Military spending, platform modernization & sovereign-resilience response to a multipolar world; excludes commercial space/cyber/materials (their own trends).
Sovereign Supply — Minerals & Reshoring Industrials2impact 4
Wheat prices hit 3-year high on fears Russia will escalate Ukraine war
Wheat prices in Chicago hit their highest level in three years amid concerns that Russia could escalate attacks on Ukraine, affecting grain exports from the Black Sea region, where Russia and Ukraine together account for more than 25% of global wheat exports. Wheat prices surged 19% in August, rising 2.6% on Thursday to reach their highest level since July 2023, after gaining 6.4% the previous day. Ukraine's agriculture ministry expects agricultural exports this season to fall by more than half from previous estimates, while Russia's wheat exports in August are expected to decline by more than 50% from the same period last year. Chris Nikolaou, general manager of Advantage Grain, said the market is concerned about logistical constraints, and prices are likely to continue rising if the situation in the Black Sea remains unresolved.
Russia Prepares to Escalate Attacks on Ukraine After Peace Talks Hit Dead End
Russia is preparing to escalate its attacks on Ukraine after assessing that peace negotiations have reached a dead end. Three sources close to the Kremlin told Bloomberg that Moscow may intensify conventional missile strikes on Kyiv and infrastructure in other cities. Meanwhile, US efforts to push a peace deal have made no progress, and Putin shows no sign of ending the war despite economic pressure. Russia views Ukraine's attacks as coming from NATO member states, since Western nations provide weapons and intelligence. Officials close to the Kremlin assess that the intensity of the war has not yet peaked, while the near-term risk is an escalation of conventional attacks on Kyiv and key infrastructure, as diplomatic channels have yielded almost no progress and both sides are increasing pressure to gain an advantage in the war now entering its fifth year.
Lantronix Guides Q1 Revenue to $31M-$33M, Unmanned Systems to Hit 15%-20% of Fiscal 2027 Revenue
Lantronix guided fiscal first-quarter revenue to $31 million to $33 million and non-GAAP EPS to $0.04 to $0.06, while reiterating that unmanned systems will represent 15% to 20% of total revenue in fiscal 2027, with management expecting around $25 million-plus in unmanned revenue for the year. The company reported fiscal Q4 revenue of $31.2 million, up 8% year-over-year, and non-GAAP EPS of $0.04, a 300% increase. Fiscal 2026 revenue was nearly $121 million, up 8% from fiscal 2025's just over $111 million, excluding Gridspertise. Unmanned systems revenue for fiscal 2026 was $12.6 million, driven by policy catalysts including FCC restrictions on China-based DJI and Section 232 tariffs on foreign-made drones. Lantronix also acquired Vecima Networks' Industrial IoT business for $11.7 million, adding about $5 million in annual revenue, and ended the fiscal year debt-free with over $60 million in cash.
US seizes Chinese hacker domains targeting NASA and Fed
The United States revealed on Wednesday that authorities have disrupted computer system intrusions by a hacker group backed by the Chinese government, stating that NASA, the Federal Reserve, and the U.S. Senate were among the targeted agencies. The U.S. Department of Justice, along with the FBI, announced the seizure of internet domains used in attacks on critical infrastructure and highly sensitive data networks. Court documents unsealed in federal court in California indicated that the domains used as platforms for the intrusions, known as "QScan" and "QTRouter," were operated by a hacker group with Chinese government backing. The group, called "QTFY," was contracted to work for Nanjing Xinjiuwei Network Technology Co., based in China. U.S. Attorney General Todd Blanche stated that the domain seizures were "the latest technical operation in our campaign to disrupt widespread, indiscriminate cyber attacks sponsored by the People's Republic of China." However, the Department of Justice did not disclose details about the damage to targeted agencies, which also included the NIH, the Department of Energy, and the Department of Health and Human Services, and noted that private companies in the U.S. and South Korea were also targeted. The U.S. government said the hacker group was established in 2018, has ties to a technology company that conducts cyber operations for China, and has business relationships with entities under China's Ministry of State Security. The U.S. announcement comes about a month before President Donald Trump is scheduled to meet with Chinese President Xi Jinping at the White House, where artificial intelligence and other advanced technologies are expected to be top agenda items.
