FTSE continues upbeat start

The London market began the month in positive mood today despite heavy losses for BAE Systems after it emerged that the defence and aerospace giant will get less than expected for its 20% stake in Airbus.

The stock fell 11.75p to 358p, a drop of more than 3%, after investment bank NM Rothschild valued the holding at £1.9bn (€2.74bn) – well below the £3bn (€4.32bn) to £4bn (€5.77bn) hoped for in the City.