Chances of partner joining UK-Italian-Japanese fighter jet project diminishing, BAE executive says
"To be part of the core programme today in the same way as Japan, Italy and the UK, because of the pace we've achieved, and where we are today becomes quite challenging now," Herman Claesen, managing director of BAE's Future Combat Air System business told reporters on Tuesday.
"The likelihood is diminishing all the time."
The British-Italian-Japanese project, called Global Combat Air Programme, was announced in 2022 before a joint venture was formally launched in June 2025, with the aim of producing a next-generation stealth aircraft by 2035.
Claesen said it was possible for a new partner to join, but it would be a decision for the three governments, and they would need to consider the potential delays that could come from any change to their existing agreement.
The advantage of a new partner would be to expand the market for the aircraft, but Claesen said he was confident there would be sufficient demand.
"There is, I guess, a bit of a queue forming of various nations who want to talk to the three governments," he said.
A rival Franco-German project to build a new fighter jet has made slower progress, plagued by delays and infighting over workshare and intellectual property rights.
GCAP is being led by BAE in Britain, Leonardo (LDOF.MI), opens new tab in Italy and Mitsubishi Heavy Industries (7011.T), opens new tab in Japan.
Known as Tempest in Britain, a concept model of the aircraft was on display in Warton. BAE said it would be three to four metres (10 to 13 feet) longer than the Typhoon military jet and designed to fly a longer range.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
8 minutes ago
- Reuters
Wall St extends gains after report of US-EU nearing trade deal
July 23 (Reuters) - Wall Street's main indexes moved higher on Wednesday after a Financial Times reported that the EU and the United States were closing in on a trade deal, similar to the agreement U.S. President Donald Trump struck with Japan. Wall Street, already on an upward trajectory, spiked after the report said that the U.S. and the EU are nearing a deal to set 15% tariffs on all European imports. Both sides would waive tariffs on some products, including aircraft, spirits and medical devices, the report said. The bullish momentum followed closely on the heels of Trump's trade deal with Japan, which will slash tariffs on Japanese autos to 15% from 27.5%, with duties on other goods also dropping to 15% from 25%. An agreement with the Philippines also followed, which yielded a modest cut in tariff rate. At 12:20 p.m. ET, the S&P 500 (.SPX), opens new tab gained 31.08 points, or 0.49%, to 6,340.70 and the Nasdaq Composite (.IXIC), opens new tab rose 43.28 points, or 0.21%, to 20,935.97. The Dow Jones Industrial Average (.DJI), opens new tab edged higher 417.80 points, or 0.93%, to 44,917.71, within striking distance of its record peak. Wall Street's "fear gauge", the CBOE Volatility Index (.VIX), opens new tab, dipped to its lowest level in over five months. Earlier in the day, the European Commission was preparing to seek approval for 93 billion euros ($109 billion) in counter-tariffs on American goods just in case the talks fell through. "The key thing is the markets have confidence that the White House is going to continue to work through these trade deals," said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report. Investors are now laser-focused on earnings from the "Magnificent Seven" — a group of marquee names that has helped propel U.S. stocks to all-time highs. EV maker Tesla (TSLA.O), opens new tab and Google-parent Alphabet (GOOGL.O), opens new tab are set to report after the bell on Wednesday. With AI optimism running high and valuations stretched, expectations for these tech giants are sky-high, leaving little margin for disappointment. Shares of Tesla were largely steady, while Alphabet moved 0.9% lower. GE Vernova's (GEV.N), opens new tab shares climbed 14.1% to an all-time high, as the power equipment maker raised its current-year revenue and free cash flow forecasts after beating Wall Street estimates for second-quarter profit. The stock, which has gained about 91% so far this year, boosted the S&P's industrials index (.SPLRCI), opens new tab for the day, up 1.6%. Medical equipment maker Thermo Fisher (TMO.N), opens new tab surged 11.8% after beating Wall Street's estimates for second-quarter profit and revenue. Of the 117 companies in the S&P 500 that have reported earnings to date, 84.6% have reported above analysts' expectations, as per data compiled by LSEG I/B/E/S. On the downside, Texas Instruments (TXN.O), opens new tab tumbled 12.1% after its quarterly profit forecast failed to impress investors, pointing to weaker-than-expected demand for its analog chips from some customers and underscored tariff-related uncertainty. The earnings also weighed on its peer analog chipmakers, with NXP Semiconductors (NXPI.O), opens new tab, Analog Devices (ADI.O), opens new tab and ON Semiconductor (ON.O), opens new tab falling between 2.7% and 6.7%. In economic data, U.S. existing home sales fell more than expected in June. Focus now shifts to Thursday's weekly jobless claims numbers and S&P Global's flash PMI data to gauge economic health in the wake of tariff uncertainties. Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week. Odds for a September reduction stand at about 58%, according to the CME FedWatch tool. Advancing issues outnumbered decliners by a 1.97-to-1 ratio on the NYSE and by a 1.91-to-1 ratio on the Nasdaq. The S&P 500 posted 43 new 52-week highs and two new lows, while the Nasdaq Composite recorded 80 new highs and 16 new lows.
Reuters
8 minutes ago
- Reuters
EU, U.S. heading towards 15% tariff deal, EU diplomats say
BRUSSELS, July 23 (Reuters) - The European Union and the United States are heading towards a trade deal that would result in a broad tariff of 15% applying to EU goods imported into the United States, two diplomats said on Wednesday. The rate, which could also extend to cars, would mirror the framework agreement the United States has struck with Japan.
Reuters
8 minutes ago
- Reuters
Sony explores sale of cellular chipsets business, sources say
NEW YORK, July 23 (Reuters) - Sony Group (6758.T), opens new tab is exploring a sale of its unit that provides cellular chipsets for connected devices, as the group shifts its focus to the entertainment segment, according to three people familiar with the matter. The Japanese technology and entertainment conglomerate is working with investment bankers on the sale of Sony Semiconductor Israel, which is currently in the early stages, the sources said. It generates about $80 million in annual recurring revenue and is expected to be valued at close to $300 million in any deal, the sources said. The business is expected to attract interest from financial sponsors and semiconductor industry players, added the sources. Sony declined to comment. The sources requested anonymity as the matter is not public. Formerly called Altair Semiconductor, Sony Semiconductor Israel provides cellular chipsets for connected devices such as wearables, smart meters, and home appliances. Sony acquired the business in 2016 for $212 million. Sony has been increasing its focus on games, movies, and music, with more than 60% of its profit coming from entertainment last year. As part of its portfolio reshaping, Sony is preparing for a partial spinoff and direct listing of its financial services arm later this year. A leading maker of image sensors, Sony said in April it is considering options for its chips division, including bringing in investment partners or adopting a fab-light strategy.
