In this report

Western defence companies are on the back foot as deep cuts work their way through the Pentagon, but scrapping for every opportunity in Asia and the Middle East

Trouble ahead for arms groups

Eurofighter Typhoon being built at BAE Systems Salmesbury

The big names have made deep cuts but budget reductions could be deeper still

Video

East plays catch-up with defence expenditure
Lockheed Martin's F-35 fighter jet
©Lockheed Martin Photography

Stealth comes at a price for F-35 fighter

Complexity and rising costs have bedevilled the £1.5tn programme

Obama cast as architect in US covert wars

The former constitutional law professor is accused by critics of pushing the constitution beyond its limits

Appetite for war wanes in US and UK

Reluctance to send troops into battle has big implications

Guy Anderson

Opinion: Western groups risk fratricide

The strategy of entering new markets and exporting on a scale never before seen brings dangers, writes Guy Anderson

extended reading

EADS plans defence job cuts

Falls in military spending spark move to restructure division

Drone-maker Northrop defies US defence cuts

Cost control offsets falling demand for Global Hawk

Thales Watchkeepe

European defence groups urge sharing

Thales chief says technology transfer is increasingly important

Defence sector faces changes to state ties

Countries unsure to push for efficiency or protectionism