|Bid||277.60 x 0|
|Ask||277.90 x 0|
|Day's Range||271.60 - 302.90|
|52 Week Range||235.50 - 930.20|
|Beta (5Y Monthly)||1.04|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 24, 2020 - Aug 28, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 23, 2020|
|1y Target Est||974.81|
European stocks advanced on Thursday for a fourth straight session, on building enthusiasm over the reopenings of economies across the world.
Shares of U.K.-listed, German-headquartered travel operator TUI surged nearly 40% on hopes for summer tourist activity.
Rolls-Royce is threatening to withdraw “support” from suppliers who do not agree to price cuts of up to 15 per cent, heightening pressure on a supply chain facing a cash crunch as a result of the abrupt drop in demand amid the pandemic. The British aero-engine maker this month wrote to many of its 700 global aerospace suppliers to demand price cuts of between 5 and 15 per cent, even as it slashes orders to adjust to reduced demand. The letter came days before Rolls-Royce on Thursday announced plans to axe 9,000 jobs — shrinking its global workforce by 17 per cent and its civil aerospace business by a third.
(Bloomberg) -- Banks laid out plans for returning to work, with Credit Suisse offering employees antibody tests and JPMorgan preparing desks for common use in offices capped at 50% capacity. President Donald Trump said he may hold the June G-7 meeting at Maryland’s Camp David after previously planning a video conference.Social distancing efforts were complicated by nature as millions of people in India and Bangladesh were displaced by a cyclone. In Michigan, a dam failure may force the evacuation of more than 10,000 residents.Brazil loosened protocols for the use of chloroquine and reported another record day for infections. Chile extended the quarantine measures in Santiago by a week and the Spanish Parliament lengthened the country’s state of emergency by another two weeks.Key Developments:Virus Tracker: Cases top 4.9 million; deaths exceed 326,000Big banks plan staffing limits, shift to suburbs after lockdownCDC issues detailed guidance for reopening businessesNew York sees spreading in lower-income communitiesChina’s new outbreak shows signs the virus could be changingTech-savvy Korea beats paperwork-heavy Japan in virus reliefSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click VRUS on the terminal for news and data on the coronavirus. See this week’s top stories from QuickTake here.Brazil Has Another Record Day for Cases (6 a.m. HK)Brazil reported 19,951 new confirmed cases over the past 24 hours, a fresh record. The country has 291,579 infections, trailing only the U.S. and Russia.Earlier Wednesday, Brazil’s health ministry loosened protocols for the use of anti-malarial drug chloroquine to fight the virus, indicating it even for mild cases despite dangerous side effects, experts’ warnings and no demonstrated success in clinical trials.Expedia Sees First Revenue Decline in Eight Years (5:05 p.m. NY)Expedia Group Inc. followed its peers in the online travel industry in witnessing a staggering decline in business since the spread of the virus, with total gross bookings down 39% in the first quarter.The Seattle-based company reported total gross bookings of $17.89 billion, including a decline of as much as 90% in the second half of March as the pandemic took hold. Revenue fell 15% to $2.21 billion, its first quarterly drop in eight years.Turkey Declares MissionAccomplished (4:57 p.m. NY)The communications director for Turkish President Recep Tayyip Erdogan said the country’s outbreak has been contained. Turkey had 152,587 confirmed coronavirus cases, ninth-highest in the world, as of Wednesday.“Turkey under Recep Tayyip Erdogan invested billions in healthcare infrastructure, let top scientists devise a strategy and treated all COVID-19 patients for free,” Fahrettin Altun said in a Twitter post. “The result? Our recovery rate is almost 75 percent. The pandemic has been contained. MissionAccomplished.”Disney, Universal to Submit Florida Reopening Plans (4:25 p.m. NY)Walt Disney Co., Comcast Corp.’s Universal Studios and SeaWorld Entertainment Inc. are taking another step toward reopening their massive theme parks in Orlando, Florida.The operators will begin submitting their plans to a reopening task force on Thursday, a spokesperson for Florida’s Orange County said in an email. Universal is slated to make its presentation on Thursday, with the others coming at a later date.Florida Governor Ron DeSantis said last week that theme-park operators could begin reopening once they submit plans and win approval from local authorities. Jerry Demings, the mayor of Orange County, later said it will still likely be June or afterward before the resorts completely reopen.Ohio Unemployed Data Exposed (4:15 p.m. NY)Ohio said that “about two dozen” Pandemic Unemployment Assistance applicants were apparently able to view the personal data, including social security