Classical economic theory is based on rational consumer behavior and does not suggest that emotions are sometimes a key driver of some decisions and events. But British Chancellor of the Exchequer Rachel Reeves' tears in the House of Commons last week precisely caused a nervous reaction from investors, who staged a £3 billion sell-off. Independent analyst Mikhail Zavaraev discusses what, setting aside emotions, an investor should pay attention to on the British market in the near future.

What's an investor in Britain's market to do if the finance minister cries?  

BAE Systems plc

Babcock International Group PLC

The UK in early June announced the strongest increase in military spending since the end of the Cold War. This was in response to regular and persistent U.S. calls for Europe to take more responsibility for its security. But money fetishism in defense matters can serve a bad service: it is important not just to spend money, but to build a combat-ready army;

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What's an investor in Britain's market to do if the finance minister cries?

Will Britain's new defense strategy bring a victory for its economy