Morgan Stanley will lay off approximately 2,500 employees, equivalent to about 3% of its global workforce, across all business divisions to reduce operating expenses and streamline operations.

Analysts project that sustainability-focused portfolios could allocate between $38 billion and $71 billion into aerospace and defense equities if ESG allocations rise to align with MSCI benchmark weightings.

The lower estimate assumes 40% of ESG assets without current defense exposure raise holdings to index weights, while the remaining 60% adjust existing allocations, as geopolitical tensions rise in key global regions.