“The lift off of Rolls-Royce Holding PLC (LON:RR) shares following the relaxation of transatlantic travel rules was given added thrust today with news of a big contract with the US Air Force. Rolls Royce engines will power the USAF B-52s for the next 30 years, and the clinching of this deal, which could be worth up to $2.6 billion, is yet another ray of sunlight for the engineering firm which finally seems to be leaving the pandemic storm clouds behind.
Q2 2021 hedge fund letters, conferences and more
A Supply Chrunch Is Pushing Oil Prices Higher
As snakes of drivers snarl up roads across the UK in their search for forecourts with fuel, due to panic buying amid a driver shortage, a supply crunch globally is pushing up the price of oil. A barrel of Brent crude has pumped up by 1.12% to just shy of $80 and that’s boosted the share price of energy giants BP and Royal Dutch Shell. Two hurricanes in the Gulf of Mexico caused a loss of two million barrels a day from offshore platforms. A flood of output remains offline and its going to take time to restore supply. By mid-morning the FTSE 100 had clung onto positive territory thanks to the black gold and B-52 bounce.
Worries about China’s debt laden property group Evergrande may be background noise today but they linger on. There are still fears about repercussions of a default across the property, construction, mining and potentially financial sectors in the region, causing fresh ripples across the global economy, as many countries are already grappling with rising prices, supply chain log jams and a slowing recovery. Amid looming these economic pressures gridlock from the outcome of the German Federal elections, with talks to establish a coalition to take place, has been largely shrugged off.
Cineworld Soars
In the FTSE 250, Cineworld Group plc (LON:CINE) shares have soared by almost 12% as the return of Bond to the screens appears to have been the agent of change movie companies sorely needed. Business was severely shaken during the pandemic with screens shut and blockbusters delayed and there are early indications that Bond is already helping stir up a surge in much needed bookings."
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