ship support and maintenance, the investment supports the UK's Continuous at Sea Deterrent, a critical component of its national security.
"In an increasingly dangerous world, we must continue to invest in one of our most important assets, our nuclear deterrent," British Defense Secretary Grant Shapps said when the deal was signed.&nbsp;
Poland plans to allocate<a target="_blank" rel="noreferrer noopener" href="https://www.theparliamentmagazine.eu/news/article/as-nato-countries-spend-more-on-defence-poland-leads-by-example#:~:text=%E2%80%9CPoland%20is%20going%20to%20be,until%20we%20have%20enough%20ammo.%E2%80%9D"> 4% of its GDP to military spending by 2024</a>, focusing on acquiring<a target="_blank" rel="noreferrer noopener" href="https://www.trade.gov/country-commercial-guides/poland-defense-industry#:~:text=Overview&amp;text=Poland%20leads%20the%20former%20Eastern,exceed%204%20percent%20of%20GDP."> new naval assets</a> under the reconfigured<a target="_blank" rel="noreferrer noopener" href="https://www.naval-technology.com/news/naval-primes-positioning-for-polands-orka-submarine-programme/?cf-view"> Orka submarine program</a>. This initiative seeks up to four new submarines, with South Korea's Hanwha and the UK's Babcock positioning to meet Poland&#8217;s requirements.
<h3 class="wp-block-heading">European Defense Contractors Benefit From Submarine Spending</h3>
European defense contractors, such as Saab AB, BAE Systems and France's Navel Group, are benefitting from the push to develop European naval capabilities.&nbsp;&nbsp;
Saab (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SAABF#OTC">SAABF</a>) anticipates <a target="_blank" rel="noreferrer noopener" href="https://www.investing.com/news/stock-market-news/earnings-call-saab-reports-robust-q3-growth-plans-us-expansion-93CH-3675919">organic sales growth between 15% to 20%</a> for the year, aiming for the higher end in 2024. The company expects to double production capabilities by late 2025 and maintain a positive operating cash flow by the end of next year.&nbsp;
<a target="_blank" rel="noreferrer noopener" href="https://www.saab.com/newsroom/press-releases/2024/saab-q3-2024-resultsstrong-sales-growth-and-cash-flow">Saab's stock has increased 43% year-to-date</a>, buoyed partly by strong demand for its Saab Kockums submarines and international partnerships.
<figure class="wp-block-image is-resized"><a href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F2d06aa0c-c99d-4285-9464-856ee3ec3a93_1552x778.png" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F2d06aa0c-c99d-4285-9464-856ee3ec3a93_1552x778.png" alt="" style="width:624px" /></a><figcaption class="wp-element-caption">Saab 12-month stock performance, Source: <a target="_blank" rel="noreferrer noopener" href="https://www.tradingview.com/chart/Fl8iqpOT/?symbol=OMXSTO%3ASAAB_B">TradingView</a></figcaption></figure>
"We have seen an extreme interest now for combat boats in Saab Kockums," CEO Micael Johansson said during the company's third quarter results call. "The mix is nice still in Saab Kockums when it comes to surface activities, the underwater activities, which, of course, mainly the submarines."
<a target="_blank" rel="noreferrer noopener" href="https://www.gov.uk/government/news/uk-firm-appointed-to-build-australian-aukus-submarines">British defense giant BAE Systems</a> (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BAESY#OTC">BAESY</a>) will build Australia's nuclear-powered submarines as part of the AUKUS partnership alongside ASC Pty Ltd.&nbsp; BAE Systems <a target="_blank" rel="noreferrer noopener" href="https://www.baesystems.com/en/article/bae-systems-awarded-92-million-us-navy-contract-for-virginia-class-submarine-propulsors">signed on October 3 a $92 million contract</a> with the US Navy for Virginia-class submarines.&nbsp;
The company's share is up approximately 13% year-to-date.
Disclaimer:
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.
This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content&nbsp;or&nbsp;accuracy.

