Capital One Financial Corp. has agreed to acquire fintech startup Brex in a deal valued at $5.15 billion, the transaction was disclosed on Thursday.

Under the terms of the agreement, Capital One will pay 50% in cash and 50% in stock.

Brex was previously valued at $12.3 billion, highlighting the valuation reset that has swept through the fintech sector amid higher interest rates and tighter funding conditions.

Capital One founder and CEO Richard Fairbank said the acquisition reflects the bank’s long-term strategy to build a payments business shaped by technological innovation.

“Since our founding, we set out to build a payments company at the frontier of the technology revolution,” Fairbank said in a release. “Acquiring Brex accelerates this journey, especially in the business payments marketplace.”

He added that Brex brought together corporate cards, banking, and spend management software, calling it a vertically integrated platform built “from the bottom of the tech stack to the top.”

A fintech built for fast-growing companies

Founded in 2017, Brex established its reputation by providing corporate cards and cash management tools tailored for startups and technology companies.

Over time, it expanded its customer base to include larger enterprises, providing payments, expense management, and banking services.

Brex now serves a broad mix of clients across sectors, including Robinhood, Zoom, and Anthropic.

While the company initially gained attention for extending credit to startups during a period of low interest rates, it later diversified beyond technology into other industries.

How it fits into Capital One’s growth plan

Under Fairbank, a rare founder-CEO of a major US bank, Capital One has pursued large strategic deals.

Last year, Capital One agreed to buy Discover Financial for about $35 billion, a transaction that gave the bank access to one of the few payment networks operating at scale in the US.

The Brex purchase aligns with that strategy by expanding Capital One’s presence in business payments and software, an area the company says is key to its broader payments ambitions.

Stablecoins and the crypto angle

The deal is also notable for Brex’s growing relevance to crypto and digital assets.

In September 2025, Brex announced plans to launch native stablecoin payments, saying it would become the first global corporate card platform to enable instant balance payments using stablecoins.

“Stablecoins make it possible to move millions of dollars across borders in seconds,” Brex CEO Pedro Franceschi said at the time, adding that Brex aimed to give companies a single, secure platform to manage critical payments.

Several crypto and blockchain-focused firms, including Figure, Solana, and Alchemy, joined the waitlist for the product, showing Brex’s position in the digital asset ecosystem.

Strategic rationale

Capital One said it became increasingly convinced that Brex’s model represented the future of business payments, according to a CNBC report.

Franceschi told CNBC that the company did not pursue a sale out of necessity.

“We didn’t have to pursue this acquisition, our growth was incredibly strong,” Franceschi said.

He added that combining Brex’s technology with Capital One’s scale and resources would allow the platform to grow faster than it could as an independent firm.

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Asian markets advanced on Friday after the Bank of Japan kept interest rates unchanged, while a weaker US dollar pushed gold and silver to fresh records.

The session unfolded against a backdrop of major geopolitical and corporate developments, including a landmark US deal for TikTok, political uncertainty in Japan after a snap election call, and renewed strains in US–Canada relations following comments from President Donald Trump.

Asian markets and central bank signals

Stocks across Asia moved higher after the BOJ held its benchmark rates steady.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.53%, while Japan’s Nikkei 225 gained 0.2%.

S&P 500 e-mini futures edged up 0.2% after fluctuating between gains and losses.

The yen weakened 0.1% to 158.61 per dollar following the decision.

“The tone appears hawkish,” said David Chao, global market strategist for Asia-Pacific at Invesco in Singapore, in a Reuters report. “The BOJ has raised four of its six inflation projections and indicated that further rate hikes are likely if these forecasts are realised.”

Chao noted that the central bank did not directly address volatility in Japanese government bonds.

“It’s evident that the Takaichi administration is monitoring the bond market closely and is concerned about the recent meltdown,” he said, adding that similar attentiveness from the BOJ would be reassuring.

U.S. markets extended gains overnight after Trump softened his stance on tariffs against Europe.

The S&P 500 rose 0.5%, and the Nasdaq Composite climbed 0.9%.

Analysts at Societe Generale said: “Markets welcomed the shift, with a rebound in risk assets and a flattening of government bond yield curves. Policy uncertainty remains high, however. Further twists and turns are likely.”

