RE: RR2 Apr 2024 15:04
$1.2 trillion!
bae systems plc (lse:ba.) and rolls-royce holdings plc (lse:rr.) are among defence firms likely to do well from a flurry of approvals for increased security spending last week, analysts have said.
pointing to congress’ approval of a new defence bill in the us, alongside uk government plans to bolster nuclear capabilities, deutsche bank said european firms were set to benefit.
“last week, there was a flurry of news surrounding defence spending in the western world,” the bank wrote in a note.
“each by itself may not be eye-catching, but when put together, they provide a clear picture of the direction of defence spending.
“together, they provided solid evidence of support for defence spending, which is critical for the long-term defence revenue growth thesis in europe.”
in the us, congress approved a us$1.2 trillion (£951 million) government funding package, which included a 3% increase in defence spending.
deutsche noted this was “a big relief for cash inflow for defence companies”.
uk ministers unveiled plans to collectively invest over £763 million in the nuclear industry, and a boon for bae, rolls-royce, bab**** and energy firm edf