Grain futures closed higher across the board at the CBOT on Wednesday (Aug. 26), led by wheat which surged to its daily trading limit and hit a multi-year high, following reports that Russia is preparing to escalate missile strikes on Kyiv, underscoring the risk of disruption to Black Sea grain exports. Corn and soybeans also rallied to contract highs across all delivery months, supported by wheat's strength. December wheat rose 45.00 cents, or 6.40%, to close at $7.4825 per bushel; December corn rose 13.00 cents, or 2.48%, to close at $5.3650 per bushel; and November soybeans rose 28.25 cents, or 2.28%, to close at $12.6600 per bushel. The surge in wheat was attributed to a Bloomberg report citing sources close to the Kremlin that Russia is considering increasing missile attacks on central Kyiv and key infrastructure across Ukraine, as it assesses that peace negotiations have failed and reached a dead end. Meanwhile, grain loading at Black Sea ports in both countries has nearly come to a complete halt, creating uncertainty over global supplies of wheat from Russia and corn from Ukraine. Corn also drew support from field surveys in the Midwest indicating that this year's yields will be significantly lower than USDA estimates. Soybeans closed strongly higher on continued buying from China, a recovery in crude oil prices, and the U.S. Treasury's announcement of sanctions on 60 individuals, entities, and vessels linked to trade with Iran, though Chinese financial institutions were not included on the list.
Sovereign Supply — Minerals & Reshoring Industrials▲impact 4
Trump signs order banning some foreign energy equipment from US grid
President Trump signed an emergency order Wednesday that aims to keep some foreign-made transformers and other critical energy equipment out of U.S. electric grids, as reported by Bloomberg. The order generally bars the purchase, importation, or installation of certain foreign-made bulk-power system electrical equipment and associated software where it could pose cybersecurity or operational risks, and sets the stage for potentially new conditions on the continued use of equipment already installed. China accounts for about 80% of the world's battery and solar inverter manufacturing capacity, according to the International Energy Agency, and scores of Chinese large power transformers have been imported into the U.S. over the past decade, per a 2020 Commerce Department investigation. The executive order warned of "certain foreign actors" who are "increasingly creating and exploiting vulnerabilities in the United States bulk-power system." Power utilities and other companies using such equipment are effectively put on notice while the Department of Energy develops rules to implement the ban. Analysts say the move could benefit domestic manufacturers and companies like SolarEdge Technologies, Enphase Energy, and Tesla.
The U.S. military has awarded RTX Corporation's Raytheon business a $22.9 billion contract to accelerate Tomahawk missile production, a key part of replenishing depleted stockpiles. The seven-year deal will boost annual output to 1,000 missiles from 60, and it builds on a framework agreement signed in February. RTX ended Q2 with a record backlog of $289 billion, including $119 billion in defense, and raised its full-year sales guidance to $95–96 billion. However, the production ramp-up poses execution risks, and the stock trades at a premium valuation. Hedge funds increased their stakes in Q1, with Fisher Asset Management holding the largest position.
Archer Aviation Surges 36% on Boeing Deal and Defense Expansion
Archer Aviation's shares have surged over 36% in the past month, driven by its acquisition of Boeing's Wisk Aero, SkyGrid, and Insitu units, which will give Boeing a nearly 20% stake in the company. The deal combines autonomy, eVTOL, and uncrewed aircraft capabilities into an end-to-end physical AI platform for aerospace and defense, and adds profitable drone maker Insitu, which generates over $200 million in annual revenue. Additional catalysts include the successful test flight of its Midnight aircraft and Cathie Wood's ARK buying 940,434 shares worth about $4.97 million. However, the company's financials remain weak, with Q2 revenue of only $5 million and a net loss of $263.2 million, while cash burn of $215.3 million per quarter leaves less than two years of runway. Despite the momentum, the stock is down 19% year-to-date, and the deal is expected to close by the end of 2026.
IHI Shares Fall, Aviation Engines and Defense Drive Earnings
IHI's stock price declined in late August 2026, closing at 2,638 yen on August 26, down 12.9% from the August 14 high of 3,028 yen. The company's profit pillar is the aerospace and defense segment, which generated sales of 648.1 billion yen (39% of consolidated revenue) and operating profit of 112.4 billion yen in fiscal year ending March 2026, accounting for over 70% of the company's total operating profit of 152.7 billion yen. In contrast, the other three segments combined for only 40.3 billion yen in operating profit. The stock decline is attributed to a 15.0% year-on-year drop in orders for the first quarter of fiscal year ending March 2027, as well as the inclusion of a 40 billion yen gain from property sales in the profit increase. The current P/E ratio is 16.3, P/B ratio is 4.0, and ROE is 28.4%, significantly exceeding the machinery industry median of 7.8%.
