BAE Systems, the UK-based defense contractor, reported a strong first half of 2026 with sales up 9% to £15.77 billion and underlying operating profit up 11% to £1.70 billion, beating analyst expectations. The company upgraded its full-year guidance, now expecting sales growth of 8-10% and underlying earnings per share growth of 11-13%. The order backlog reached a record £84.0 billion, driven by major contracts including the UK's Dreadnought submarine programme, a £5.9 billion submarine contract phase, and international deals such as supporting Turkey's Typhoon aircraft and a US framework agreement for THAAD seeker production. CEO Charles Woodburn cited heightened global threats, including the Iran war, as boosting demand, particularly from the US, UK, and Middle East customers. The company also highlighted investments in capacity and technology, including new facilities in the US and Sweden, and the unveiling of the Brontanax uncrewed combat aircraft.

A review is underway in Northern Ireland after 51 cattle were shot dead in a field near Fivemiletown, County Tyrone, in an operation by the Department of Agriculture, Environment and Rural Affairs (Daera). The cull, carried out under a court order following an animal welfare conviction, was visible to the public, prompting criticism from local politicians and community members who described it as inhumane and 'wild west' style. Daera says it will conduct a lessons-learned review.

Archbishop of Canterbury Dame Sarah Mullally, on her first pastoral visit to Africa, reaffirmed the Church of England's commitment to a £100m fund for reparative justice related to its historical role in the transatlantic slave trade. Visiting Cape Coast Castle in Ghana, she acknowledged the Church's complicity and faced both support from Ghanaian officials and opposition from critics within the Church. The visit highlights ongoing global debates on reparations for slavery.

The BBC reports on the UK's Cyber Choices programme, which diverts teenage hackers towards legitimate cybersecurity careers. The article highlights cases like Lucas, a 16-year-old who hacked his school computers, and notes that over 1,150 cases have been referred to the NCA's scheme in eight years. It also discusses the rise of teenage hacking groups in serious cyber-attacks and the neurodiversity often seen among offenders.

Background: The Metropolitan Police are investigating donations to Reform UK from Fiona Cottrell, mother of convicted fraudster George Cottrell, over potential concealment of impermissible donor sources. Today, Reform UK's Robert Jenrick defended the party's donation compliance, asserting full confidence in following electoral rules and noting no police contact. He declined to address why George Cottrell transferred $2m to his mother before her donations. Separately, Avon and Somerset police decided not to take action over a T-shirt depicting a guillotine targeting Nigel Farage, citing lack of intent to threaten. Jenrick called this 'two-tier policing' and expressed astonishment. In a subsequent statement, Jenrick reiterated that the party was 'entirely confident' all electoral rules were followed and that police had not contacted them, while again declining to explain the $2m transfer. Avon and Somerset police confirmed their decision, citing insufficient evidence of intent to threaten, and Jenrick repeated his criticism, labeling it 'two-tier policing.'

The body of Elisabeth-Jane Ross, a 38-year-old Scottish woman, was discovered inside a suitcase in an abandoned building in the Kypseli district of Athens, Greece, on 18 July. She had reportedly traveled from Cyprus to Greece about two weeks prior. Greek police are investigating, with cause of death pending medical examiner results. Reports suggest someone may have controlled her phone after her death to send misleading messages. Police Scotland and the UK Foreign Office are providing support to her family.

Background: Bulgaria's parliamentary Defence Committee had approved a draft decision to allow US KC-135 tanker aircraft and troops at Bezmer Air Base for operations against Iran, prompting Iranian warnings. Today: Iran's Foreign Minister Abbas Araghchi formally protested to Bulgarian Foreign Minister Velislava Petrova, calling the deployment 'condemnable' and 'unacceptable' and citing UN General Assembly Resolution 3314. Bulgaria's parliament has now formally authorized the deployment of up to eight US KC-135 tanker aircraft and 250 personnel at Bezmer Air Base from July 24 through Oct. 1. Araghchi also spoke with Greek Cypriot Administration Foreign Minister Constantinos Kombos, urging prevention of use of foreign bases on the island against Iran; Kombos reaffirmed commitment to international law and noted UK assurances that bases would not be used against any country.

Background: Babcock International reported strong international maritime defence growth, including a £4 billion framework with Indonesia for Arrowhead 140 frigates and submarine support. Today: Babcock's Marine CEO Sir Nick Hine outlined ambitions to sell the Arrowhead 140 design to Singapore, Malaysia, Chile, and Gulf states, highlighting the hybrid navy concept as a differentiator, stating 'You're not buying a frigate now, you're buying a task force.' The company is progressing its Maritime Partnership Programme (MPP) with Indonesia, with a first agreement signed on 21 January 2026, underwritten by UK Export Finance and running until 2029. The first of two Balaputradewa-class frigates for Indonesia was launched in Surabaya on 18 December 2025, with commissioning expected in 2028-29. In New Zealand, the Arrowhead 140 is shortlisted alongside Japan's Upgraded Mogami for the RNZN frigate replacement, with Babcock leveraging its long-standing role as Strategic Maritime Partner since 1995 and 600 local suppliers.

