Standout sectors: defence, banks, energy

Europe’s macro outlook is shifting. After years of fiscal restraint and fragmented policy, the region is entering a new chapter one centered on pro-growth fiscal policy, energy security, and capital-market reform. For investors, this transformation signals the potential for renewed momentum in European equities and fixed income.

In this episode of The Bid, host Oscar Pulido speaks with Helen Jewell, Chief Investment Officer for EMEA Fundamental Equities, and Roelof Salomons, Chief Investment Strategist for Northern Europe at the BlackRock Investment Institute, about how Europe’s evolving macro and investing environment is creating new opportunities across sectors.

They explore how fiscal flexibility is enabling investment in productivity and innovation, how energy transition and AI demand are reshaping infrastructure and power markets, and why European banks, defense companies, and energy-efficiency leaders have emerged as standouts. The conversation also looks at the valuation gap between Europe and the U.S., the implications of potential ECB rate cuts, and what reforms could drive a broader, more durable resurgence.

Key Takeaways:

·      Europe’s shift toward fiscal flexibility marks its first explicitly pro-growth stance in over a decade.

·      The intersection of energy transition and AI is driving infrastructure and power investment.

·      Banks, defense, and efficiency-focused industrials remain strong performers.

·      Europe still trades at a discount to the U.S., offering selective opportunity.

·      Integration of capital markets could unlock long-term competitiveness.

Key moments in this episode:

00:00 Introduction: Europe's Economic Challenges and Optimism

01:10 Meet the Experts: Helen Jewell and Roelof Salomons

02:17 Historical Context: Europe's Economic Journey

03:51 Current Barriers and Progress in Europe

05:40 Sector Focus: Defense, Banks, and Energy

08:49 Fiscal Policy and Unified European Growth

10:33 Energy and AI: The Long-Term Investment Landscape

14:30 Valuation and Market Opportunities in Europe

17:17 Conclusion: Path to a Broad Resurgence in Europe

19:21 Closing Remarks and Future Outlook

Europe investing; Europe macro; European equities; investing in Europe; capital-markets union; energy transition Europe; European fiscal policy; European banks; AI power demand; ECB rate cuts; BlackRock Investment Institute; European defense; valuation gap; competitiveness in Europe

Sources: “What’s needed for an investment renaissance in Europe?”, BlackRock Investment Institute, October 2025; NATO, August 2025; BlackRock Fundamental Equities analysis, September 2025; “Entering The Age of Electricity”, IEA Electricity Demand 2025;

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