Sovereign Supply — Minerals & Reshoring Industrials▲impact 4
BWXT Selected for U.S. Army's Janus Nuclear Program
BWX Technologies has been selected to deploy its BWXT Advanced Nuclear Reactor (BANR) for the U.S. Army's Janus program, a next-generation nuclear energy initiative led by the Army in partnership with the Defense Innovation Unit. The first BANR will be installed at Fort Campbell, Kentucky, with groundbreaking targeted for late 2028 and reactor operations expected in the early 2030s. The 20-megawatt electric reactor uses TRISO fuel and is designed for critical infrastructure, operating behind the meter or integrating with the grid. BWXT will execute the program under a phased contracting approach, including site selection, regulatory processes, and TRISO fuel fabrication at existing facilities. The Army down selected five vendors to own, construct, and operate nuclear microreactors at several military installations, with BWXT among them.
The projected cost of acquiring the Pentagon's F-35 fighter fleet has risen by about $51 billion since late 2023, bringing the total to approximately $536 billion, a 10% increase from $485 billion, according to a government report and the F-35 program office. The increase includes roughly $32 billion for aircraft and engine procurement and $19 billion for research and development, and reflects a shift by the Marine Corps from some F-35B jets to the more expensive carrier-based F-35C. As of late July, 872 of the 2,470 aircraft planned for the U.S. military had been delivered. The cost increase underscores the program's importance to Lockheed Martin, which builds the aircraft, and major suppliers including RTX's Pratt & Whitney and Northrop Grumman. Another $900 million was added after reassessing the Block 4 modernization package, which is years behind schedule. The $536 billion figure covers acquisition and is separate from an estimated $1.5 trillion in operating and support expenses, putting the F-35's total cost near $2 trillion over roughly 90 years.
Aerospace and defense PE exit value already beat last year's total
The total exit value of PE-backed companies in the aerospace and defense sector has already surpassed last year's total, jumping from $17.7 billion at year-end 2025 to $26.8 billion in the first half of 2026, according to PitchBook's Q2 2026 Aerospace and Defense Report. The market was carried by five major public listings in the sector, compared with zero in Q2 2025. The largest was the June listing of DPC Holdings, a UK-headquartered specialist manufacturer of metal parts for jet engines, which valued the business at $4.9 billion, providing an exit for J.F. Lehman & Company. Other top IPOs include the $3.4 billion listing of Global Medical Response, the $3.4 billion debut of Applied Aerospace & Defense, and a $2.2 billion exit for Aevex. The sector's success in exiting provides relief to an asset class with a logjam of aging portfolio companies, as private equity managers sit on over $860 billion in buyout NAV concentrated in funds that are seven years or older. In aerospace and defense, the quarter saw an exit count of 27, up 17.4% quarter-over-quarter and 22.7% year-over-year, while total deal count rose 10.9% quarter-over-quarter but deal value fell to $6.5 billion from $11.1 billion.
Heico Reports Record Q3 Results, Raises Full-Year Margin Outlook
Heico Corporation reported record fiscal third-quarter results, with net income rising 33% to $235.4 million, operating income up 34% to $355.2 million, and sales climbing 23% to $1.41 billion. Both operating groups achieved record sales and profits: Flight Support Group sales grew 18% to $947.8 million with margins expanding to 25.9%, while Electronic Technologies Group sales rose 36% to $483.5 million with operating margins increasing to 26%. Management highlighted strong demand in defense, missiles, space, industrial technology, and data centers, supported by a record backlog and recent acquisitions, though supply-chain constraints remain a challenge. The company also issued $1.2 billion in senior notes, extended its revolver maturity to 2031, and completed two acquisitions expected to be accretive within a year. For the full year, Heico reaffirmed its segment GAAP operating margin guidance of 22% to 24%.
AeroVironment wins $51M U.S. Army Switchblade 600 order
AeroVironment has received a $51 million U.S. Army delivery order for additional Switchblade 600 Block 2 loitering munition systems, along with Block 1 systems for a Foreign Military Sale to a key U.S. ally. The award falls under the Army's existing five-year, $990 million IDIQ contract for Lethal Unmanned Systems, issued in August 2024. This follow-on procurement signals continued Army demand for AeroVironment's next-generation Switchblade systems.
Cellebrite Launches Portable Tactical Extraction Kit for Military
Cellebrite DI Ltd. has launched the Cellebrite Tactical Extraction Kit (C-TEK), a ruggedized, all-in-one mobile forensics field kit packaged in a standard-size backpack, designed to give military teams the hardware, software, and power to access and analyze devices at the point of capture. Built around Cellebrite's industry-leading digital forensics capabilities, C-TEK helps forward-deployed teams quickly triage data from phones, SIM cards, drones, and portable media, enabling real-time intelligence in disconnected environments. The kit is the first step in a broader effort to build an end-to-end field intelligence solution, with the company developing a portable version of its Pathfinder analytics platform, an on-premises AI capability, an upgraded CFID V4 for drone forensics, and a mobile kit for short-term deployments. Marcus Jewell, chief revenue officer, emphasized that battlefield intelligence has an expiration date measured in minutes, and C-TEK equips units to capture and act on data before it disappears.
