US President Donald Trump’s plan to increase military spending has given a major boost to British weapons manufacturers in the stock market.
Meggit, Rolls-Royce, BAE Systems, and Babcock were some of the companies that reported soaring stocks on Tuesday, a day after Trump announced a “historic” increase in the Pentagon budget.
Speaking in a meeting with dozens of state governors at the White House, Trump said Monday that the decision was aimed at rebuilding America’s “depleted military.”
The following day, Babcock, a UK-based company with more than 35,000 employees worldwide, reported a 4-percent increase in shares.
The figure for BAE Systems, a long-time Pentagon partner, was also up 2.2 percent,
The same was true for Thales, a French company, which posted a net profit of 946 million euros last year.
“The talk regarding military and infrastructure spending raised expectations towards Trump’s speech to the Congress later today, lifting the dollar…