The Malta Independent 30 May 2020, Saturday

Britain's Rolls-Royce to axe 9,000 jobs

Thursday, 21 May 2020, 13:16 Last update: about 8 days ago

The Maltese market closed in the red on Wednesday, with the MSE total index ending the session 0.136% lower to 8,093.904 points. The best performer among the stocks was GlobalCapital plc with a 24.35% surge to close at 0.286, followed by a 1.57% jump of HSBC Bank Malta plc and a 0.53% increase of PG plc with closing price 0.97 and 1.88 respectively. The biggest fall was seen from Malta Properties Company plc, which slid 6.90% to close at 0.54. Followed by a 3.31% drop of MaltaPost plc and a 0.99% shed of Malta International Airport plc with a closing price of 1.17 and 5.00 respectively.

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Stocks across Europe recovered on Wednesday as optimism over the gradual easing of lockdowns across many countries helped to offset doubts raised during the previous session around one of the most promising vaccine candidates against Covid-19. By the end of trading, the Stoxx 600 had added 0.98% to 342.82, alongside a 1.34% advance for the German Dax to 11,223.71 while the French Cac-40 was up by 0.87% to 4,496.98.

US stocks closed higher on Wednesday, with major indices clawing back most of the losses recorded in the previous session despite some heightened rhetoric from the President aimed at China. At the close, the Dow Jones Industrial Average was up 1.52% at 24,575.90, while the S&P 500 was 1.67% firmer at 2,971.61 and the Nasdaq Composite saw out the session 2.08% stronger at 9,375.78.

 

Britain's Rolls-Royce to axe 9,000 jobs in air travel slump

Rolls-Royce plans to cut at least 9,000 jobs, or more than a sixth of its workforce, in the latest blows to the UK economy and aviation industry dealt by the coronavirus pandemic.

The company, which makes engines for planes such as the Boeing 787 and Airbus 350, said on Wednesday it could also close factories as it shrinks to fit the smaller market it expects to emerge from the crisis.

Airlines and their supplies have been among the hardest hit businesses by lockdowns to contain the pandemic, with passenger air travel grinding to a virtual halt.

The 9,000 jobs, out of a global staff of 52,000, will go predominantly from Rolls's civil aerospace business, which generates just over half of its 15 billion pounds of annual revenues.

Rolls said it was targeting 1.3 billion pounds of annual cost savings, with about 700 million coming from layoffs plus other cuts that could include factory closures.

Rolls-Royce shares were last down 2%, having dropped 62% this year to 11-year lows.

 

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.


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