Public Security Intelligence Agency budget request 1.8 times, 104 more staff for FY2027
The Ministry of Justice on the 26th presented to the Liberal Democratic Party's Legal Affairs Division a draft requesting approximately 985.6 billion yen (including funds under the Digital Agency's jurisdiction) for the FY2027 budget, which was approved. This represents a 15.7% increase over the FY2026 budget. The budget for strengthening the intelligence capabilities of the Public Security Intelligence Agency, an external bureau, was set at 6 billion yen, 1.8 times the previous amount. This includes 1.8 billion yen for strengthening capabilities to counter foreign government information operations and terrorist activities, and for improving capabilities in economic security and cyber fields, and 2.3 billion yen for strengthening the investigative infrastructure. The request includes an increase of 104 personnel, which, if approved, would bring the FY2027 staffing level to 1,940.
Japan, Australia, Indonesia Elevate Defense Cooperation Amid China Concerns
The defense ministers of Japan, Australia, and Indonesia have reached an agreement to enhance defense cooperation during their first trilateral phone talks today (August 26), amid China's growing influence in the Indo-Pacific region. Japanese Defense Minister Shinjiro Koizumi, along with Australian Defense Minister Richard Marles and Indonesian Defense Minister Sjafrie Sjamsoeddin, exchanged views on regional security and reaffirmed their commitment to working together to promote peace and stability both regionally and globally. Japan has been strengthening bilateral security cooperation with both countries and aims to expand this cooperation to a trilateral level. Currently, Japan is developing a shipbuilding project for the Australian navy featuring advanced frigate technology, and is also negotiating the export of destroyers to Indonesia.
US Investigates Iranian Video Threatening to Assassinate Barron Trump
The U.S. Secret Service revealed on Tuesday (Aug. 25) that it is investigating a 3-minute video from Iran's state television that threatens to assassinate 20-year-old Barron Trump, the youngest son of President Donald Trump, amid the ongoing tensions of the war between the U.S., Israel, and Iran that has lasted about six months. Meanwhile, the U.S. government has temporarily suspended visa interview appointments for applicants worldwide, with the State Department stating it is adjusting schedules to train consular officers for stricter screening and to intercept those who may become a burden on state welfare. China reiterated its opposition to illegal unilateral sanctions. Meanwhile, RIA Novosti reported that the U.S. and Iran reached a ceasefire agreement, including the reopening of the Strait of Hormuz to free navigation, and Iran and Oman agreed to establish a temporary joint maritime corridor in the strait, including a mine clearance project. Additionally, South Australia reported its first suspected case of H5N1 bird flu in a red fox, marking the first such case in a land mammal in the country. Meta Platforms is in talks with several state attorneys general to reach a settlement in a lawsuit alleging that its platforms are designed to be addictive to children. Furthermore, China has already formulated nearly 200 AI standards, while the IMF warns that developing countries risk falling behind in AI adoption. The Australian Recording Industry Association has officially disqualified AI-generated songs from the charts after an Australian DJ remixed a Madonna song to chart. Finally, flash floods in Nepal have damaged villages and hydropower plants, prompting the Prime Minister to order the mobilization of military and police forces to assist and evacuate residents.
US Aircraft Carrier to Dock in Thailand, Allowing 5,000 Crew to Rest
The US Navy's nuclear-powered aircraft carrier USS Abraham Lincoln is set to arrive in Thailand next week for a port call, following an extended deployment in the Middle East. The ship carries approximately 5,000 crew members, who will have the opportunity to rest and receive logistical support after more than 200 days without a port visit. A Democratic congressman noted this as the longest continuous at-sea operation without a port call in modern times. The Royal Thai Navy confirmed that no military exercises will take place during this visit and did not disclose the names of the three ships in the group, nor the exact date and location, citing security reasons. The port call comes amid reports about the living conditions and morale of the crew, following military media reports of suicide attempts and declining morale. However, US Secretary of Defense Pete Hegseth dismissed these reports, calling them a complete distortion.
Former PM Morrison Calls for Strengthening Critical Mineral Supply Chains in Quad
Australia's former Prime Minister Scott Morrison on the 26th, at an economic security forum in Sydney, urged for further strengthening cooperation in building critical mineral supply chains through the Quad framework of Japan, the US, Australia, and India, stating that "Japan and Australia are the backbone of the Quad" and advocating for them to take the lead. He also positioned South Korea as a "key partner." Morrison pointed out that China has economically coerced trading partners, including Japan, through measures such as export restrictions on rare earths, and warned, "China will turn off the export tap to achieve its own goals. It is always ready to weaponize it." He emphasized the need to avoid risks by stabilizing supply through cooperation among like-minded countries. Furthermore, regarding Prime Minister Takaichi Sanae's stance toward China, he praised her for "speaking clearly," saying, "It is her achievement and we should support her."
