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sink as macron cools Trump's temper over Iran defense firms are shedding value
after President Donald Trump and French President Emmanuel macron cooled the
prospect of intervention after talking openly on the grave international
situation in North Korea and the Iran nuclear deal dot the value of companies
that might benefit from US intervention abroad dipped as President Trump praised
North Korea dictator Kim jong-un as honorable and open as such the S&P 500
aerospace and defense index comprised of 13 manufacturers closed down more than
3% shares of defense companies tend to soar against the broader market when the
United States takes military action in the Middle East however they also sink
when the tensions dropped from the boil to simmer President Trump is seeking
denuclearization of the secretive regime but the world is watching on as leaders
pursue an unprecedented us North Korea summit in May or June while concerning
Iran French president Emmanuel macron used his White House meeting to call for
a new Iran nuclear deal that will build on the current agreement with Tehran
following talks with US president Donald Trump mr. maker on said the pair had
frank discussions on the landmark 2015 pact which the united states president
has previously described as insane the french president said together and with
the powers of the region and iranian leaders we need to find a deal this is
the only way to bring about stability on Wall Street Lockheed Martin Corp the
Pentagon's number-one weapons supplier known for the US military's
top-of-the-range f-35 lightning ii fighter jet closed down more than 6% at
336 dollar and 49 cents yesterday Lockheed Martin is the biggest earner
from the US federal government and receives on average around 10 percent of
the funds paid out by the Pentagon in 2009 US government contracts accounted
for thirty eight point four billion dollars eighty-five percent
of its yearly earnings despite Lockheed reporting a better than expected
quarterly profit and raised its full-year forecast the company's shares
fell 6.1 percent amid a broader market sell-off after yesterday's talks between
mr. Makran and president Trump supporting the effect on defense stocks
of the downgrade in global tension Peter Armand an aerospace and defense
industry analyst at Baird told CNBC we are not seeing anything in the earnings
reports that warrants this kind of weakness since assuming office President
Trump has sought to solidify the u.s. as the dominant force in the trade of
global weapons as global tensions rise in Syria and North Korea president Trump
wants to make it easier to put american-made weapons into the hands of
US allies and partners cutting through the red tape the Trump administration's
new conventional arms transfer cat policy and unmanned aerial systems UAS
export policy allows US firms to directly sell some types of conventional
weapons in a broader range of unmanned drones to allies without having to go
through the US government in an attempt to boost US jobs and Industry president
Trump has targeted defense as a way to balance trade with the rest of the world
however selling weapons to other countries remains controversial and
according to William Hartung director of the arms and Security Project at the
center for international policy it's keeping with what they've been doing he
told CNN there is a lot of emphasis on jobs and much less on human rights and
other concerns thanks for watch please share like
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