RMBY

European Defense Contractors Will Benefit From Global Submarine Demand

Boeing Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) penned a&nbsp;<a class="editor-rtfLink" href="https://www.saab.com/newsroom/press-releases/2023/saab-and-boeing-sign-787-dreamliner-agreement" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">contract expansion agreement&nbsp;</a>with&nbsp;SAAB AB&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/saabf#OTC">SAABF</a>) for manufacturing of large cargo doors, bulk cargo doors and access doors for the 787 Dreamliner.
This is an extension of an existing contract signed with SAAB in 2004 for the 787 Dreamliner program.
Since the program started, SAAB has delivered over 1,100 shipsets for the Boeing&#39;s 787 Dreamliner program.
&quot;With this contract extension we continue to be a proud partner to Boeing on the successful 787 programme, one of the world&#39;s best-selling widebody aircraft. It strengthens our good and long relationship with Boeing and enhances the cooperation we have, both on commercial aerostructures and the T-7A trainer on the defence side,&quot; said Lars Tossman, head of SAAB&#39;s business area Aeronautics.
Last month, Boeing warned of delivery delays of 737 MAX jets&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/23/08/34024370/boeing-shares-are-trading-lower-thursday-whats-going-on" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">due to a manufacturing defect</a>.&nbsp;
Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/markets/equities/23/08/34133969/boeing-pauses-south-carolina-operations-due-to-hurricane-idalia-report" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">Boeing Pauses South Carolina Operations Due To Hurricane Idalia: Report</a>
Price Action: BA shares are trading lower by 0.48% at $222.32 on the last check Tuesday.
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Boeing Expands Contract With SAAB For 787 Dreamliner Program

<ul>
<li>Air Canada&nbsp;(OTCMKTS: ACDVF) said it would&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/22/09/n28879399/air-canada-to-acquire-30-es-30-electric-regional-aircraft-from-heart-aerospace" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">buy electric planes</a>&nbsp;for the first time by acquiring 30 battery-powered regional aircraft from Sweden-based Heart Aerospace.</li>
<li>The release did not disclose a value for the deal.</li>
<li>The revolutionary regional aircraft, expected to enter service in 2028, will generate zero emissions flying on battery power and yield significant operational savings and benefits.</li>
<li>Heart&#39;s electric-hybrid aircraft under development, dubbed ES-30, will have a capacity for up to 30 passengers and generate zero emissions when they enter service, expected in 2028.</li>
<li>The aircraft will be powered by lithium-ion batteries, quieter, have better operational parameters, and have a smaller environmental footprint.&nbsp;</li>
<li>It will also be equipped with reserve-hybrid generators that can use sustainable aviation fuel. Fully loaded, the ES-30 is projected to have an all-electric, zero-emission range of 200 km extendable to 400 km with power supplemented by the generators and up to 800 km if the load is restricted to 25 passengers.&nbsp;</li>
<li>Charging time for the aircraft is expected to be 30-to-50 minutes.</li>
<li>&quot;Air Canada has taken a leadership position in the industry to address climate change. Introducing our fleet of the ES-30 electric regional aircraft from Heart Aerospace will be a step forward to our goal of net zero emissions by 2050,&quot; said Michael Rousseau, President &amp; CEO of Air Canada.</li>
<li>Concurrently, Air Canada and&nbsp;Saab AB&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/saabf#OTC">SAABF</a>) have each&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/22/09/g28879230/heart-aerospace-unveils-new-airplane-design-confirms-air-canada-and-saab-as-new-shareholders" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">invested $5 million</a>&nbsp;in Heart Aerospace.&nbsp;</li>
<li>Saab is a Swedish aerospace and defense company.</li>
<li>Previous orders for Heart Aerospace&#39;s ES-19 electric airplane were placed by&nbsp;United Airlines Holdings Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ual#NASDAQ">UAL</a>) and&nbsp;Mesa Air Group Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mesa#NASDAQ">MESA</a>) for 200 electric aircraft with an option for an additional 100 planes.</li>
</ul>

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Air Canada Joins the List of United Airlines, Mesa Air In Placing Order For Battery Powered Aircrafts

<ul>
<li>Canada will announce that&nbsp;Lockheed Martin Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lmt#NYSE">LMT</a>) is the preferred bidder to supply 88 new fighter jets, a clear sign the U.S. company is set to win the multibillion-dollar contract,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/business/aerospace-defense/canada-chooses-lockheed-martin-preferred-bidder-jets-industry-source-2022-03-28/" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">reported Reuters</a>.</li>
<li>The move suggests that Canada is under pressure to boost defense spending as the war in Ukraine rages.</li>
<li>The report noted that the federal government of Prime Minister Justin Trudeau will now only hold detailed talks with the U.S. company. Ottawa hopes to award the contract this year and take delivery of the first jets in 2025.</li>
<li>The contract could be worth up to C$19 billion ($15.10 billion), the report added. The former Conservative administration has decided to buy 65 F-35 jets in 2010 but later scrapped the decision.</li>
<li>If the negotiations fail, the government will turn to the other contender Sweden&#39;s&nbsp;Saab AB&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/saabf#OTC">SAABF</a>).</li>
<li>Price Action:&nbsp;LMT shares are trading lower by 1.26% at $447.92 and SAABF higher by 1.10% at $37.80 on the last check Monday.</li>
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Stocks That Hit 52-Week Lows On Monday