numbers of the more than 100,000 other applicants. The state has hired Deloitte consultants to clean up the mess and give free credit monitoring to about 130,000 people who might have been impacted.The access to others data was “accidental” and that there is “no evidence of any widespread data compromise” from the mistake, Ohio’s Department of Job and Family Services said.On Sunday, Illinois Governor J.B. Pritzker’s office disclosed that a glitch in a newly launched state system for processing unemployment claims for gig workers had publicly exposed personal information.U.S. Cases Rise 1.3% (4 p.m. NY)Coronavirus cases in the U.S. increased 1.3% as compared to the same time yesterday to 1.54 million, according to data collected by Johns Hopkins University and Bloomberg News. That’s less than Tuesday’s 1.6% rate, which was on par with the average of the past seven days. Deaths rose 1.6% to 92,645.New York cases rose 0.4% to 354,370, according to the state’s health department. That was below the average daily increase of 0.6% over the past week.New Jersey reached 150,399 cases after adding 1,670, a 0.9% increase that matched the rate of the past seven days, according to Governor Phil Murphy. The death toll reached 10,747 with 168 new fatalities, the sixth-straight day of fewer than 200.Florida reported 47,471 cases, up 1.1% from a day earlier, according to the state’s health department. That compared with an average increase of 1.6% in the previous seven days. Deaths rose 1% to 2,096.California added 2,262 cases, a 2.8% jump, for a total of 84,057. There were 102 daily deaths, the most in four weeks.Texas cases climbed 2.8%, in line with its average over the past seven days, to 51,323.Ohio Judge Blasts ‘Oppressive’ Health Director (3:25 p.m. NY)Ohio Health Director Amy Acton’s “oppressive” coronavirus prevention orders illegally “quarantined the entire people of the state of Ohio,” a state judge said Wednesday in an order barring enforcement of rules closing gyms and health centers.The order adds to the bevy GOP critics who have blasted Acton instead of Republican Governor Mike DeWine for social-distancing rules. Despite the attacks, polls indicate Acton has remained popular and fans continue to broadcast their adoration by sporting swag with her face or quotes on mugs, t-shirts and even a bobblehead.“The ruling affirms that facilities must follow Ohio Department of Health safety protocols to keep patrons and all Ohioans safe and healthy,” DeWine spokesman Dan Tierney said. “These facilities were due to open Tuesday anyways. However, our office disagrees with the ruling’s analysis of law.”Texas Cuts Budgets, Spares Health Agency (3:14 p.m. NY)Texas Governor Greg Abbott and state legislative leadership Wednesday told agencies to slash their budgets 5% for the two-year budget cycle as the state adjusts to the economic impact of the pandemic on finances. Agencies identified as “critical” to Covid-19 are spared from the cuts, including departments of health, military, public safety, emergency management and the Texas Workforce Commission.State agencies and higher education institutions have until June 15 to submit a plan to the governor identifying how they will achieve a 5% spending reduction for the fiscal year ending Aug. 31, 2021, the directive reads.Irish, Italian Cases Slow (2:12 p.m. NY)Ireland reported 11 more coronavirus deaths, with 64 new cases. That was the fifth day in a row with fewer than 100 cases. Ireland, which started to allow some businesses to reopen this week, has seen 24,315 confirmed cases so far, with 1,571 deaths. About 87% of those diagnosed have recovered so far.Italy registered a continued decline in new cases with 665 reported Wednesday, compared with 813 a day earlier, as the government monitors how the pandemic subsides at a regional level, before further relaxing containment measures with free movement within the country from June 3.French cases rose by 987 to 218,326 total, compared with an increase of 813 a day earlier, while deaths rose by 110.N.Y. Sees Virus Spreading in Lower-Income Communities (1 p.m. NY)New York is seeing the new coronavirus continue to spread in lower-income and predominately minority communities as the state’s overall numbers improve, Governor Andrew Cuomo said.The majority of new Covid-19 cases are originating in those parts of New York City, Cuomo said Wednesday at a press briefing. A review of 8,000 antibody tests conducted in those areas found an infection rate of 34% in the Bronx, 29% in Brooklyn and 25% in Queens, higher than the 19.9% average citywide, the governor said.U.S. Cuts Hurt Emergencies Program, WHO Says (12:28 p.m. NY)A U.S. funding cut would have implications for delivering essential health services to some of the most vulnerable areas of the world, said Mike Ryan, head of the World Health Organization’s health emergencies program. The program receives some $100 million from the U.S. per year and is hoping other donors