Key Takeaways
- TKMS (Thyssenkrupp Marine Systems) raised its 2026 sales growth outlook to 10–12%, up from a previous range of 2–5%, driven by a record €20.6 billion order backlog in naval defense.
- UK Prime Minister Andy Burnham is chairing an emergency COBR meeting this afternoon to address a "national emergency" caused by extreme heat, wildfires, and severe drought.
- South Korea unveiled seven "seed" projects, including Small Modular Reactors (SMRs) and quantum technology, aimed at establishing new national growth engines by 2030.
- France’s EDF (EDF) announced a temporary output cut at the St Alban 1 reactor to 260 MW on August 13 due to environmental regulations and rising river temperatures.
- Berenberg initiated coverage on Raspberry Pi Holdings (RPI) with a Hold rating and a price target of 670p, following the company's recent profit upgrades.
Defense and Industrial Growth
Germany’s largest naval shipbuilder, TKMS, majority-owned by Thyssenkrupp (TKA), has significantly boosted its full-year financial outlook. The company now expects sales growth of 10–12% for the fiscal year ending September 30, 2026, citing a "rearmament boom" across Europe. This surge is fueled by high demand for warships, submarines, and underwater electronics, with a record order backlog supported by major contracts from Canada, Norway, and Germany.
In Asia, Changan Auto (000625) and Huawei have entered into a new strategic cooperation agreement to deepen their partnership in the smart-vehicle value chain. The collaboration aims to integrate Avatr vehicles into Huawei’s extensive retail and service network. The two entities reportedly plan to launch 17 new models by 2030, leveraging Huawei’s Qiankun intelligent driving ecosystem and HarmonyOS cockpit technology.
Energy and Environmental Constraints
The European energy sector is facing operational hurdles due to extreme weather. EDF (EDF) will reduce output at its St Alban 1 nuclear reactor to 260 MW for several hours on August 13. This move is a response to high river temperatures and low water levels, which limit the ability to cool reactors while complying with environmental safety standards.
In Japan, ENEOS (5020) reported an unexpected shutdown of a 128,000-bpd unit at its Marifu oil refinery on August 7. This unplanned outage comes as the refiner continues to restructure its domestic production network in response to declining local demand. Meanwhile, the UK government is on high alert as Prime Minister Andy Burnham leads a COBR session to manage the impacts of the fifth heatwave this summer, with temperatures forecast to reach 38°C.
Technology and Future Engines
South Korea has identified seven "seed" sectors—including nuclear fusion, quantum technology, space, and advanced biotech—as critical pillars for its future economy. President Lee Jae-myung chaired a briefing on these projects, which are designed to complement the nation's existing strengths in semiconductors and AI. The government plans to utilize these technologies to secure global competitiveness in the Small Modular Reactor (SMR) market and the broader AI transformation (AX).
In the equity markets, Berenberg has set a 670p price target for Raspberry Pi Holdings (RPI), initiating coverage with a Hold rating. While the company recently upgraded its profit forecasts due to strong industrial demand, analysts remain cautious about rising memory-chip costs and the sustainability of current margin levels. The stock had previously seen a significant rally, reaching record highs earlier this summer.
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.