The US dollar index hovered near year lows, while gold rose to $4,943.43 an ounce and silver jumped to $98.88.

“The dollar weakness is about a loss of US credibility and prestige,” said Kyle Rodda of Capital.com. “The rise in gold is the inverse of the loss of US credibility.”

TikTok finalises US joint venture

TikTok’s Chinese parent ByteDance finalised a deal to place the app’s US operations into a new, majority American-owned joint venture, averting a potential nationwide ban.

The TikTok USDS Joint Venture LLC will be owned 80.1% by American and global investors, with ByteDance retaining 19.9%.

Managing investors include Oracle, Silver Lake, and MGX.

A White House official said both the US and Chinese governments had signed off on the deal.

Trump praised the agreement, saying TikTok “will now be owned by a group of Great American Patriots and Investors, the Biggest in the World,” and thanked Chinese President Xi Jinping for approving it.

TikTok said the venture “will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for US users.”

Its recommendation algorithm will be hosted in Oracle’s US cloud and retrained using US user data.

Japan dissolves lower house for snap election

Japan’s Prime Minister Sanae Takaichi dissolved the lower house of parliament on Friday, calling a snap election for Feb. 8 in a bid to shore up her narrow majority and secure a mandate for expansionary fiscal policies.

Campaigning is set to begin officially on Tuesday, with the interval between the dissolution of the Diet and election day the shortest on record at just 16 days.

The vote will also take place during one of Japan’s coldest months, heightening concerns that snowfall could suppress turnout in affected regions.

Sanae Takaichi appears to be relying on strong personal approval ratings to secure a nationwide mandate to advance expansionary fiscal measures.

She has pledged to introduce a temporary reduction in the consumption tax on food should she win renewed backing for her newly formed coalition.

“I will put my job as prime minister on the line with these election results,” Takaichi said, adding that failure to win a majority could lead to a different premier.

Inflation is expected to be a key issue, with government data showing consumer prices have remained above the BOJ’s 2% target for four years.

Trump withdraws Canada’s ‘Board of Peace’ invitation

Tensions between Washington and Ottawa intensified after Trump withdrew an invitation for Canada to join his proposed “Board of Peace,” days after Prime Minister Mark Carney warned against economic coercion by major powers at the World Economic Forum in Davos.

US President Donald Trump said in a post on Truth Social on Thursday evening that the Board of Peace had withdrawn its invitation to Canadian Prime Minister Mark Carney to join the body.

Carney said last week that he had planned to accept the invitation, though key details, including the financial terms, had yet to be finalized.

Countries seeking a permanent seat on the board are required to pay $1 billion.

“Great powers have begun using economic integration as weapons,” Carney said, citing tariffs and supply chains as tools of coercion.

Trump responded on social media, saying, “Canada lives because of the United States. Remember that, Mark, the next time you make your statements.”

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It seems as if there is no stopping the ongoing rally in precious metals prices. 

Gold and silver hit fresh record highs on Friday as bets on an interest rate cut by the US Federal Reserve increased amid geopolitical uncertainties. 

Lower interest rates increase the appeal of precious metals as they are non-yielding assets, unlike Treasury bonds. 

Gold on COMEX came nearly hit the coveted $5,000 per ounce level on Friday as prices reached a record high of $4,969.69 an ounce earlier in the day. 

Similarly, silver hit a record high of $99.395 per ounce, and it seems the white metal is likely to hit a historic $100 per ounce sooner rather than later. 

On Friday, the dollar was trading near a more than two-week low, having depreciated by 1% over the week.

This made metals priced in the greenback more affordable for international buyers. 

Meanwhile, Wall Street’s main indexes experienced a sharp sell-off earlier in the week due to investor anxiety stemming from fresh tariff threats against the EU made by US President Donald Trump, though the markets later recovered.

Precious metals rise despite easing tensions

EU leaders, meeting for an emergency summit in Brussels late on Thursday, were relieved by Trump’s reversal on Greenland. 

However, they simultaneously issued a stern warning, stating their readiness to take action should Trump issue any further threats.

Despite US President Trump reversing his position on Greenland, which eased geopolitical tensions, both gold and silver are still poised to achieve significant weekly gains.

The price gains followed an announcement by Trump on Wednesday afternoon that he would hold off on imposing tariffs on European nations that had opposed his efforts to acquire Greenland. 

