Governments row over defence HQ

The £56bn merger between defence giants BAE and EADS came under new pressure yesterday as it is understood that France and Germany are wrestling over the site of the headquarters of the merged firm. It is thought France wants the base in Toulouse, home of EADS’ subsidiary Airbus, but Germany prefers headquarters near Munich. Also yesterday, Standard & Poor’s upped its short-term rating for EADS to A1 with a positive outlook, saying it is “too early” to call the rating of the merged firm.