Defence firms lifted by US spend

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Defence firms Lockheed Martin and Northrop Grumman have both reported higher-than-expected profits on orders for the wars in Iraq and Afghanistan.

Lockheed, the world's biggest defence contractor, saw its shares rise 7%, as it increased its full-year forecast.

It made a profit of $778m (Â£377.4m) in the three months to the end of June.

Meanwhile, Northrop, the Pentagon's third biggest supplier behind Lockheed and Boeing, saw its quarterly profit rise 7% to $460m (Â£223.1m).

Lockheed said that sales of F-16, F-22 and F-35 fighter jets, as well as lower pension costs, had helped its results.

Other products include Patriot missiles and satellite systems.

Northrop specialises in warships, nuclear submarines and unmanned surveillance planes.

Analysts say US defence spending shows no sign of slowing.