Morning Markets: BAE gains fail to lift FTSE

The FTSE was flat in early trading Thursday despite a positive outlook from defence contractor BAE Systems.

London's blue-chip index was down a single point - to 5,275.9 - following strong recent gains in the top flight. Despite reporting a drop in operating profits to £982m from £1.72bn a year earlier, BAE Systems advanced almost 3% to 359p after saying it expects three of its four units to grow in 2010. Telecoms giant BT Group fell the most, shedding 2.7% to 114p, as concerns about the company's £9bn pension deficit persist. In the US, the Dow climbed 0.4% to 10,309.24 points, a change of 40.43 points. Investors looking for further signs of an economic recovery were buoyed by be...