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1. Earnings growth in Europe has been surprisingly strong in the third quarter.

With the reporting season nearly over, earnings-per-share growth for the MSCI Europe Index is running at 5.7%, compared with expectations for no growth at all, data compiled by Bloomberg Intelligence shows.

Almost half of companies have topped earnings estimates, prompting more guidance upgrades than downgrades and defying fears around tariff turmoil and currency headwinds.

“The earnings season continues to deliver,” say Goldman Sachs strategists led by Guillaume Jaisson. “Guidance has largely been confirmed. As a result, consensus estimates for 2025 and 2026 are stabilizing or improving.”

Consensus expectations for 2026 point to earnings growth of 11%, followed by 12% in 2027, as European governments ramp up fiscal stimulus and economic growth continues to recover.

2. Data center construction points to 20% Y/Y order growth in 2026e after an 80% surge in 2025.

Below: US construction spending in data center at $41bn year-to-date.

3. The power equipment super cycle.

Power is the bottleneck for data center growth, which strengthens pricing power for equipment makers.

Analysts forecast ~100GW of new generation required to support data center power demand until 28E, yet base-load power is almost flat (per EIA) with gas/nuclear capacity only to pick up more meaningfully from 2029E.

This has put a strain on the grid with inter-connection queues for DCs reaching 3-7 years in certain DC clusters, as the reserve margin in the electricity market is tight.

This could catalyze transmission and generation investments, with utilities capex growing by >15% yoy this year and more top-down government support likely.

Below: Global annual grid investments are expected to grow by >50% in 2024-30E

4. Hedge funds = smart money?

Hedge funds are financial powerhouses known for flexible, aggressive strategies designed to beat the market. Right?

The Global X Guru ETF (GURU), built to track top hedge fund holdings, has underperformed the S&P 500 over the past decade, even before fees.

And those fees matter. The classic “2 and 20” model (2% of assets + 20% of gains) can significantly reduce returns. It's no wonder that many individual investors are opting for simpler, lower-cost strategies.

5. Rheinmetall says to quintuple sales by 2030!

The group guides for sales of about $58 billion and an operating margin of more than 20% by 2030.

It said its weapon and ammunition division will make up most of its 2030 sales, fueled by high NATO inventory requirements and an undersupplied market. The company expects continued demand from European governments motivated by Russia's war in Ukraine, in particular, from its home market, Germany.

It also announced a new structure from next year, including a new naval segment that it said had a 2030 sales potential of $5.7 billion. The other new divisions include air defense, showing the company's increased focus on drones as well as digital.

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