BAE warns of US govt shutdown impact

<p>The US government shutdown could impact BAE Systems.</p>

BAE Systems has warned that the ongoing government shutdown in the US could yet have an impact on its business across the Atlantic.

The aerospace company revealed its financial performance is yet to be affected by the shutdown, which started earlier in the month after Congress failed to agree a new budget deal.

In its latest interim management statement, BAE suggested that the shutdown may have a negative effect on the state of its business in the US if the shutdown does not end soon.

The firm also revealed that its earnings could be hit by 6p to 7p a share unless negotiations on a deal to supply Saudi Arabia with 72 Typhoon jet fighters is completed by the end of the year.

BAE is still in talks over the contract, but an agreement is yet to be reached as discussions stalled over the final price.

The share price of BAE Systems rose on the back of the announcement, with stocks in the aerospace firm up by 1.59 per cent by 12:20 BST today (October 10th).

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.