Key Takeaways
- The United States has deployed tactical nuclear weapons, specifically B61-12 thermonuclear gravity bombs, to the United Kingdom for the first time since 2008, reportedly at RAF Lakenheath. This marks a major strategic shift in NATO posture amid deteriorating relations with Russia.
- The British government has issued strong condemnations regarding the humanitarian situation in Gaza, calling for an immediate cessation of the war and an end to aid restrictions. They have also stated that Israel's mechanism for delivering aid is "dangerous" and condemned the "drip feeding of aid and the inhumane killing of civilians."
- Bank of America (BOFA) maintains its forecast of no U.S. recession and no Federal Reserve rate cuts for the current year, citing strong consumer spending and sticky goods inflation.
- Ukraine is intensifying efforts in drone development, production, and procurement, with government officials, the National Security and Defense Council, the Armed Forces of Ukraine, and the Office team collaborating on the initiative.
The United States has reportedly deployed B61-12 tactical nuclear weapons to the United Kingdom at RAF Lakenheath, marking the first such deployment since 2008. This move, confirmed by the UK Defence Journal, represents a significant strategic shift in NATO's nuclear posture in the European theatre, influenced by strained relations with Russia. The B61-12 is a modernized, low-yield tactical nuclear bomb compatible with aircraft like the F-35A Lightning II. While the UK controls its F-35A aircraft, any American nuclear warheads carried under NATO's nuclear sharing arrangements remain under US custody and require US authorization for release. The re-establishment of nuclear storage capability at Lakenheath was first signaled in 2022 through U.S. budget documents.
In the Middle East, the British government has escalated its rhetoric concerning the Gaza conflict, issuing multiple statements calling for an immediate cessation of hostilities and urging Israel to lift restrictions on the flow of aid. The UK government condemned the "drip feeding of aid and the inhumane killing of civilians, including children, seeking basic water and food." They also joined other countries in a joint statement, asserting that Israel's mechanism for delivering aid to Gaza is "dangerous." The Welsh Government has also called for a lift on the aid blockade, stating that humanitarian aid should never be used as a political tool.
On the economic front, Bank of America (BOFA) has reiterated its forecast for the U.S. economy, predicting no recession and no Federal Reserve rate cuts this year. This outlook is supported by robust consumer spending and persistent goods inflation. BOFA's CEO, Brian Moynihan, highlighted positive market conditions leading to increased corporate and retail spending, contributing to a projected 1.5% U.S. economic growth in 2025. The bank also warned against politically motivated rate cuts, suggesting they could "backfire and end up bear steepening the yield curve."
Meanwhile, Ukraine is making substantial progress in bolstering its drone capabilities. High-level meetings involving government officials, the National Security and Defense Council, the Armed Forces of Ukraine, and the Office team are focused on accelerating drone development, production, and procurement. The Ministry of Defence of Ukraine allocated UAH 104.2 billion (approximately $2.6 billion USD) to Ukrainian drone manufacturers in 2024–2025, signing contracts with 76 manufacturers for various types of drones, including FPV, bomber, reconnaissance, and deepstrike drones. Ukraine's rapid drone production has drawn international attention, with the country aiming to produce around four million drones of all types this year. Romania is also preparing a joint drone production project with Ukraine, and Norway has pledged NOK 6.5 billion for drone procurement.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.