European Arms Firms' Value Soars Amid Ukraine Defense Pact Talks

Following a defense summit hosted by Prime Minister Sir Keir Starmer, BAE Systems' shares surged by 19%, propelling the FTSE 100 Index to a record high of 8832.8. Prime Minister Sir Keir Starmer unveiled a £1.6 billion finance package for Ukraine to secure over 5,000 missiles, a move that will generate 200 jobs at Thales Group in Belfast. Rheinmetall experienced a 13.7% surge in its shares, indicating expectations of heightened military expenditures by European countries. Analysts observed a positive outlook due to increased defense budgets, highlighting RBC Capital Markets' view that Europe recognizes the necessity of bolstering military aid for Ukraine.