Picture used for illustrative purpose only.
Rolls-Royce has got to grips with long-running engine problems and enjoyed a strong end to 2019, leaving it well placed to cope with any disruption caused by the coronavirus outbreak, it said.
Rolls-Royce, the British maker of plane engines, will cut at least 9,000 jobs and slash costs elsewhere, as the coronavirus hammers the aviation sector.
Rolls-Royce shares hit their lowest level since 2004 on Monday after the British aero engine maker confirmed it was considering a rights issue of up to 2.5 billion pounds ($3.23 billion) following months of speculation about its finances.
Rolls-Royce plans to raise a total of 5 billion pounds ($6.5 billion), including 2 billion pounds from shareholders, to rebuild its balance sheet as the coronavirus travel crisis wreaks havoc on the British aircraft engine maker’s cashflow.
The US economy grew at a record pace in the third quarter as the government injected more than $3 trillion worth of pandemic relief which fueled consumer spending, but the deep scars from the COVID-19 recession could take a year or more to heal.
Aircraft manufacturers are hit by the devastating impact of the coronavirus pandemic on the aviation industry. The number of global commercial aircraft orders was zero during the month of September.
Peugeot manufacturer PSA Group returned to revenue growth in its core autos division in the third quarter, recovering from a slump during coronavirus lockdowns, though the prospect of new restrictions hit French shares.
The Bank of Japan (BOJ) trimmed its economic growth and inflation forecasts for the current fiscal year (2020-21) on Thursday but offered a more upbeat view on the recovery outlook, signalling that it has delivered enough stimulus for the time being.