0824 GMT - European defense groups BAE Systems and Leonardo could significantly benefit from President Trump's calls for $1.5 trillion to be spent on defense in 2027, a more-than 50% hike to the U.S. 2026 defense budget, Jefferies analysts say. The U.S. Defense Department is an important customer for both companies. Italian space propulsion company Avio should also be boosted by Trump's calls, the analysts say. BAE Systems shares are up 6.2% while Leonardo advances 4.6% in early European trade following the news. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

January 08, 2026 03:24 ET (08:24 GMT)

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