The war in Ukraine has forced investors to take another look at defense companies, BAE chief says
BAE's chief says the war in Ukraine has forced investors to take a fresh look at defense firms.
Charles Woodburn has revealed that BAE's share performance has weakened over the years as ESG-obsessed UK funds have shunned business.
But USA investors appeared to be less concerned about ESG (environmental, social, governance) considerations, meaning BAE's American rivals were valued much higher.
Mr Woodburn said there was now a “re-evaluation of ESG in light of the tragic conflict in Ukraine“.
He told The Sun: “Democracy and freedom of speech require a strong defense structure.”
Mr Woodburn said he was delighted BAE would be staying Londonincluded in the list, despite the fact that the main part of the income is received abroad.
And despite only four of BAE's top 15 investors being British, he said: “We've closed that valuation gap.”
The chief executive's comments came after BAE revealed a record £55bn backlog of orders from governments due to an “elevated threat environment” around the world. of Russia invasion of Ukraine.
BAE won £38bn of new contracts last year, including UK-related nuclear means of deterring submarines.
The company is also ramping up production of so-called shoot-and-run towed artillery guns.
Last month, BAE said it was resuming production of British-made M777 howitzers, some of which were transferred to Ukraine.
BAE, which employed 7,000 staff last year, posted a nine per cent rise in annual sales to £25.3bn.
And he expects sales to rise 12 percent this year with new orders for planes, combat vehicles and guns.
£275m for the BT Tower Hotel
BT Tower, one of the most recognizable sights on London skyline, is set to become a luxury mega-hotel.
Group BT sold the building to US-based MCR Hotels for £275m.
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MCR already owns the Sheraton Times Square and High Line hotels in New York.
The Grade II listed BT Tower was built Mail in 1961.
Its revolving restaurant at the top was permanently closed after a bomb exploded in 1971.
Although it was 620 feet high in the heart of London, it was an official state secret for many years and was only called Place 23.
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HSBC has been hit by China
HIGHER interest rates helped HSBC's profits soar by almost 80 per cent to £24bn last year, but it ended 2023 on the downside.
Shares fell 8.39% yesterday after a £2.4bn write-off on a stake in the Chinese bank.
HSBC said it caused its profits to fall by 80 percent in the last quarter of last year.
Banks in China are suffering from domestic debt.
Ashley in “Snob” digs into the jar
BILLIONAIRE Mike Ashley accused Morgan Stanley of snobbery in a high court showdown yesterday.
His The Fraser Group is suing a Wall Street bank for £40m over a £790m margin call – a requirement that it provide collateral to cover potential losses on a trade that has left them heavily exposed.
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His lawyer, Adrian Beltrami, called the call “disproportionate to any real risk”.
He told the London court: “The evidence unfortunately suggests that Morgan Stanley's erratic behavior was at least partly the result of snobbery.”
He said bank staff called Mr Ashley an “upstart” and claimed the backlash was “class-based”.
Mr Ashley said the shock of it was “like a nuclear bomb hitting Slough”.
It is his second legal battle in five years after he won a £15m case against former adviser Geoff Blue, who described the tycoon vomiting in a fireplace while drinking.
27% Heathgrow
HEATHROW returned to profit amid pent-up holiday demand afterward Corona virus infection covid travel restrictions.
Last year, it carried 79.2 million passengers, which is 29 percent more than in 2022.
Revenue soared 27 per cent to £3.68bn, helping profits rise to £38m.
A year earlier, it made a loss of 684 million pounds.
The airport still wants to raise airline fees, which will lead to higher fares for passengers.
Boss Thomas Waldby said he was still considering building a third runway.
Aldi job promotion
ALDI is hiring another 5,500 workers this year as the discount supermarket plans to open new stores.
The grocer already has more than 1,000 stores and 45,000 employees.
Shop and warehouse workers start at £12 an hour.
Deputies took offense at the IMF
MPs slammed the International Monetary Fund for refusing to provide evidence on its economic forecasts for the UK.
The IMF declined an invitation from the Treasury's special committee to join other forecasters in discussing the economy.
Chairwoman Harriet Baldwin called the no-show “infuriating.”
She said: “They continue to speak publicly about the UK from their seat in Washington.
“As the IMF is a government agency that is partly funded by the UK, I find this unbelievable.”
https://www.thesun.co.uk/money/26098087/war-ukraine-woke-investors-defence-firms-bae/
