“Defence and aerospace shares have surged as the risk of conflict in the Middle East and Ukraine ratchets up and City analysts identified how companies in the sector are likely to benefit from growing geopolitical tensions. They also suggested that spending on the military could also increase in some of BAE’s most main important markets. ‘Looking beyond 2015, we think that the defence outlook has stabilised and could grow again in some critical countries to BAE – US, UK, Sweden, Australia, Saudi Arabia,’ they said. David Cameron and Barack Obama will call for NATO allies to increase defence spending at the security organisation’s summit in Wales which starts on Thursday.”
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