361Firm Briefing "Whatever It Takes" (March 25, 2025)

Stephen Burke discussed the EU's second "whatever it takes" moment, emphasizing a $4 trillion economic plan with $1 trillion in defense and infrastructure spending. The EU's "Competitiveness Compass" aims to address productivity gaps, innovation, decarbonization, and dependency reductions. Key actions include simplifying business processes, acting as a single market, and improving capital markets. Challenges include regulatory barriers, political will, and the role of Turkey. The US, facing austerity, contrasts with Europe's fiscal stimulus. The discussion also touched on the impact of tariffs and the need for gradual reallocation of investments. Issues & Risks Europe's competitiveness challenges: Lagging productivity compared to the US Need to close the innovation gap Dependency on foreign markets and energy sources Risks associated with Trump's potential tariff policies Concerns about China's economic transition and foreign investor confidence Challenges in implementing European defense spending plans Questions discussed Question about the impact of a weaker dollar on US and European valuations Question about the continued bullishness on defense stocks Question about concrete changes in European competitiveness beyond discussions Timeline April 2nd was mentioned as the date for reciprocal tariff announcements by the US 3-4 years timeline for getting new defense programs up and running was mentioned, with European defense experts suggesting 5-10 years The speaker suggested that the second half of the year might be better for both the US and the world economy     You can subscribe to various 361 events and content at https://361firm.com/subs. For reference: Web: www.361firm.com/homeOnboard as Investor: https://361.pub/shortdiagOnboard Deals 361: www.361firm.com/onbOnboard as Banker: www.361firm.com/bankersEvents: www.361firm.com/eventsContent: www.youtube.com/361firmWeekly Digests: www.361firm.com/digest