Background: The UK has been experiencing a prolonged summer heatwave, breaking records for days above 34°C, with hosepipe bans imposed by four water companies in southern and eastern England. Today: The UK Environment Agency declared drought across 51.4% of England, covering seven areas including London, East Anglia, southwest England, and the West Midlands, following record-low July rainfall (7% of expected nationwide, 1% in southern England) and a fourth heatwave. Natural Resources Wales extended its drought declaration to all of Wales, with July rainfall at 8% of average, the driest in 190 years. The Met Office confirmed a new UK June temperature record of 38.0°C, up from the provisional 37.7°C. The National Drought Group met and instructed water firms to prioritize leak repairs. The summer has seen seven days above 35°C, beating the 1976 record of five, and 31 days above 30°C. A cold front is bringing cooler temperatures but little rain to drought-hit areas; Wisley in Surrey has had 42 consecutive dry days. August is forecast to be warmer and drier than average, potentially worsening drought conditions.

The Bank of England is widely expected to hold its benchmark interest rate at 3.75% for a fifth consecutive meeting, with the decision announced at 12:00 BST. The hold is driven by global political and economic uncertainty, particularly from the Iran war, which has pushed up wholesale energy prices. This has led to a 13% rise in domestic energy bills, expected to lift UK inflation in July. Inflation stood at 2.6% in the year to June, down slightly but still above the 2.3% target. Mortgage rates on new two-year fixed deals have risen to 5.62%, the highest in over a month, due to renewed Middle East volatility, while the top one-year savings bond offers 4.91%, the highest for new customers since October 2024. Analysts expect rates to remain unchanged in the foreseeable future, with the next move potentially being a rise.

The UK government has announced an additional £8.4 billion (€9.8 billion) investment in the Dreadnought-class nuclear submarine programme, part of the broader £63.6 billion Defence Nuclear Enterprise plan. The funding will support the completion of sea trials for HMS Dreadnought, enabling it to enter service in the early 2030s, and will also support sea trials for HMS Valiant and the construction of the third and fourth submarines (Warspite and King George VI). BAE Systems will receive £5.9 billion for this work. Prime Minister Andy Burnham made the announcement during a visit to Barrow-in-Furness, highlighting the programme's role in supporting 47,000 jobs and apprenticeships. The investment is part of the £63.6 billion Defence Nuclear Enterprise plan, with the bulk (£47 billion) allocated to submarine construction and infrastructure. Opposition parties criticized the lack of new commitments on overall defence spending targets, while the government emphasized the economic benefits and the role of British industry. This investment underscores the UK's commitment to maintaining its nuclear deterrent into the 2030s and beyond.

Voters in Greater Manchester are electing a new mayor to replace Andy Burnham, who resigned after becoming UK Prime Minister. The contest features Labour's Bev Craig, Reform UK's Sian Astley, and the Green Party's Geraldine Coggins. The election tests Burnham's devolution agenda and the region's political balance, with implications for his premiership. Polls suggest Labour leads, but Reform UK poses a challenge. The result will be declared on Friday.

UK consumers are facing higher prices for barbecue staples, dubbed 'burgerflation', with CPI data showing beef, bread buns, and salad costs up 8-9% year-on-year. However, farmers and producers report receiving less for their goods, with beef prices down 8% and wheat down 0.3% per the Agricultural Price Index. Interviews with a cattle farmer, baker, mill manager, and vegetable grower highlight that increased costs for fuel, fertiliser, and other inputs are absorbing any gains, leaving producers no better off despite higher retail prices.

A UK parliamentary inquiry has found that a Ministry of Defence (MoD) data breach exposing personal details of over 18,500 Afghan applicants to the Afghan Relocations and Assistance Policy (ARAP) was a 'foreseeable systemic failure'. The breach, caused by sharing an Excel spreadsheet, was kept secret by a super-injunction for nearly two years. The report criticizes the MoD's use of secrecy, lack of expertise, and poor data protection culture, and highlights failures in handling applications from Afghan special forces, with many rejections later overturned. The committee calls for enforceable minimum standards and renewed accountability.

London's High Court heard that Prince Harry, Elton John, and other public figures could be required to pay a substantial share of Associated Newspapers' legal expenses after their privacy claims against the Daily Mail publisher failed. Associated's lawyer argued for indemnity costs, citing a £34.5 million legal bill, while claimants offered an interim payment of £8 million. The case involved allegations of phone hacking and unlawful information gathering, which the judge rejected for lack of evidence.

Chinese autonomous mobile robot maker Geek+ is supplying robots to major UK retailers including Tesco, Asda, and Next, with over 2,000 robots deployed across 10 UK warehouse sites via partner MotionTech. The expansion highlights UK productivity challenges and labour shortages, while China's robotics industry benefits from its EV ecosystem. The US recently banned imports of advanced foreign-made robots, citing national security, drawing criticism from China.