Iveco to Continue Defense Spinoff Preparations While Considering Sale
Iveco's Defense Unit Spinoff: Iveco Group is preparing for a potential spinoff of its defense unit while exploring interest from potential buyers.
Expressions of Interest: The company has received preliminary expressions of interest for its defense business and has mandated management to investigate these opportunities.
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- Share Price Surge: Shares of U.S. rare earth miners rose in pre-market trading following President Trump's announcement of a $12 billion critical mineral reserve, indicating a positive market response to the initiative.
- Project Context: Known as Project Vault, this critical mineral reserve aims to counter China's dominance in rare earth minerals, protecting U.S. tech firms and automakers from supply shocks while reducing reliance on Chinese resources.
- Funding Structure: The plan combines $2 billion in private funding with a $10 billion loan from the U.S. Export-Import Bank, with Trump stating that American taxpayers are expected to profit from the interest on the loan, highlighting the project's potential economic benefits.
- National Security Strategy: The new reserve is modeled after existing strategic petroleum and critical stockpiles, intended to support U.S. industry and prevent future supply disruptions, thereby enhancing national security and economic resilience.
- Strategic Minerals Reserve: President Trump announced the establishment of a critical minerals reserve with an initial funding of $12 billion, aimed at reducing reliance on China for rare earths and enhancing national resource security.
- Positive Market Reaction: Following the announcement, U.S.-listed rare earth mining companies surged in premarket trading, with Critical Metals up 6.3% and USA Rare Earth up 4.7%, indicating strong market optimism regarding the initiative.
- Funding Structure: The plan will pool $1.67 billion in private capital with a $10 billion loan from the U.S. Export-Import Bank, creating a first-of-its-kind strategic minerals reserve to support resource development in the U.S. private sector.
- Global Rare Earth Landscape: China dominates the critical minerals supply chain, accounting for nearly 60% of global rare earth mining and over 90% of magnet manufacturing, highlighting the urgency and strategic significance of the U.S. reserve initiative.
Market Surge: Spot gold prices have surged above $5,300, setting new records in the market.
FOMC Meeting Anticipation: The increase in gold prices comes ahead of the upcoming Federal Open Market Committee (FOMC) meeting.
- Emerging Investment Potential: AI's share of European venture capital has risen to 27% in recent years, compared to 34% in the U.S., indicating that Europe's investment potential in AI remains undervalued, presenting new opportunities for investors.
- Small-Cap Advantage: Despite an average AI funding allocation of 18% in Europe, small-cap AI stocks like BE Semiconductor and Indra Sistemas may become preferred choices for investors due to their relatively undervalued positions and growth potential.
- Defense Technology Demand: Indra Sistemas is expected to benefit from increased spending on high-end defense technology in 2026 due to its AI capabilities and geopolitical uncertainties, with its stock price rising over 140% since the beginning of 2023.
- Semiconductor Market Growth: STMicroelectronics has secured a €1 billion deal with the European Investment Bank to enhance Europe's competitiveness in AI, highlighting the company's strategic importance in the global semiconductor market.
Record High for Silver Prices: Silver prices have reached a record high of $115.13 per ounce, marking a significant increase.
Percentage Increase: The price of silver has risen over 11% recently, contributing to its record-setting value.