The President cited a newly established “framework of a future deal” concerning the island as the reason for his decision.

Denmark emphasized that its sovereignty over the island is not negotiable, and the specifics of any agreement continue to be undisclosed.

“This, in turn, remains supportive of the upbeat market mood, which tends to undermine demand for traditional safe-haven assets, albeit it does little to dent the strong bullish sentiment surrounding the bullion,” Haresh Menghani, editor at FXStreet, said in a report. 

Economic data and Fed outlook

The US economy’s GDP for the third quarter saw an upward revision in its final reading, expanding by 4.4%. 

This performance was marginally higher than the second estimate of 4.3% and significantly exceeded the 3.8% growth rate reported in the preceding quarter, according to data released by the Bureau of Economic Analysis.

The US Core Personal Consumption Expenditures Price Index (PCE) – the Federal Reserve’s preferred measure of inflation – saw an acceleration in its year-over-year growth in November, rising to 2.8% from 2.7% the month before, according to a separate report. 

However, the month-over-month increase remained consistent at 0.2%.

US Department of Labor data showed initial claims for state unemployment benefits rose by 1,000 to a seasonally adjusted 200,000 for the week ending January 17. 

Although this was below the 212,000 consensus estimate, it did not boost the US dollar.

Investors appear to be confident that the US Fed will maintain its key interest rate until the end of this quarter, potentially even through the conclusion of Chair Jerome Powell’s term in May. 

Despite this expectation, market predictions still include two more rate cuts in 2026, a prospect that continues to put pressure on the US dollar and support bullion prices.

Even as both gold and silver approach their respective historic landmarks, experts caution about pullbacks in prices.

Trade Nation’s senior market analyst, David Morrison, said:

The nature of any pullback may offer clues as to where prices go next.

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Prague-based defence firm Czechoslovak Group (CSG) is set to begin trading in Amsterdam on Friday, in a deal that is expected to become the biggest defence IPO on record by funds raised.

The listing values the Czech-owned group at 25 billion euros ($29.30 billion), placing it among Europe’s most significant market debuts in recent years.

The offering, as reported by Reuters, comes as investors continue to back defence companies across the region, fuelled by Russia’s invasion of Ukraine and rising commitments from European governments to increase military spending.

CSG’s IPO also arrives as defence stocks remain sensitive to geopolitical headlines, with the sector touching record highs this year.

Biggest defence IPO by funds raised

CSG’s shares will be priced at 25 euros each, according to a prospectus published earlier this week. The company expects to raise 3.8 billion euros from the offering, and trading is due to begin at 0900 CET on Friday.

15.2% of the stake in the company will be listed on the Amsterdam exchange, the prospectus said.

The structure includes both fresh capital raised for the business and a partial sale by its owner, allowing investors to buy into the company while also generating a sizeable personal return for the founder’s family.

The deal comprises 30 million new shares issued by CSG and up to 122 million existing shares held by Michael Strnad.

Michael Strnad’s stake sale and personal windfall

Strnad, the 33-year-old owner of CSG, is expected to net just under 3 billion euros from the deal, while the remaining proceeds will go to the company, according to the prospectus.

The offering marks a major milestone for the Czech billionaire, whose family’s business roots trace back to post-Cold War defence trading.

Strnad’s father began trading old Soviet-era military equipment in the 1990s, a period when Eastern European military stockpiles were being sold and repurposed.

CSG announced its intention to float last week and opted to proceed with a faster-than-standard process, suggesting confidence that market conditions and investor appetite remain supportive for a defence listing of this scale.

Why Europe’s defence sector is drawing fresh capital

CSG’s listing lands in a market environment where defence companies have seen a surge in both attention and investment.

Russia’s invasion of Ukraine has pushed European governments to revisit long-term spending targets, while investors have positioned for sustained demand across equipment, ammunition, and logistics.

CSG counts Ukraine among its key customers and has been described as one of the world’s fastest-growing defence companies.

Its profile has benefited from the wider re-ordering of procurement priorities across Europe, as the continent shifts from decades of lower defence budgets to a renewed focus on military readiness.

European defence stocks have touched record highs this year.

They were pushed higher again this week by US threats to take control of Greenland, before paring some gains after President Donald Trump ruled out taking the territory by force.

