Rolls-Royce shares jumped 5% after the engineering powerhouse lifted its earnings guidance, capitalising on a global surge in defence spending as geopolitical tensions escalate.

The company's optimistic outlook reflects a broader trend sweeping through UK defence contractors, with BAE Systems also upgrading its profit forecasts. With fingers in various highly lucrative pies—from aerospace engines to nuclear propulsion—Rolls-Royce could be well on its way to becoming the London Stock Exchange's most valuable firm. Read the full story →

Today's takeaway: Strong earnings guidance and government investment are creating a powerful tailwind for UK innovation in critical industries.