Raytheon Technologies CEO Gregory Hayes informed CNBC Tuesday that he doesn’t anticipate defense spending cuts sooner or later, regardless of warnings from Republicans amid rising expectations that Democratic nominee Joe Biden might win the presidential election subsequent week.
“Frankly, I think that’s ridiculous,” Hayes stated in a “Mad Money” interview.
President Donald Trump and his 2020 challenger, Biden, are crisscrossing the nation campaigning for votes days forward of the Nov. three election. In his 4 years in workplace, Trump grew navy spending to new data from a $700 billion Pentagon funds in 2018 to $733 billion in 2020. He has additionally siphoned funding from the funds to assist fund the development of a wall alongside the U.S.-Mexico border.
Biden has made no calls to cut back defense spending, although the progressive wing of his social gathering has advocated for reductions, which has given Biden opposers a gap to assault his plans for the navy.
The former vice chairman, whose son Beau Biden fought within the Iraq War, a battle Biden voted for as a member of the Senate, has pledged to direct spending towards modern applied sciences in cyber, area and synthetic intelligence to fend off developments made by the likes of Russia and China.
As early as June, Trump stated that Biden would defund each American police and navy, ought to he be elected commander in chief.
“Defense has always been a bipartisan issue and when Biden was vice president, and previously as senator, I think he had a pretty good approach to national defense,” Hayes stated. “He understood the need to work both sides of the aisle and to provide for the national defense.”
Biden continues to guide Trump in nationwide and most battleground state polls, however the president is trying to ship on one other upset as his marketing campaign did within the 2016 presidential cycle.
Whoever wins, the U.S. might want to replace its navy capabilities, regardless of it being “challenging times,” Hayes stated.
Hayes does not count on new file defense spending ranges within the close to future, and the Pentagon stated it expects defense spending to stay flat irrespective of who’s in workplace because the nation continues to face challenges from the coronavirus.
“We have lost our technological edge to the Chinese and in some cases to the Russians and we’re going to have to invest more dollars into some of these new technologies if we’re going to be able to compete with these new threats,” Hayes stated.
Raytheon, a big navy contractor, noticed shares shut down 7% at $56.63 on Tuesday after the corporate posted combined third-quarter outcomes.
While the contractor topped Wall Street’s revenue estimates, income got here up brief as gross sales in missiles and intelligence choices missed expectations.
The inventory is down greater than 62% this yr.