Europe is scrambling to boost its military firepower as any realistic hopes of being able to rely on the US to protect Ukraine from Russia fade.

Donald Trump's now-infamous exchange with Volodymyr Zelensky was followed by a withdrawal of US military aid for Ukraine and a growing sense of panic among European leaders. Ursula von der Leyen, president of the European Commission, swiftly unveiled the ReArm Europe plan, declaring that it could "mobilise close to €800bn (£667bn)" to protect the continent.

Investors were quick to capitalise on what promises to be a huge wave of demand for everything from tanks and ammunition to fighter jets.

Here are some highlights from the last seven days, plus a glimpse at the week ahead.

Key moments from last week

The highly-rated defence stocks investors are buying up

The ramping up of military spending across Europe in the face of the threat from Russia has sent defence stocks surging. It followed a pledge from UK prime minister Keir Starmer to increase defence spending to 3% by the start of the next parliament.

British stalwarts Rolls-Royce (RR.L) and BAE Systems (BA.L) were among the big winners last week.

Trump pledges more support for crypto world

Donald Trump told a gathering of cryptocurrency bigwigs that he is making good on his pledges to them and would continue to give the industry what it wants.

"I promised to make America the bitcoin superpower of the world and the crypto capital of the planet and we're taking historic action to deliver on that promise," he said at the end of a "crypto summit" at the White House.US president Donald Trump receives applause from guests at a the White House Crypto Summit on March 7. (Photo by JIM WATSON/AFP via Getty Images)·JIM WATSON via Getty Images

The meeting came after the president on Thursday fulfilled one of his campaign promises by authorising the creation of a strategic US bitcoin reserve — and a separate stockpile of other digital assets.

Bank of England expects UK inflation rise amid 'even greater uncertainty'

The Bank of England (BoE) expects a rise in UK inflation this year, although it will be "nothing like a few years ago".

This was according to BoE governor Andrew Bailey, who appeared before the Treasury committee on Wednesday along with other policymakers.

He said Britain was entering a world of “even greater uncertainty," which had “widened” since the last meeting in February, when the monetary policy committee (MPC) voted to cut interest rates to 4.5%.

Why Abrdn reinstated the Es after rebrand

The vowels are back. British asset management firm Abrdn (ABDN.L) announced this week that it is reinstating the Es in its name four years after it removed them in a rebranding exercise dubbed an “act of corporate insanity”.

Story Continues

It is the latest in a series of well-known companies that changed their historic names only to U-turn and reinstate the original name following outrage and derision from customers and the media.

Do also check out our money stories for all your personal finance needs. As UK car sales slumped amid a lack of optimism in the economy, we looked at the 10 most popular vehicles in February: The UK's top cars revealed

Moving house can be so expensive that it’s wise to consider your long term as well as current needs when looking for your next home. We brought you a selection of homes on the market that are future-proofed, so you won’t be forced to uproot yourself later on: 8 future-proofed homes that will grow with you

Finally, here’s how the week ahead looks

Chip stocks remain firmly in the market spotlight, with TSMC (2330.TW, TSM) due to release its February sales figures on Monday.

Larry Ellison's cloud software company Oracle (ORCL) will also be reporting on Monday, with investors keeping an eye out for commentary on its role in the US Stargate AI infrastructure project.

In the autos sector, Volkswagen (VOW3.DE) is due to release full-year results, on the back of a rollercoaster week of trade tariff news for carmakers.

Read more: Stocks to watch next week

At the end of a quiet week, Friday will bring a slew of major UK economic data, including GDP growth, industrial production and construction output.

Before that, on Wednesday, attention will be on the US, where inflation figures will provide clues as to the Fed's interest rate path. That's followed on Thursday by factory gate prices and jobless claims.

End note:

This week saw the much-anticipated announcement of the summer's Glastonbury lineup. Neil Young, Olivia Rodrigo and The 1975 will headline music's greatest annual event, while Rod Stewart will play the Sunday legend slot.

It had briefly looked as if Young's appearance at Worthy Farm was in doubt when the folk rock star said in January he would boycott the festival based on aspects of the BBC's coverage. Fortunately for fans, he quickly reversed this decision, citing false information.

Here is Young at his very best, with a classic from his critically-acclaimed 1972 album, Harvest.

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