Big demand, big names, and a faster process

Early indications point to strong demand for CSG’s shares. Books on the IPO were quickly covered on Tuesday, an expert, signalling interest that exceeded the deal size.

Cornerstone participation has also helped underpin the offering.

Funds managed by Artisan Partners, BlackRock, and Al-Rayyan Holdings, a subsidiary of the Qatar Investment Authority, each committed 300 million euros, according to the prospectus.

CSG said the IPO would help raise its profile with international investors, while boosting brand recognition and credibility.

It also said a listing would give it greater financial flexibility through wider access to capital.

The company’s debut also comes as other European defence groups consider listings.

Franco-German tankmaker KNDS is among the large firms expected to go public this year, adding to a busy pipeline across the sector.

With a 25 billion euro valuation and a multi-billion euro fundraising plan, CSG’s Amsterdam listing is expected to serve as a key gauge for how much demand investors have for European defence growth stories in public markets.

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The FTSE 100 Index wavered this week as investors reacted to the geopolitical developments between the UK and the US. It was trading at £10,150, a few points below the all-time high of £10,260. This article looks at some of the top FTSE 100 shares to watch next week.

Lloyds Bank will be the top FTSE 100 stock to watch

Lloyds share price has been in a strong uptrend, and is now hovering at its highest level since 2008. This surge has mirrored that of the top European banks like Barclays, Société Générale, and UniCredit. 

The company did well as its revenue and profitability growth continued amid a period of higher interest rates. Also, it is nearing the end of the motor vehicle insurance resolution, while Rachel Reeves did not include a windfall tax in her budget. 

Lloyds stock will be in the spotlight next week as it releases its fourth quarter and full year results. Analysts expect that the net interest income will be £3.54billion, while its full-year will be £13.64 billion. They also expect that its annual revenue will jump to £15.02 billion in 2026, followed by £16.15 billion and £16.9 billion in the following two years.

Airtel Africa (AAF)

Airtel Africa stock has done well in the past few years, helped by its continued market share gains in key areas like money transfer, data, and voice. It has soared to 360p, up by over 330% from its lowest level in 2024. 

Airtel Africa will be a key FTSE 100 stock to watch as it publishes its financial results. The most recent results showed that Airtel Money’s users jumped to over $200 billion, up by 35% YoY. 

Its revenue rose by 25.8% to $2.9 billion in the half year, while its operating profit soared by 35% to $959 million. Therefore, the upcoming results will provide more information on its growth trajectory.

EasyJet (EZJ)

EasyJet is another top company in the FTSE 100 Index to watch. Unlike IAG, which has soared in the past few years, it has been relatively volatile in the past few months. EasyJet stock price has dropped by over 16% from its highest point in 2025.

The most recent results for the financial year ending on September 30 showed that its EBIT jumped by 18% to over £703 million, while its profit before tax rose by 9% to £665 million.

As a result, the management is working on achieving its medium-term targets of having over £1 billion by 2030. The upcoming results will provide more color on whether it is achieving this goal.

Chances are that the company will publish strong results next week. 81% of the first quarter was already sold when it published it financial results in November.

Still, the company has faced challenges, which explains why its stock has underperformed. For example, it experienced challenges during the winter season, while Airbus’s delivery delays have affected its growth.

The other top UK companies to watch next week as they release their results are Wizz Air, Pets at Home, Hilton Food Group, and Rank Group. 

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The closely-watched BitGo IPO concluded on Thursday, with the stock rising by 2% and its market capitalization moving to over $2.1 billion. Now, Ledger has hired banks as it explores going public in New York.

Ledger hires banks to go public 

Ledger, a French company that sells devices that help clients to store their cryptocurrencies, has hired banks in its bid to go public in New York. 

The listing, which will likely happen this year, will value the company at over $4 billion, making it one of the top companies in the crypto industry. Its valuation has jumped as its last funding valued it at $1.5 billion.

Ledger is working with top banks like Goldman Sachs, Barclays, and Jefferies to execute this listing. 

According to its website, Ledger has sold over 7 million hardware wallets since its founding in 2014 and has 700 customers around the world. It sells its products on its website and uses over 100 resellers globally.

