Rolls Royce share price slumps, dragging FTSE 100 lower
The UK engineering company saw its shares fall 17% in early morning trading, with the stock leading the FTSE 100 lower on Wednesday as coronavirus fears drive further panic selling.
Rolls-Royce shares have fallen 17% in early morning trading, with the stock leading the FTSE 100 lower on Wednesday as coronavirus fears drive further panic selling of UK equities.
In its full-year results in February, Rolls-Royce admitted then that Covid-19 represented a macro risk that would have a significant impact on air traffic growth in the near term but said that long term growth trends remain intact.
However, a recent report by aviation consultancy CAPA forecast that many global airlines are at risk of going bust as early as June unless they are provided government aid.
Rolls-Royce is trading at 323p a share as of 08:55 (GMT) on Wednesday, down from £6.81 at the start of the year, representing a 53% decline.
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FTSE 100 falls further despite £330 billion stimulus
Earlier this week, UK Chancellor Rishi Sunak unveiled plans to offer £330 billion in government-backed loans to British businesses struggling to cope with the economic impact of the Covid-19 outbreak.
Despite emergency action being taken, UK equities continue to fall, with the FTSE 100 and the more domestically-focused FTSE 250 both tumbling 4% on Wednesday.
Tour operator Carnival, sports retailer JD Sports and homebuilder Barratt Developments are among the biggest fallers on the FTSE 100, with the trio of stocks all down more than 10% on Wednesday.
You can go long or short the FTSE 100 with IG using derivatives like CFDs.
UK asks Rolls-Royce for ventilators to fight Covid-19
The UK government has called upon Rolls-Royce and other manufacturers like Ford and Honda to make ventilators to help deal with the coronavirus outbreak.
British Prime Minister Boris Johnson said that he would talk to manufacturers and request their support in making ‘essential medical equipment’ for the National Health Service (NHS), a spokesman for his Downing Street office said.
‘He will stress the vital role of Britain's manufacturers in preparing the country for a significant spread of coronavirus and call on them to step up and support the nationwide effort to fight the virus,’ the spokesman said.
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