And so, you know, through our active dialogue with them, we're able to deploy our capital and our resources to those areas that are most, most prescient to that.

Yeah, and what's, uh, been interesting for me to watch is how first the, [clears throat] the government, which obviously, uh, in this space, the defense and aerospace, has always understood and had a very close partnership with the private sector.

I would say that's only really intensified and diversified in the last year and a half, and the government doing things that are not unprecedented in, in US history, but certainly rare in recent history in terms of taking equity stakes, uh, in particular companies, and really working so closely with the private sector in trying to bring about the kinds of investment that they judge are necessary for US national security.

But then the second thing that's been really interesting to watch, and something that SRI it's cr- uh, is, uh, is critically part of in the defense and aerospace world, is working with partners.

It's, SRI's principally about the United States, but it's also about making partners stronger.

And as partners are thinking about their national security needs and the resilience of their supply chains and the defense and aerospace reforms that they are undertaking, they are looking for the support of a global bank, a leading global bank like J.P. Morgan, for help.

And we're learning a lot of lessons by our efforts to talk to companies about their investments and ways to help them in working with the US government that we can apply to our partners around the world 'cause we're seeing it's not just the US defense budget that's, that's going up to north of a trillion dollars.

... also in Europe.

Derek?

Sure.

Thanks.

Great to be with all of you this morning.

And first, I just want to congratulate Bob and Richard for what I think is a terrific report.

I had an opportunity several weeks ago to read it in draft.

and really commend it to everyone here.

MR.

Derek?

Sure.

Thanks.

[clears throat] Um, great to be with all of you this morning.

And first, I just wanna congratulate, uh, Bob and Richard for what I think is a terrific report.

I had an opportunity several weeks ago to read it in draft and really commend it to everyone here.

Uh, it is-- so much has been written on the Iran nuclear deal over the past year, much of it slanted one way or another.

But let me turn it now to Derek, who was specifically, uh, asked s-several questions.

And for our partners, our allies in Europe, in Asia, how have the experiences of these two ongoing conflicts and just the perception of America as an ally changed?

Sure.

And that's, I think there's been a couple geopolitical shocks that have all happened in the last few years.

And the reason why I think this moment, 2026, is somewhat unique in recent history is we have this confluence of geopolitical shocks all happening at once.

You've got the largest land war in Europe since World War II, which has been raging for four plus years.

You have a regional war in the Middle East that one way or another has been underway since October 7th, 2023.

So we're almost in our third year of that war.

You mentioned, of course, China and this big power competition, U.S.-China. What did we learn from the recent President Trump, President Xi meeting over in Beijing about the status of that?

Mm

... will be concluding, so there'll be a question of is he going to do anything further with tariffs and trade with China.

A lot of that, a- all of those could be disruptive to a, what both sides would hope to be a successful summit in September.

So I think for clients, kind of keeping that in mind that we'll have another big moment in the third week of September when President Xi will come to Washington.

And, and then there could be two other presidential meetings this year, both on the margins of the, of the APEC summit that President Xi's gonna be hosting in the fall, and then President Trump will be hosting the G20 summit-

Yeah.

I mean, and, and th- the US is, and this is something, by the way, that JP Morgan has been, is part of through our Security and Resiliency initiative here, which is to try to help US companies and, and companies, uh, from allies and partner countries to build greater resilience in our supply chains.

It's not, it's, it's not just about China, it's about-Are collect about the world in general, making sure that we- there are more reliable sources of some of these critical minerals and rare earths out there.