The Norge Bank RNS is a decrease in the size of their holding falling below the 3% reporting threshold due to them having loaned out 0.1% of RMG to a shorter. It is not good news and cannot be responsible for todays rise. In fact I am surprised that news of the impending strike ballot has not caused this to tank.
Do not underestimate the extent to which the "free money" liberated by the ongoing PPI claims culture has been propping up consumer spending on cars and other big ticket items. The August the 29th deadline may be good news for LLOY on an individual share basis, but may also pull the rug from under consumer confidence and thus put a large dent in the wider economy.
Keep an eye of the Short position reporting over the next few days. I think the CWU announcement may have provoked an increase in an existing short position first thing or a new entrant. We will know in a couple of days time.
No that was most likely a sale at the opening price of 198.55 and it was delayed in reporting as it would have shifted the market unduly if shown up in real time. They are allowed to do this for "sensitive" ie. very large trades.
It does not take a genius to work out that the run up to Xmas is the optimum time for the CWU to threaten RMG management with industrial action as this is the time period when the majority of the revenue comes in, so maximum leverage. Let us hope it is just sabre rattling and that things will settle down quickly. If they do not and there is talk of strike ballots then we will see a rapid decline in the SP irrespective of underlying value given that market sentiment is a very fragile at the moment.
I sincerely hope this is not bought out. If AZN were to go you may as well kiss goodbye to the FTSE100 and the credibility of an independent British Pharma industry. I prefer to keep taking the income and watch Soriat's growth strategy evolve thanks,
A Boeing Dreamliner pilot recently referred to RR engines as "Rotating rubbish" on a pilots forum discussing the recent incident in Rome. I hope that this is not a widely held view amongst airline flightcrew!
Millair. Probably because like Schweppes attempt to move its tonic range upmarket it will achieve very little. Who is going to pay a premium price for anything that a lowest common denominator producer like Coca Cola dreams up? Wrong market segment for them. Still if it bombs they might consider making a bid for Fevertree?
My biggest loss since selling out of RBS back in 2013. One of the few shrewd things Woodford did was getting out of this a few years ago. I sold my wife's stake at that time, but foolishly stayed in myself and should have got out then. Oh well. I have bunged what was left of the cash into Unilever. Boring, but steady I hope!
RR today lowering the long-term senior unsecured debt rating of the company from A3 to Baa1. The high cost of rectifying issues with the cracking blades of the Trent 1000 aircraft engines, as well as "limited" free cash flow worried Moody's. On the positive side they upgraded the outlook to "stable" from "negative" and emphasised Rolls-Royce had high barriers to entry and a "strong" order book, which also was supported by a "positive" outlook for its core aerospace and defence end markets as well as some of its niche power segment markets. Finally Moody's stated "Roll-Royce is committed to a strong financial profile and has strong liquidity".
I doubt very much that this is anything at all to do with cost cutting. RR are simply struggling to overcome several problems at once here with greater than expected wear on high-pressure turbine and compressor blades, the former despite a blade redesign, which surprisingly still showed high wear levels and needed replacement more rapidly than the originals. Apparently a third design iteration is expected to be available later this year, but it is all very frustrating, expensive and slow.
Rolls-Royce is the biggest FTSE100 faller today, down 3%, which Reuters says is caused by reports that fragments of an engine fell from a Norwegian Boeing 787 Dreamliner near Rome, Italy. Rolls-Royce's Trent 1000 engine powers the Boeing 787 Dreamliner.
According to the Sunday Times Rolls Royce was one of three companies along with Burford who's shares were marked down last week following the Twitter announcement of a forthcoming report on misleading accounting practices at a UK company without naming the target. The report was of course about Burford and not RR and so it seems we were merely collateral damage in this war of words.
Read the last line..............."This Loan agreement also provides for further funding on the same terms of between £3.6 million and £4.5 million dependent on the operational performance of the Horse Hill asset." In other words there will likely be further share dilutions to fund future operations.
I think 12 months to sort out the ongoing mess that is Brexit is very optimistic, particularly in view of the current Mexican standoff. With the current downward pressure on air travel coming from the Boeing crisis, Trump's trade war with China, regional disputes (Japan and S Korea), industrial disputes and on top of that the climate change lobby I see little to be positive about for growth in civil aviation and thus RR in the near term. Remember you could pick these up in the low 500's only 3 years ago, so no entry price is a guaranteed bargain here.