People use Ledger’s products to store their coins safely and avoid the risk of hacks. Recent data shows that hacks have become more common, with crypto holders losing billions of dollars annually.

Crypto IPOs are expected to rise this year 

Wall Street analysts believe that more companies in the crypto industry will go public in the United States this year as management teams take advantage of Trump’s policies.

Circle, the company behind USDC, went public in 2025 after Trump signed the GENIUS Act into law. Gemini, the crypto exchange owned by the Winklevoss Twins, also went public.

Other cryptocurrency companies like Figure Technology and Bullish are also listed. BitGo stock rose slightly after its $2 billion IPO.

However, while most of their stocks jumped after the listing, they all plunged because of the ongoing crypto market crash.

Circle Internet stock has dropped from the all-time high of $298 to the current $71, while Bullish has moved from $117 to $38, and Gemini Space Station has cratered from $45 to $10.

Other potential crypto companies that may go public this year are Consensys, which created MetaMask and Linea, Kraken, and Aninoca Brands, Chainalysis, Upbit, Certik, and Grayscale. Kraken, a top crypto exchange, has also filed its papers to go public in New York.

However, the main risk for potential IPOs in the crypto industry is that Bitcoin and most altcoins remain in a bear market, with all potential rebounds facing substantial resistance.

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The GME stock price popped by over 6% on Thursday as investors cheered its ongoing turnaround, and after Ryan Cohen, the Chief Executive Officer, bought 1 million shares in a sign of confidence in the embattled company. GameStop rose to $23, up from the year-to-date low of $20.

GME stock price rises as CEO continues buying 

GameStop, a company that sells gaming consoles, collectibles, and video games, received a boost when the CEO bought 1 million shares, bringing his total ownership to 9.3%.

The purchase came a few weeks after the board gave him a big incentive to boost the stock price and profitability. He will receive the option to buy millions of shares at $20 each if the market capitalization jumps from the current $10 billion to $100 billion and if the EBITDA hits $10 billion.

Insider purchases are some of the best catalysts for stocks because these people often have privileged information that the rest of the public lacks. For example, the Atlassian stock price has crashed sharply in the past few years as key insiders have continued selling the shares.

GameStop also continued to shut down stores in the United States. It has already shut down over 1,000 stores in the past few years, and the management expects to cut over 400 more this month.

Store closures can help a company remove the least productive ones in a firm. It then helps maintain the most profitable ones while cutting costs.

GameStop’s business has come under pressure in the past few years as demand for games and consoles from retailers has softened a bit. More customers have continued to buy consoles and games online, a trend that will likely continue in the foreseeable future.

Therefore, its annual revenue and profitability has been in a strong downward trend in the past few years. Its annual revenue moved from $8.2 billion in 2019 to $5.2 billion in 2024. Analysts expect that its annual revenue in 2025 will be about $3.8 billion. In the future, there is a likelihood that the revenue will tumble below $1 billion in the next decade.

GameStop’s pivot to Bitcoin accumulation has also not worked as it happened when Bitcoin was in a strong downward trend, and demand for Bitcoin treasury companies has waned. Most of the MicroStrategy copycats are at a loss, and it is unclear whether they will rebound soon.

On the positive side, GameStop has a great balance sheet, helped by the capital raising it engaged in during the meme stock frenzy in 2021. It has over $7 billion in cash and little debt.

GameStop stock price technical analysis 

The daily timeframe chart shows that the GME stock popped this week after Ryan Cohen’s purchases. This rebound happened after the stock formed a double-bottom pattern at $20 and a neckline at $24. A double-bottom is one of the most common bullish reversal signs in technical analysis.

The stock formed an up-gap on Thursday and is now above the 50-day and 100-day Exponential Moving Averages (EMA). Therefore, the most likely GME stock price forecast is bullish, with the next key target being at $25.

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India is preparing a fresh manufacturing strategy aimed at tripling the nation’s exports by 2035, according to a Reuters exclusive.

Instead of relying on heavy public spending, the plan is expected to lean on structural reforms to make it easier for companies to build, expand, and operate factories across the country.

In Prime Minister Narendra Modi’s third attempt to lift manufacturing as a bigger share of the economy, the government is prioritising 15 sectors, ranging from high-end semiconductors and metals to labour-intensive industries such as leather.

