Britain’s biggest weapons maker surges after Trump military pledge

Oil Market - Brent crude increased by 2% to $61.16 per barrel, while West Texas Intermediate (WTI) rose by 1.8% to $57.01 per barrel, following a decline in US crude oil stockpiles by 3.8 million barrels to 419.1 million barrels, contrary to analysts' expectations of a rise [1][7]. Retail Sector - Tesco's shares fell by 6.5% despite achieving a 10-year high in market share in the UK, while Associated British Foods, owner of Primark, saw a 13% decline in shares due to weaker-than-expected sales [2][3]. Defence Sector - BAE Systems' shares surged by up to 7% after President Trump announced plans to increase the US defence budget from $1 trillion to $1.5 trillion, adding over £4 billion to its market value [6][40]. - UK defence stocks, including Babcock and Rolls Royce, saw significant gains, with nearly £7 billion invested in early trading following Trump's military spending pledge [53][41]. - European defence stocks also rose, with notable increases in companies like Rheinmetall and Airbus, reflecting investor confidence in increased government spending on defence [40][55]. Economic Indicators - A major credit rating agency predicts the US Federal Reserve will lower interest rates two more times this year due to a slowdown in the jobs market, with expectations of a decrease from the current range of 3.75% to 3% [19]. - The US trade deficit fell to its lowest level since 2009, dropping 39% to $29.4 billion in October, attributed to a $11 billion decrease in imports [24][25].