will step in to fill that gap.Some EU Nations Eye Bilateral Border Deals (12:12 p.m. NY)Pairs of European Union countries may enter border-opening agreements as part of a push to revive the pandemic-stricken tourist industry, said Tourism Minister Gari Cappelli of Croatia, which holds the 27-nation bloc’s rotating presidency. The idea gained broad support during a video conference of EU tourism ministers on Wednesday, according to Cappelli. He said such bilateral deals would reflect similar epidemiological situations in the countries and avoid discrimination based on nationality.Greece Flights From Abroad to Resume July 1 (11:50 a.m. NY)Greece will allow direct flights from abroad to the country’s tourist destinations to gradually restart from July 1, Prime Minister Kyriakos Mitsotakis said, as he announced financial support measures to revive the country’s crucial tourism sector. Seasonal hotels will reopen on June 15.Greece, with a population of about 11 million, has reported 2,850 confirmed coronavirus cases and 166 deaths as of Wednesday, a fraction of the per capita toll in Italy, Spain and France. Restaurants in the country will reopen on May 25 and a ban on traveling to islands for non-residents will also be lifted.CDC Issues Reopening Guidelines (11:05 a.m. NY)The U.S. Centers for Disease Control and Prevention has issued a 60-page document that provides detailed suggestions for different phases of reopening workplaces, schools and restaurants, after an earlier draft was rejected by the White House for being too prescriptive. It was posted on the CDC website over the weekend without fanfare.Most states have begun reopening. Much of the new guidance provides an overview of measures like testing aimed at tracking the virus’s spread and guiding the response. It also lays out stages of reopening for child-care programs; schools and day camps; companies with high-risk workers; restaurants and bars; and mass transit.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Engine maker Rolls-Royce said Wednesday it plans to cut some 9,000 jobs globally as it grapples with the collapse in air travel due to the COVID-19 pandemic.
The U.K. on Wednesday became the latest country to sell bonds at negative interest rates, showing investor demand for government securities is so high than some are willing to pay for the privilege.
The restructuring will see the U.K.-based maker of turbines and engines for passenger jets and military aircraft lose at least 9,000 workers from 52,000.
Rolls-Royce will cut at least 9,000 jobs and could shut some of its factories. The jet-engine maker made the announcement Wednesday (May 20), and said the cuts were to cope with a severe decline in air travel. Aerospace engineering is the key part of Rolls-Royce business. It supplies engines to both Boeing and Airbus, and is paid by airlines based on how many hours they fly. Its earnings are thus certain to take a hit if air travel demand takes years to recover from the global health crisis. Rolls-Royce relies on aerospace for just over half its annual revenues. In 2019, that totalled around 15 billion pounds – or $18 billion. The company said the job cuts would mostly be in its civil aerospace unit, and could generate annual cost savings of around $1.6 billion. CEO Warren East indicated the majority of jobs cuts will be in the UK where most of its aerospace employees are based. In total, Rolls-Royce hires 52,000 people worldwide and stands to lose 17% of its workforce after Wednesday’s announcement.
British aircraft-engine maker Rolls-Royce Holdings had turned the corner after a number of problems. But the impact of coronavirus has caused the stock to plunge.
Morgan Stanley (NYSE:MS) analyst Andrew Humphrey maintained a Hold rating on Rolls-Royce (OTC:RYCEY) Holdings plc on Sunday, setting a price target of £4.6, which is approximately 24.32% above the present share price of $3.7.
The following are the top stories on the business pages of British newspapers. Telefónica SA, the Spanish owner of O2, and Liberty Global Plc, that owns Virgin Media, have agreed to a 31 billion pounds ($38.42 billion) deal to merge their two UK operating businesses. British Banks stand to lose 80 billion pounds due to the coronavirus crisis but will be able to withstand because of their high levels of capital, the Bank of England said on Thursday.
A source close to Rolls-Royce, one Britain's best known industrial names and one of the world's main producers of jet engines for airliners, told Reuters last week that it was looking at cutting up to 15% of its 52,000 strong workforce. "We have promised to give our people further details of the impact of the current situation on the size of our workforce before the end of this month and will consult with affected employees in due course," Rolls-Royce said. Shares in Rolls-Royce, which said in a statement it had furloughed 4,000 staff in Britain, were down as much as 3.6% at 283 pence in early trading.
