NATO Secretary-General Rutte said allies, after a brief dispute at the Ankara summit, have restored unity.

Trump is pushing Ukraine to produce Patriot and Tomahawk systems, signalling a shift in US aid from direct fiscal support to a technology‑licence plus supply‑chain export model. That shifts defense-sector commercial logic away from single government procurement toward recurring overseas revenue streams from system licensing, core parts supply and long‑term maintenance. The move also signals a lower probability of a quick end to the Russia‑Ukraine conflict and prepares markets for more sustained military support, which should reinforce European defence spending and related investment. Market takeaways: reprice defence equities for greater foreign and service income exposure; reassess European fiscal trajectories and potential sovereign issuance/interest‑rate implications from prolonged defence spending; consider tactical exposure to energy, resources and other defensive assets tied to extended geopolitical risk.

Westpac chief economist Kelly Eckhold said the RBNZ may raise the official cash rate (OCR) again in September, adding the MPC is signaling further tightening. She said the committee appears concerned that skipping a hike on Wednesday would loosen financial conditions, and continues to view a year-end OCR of 2.75%-3% as reasonable.