Trump Threatens Sanctions on Iran and China, Cutting Oil Lifelines
President Donald Trump has opened a new pressure campaign against Iran by threatening fresh sanctions, while signaling an expansion of measures to include China, with the goal of severing Iran's financial and energy lifelines. As the Middle East situation remains tense, this has led to a rebound in the Thai stock market, though uncertainty remains high. However, no clear details of the measures have been provided, and reactions from both Iran and China must be monitored.
Sovereign Supply — Minerals & Reshoring Industrials5impact 4
US Launches Operation Economic Outcast with New Sanctions on Iran
The United States has announced a new round of sanctions against Iran under the name "Operation Economic Outcast," with Treasury Secretary Scott Bessent comparing this escalation to D-Day. The measures target five key sectors: digital assets, technology and weapons, gold, airlines, and maritime shipping, while blacklisting nearly 60 individuals and entities across multiple countries, including China and Hong Kong. This action is part of an economic war that has dragged on for nearly six months, following air strikes and fruitless negotiations. The US has shifted its goal from curbing Iran's nuclear program to toppling the regime and vying for control of the Strait of Hormuz. The success of these measures depends on China, which bought oil from Iran worth $31 billion in 2025, accounting for nearly 45% of the Iranian government's revenue. While the UAE, once Iran's largest trading partner, has suspended trade with Iran, China continues to oppose unilateral sanctions, and the US has not directly penalized Chinese financial institutions. Experts note that Iran has grown accustomed to sanctions for over four decades, and these measures may be merely a political warning, as the US is concerned about the impact on the global financial system. Meanwhile, the Iranian public is suffering from basic goods prices as high as $30 per item, nearly a third of the minimum wage, and shipping costs have surged from $3,000 to $12,000 per container. However, the Iranian government remains defiant and threatens to attack oil tankers outside the Strait of Hormuz.
US Secret Service Investigates Iranian Video Threatening to Assassinate Barron Trump
The U.S. Secret Service is investigating a three-minute video from Iran's state television that threatens to assassinate Barron Trump, the 20-year-old youngest son of President Donald Trump. The video reportedly offers a $10 million bounty. Secret Service spokesman Nate Herring said on Tuesday (August 25) that the agency is aware of and investigating a potential threat against a protectee, but could not disclose security details. The tension comes amid a nearly six-month-long war between the U.S., Israel, and Iran. Trump has previously described himself as the number one target on Iran's assassination list, and Reuters reported that the U.S. has received multiple warnings from Israel that Iran plans to assassinate Trump.
SK Gas Pays Record $5.3 Million for Panama Canal Slot
South Korea's SK Gas Ltd. has agreed to pay a record $5.3 million in an auction to secure passage for its LPG carrier, the G. Spirit, through the Panama Canal on September 1, amid surging demand for the route following the Iran war's impact on global trade. The price breaks the previous record of $4.6 million, set just in early August, also by a South Korean operator. According to Argus Media, ships without a reservation may face waits of up to 17 days. Meanwhile, the Panama Canal Authority plans to restrict the number of vessels and cargo volumes starting in September due to drought risks from El Niño. Before February, the average auction price was just $55,000, but it has now surged nearly 100-fold, reflecting significantly increased demand.
Defense Industrial Base — Strategic Materials & Components▼15impact 4
Canada Retaliates Against Trump, Imposes Tariffs of Up to 50% on U.S. Goods
Canadian Prime Minister Mark Carney announced retaliatory tariffs against the United States, matching the new tariffs imposed by President Donald Trump on Canada, along with measures to support businesses affected by the trade war. The retaliatory tariffs cover U.S. goods exported to Canada worth about 20 billion dollars annually, accounting for roughly 6% of the value of U.S. goods exports to Canada last year. Canada will begin collecting the retaliatory tariffs on September 8, with rates of 15%, 25%, and 50% on various goods that the U.S. has imposed tariffs on under Section 338 and Section 232. The tariff rate for each product will correspond to the rate the U.S. charges on that product. The measures target the most affected industries, such as steel, dairy products, appliances, agricultural equipment, pulp and paper, and electronic goods. Goods like appliances, cheese, fish, seafood, and certain steel and aluminum products will be subject to a 25% tariff, while machinery, industrial tools, and agricultural equipment will face a 15% tariff. The Canadian government has also increased support for workers and businesses by an additional 7.5 billion dollars, on top of the nearly 25 billion dollars previously allocated since the U.S. began imposing unfair tariff measures.
