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July 16, 2018

Byron Callan Quoted in Roll Call

"Higher NATO Defense Spending May Not Help US Contractors" by Andrew Clevenger.


Byron Callan was quoted in Andrew Clevenger's Roll Call article, "Higher NATO Defense Spending May Not Help US Contractors," published on July 16th, 2018. 

The article reads:

 “There’s this double-edged sword to this U.S. desire that Europe” take charge of its own defense, said Byron Callan, a defense analyst for Capital Alpha Partners. The more Europe steps up its contributions, the more likely it is that it will seek to spend those dollars at home to benefit Europe’s defense industrial base.

As Callan wrote in a note to investors, European defense stocks outperformed U.S. defense stocks last week, an indication that investors think it is European weapons makers who will reap the benefit of any spending increases that follow the summit.

“The market perceives this as the first choices not being the American primes,” Callan said, referring to the biggest U.S. defense contractors. Defense dollars are seen as a source of good jobs in Europe as they are in the United States, he said, so why would Europe choose to support jobs in America over jobs in Germany, Italy or France?

“To me, [a boost in European spending] logically would point to more support for European industry versus U.S. industry,” Callan said.

Source: http://www.rollcall.com/news/politics/higher-nato-defense-spending-may-not-help-u-s-contractors