The 62nd Munich Security Conference opens today in the shadow of a fracturing transatlantic alliance. Chancellor Merz warns freedom "is no longer a given" as European leaders weigh military independence from Washington.
The STOXX 600 and FTSE 100 surged to all-time highs, fuelled by defence spending and AI-driven optimism. Yet valuations are approaching fair value, leaving less cushion for investors.
As US tariffs slash Chinese imports to America, Europe has become the new dumping ground — from cheap consumer goods to EVs and batteries, threatening the continent's industrial base.
With the Pentagon floating a restructured alliance and transatlantic trust at an all-time low, European capitals scramble to boost military spending amid mounting debt pressures.