NATO's air defense vulnerabilities in Europe, Israeli bonds' popularity in US municipalities, BHP's failed bid for Anglo American, and private equity firms shifting towards profit sharing for company performance.
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Quick takeaways
NATO's air defense capabilities in Europe are insufficient to protect Eastern European members, with only 5% of the required defenses, prompting concerns over potential Russian threats.
Private equity firms are shifting towards profit-sharing models to drive employee motivation and company performance amid rising interest rates, aiming to align employee incentives with company success.
Deep dives
NATO's Air Defense Vulnerability
NATO's air defense capabilities are inadequate, providing only 5% of the needed protection for Eastern European members. Concerns arise that Russia could potentially target a NATO member state by the end of the decade. Efforts are being made to enhance European defenses at an upcoming NATO summit in July.
Investing in Israeli Bonds by US Municipalities
US municipal officials, including Palm Beach County's Joseph Abruzzo, are investing in Israeli bonds to support Israel's development. These bonds, initiated in the 1950s, have seen increased interest from local government investors due to legislative changes. Amid the Israel-Hamas conflict, divestment campaigns have emerged, but certain officials remain committed to investing in Israel bonds.
Private Equity Firms' Shift to Profit Sharing
Private equity firms are adopting profit-sharing strategies to motivate employees and improve company performance. With rising interest rates affecting traditional debt-heavy models, profit sharing aligns employee interests with company outcomes. This approach aims to generate revenue through employee motivation while enhancing the firms' public image and attractiveness to investors.
Europe has only a fraction of the air defence capabilities needed to protect its eastern flank, BHP’s £39bn takeover bid for Anglo American has collapsed, and Israel bonds are a hot commodity in US municipalities. Plus, the FT’s Brooke Masters explains why private equity firms are pivoting towards profit sharing.
The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.