UK electronics boost from aerospace funding
The UK electronics sector could profit following an announcement that the US Defence budget has proposed more funding for the F-35 joint strike fighter jet.
If the plan for 2010 is approved by Congress, it will boost F-35 procurement to £7.7billion.
BAE Systems, which is responsible for approximately 20% of the jet, saw its shares rise 7% - the highest gainer on the FTSE 100 index. Meanwhile, companies such as Cobham, Ultra Electronics and Rolls Royce could similarly profit if the funding goes through.
The announcement comes following concerns from a number of electronics firms that cuts to defence budgets to help boost the economy would be counterproductive.
However, despite US Defence secretary Robert Gates' proposed increase in funds for the F-35, programmes such as missile defence, weapons and several helicopter programmes could all see cuts in resources.
