Qinetiq

Defence company shares increased following Andy Burnham's appointment of John Healey as chancellor, with Babcock, BAE Systems, and Rolls-Royce among the top risers on the FTSE 100. Investors anticipate higher military spending under the new chancellor.

Burnham reduced VAT on household electricity bills, and the UK borrowed less than expected in June. Defense stocks like Babcock International and BAE Systems rose amid a former defense secretary taking a new role.

The UK chancellor cuts VAT on household electricity bills, while the UK borrows less than expected in June. The FTSE 100 index opens 0.3% lower, but defense stocks like Babcock International and BAE Systems rise due to a former defense secretary's new role.

Rheinmetall and MBDA will develop a high-energy laser weapon for the German Navy, expected to be operational by 2029. The system, tested on the frigate Sachsen, is designed to counter drones and will leverage German supply chains for production.