PM to order 1.5bn defence cuts
Gordon Brown is to approve about 1.5bn of cuts to "low priority" defence projects over the next three years as part of a reform package that will shift resources to Afghanistan and ease the crippling defence budget shortfall.
Financial Times

Rolls-Royce faces JSF component delay
Rolls-Royce needs to redesign a key component of its engine for America's new Joint Strike Fighter (JSF) aircraft, fuelling a U.S. campaign to remove the company from the project, the Independent on Sunday reported.

EADS eyes takeovers to double sales by 2020
European aerospace group EADS wants to use takeovers - primarily in the services sector - to help group revenue swell over the next decade, its chief executive told a German magazine.

DoD To add $100B to 2011-15 Spending
The Obama administration will add $100 billion to the Pentagon's 2011-15 base budget plan to cover the rising cost of personnel and pressing modernization needs, officials said.
Defense News

India tests Nuclear-Capable Ballistic Missile
India successfully tested a nuclear-capable ballistic missile from a ship near the east coast Dec. 13, a defense official said.
Defense News

Defence Secretary to pledge 150m to tackle roadside bombs in Afghanistan
Bob Ainsworth, the Defence Secretary, will announce a 150 million package to tackle the threat of roadside bombs in Afghanistan, including the establishment of new specialist training facilities in Britain.
The Telegraph

British Army conducts top level organisational review
The Army is undertaking a periodic review of its top level organisation which is intended to produce a structure which better aligns responsibility, authority and accountability.

Russia-France arms deal raises concerns for neighbours
A potential deal that would see France selling advanced military technology to Russia has been causing concern among former Soviet states.
BBC News