European defense stocks rose after U.S. President Trump suggested Ukraine could regain all its territory from Russia with European and NATO support, boosting stocks like Saab and Hensoldt by 5%, despite broader market declines influenced by Fed concerns over inflated asset prices.
At the Paris Air Show, General Atomics announced a partnership with Saab to equip the MQ-9B Reaper with Saab's AEW sensors for early warning capabilities, aiming for deployment by 2026, and unveiled a new air-launched effect called Pele, a small, autonomous UAS designed for deployment from larger aircraft or ground launch, with a range of operational uses including missile defense and drone swarm countermeasures.
Poland is in talks with Sweden to purchase an undisclosed number of early-warning aircraft for the Polish Air Force. The Polish government is reportedly interested in Saab's GlobalEye aircraft, which were also ordered by the Swedish Defence Materiel Administration last year. The aircraft will be fitted with the Erieye Extended Range radar, which has a range of more than 550 km. The announcement was made during the Northern Group meeting, where members agreed to provide further military assistance to Ukraine in its struggle against Russia's aggression.