The goal is to strengthen growth momentum and raise annual goods exports to $1.3 trillion, the report said.

Why Modi is trying again to boost manufacturing

Modi’s government has already made two major pushes to lift manufacturing, but both fell short of a key target.

The “Make in India” campaign, launched in 2014, aimed to raise manufacturing to 25% of gross domestic product, but the share did not double as planned.

A second attempt came in 2020, when the government rolled out a $23 billion package of incentives.

Even that effort failed to deliver the scale of transformation policymakers had hoped for, according to the officials.

One government official involved in drafting the new policy said that past initiatives created only modest, incremental progress.

By widening the focus beyond financial incentives and towards fixing structural barriers, policymakers are trying to avoid repeating earlier outcomes while still keeping the ambition of manufacturing-led export growth intact.

National Manufacturing Mission and sector priorities

The government’s new structure, called the National Manufacturing Mission, was announced in the budget last year, though detailed plans were not disclosed at the time.

The mission will oversee the development of manufacturing hubs and coordinate action across different parts of government.

The plan focuses on 15 targeted sectors, including high-end semiconductors, metals, and leather.

According to the report, officials said the sector mix reflects a push to strengthen both advanced manufacturing capabilities and labour-intensive production that can support jobs and export volumes.

The manufacturing hubs are expected to be identified based on existing infrastructure, geographic advantages, and proximity to ports, according to the officials.

By building around these strengths, the government aims to support export-driven manufacturing clusters rather than spreading resources too thinly.

Modest funding, with support decided case by case

Under the current plan, the government will spend about 100 billion rupees ($1 billion) to build infrastructure for around 30 manufacturing hubs across the targeted sectors.

It will also provide grants of $218 million for advanced areas such as chips and energy storage.

Unlike earlier approaches that leaned on large, pre-budget fiscal packages, this effort is expected to use more selective financial support.

Industry assistance will be decided on a case-by-case basis, based on recommendations made by a new government panel to administrative departments.

The officials cited in the report said that this time funding is relatively modest because the plan is meant to focus on easing regulatory and compliance burdens, which they described as the biggest impediment to manufacturing in India, rather than offering broad subsidies.

Cutting red tape and aligning state policies

A major part of the strategy is aimed at reducing delays and friction that slow down investment and factory development.

The new panel will focus on enabling faster regulatory clearances, approvals for land, and cheaper financing for large projects.

The panel will be chaired by a minister and include senior bureaucrats, including the cabinet secretary.

It will also oversee the building of manufacturing hubs across the 15 sectors and work with state governments to ensure steady and affordable electricity supplies for these units, the officials said.

Officials also flagged India’s patchwork of federal and state-level rules as a major drag on manufacturing investment.

Divergent policies across states, including different labour regulations and business compliance requirements, have pushed up costs for firms operating in multiple parts of the country.

Details of the National Manufacturing Mission could be announced in the budget on February 1, but the officials told Reuters that the decision will be made closer to the date.

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Shares of Babcock International Group fell sharply on Friday after the company announced that chief executive David Lockwood will retire by the end of 2026, marking the start of a leadership transition at one of Britain’s largest defence contractors.

The stock dropped more than 3.8%, making Babcock the worst performer on the FTSE 100 during the session, even as the company reaffirmed confidence in its medium-term growth outlook.

Later in the session, it recovered some of the losses.

Leadership transition unsettles investors

Babcock said Lockwood will be succeeded by Harry Holt, the current head of its nuclear division and a former Rolls-Royce executive.

Holt was selected following what the company described as an extensive internal and external search.

The announcement appeared to weigh on sentiment despite the long handover period, with investors cautious about changes at the top after a prolonged period of strong execution under Lockwood.

Lockwood has led Babcock for five years, overseeing a major turnaround that strengthened operations and restored profitability.

His tenure spanned the Covid-19 pandemic, rising geopolitical tensions, and a renewed focus by governments on defence and security.

“It has been my privilege to lead Babcock through a period of unprecedented challenge and change,” Lockwood said in a statement.

Nuclear unit performance underpins succession choice

Babcock said Holt’s appointment reflected the improved performance of its nuclear division, which supports the UK’s submarine fleet and works on decommissioning nuclear facilities.

Before joining Babcock, Holt held senior roles at Rolls-Royce and previously served as an officer in the British Army.

