Power systems giant Rolls-Royce surged 9% on Thursday, helping the aerospace and defence sector to the top of the pile.Late last night, the firm revealed two major initiatives which are expected to significantly raise its operating profits in the future. It plans to sell its 32.5% stake in the business which produces the V2500 engine for the A320 Airbus for $1.5bn, in addition to further payments for every hour IAE engines are flown over the next 15 years. Furthermore, the company unveiled a new partnership with Pratt & Whitney (a United Technologies Corp company) to develop engines to power future mid-size aircraft which hold between 120 and 230 passengers. While the transactions won't have an effect on this year's finances, the firm said that the $1.5bn in cash will be retained for general corporate purposes, while the flight-hour payments will add more than £140m to operating profits at the Civil Aerospace division. Evolution Securities analyst Guy Brown estimates that this is 28% higher than the broker's divisional forecast and 12% higher than predictions for group profits. Meanwhile, the banks were having a bad day after ratings agency Fitch confirmed speculation and cut ratings across the UK banking sector.The agency downgraded its ratings for part-nationalised lenders Lloyds and RBS - who were already downgraded by Moody's last week - from AA- to A, causing both stocks to sink in the afternoon.Barclays while holding on to its AA- rating, was also under the cosh after the agency placed the firm on negative watch. Barclays has never taken direct state support. BCTop performing sectors so far todayAerospace and Defence 3,213.05 +3.51%Tobacco 32,085.45 +1.52%Food Producers & Processors 5,343.41 +0.61%Food & Drug Retailers 4,633.79 +0.52%Mobile Telecommunications 3,920.15 +0.52%Bottom performing sectors so far todayForestry & Paper 5,401.84 -4.02%Mining 19,703.57 -3.77%Industrial Metals & Mining 4,435.47 -3.69%Industrial Engineering 6,358.65 -3.19%Banks 3,525.58 -2.90%