Crude Oil Prices Fall as Iran and Oman Negotiate to Reopen Hormuz
West Texas Intermediate and Brent crude oil prices continued to decline after Iran and Oman resumed negotiations to establish a temporary joint shipping route through the Strait of Hormuz. On August 25, 2026, West Texas Intermediate crude was trading at $82.36 per barrel, down $2.65 per barrel, while Brent crude was at $88.58 per barrel, down $3.59 per barrel. Thai Oil Public Company Limited's oil price analysis unit stated that the negotiations include an agreement to clear explosives in the Strait of Hormuz to prepare for reopening the route for crude oil and natural gas transport. Meanwhile, the United States has begun sending diplomatic personnel back to the Middle East, reflecting that the risk of an escalation in military conflict in the short term has significantly decreased. However, shipping through the Strait of Hormuz remains highly risky, following an attack on an oil tanker by an unknown object off the coast of Oman, near the entrance to the strait, which damaged the vessel and left it unable to maneuver.
Iran and Oman Discuss Temporary Route Through Hormuz
Iran and Oman have resumed negotiations on establishing a temporary shipping route through the Strait of Hormuz, agreeing to clear mines in the area to allow vessels to pass through this strategic waterway more safely. This comes amid stalled peace talks between Iran and the United States. Before the war began in February, the Strait of Hormuz handled about one-fifth of global oil and liquefied natural gas (LNG) shipments, but now most shipping has halted. President Donald Trump has insisted that all mines in the strait have been cleared. However, risks remain high, as a tanker was attacked by an unknown object near the strait's entrance on Tuesday. Tensions have also escalated after Iran's state television aired a video about an alleged plot to assassinate Barron Trump, the president's youngest son, offering a $10 million reward. Meanwhile, the U.S. has begun gradually returning staff to some of its embassies in the Middle East, reflecting a possible reduction in short-term conflict risk. Despite U.S. threats to penalize countries still doing business with Iran, oil prices have fallen for a second consecutive day, and a Reuters/Ipsos poll shows American support for the war has dropped to its lowest level since the early days of the conflict.
Overseas cargo shipping up 67.4%, record high in July service prices
According to the Bank of Japan's July corporate service price index (preliminary, 2020 average = 100) released on the 26th, overseas cargo shipping such as tankers rose 67.4% year-on-year to 259.5, marking a record high. Amid the turmoil in the Middle East, costs swelled due to a shift to alternative routes that avoid the Strait of Hormuz. The overall index rose 3.6% to 115.1, with prices rising for 118 of the 146 items surveyed and falling for 16. International air passenger transport also rose 21.1% due to higher fuel surcharges. The Bank of Japan said, "Although uncertainty is high, we will continue to monitor developments in shipping, including the impact of the Middle East situation, and international commodity markets."
China opposes the United States' unilateral sanctions on Iran, with Chinese Foreign Ministry spokesperson Lin Jian stating on Tuesday (August 25) that such measures violate international law and lack the approval of the United Nations Security Council (UNSC). The statement came after U.S. Treasury Secretary Scott Bessent revealed a plan on Monday (August 24) to impose "economic strangulation" measures on Iran, threatening to punish third countries that continue to do business with Tehran. Lin said economic warfare and maximum pressure policies do not help resolve issues but instead increase tensions and risk spillover effects on the global economy. China reiterated that its cooperation with Iran is within the framework of international law and that it will resolutely protect its rights and interests. This stance underscores the risk of confrontation between China and the U.S. as Trump continues to escalate economic pressure on Iran.
Iran and Oman Discuss Establishing Shipping Corridor in Strait of Hormuz
Iran and Oman revealed in a joint statement that the two nations exchanged views on a step-by-step cooperation framework on Tuesday (August 25), which includes establishing a temporary joint shipping corridor in the Strait of Hormuz and an agreement to carry out joint projects to clear mines in that shipping route. The statement came after Omani Foreign Minister Sayyid Badr bin Hamad al-Busaidi visited Iran to meet with Iranian Foreign Minister Abbas Araghchi. Both sides emphasized the importance of restoring safe navigation through the Strait of Hormuz while protecting their sovereignty. The negotiations will continue with the aim of agreeing on a permanent shipping corridor, future management of the strait, as well as mechanisms for information exchange and maritime traffic management. Both sides also stressed the need to organize a joint dialogue forum with regional countries bordering the Persian Gulf. Iran has tightened its control measures over the Strait of Hormuz since February 28, ordering the suspension of safe passage for commercial and passenger vessels owned by or linked to the United States and Israel, in response to attacks on Iranian territory.
