Leonardo positive with Israel-Iran war and rumours of Japan-EU defence agreement

(Il Sole 24 Ore Radiocor) - The stock of Leonardo - Finmeccanica in Piazza Affari is running at the top of the main list once again, while its gain on the stock exchange has already exceeded 120% since the start of the year. Driving the share price are on the one hand the escalation in the Middle East, on the fourth day of bombings on the new Israel-Iran front, and on the other hand rumours of a possible agreement between Japan and the European Union to enhance cooperation in the defence sector. The defence and aerospace company's stock is up almost two points, outperforming the FTSE MIB .

According to a report in the Japanese daily Nikkei, the two powers are seeking to 'revitalise' their defence activities through more collaborations between large companies and start-ups. The first talks are expected to be held between government officials and private sector representatives with the aim of intensifying cooperation between the respective industries. Underlying the talks is the common intention to reduce dependence on the US, strengthening national supply chains and aiming for stronger supply networks and joint production.

First and foremost, Japanese stocks in the sector benefited from the news: +8.84% Synspective, a space company specialising in radar satellites; +6.21% Institute for Q-shu Pioneers of Space, engaged in the supply of satellite data; +7.51% Astroscale Holdings, a Japanese public company in orbit services. Similarly, also in Europe, purchases are concentrated on companies in the sector: in Paris +0.68% Thales at €252.3; in Frankfurt +1.36% Rheinmetall at €1,819.5; +1.06% Hensoldt at €95.2; +0.95% Renk at €72.08. At Piazza Affari, it is trading slightly higher Iveco Group with CEO Olof Persson confirming in an interview that he has received some preliminary expressions of interest for the defence division, which will be explored by the board. According to the CEO, work continues on the spinoff by 2025 of the division with Iveco's strategy of maintaining partnerships as one of its pillars.

Out of the main basket advances Fincantieri , on rumours that Poland is considering ordering two U212 NFS submarines as part of the Orka programme, which is part of the Polish Navy's modernisation strategy and involves the delivery of two submarines plus an option for a third.The preliminary consultation phase involved eleven potential shipbuilders but, according to some reports in the trade press, Fincantieri could be advantaged by the U212 NFS's modern technologies and political aspects. Indeed, as Banca Akros analysts point out, the possible award could increase cooperation between Poland and Italy in the defence sector, as well as boost Fincantieri's underwater pole in the medium term. The award of the contract could take place by the end of 2025 with the signing in 2026. It should be recalled that Fincantieri has already signed a €2.7 billion contract with the Italian Navy for the delivery of four new U212 NFS submarines between 2029 and 2032, including a new training centre, logistic support and some simulators.