Stock Movers BAE Systems Rises, Adecco Drops, AB Foods Declines
Jan 8, 2026
Chloe Millay, a Bloomberg reporter known for her sharp market insights, dives into the latest shifts in defense and retail stocks. She highlights BAE Systems' impressive rise following Trump's defense budget proposal, reflecting a broader rally in the sector. Millay also discusses Adecco’s significant drop due to a downgrade and the ongoing challenges in the recruitment market. Additionally, she explains AB Foods’ profit warning stemming from weaker Primark sales and potential implications for the company’s future, including a possible split.
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US Defence Budget Proposal Fuels Rally
- President Trump’s proposal to boost US defence spending over 50% for 2027 sparked a broad rally in defence stocks.
- BAE Systems outperformed partly because it earns nearly half its revenue in the US, making it especially sensitive to US budget moves.
Geopolitics Adds To Defence Momentum
- Geopolitical tensions, including the unfolding Venezuela situation, are reinforcing investor interest in defence names.
- Multiple European defence firms like Rheinmetall and Leonardo also moved higher amid the same momentum.
Recruitment Faces Cyclical And Structural Headwinds
- Jefferies downgraded several recruiters, and Adecco fell sharply as analysts flagged a cloudy 2026 outlook.
- Recruiters face cyclical weakness plus structural threats like AI reducing intermediated hiring demand.