Sovereign Supply — Minerals & Reshoring Industrials▲
New York Copper Closes Up 1.6% on Speculative Import Tariff Buying
COMEX copper futures for December delivery closed up 10.85 cents, or 1.62%, at $6.8155 per pound on Tuesday (Aug. 25), amid concerns that the U.S. may impose import tariffs on copper, prompting traders to rush shipments into the U.S. and drawing supply away from other markets, tightening stocks outside the U.S. Meanwhile, withdrawal orders from LME warehouses added to global supply worries. The U.S. is considering tariffs on copper imports, with Trump to decide after receiving a report from the Commerce Department. If imposed, the tariff would start at 15% in 2027 and rise to 30% in 2028.
Defense Industrial Base — Strategic Materials & Components
NAVER D2SF Invests in Defense Manufacturing Startup F4GE
NAVER D2SF, the corporate venture capital arm of NAVER, has made a new investment in F4GE, a defense and manufacturing infrastructure startup founded in January 2026. F4GE is building a programmable manufacturing network that integrates Korea's fragmented core manufacturing factories and connects them with global defense and advanced hardware companies. The company standardizes data from Korea's approximately 60,000 core manufacturing factories and converts it to meet global buyer requirements, supporting supply chain compliance for the U.S. Department of Defense. This investment round marks F4GE's first institutional funding, with participants including NAVER D2SF, KNET Investment Partners, Sazze Partners, DCAMP, and 500 Global. F4GE plans to expand hiring and manufacturing partnerships, while NAVER D2SF has launched an open call for startups in defense and manufacturing sectors, accepting applications until October 25.
Defense Industrial Base — Strategic Materials & Components▼3impact 4
Canada to Impose Retaliatory Tariffs of Up to 50% on U.S. Goods Worth $20 Billion
The Canadian government announced on the 25th that it will impose retaliatory tariffs of up to 50% on U.S. goods worth $20 billion (approximately 3.18 trillion yen) in response to new U.S. tariffs, effective next month on the 8th. The U.S. tariffs, which took effect on the 22nd, target about $20 billion in Canadian food and industrial products. Canada stated it would take equivalent countermeasures, imposing tariffs of 15%, 25%, or 50% depending on the item. According to U.S. media, the 50% retaliatory tariff will apply to U.S. steel, aluminum, and furniture products, covering more than 700 items imported from the U.S. President Trump has expressed frustration over Canada's backlash, and on the 25th, he posted on social media that he is seriously considering renaming Lake Ontario to "Lake America."
Defense Industrial Base — Strategic Materials & Components▲
Sirui New Materials posts double growth in first-half revenue and net profit, with multi-track expansion opening up growth potential
Sirui New Materials disclosed its 2026 semi-annual report on the evening of August 25. In the first half, it achieved operating revenue of 1.086 billion yuan, up 40.60 percent year on year, and net profit attributable to shareholders of the listed company of 96.0625 million yuan, up 28.53 percent. Among these, the optical module chip base and housing business became the brightest growth driver, with revenue of 112 million yuan, surging 387.78 percent year on year. The liquid rocket engine thrust chamber inner wall business recorded revenue of 31.1535 million yuan, up 33.77 percent. The CT and DR tube components and other businesses recorded revenue of 73.7365 million yuan, up 79.83 percent. The company's traditional medium and high voltage electrical contact materials segment posted revenue of 223 million yuan, with a domestic market share of over 60 percent for copper-chromium electrical contact materials, and it has achieved batch supply of 550 kilovolt and 80 kiloamp high anti-erosion copper-tungsten contacts. During the reporting period, research and development investment was 57.1346 million yuan, up 34.74 percent year on year, and overseas revenue was 263 million yuan, up 46.44 percent.
Kuang-Chi Technologies first-half revenue up 19.59%, second growth curve advances on multiple fronts
Kuang-Chi Technologies disclosed its 2026 semi-annual report. In the first half, it achieved operating revenue of 1.128 billion yuan, up 19.59% year on year. Net profit attributable to shareholders of the listed company was 319 million yuan. Net cash flow from operating activities was 167 million yuan, up 3.35% year on year. Among these, revenue from the metamaterials industry was 1.123 billion yuan, up 19.66% year on year, while metamaterials research and development revenue surged 197.61% year on year. During the year, the company landed two major contracts in succession. In January, it signed batch production contracts totaling 264 million yuan with four customers. In June, it signed batch production and development contracts totaling 612 million yuan with three customers. The cumulative value of the two orders reached 876 million yuan. Combined with orders carried over from 2025, the company has ample order backlog. In addition, its self-developed metamaterial unmanned aerial vehicle complete aircraft business won its first procurement order worth 1.618 million yuan, and it signed a strategic cooperation agreement with the Wenchang International Aerospace City Administration to accelerate its expansion into the commercial space sector.
