Rolls-Royce and BAE Systems are expecting higher profits as governments around the world increase their defence spending. Both companies lifted their earnings guidance on Thursday morning, citing commitments from governments to raise investment in defence systems. On defence, Erginbilgiç said “I feel a lot better” on the visibility of orders after the UK belatedly published its defence investment plan. Weapons manufacturers are starting to test large jet-powered drones to fly as “loyal wingmen” alongside crewed fighter jets. BAE makes a large proportion of the UK’s weapons, from tanks and fighter jets to munitions.