FT News Briefing Defence sector goes on a hiring spree
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Jun 17, 2024 Major defense companies are hiring at an unprecedented rate, sparked by escalating military spending following the Ukraine invasion. The G7 summit led to crucial agreements, including a security pact with Ukraine and collective action against China's support for Russia. Chinese tech firms are strategically tapping into the convertible bond market amid geopolitical tensions. Meanwhile, investors are increasingly drawn to local currency bonds in frontier markets, taking advantage of high yields despite past challenges.
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Defense Industry Hiring Spree
- Defense companies are hiring aggressively, marking the highest recruitment rate since the Cold War's end.
- Increased military spending post-Ukraine invasion and depleted ammunition stockpiles drive this demand.
G7 Summit Outcomes and Uncertain Future
- The G7 summit achieved consensus on key issues, including aid to Ukraine and a stronger stance against China.
- However, underlying domestic challenges for member leaders could impact future unity and support.
Chinese Tech and Convertible Bonds
- Chinese tech companies raise billions through U.S. convertible bonds amid geopolitical tensions.
- This method offers access to American capital without the scrutiny of traditional IPOs.