North Navigation Technology reports first-half 2026 revenue of 930 million yuan and a loss of 47.71 million yuan
North Navigation Technology disclosed its 2026 semi-annual report on August 26. In the first half of the year, it achieved total operating revenue of 930 million yuan, down 45.39 percent year on year. Net profit attributable to shareholders was a loss of 47.71 million yuan, compared with a profit of 116 million yuan in the same period last year. Net profit after deducting non-recurring items was a loss of 51.68 million yuan, compared with a profit of 111 million yuan a year earlier. Net cash flow from operating activities was 467 million yuan, compared with negative 676 million yuan in the prior-year period. Basic earnings per share were negative 0.032 yuan, and the weighted average return on equity was negative 1.64 percent. The company said its military and civilian dual-use products business focuses on navigation control and ammunition information technology, and develops three industrial ecosystems, namely navigation and control, military communications, and intelligent integrated connectivity, around eight professional technology systems including guidance and control and AI autonomous target recognition. As of the end of the first half of 2026, the company's inventory book value was 722 million yuan, accounting for 25.45 percent of net assets and up 191 million yuan from the end of the previous year.
Gaoling Information Plans to Acquire 89.49% Stake in Kairui Xingtong for 805 Million Yuan
Gaoling Information announced on the evening of August 26 that it plans to acquire an 89.49% stake in Kairui Xingtong through a combination of share issuance and cash payment, with a transaction price of approximately 805 million yuan, and to raise supporting funds of no more than 96 million yuan. The target company focuses on the design of dedicated satellite communication systems and key technology research, and this transaction constitutes a major asset restructuring. Gaoling Information stated that after the transaction, it will form an integrated advantage of terrestrial secure communications plus satellite all-domain communications. The company turned losses into profits in the first half of the year, with a net profit of 2.19 million yuan.
Qilun Technology's first-half net profit attributable to parent reaches 254 million yuan
Qilun Technology released its 2026 interim report on August 26. First-half operating revenue was 2.88 billion yuan, up 3,733.2 percent year on year. Net profit attributable to the parent company was 254 million yuan, up 16,148.3 percent year on year. Net profit attributable to the parent after deducting non-recurring items turned from loss to profit, reaching 143 million yuan. Net operating cash flow was 197 million yuan, up 3,866.8 percent year on year. Earnings per share were 0.1677 yuan. Second-quarter revenue was 1.58 billion yuan, and net profit attributable to the parent was 170 million yuan. As of the end of the second quarter, the company's total assets were 18.12 billion yuan, up 2,542.1 percent from the end of the previous year. Net assets attributable to the parent were 9.718 billion yuan, up 1,892.9 percent. The company said that during the reporting period it completed a major asset restructuring, with its main business becoming industrial turbomachinery, and it is cooperating with Siemens Energy on gas turbine business. In May 2026, its self-developed 50-megawatt-class gas turbine HGT51F passed a full-load continuous operation test and met the conditions for commercial operation.
Quanxin Co. first-half 2026 net profit 26.1921 million yuan, up 18.87% year-on-year
Quanxin Co. disclosed its 2026 semi-annual report on August 27. In the first half, it achieved total operating revenue of 425 million yuan, down 4.44% year-on-year; net profit attributable to the parent was 26.1921 million yuan, up 18.87% year-on-year; and non-GAAP net profit was 23.8622 million yuan, up 8.03% year-on-year. Net cash flow from operating activities was negative 8.257 million yuan, compared with 263 million yuan in the same period last year. The company is mainly engaged in military optoelectronic cables and assemblies, optoelectronic components, FC fiber high-speed networks and multi-protocol network solutions, and optoelectronic system integration. As of the end of the first half, the company's inventory book value was 443 million yuan, accounting for 22.07% of net assets, a decrease of 20.8976 million yuan from the end of the previous year.
Defense Industrial Base — Strategic Materials & Components▲2
Osaka Titanium Q1 Operating Profit Up 82.7% to 1.25 Billion Yen
Osaka Titanium Technologies reported consolidated results for the first quarter of fiscal year ending March 2027, with net sales of 12.382 billion yen, up 2.3% year-on-year, and operating profit of 1.25 billion yen, up 82.7%. In the titanium business, the increase in completed aircraft by commercial aircraft manufacturers, driven by rising demand for commercial aircraft, contributed to the results.