Abandoning a targeted small increase in earnings because an order for 48 Typhoon jets from Saudi Arabia isn't expected to land this year hardly makes for pleasant reading. But shares in BAE Systems (BA.), which plans to cut 371 jobs and reduce production in response to the Kingdom's struggles with budget cuts inflicted by the sliding oil price, climbed 5 per cent off this otherwise reassuring update.
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Investors appeared relieved that cutbacks to Typhoon production were better than first feared and evidently took heart from management's expectation of "good sales growth" as defence spending in key regions picks up.