The dispute between China and Southeast Asian countries over the South China Sea has prompted increased military action as the tension over who owns that area rises.
 China has asserted its claim to the sea, building artificial islands despite pushback from other nations that say the territory is rightfully theirs. Now, many Southeast Asian nations have begun to beef up their military in an effort to raise security and fend off China's advances.
<h3>Uniting Forces</h3>
Malaysia and the Philippines have made <a href="http://www.reuters.com/article/2015/06/04/us-japan-philippines-southchinasea-idUSKBN0OK12T20150604">agreements</a> with the Japanese government to join forces in order to secure their claims to the Sea.
 Tokyo has signed on to provide the Philippines Coast Guard with patrol ships, and the nation is considering fulfilling requests for surveillance aircraft as well.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/06/5569388/whats-social-media-sentiment-say-about-china-bonds-and-the-eu">What's Social Media Sentiment Say About China, Bonds And The Euro?</a></bzrelatedlink>
<h3>Western Contractors Step In</h3>
Vietnam, which has also claimed a stake in the South China Sea, appears to be turning to the West in order to improve its military forces. The nation is reportedly working with both European and U.S. contractors to secure a deal to purchase several different types of aircraft.
 According to <a href="http://www.reuters.com/article/2015/06/05/us-vietnam-airforce-exclusive-idUSKBN0OL04U20150605">Reuters</a>, Vietnamese officials are working with the U.S.'s Lockheed Martin Corporation (NYSE: <a class="ticker" href="/stock/lmt#NYSE">LMT</a>) and Boeing Co (NYSE: <a class="ticker" href="/stock/ba#NYSE">BA</a>), as well as several European firms like AIRBUS GROUP (OTC: <a class="ticker" href="/stock/eadsy#OTC">EADSY</a>)'s Eurofighter and Swedish Saab AB (OTC: SAABF) in order to replace its outdated Russian fighter jets.
 The Asian nation is also looking to buy unarmed <a href="http://www.benzinga.com/topic/drones">drones</a> and surveillance aircraft as well.
<h3>A Good Opportunity</h3>
Vietnam's need for military aircraft presents an interesting opportunity for the West, as the nation has traditionally relied on Russia for military purchases.
By supplying Vietnam, the U.S. and Europe could reduce the nation's dependence on Russia, something that would be beneficial for Western foreign policy.
Image Credit: <a href="http://pixabay.com/en/military-aircraft-carriers-602747/">Public Domain</a>

EADSY

saabf

South China Sea Dispute Spurs On Military Deals

Defence and security company Saab (OTC: SAABF) has received orders from 
 the Swedish Defence Materiel Administration (FMV) for continued 
 development of the New Lightweight Torpedo&nbsp;plus maintenance agreements 
 for underwater weapon systems and the Hydra sonar system. The total 
 order value amounts to approximately SEK 175 million.
 The orders come under the terms of the Letter of Intent (LoI) between 
 Saab and FMV that was announced on 9 June 2014. The LoI supports the 
 Swedish Armed Forces' underwater capabilities for the period 2015-2024. 
 "The New Lightweight Torpedo order represents another important step in 
 developing a new generation underwater weapon, in collaboration with FMV 
 and the Swedish Navy," says Görgen Johansson, head of Saab business area 
 Dynamics.
 <a href="http://www.benzinga.com/pressreleases/15/02/b5259097/saab-signs-contract-with-fmv-for-underwater-systems">See full press release</a>

Press Releases

Saab Receives Orders from FMV for Underwater Weapons Systems

UPDATE: Saab Waiting For Financing Before Paying Workers

Small Cap Analysis

Saab to Delay Wage Payments to Workers

European defense shares fall on report of budget cap on aid to Ukraine

SA Asks: Which defense stock is the best short-term investment?

Kepler Capital analyst Aymeric Poulain maintained a Hold rating on Saab AB (0GWL – Research Report) on September 17 and set a price target of SEK24...

Kepler Capital  Reaffirms Their Hold Rating on Saab AB (0GWL)

Saab is said to seek Ukrainian partners for defense production

In a report released on October 8, Aymeric Poulain from Kepler Capital maintained a Hold rating on Saab AB (0GWL – Research Report), with a price t...

Kepler Capital  Sticks to Their Hold Rating for Saab AB (0GWL)

Saab AB (publ) 2024 Q3 - Results - Earnings Call Presentation

In a report released on October 22, Aymeric Poulain from Kepler Capital maintained a Hold rating on Saab AB (0GWL – Research Report), with a price ...

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