British aerospace and aviation firms must look at existing government schemes and self-help measures before individual packages for companies are considered, housing minister Robert Jenrick said on Wednesday. "We've said before that we're willing to consider situations where we would support individual firms, but obviously only when they've worked through the existing government schemes and other ways in which they might be able to raise finance commercially, or through existing shareholders."
U.K.-listed travel stocks slumped on Monday, with the sector continuing to feel the pressure on concerns that demand won’t soon return to normal even after the coronavirus shutdown eases.
(Bloomberg) -- Rolls Royce Holdings Plc is likely to be a much smaller company in the coming years with aerospace facing an uncertain future.The company is considering a 15% cut to its workforce as the aviation industry contends with an unprecedented crisis because of the coronavirus pandemic, a person familiar said last week. Senior executives at the maker of jet engines have yet to finalize reductions of that magnitude and talks with labor unions are continuing.The maker of widebody engines is particularly exposed to the fallout of the pandemic. The long-haul flights which use its engines are likely to be the last to recover, meaning the downturn in demand may last for a while. Rolls-Royce had already restructured the business after engine problems but now faces a smaller market with aircraft makers Airbus SE and Boeing Co. both slashing production rates.“Such action at some point appeared inevitable,” said Sandy Morris, an analyst at Jefferies. “We forecast full year group sales down 12%, but civil aerospace revenue down 18% mainly due to lower engine deliveries. The bad news really all happens in 2020.”Rolls-Royce confirmed the likelihood of job cuts without quantifying their possible extent, saying in a statement Friday that further action was needed to reduce spending and strengthen the company. It has promised employees more details before the end of the month.The company’s shares fell as much as 8.3%, and were down 3.4% as of 8:49 a.m. in London. Rolls-Royce has lost about 57% of its market value this year.Worst-Case ScenarioAerospace suppliers around the world are hunkering down for a protracted slump, after Airbus cut production rates by a third as Boeing also slashed its targets. Warren Buffett, whose Berkshire Hathaway Inc. owns supplier Precision Castparts Corp., warned at the company’s annual meeting Saturday that the pain is spreading through the supply chain.“We’re going to have aircraft in this country, we’re going to be flying. But the real question is whether you need a lot of new planes or not and when you’re likely to need them and it affects a lot of people,” Buffett said.Airbus and Boeing both predict a recovery from the crisis will be led by demand for narrow-body planes and have slashed their targets for wide-body programs as a result. Rolls Royce only makes engines for these larger aircraft and makes a large proportion of its revenue from maintenance once the engines are in service.“I would say that 8,000 job losses look like the potential toll from Covid-19, although I would hope that is the worst case,” said Morris.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Britain will support the strategic aviation industry in "any way it can" as the sector suffers from the coronavirus pandemic which has grounded planes and seen carriers seek government support around the world. "The aviation industry is both an extremely important one strategically for us as a country and one which employs a great deal of people," housing minister Robert Jenrick said on Saturday.
The company's engines power Airbus SE <AIR.PA> and Boeing Co's <BA.N> widebody jets and Rolls-Royce is paid by airlines based on how many hours its engines fly. The Financial Times earlier reported Rolls-Royce was preparing to lay off up to 8,000 of its 52,000-strong workforce. Last month, Rolls-Royce scrapped its targets and final dividend to shore up its finances to cope with the virus outbreak.
Planemakers are drastically slowing work on new projects to save cash as they focus on surviving a downturn expected to last well into this decade, industry sources said. Plane giants Airbus and Boeing are expected to emphasise immediate priorities over long-term plans in financial results on Wednesday, as air travel remains severely disrupted by the coronavirus pandemic. The fresh approach was trailed by Boeing's decision to scrap a $4.2 billion tie-up with Brazil's Embraer, whose engineers had been expected to play a key role in developing the next round of Boeing jets.
A new ventilator from medical device company Penlon has received regulatory approval from Britain in the first such go-ahead as part of ramped-up efforts to combat the coronavirus, an industry source told Reuters on Thursday. Governments around the world are trying to boost the number of ventilators - mechanical breathing devices that can blow air and oxygen into the lungs - available to their health services. Penlon did not immediately respond to an emailed request for comment.
The Zacks Analyst Blog Highlights: Boeing, General Electric, Raytheon Technologies, Rolls-Royce and Safran
To cope up with the economic impacts of coronavirus outbreak, airline companies are taking initiatives like delaying deliveries of new jets. In a ripple effect, jet engine makers are bearing the brunt.
Insurer Legal & General was the standout mover in London markets on Monday, after defying a Bank of England request by paying a dividend.