The company said his background and existing relationships with key customers, including the UK Ministry of Defence, positioned him well to take on the top job.

Defence contracts account for a significant portion of Babcock’s revenues, making continuity in customer relationships a priority for investors.

Strong long-term share performance

Despite Friday’s decline, Babcock’s shares have delivered strong gains over longer periods.

The stock is down more than 5% over the past five days but remains up over 12% in the last month and around 181% over the past year.

Over the last five years, the shares have risen nearly 600%, a rally that coincided with Lockwood’s turnaround strategy and a sharp increase in global defence spending following Russia’s invasion of Ukraine.

The company said it remained confident of meeting its growth targets for the 2026 financial year, adding that there could be upside depending on the timing of an Indonesian contract.

Defence sector volatility

In November, Britain agreed to a £4 billion deal with Indonesia, led by Babcock, to jointly develop maritime capabilities for the Southeast Asian country’s navy and fishing fleets.

Babcock’s recent moves come amid broader volatility across European defence stocks.

On Thursday, shares across the sector fell after US President Donald Trump said he had reached a framework agreement with NATO Secretary General Mark Rutte on Greenland and Arctic security.

Italy’s Fincantieri fell 3%, Sweden’s Saab lost 2.7%, while Germany’s Rheinmetall, Norway’s Kongsberg Gruppen, and Italy’s Leonardo each declined more than 2%.

Outlook shaped by defence spending

Despite short-term swings, defence stocks have broadly benefited from expectations of higher military budgets.

Trump recently said the US could lift defence spending from nearly $1 trillion to more than $1.5 trillion.

UK peers have also posted strong gains over the past year, with BAE Systems up 59% and Rolls-Royce Holdings rising more than 105%, underlining continued investor appetite for the sector.

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Shares of several Adani Group companies fell sharply on Friday after new court filings showed the US Securities and Exchange Commission (SEC) is seeking to send legal summons to founder Gautam Adani and his nephew Sagar Adani over allegations of bribery and fraud.

The disclosures revived investor focus on a high-profile US case tied to Adani Group’s fundraising activity and claims about its compliance controls.

The developments also highlighted ongoing legal hurdles for US regulators, after India’s Ministry of Law and Justice previously declined to deliver the summons under international rules.

Stocks fall as filings revive legal pressure

Adani Group shares dropped between 5% and 14% on Friday as the filings pointed to the SEC’s next steps in pursuing the case.

Adani Green Energy ended the session nearly 14% lower, while Adani Enterprises closed 10.7% lower. Adani Power fell 5.7%.

The SEC has approached a US District Judge in Brooklyn, Nicholas Garaufis, asking for permission to issue a legal summons to Gautam Adani and Sagar Adani, who is an executive director of Adani Green Energy.

US indictment puts bribery and fraud claims back in focus

Gautam Adani, chair of India’s Adani Group and one of the world’s richest people, was indicted with seven other men in New York federal court in November 2024.

The case centres on charges connected to what prosecutors described as a major bribery and fraud scheme.

The allegations involve the way Adani Group executives presented their compliance practices to investors while raising funds linked to energy contracts.

According to the charges, the executives misled US and international investors about their company’s compliance with anti-bribery and anti-corruption rules.

The filings stated that more than $3 billion in capital was raised to fund those energy contracts.

Summons delivery blocked twice under Hague Convention

The latest filing also pointed to complications in serving the summons, which is required to move the SEC’s civil process forward.

The SEC told the court that India’s Ministry of Law and Justice refused twice last year to deliver the summons to Gautam Adani and Sagar Adani under the Hague Convention.

In its submission, the SEC said the Ministry appeared to argue that the regulator did not have the authority to invoke the Hague Convention or request service of the summons through that mechanism.

This procedural barrier may shape how quickly the case develops, as regulators typically rely on formal international processes to deliver legal documents in cross-border matters.

Alleged bribes tied to solar contracts and investor funding

At the centre of the allegations is an accusation that Adani and several other defendants paid more than $250 million in bribes to Indian government officials.

The claimed purpose was to secure solar energy supply contracts that were expected to generate more than $2 billion in profits.

The SEC’s court filings connected these claims to how the group sought to raise capital from investors, particularly in the US and other international markets, while describing its compliance posture.

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