U.S. leads arms sales to developing countries

he global weapons market is highly competitive, with manufacturing countries seeking both to increase profits and to expand political influence through weapons sales to developing nations that reached nearly $28.8 billion in 2006.

That sales total was a slight drop from the 2005 figure of $31.8 billion, a trend explained by the strain of rising fuel prices that prompted many developing states - except those that produce oil - to choose upgrading current arsenals over purchasing new weapons.

The report, "Conventional Arms Transfers to Developing Nations," was produced by the nonpartisan Congressional Research Service, an office of the Library of Congress, and presents a number of interesting observations linking arms sales and global politics.

General Dynamics profit expected to be undented by an Iraq pullout

General Dynamics, the worst-performing stock among the five largest U.S. defense companies, may outpace competitors like Raytheon and Northrop Grumman as investors gain confidence that a U.S. pullout from Iraq will not hurt profit at the company, which is the biggest supplier of combat gear to the U.S. Army.

U.S. troops in Iraq might need armored vehicles and tanks from General Dynamics for years to come, while allies are preparing to step up purchases to modernize their own militaries, said Erik Becker, co-manager of the Waddell & Reed Advisors Core Investment fund, based in Overland Park, Kansas.

"The U.S. military presence in Iraq and Afghanistan will continue for longer than people expect," Becker said.

In addition, revenue from business jets will help the stock rise 25 percent to $105 in the next 12 months, he said. General Dynamics trailed other U.S. defense companies most of the year.

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Navy adds $1B to Raytheon destroyer tech deal

Business Booming for Offense Industries

Recent concerns about the rising cost of corporate borrowing haven't deterred Honeywell CEO Dave Cote from looking for fresh acquisition targets for the Fortune 500 company, but market consolidation is getting harder, he warned.

"We're always going to be on the lookout for things that can create great positions in good industries," Cote, told "Squawk Box Europe" at the Paris air show.

Chimpy McFlightsuit says we are not giving enough tax payer money to our plas in the "defense" Industry

DUBAI, United Arab Emirates -- Ships packed with 17,000 sailors and Marines moved into the Persian Gulf on Wednesday as the U.S. Navy staged another show of force off Iran's coast just days before U.S.-Iran talks in Baghdad.

The carrier strike groups led by the USS John C. Stennis and USS Nimitz were joined by the amphibious assault ship USS Bonhomme Richard and its own strike group, which includes two landing ships carrying 2,100 members of the 13th Marine Expeditionary Unit.
Aircraft aboard the two carriers and the Bonhomme Richard were to conduct air training while the ships ran submarine, mine and other exercises.

The war games -- which culminate in an amphibious landing exercise in Kuwait, just a few miles from Iran -- appear to be a clear warning to Tehran, coming just ahead of the Baghdad talks and as the United Nations contemplates tightening sanctions against Iran over its nuclear program.

"There's a link to both events," said Mustafa Alani of the Dubai-based Gulf Research Center. "The Americans are sending a message to Iran that they are not coming to the negotiating table weak, but with their military at Tehran's doorstep."
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Kuwait firm wins $100m contract with KBR

KBR - which split from the Dubai-bound Halliburton earlier this year – has been shrouded in controversy. The Pentagon's largest contractor in Iraq has so far booked more than US $20 billion worth of work in the country, including a $7 billion single no-bid contract known as 'Restore Iraqi Oil'.

Critics say that contracts were awarded due to KBR's association with US Vice President Dick Cheney, who once ran the company.

Boeing receives $69M defense order

Lockheed Martin awarded $40M Army radar contract