British Prime Minister Keir Starmer has announced a review of UK defence spending that aims to bring the UK’s armed forces into a ‘war-ready’ state, with a major military expansion programme and more spending on new equipment.
The new plan includes building 12 new nuclear-powered submarines and increasing production of drones, missiles and ammunition.
Starmer said that UK defence spending would rise to 2.5% of GDP by 2027 and suggested that this figure could rise to 3% of GDP in the next term of Parliament when economic and fiscal conditions allow.
Starmer’s investment plans in the sector have boosted BAE Systems (BA.UK) shares to new all-time highs today, extending the company’s steady upward trend. The political announcements have also boosted Rolls Royce (RR.UK) shares, which have also hit new highs.
BAE Systems stock quotes, D1 interval. The company's stocks maintain an upward trend until the quotes break below the close zone of local lows of the consolidation area from the end of May and the 50-day EMA (blue line on the chart). Source: xStation
Micron Surges on Record DRAM Pricing
DE40: European markets extend decline
Siemens after Earnings: What went wrong?
Google's European troubles
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
