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.
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.
UK asks Rolls-Royce for ventilators to fight Covid-19
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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