Rolls-Royce: Shares plunge 20%

British engine maker Rolls-Royce cut their 2016 earnings forecasts. They said next year’s earnings forecast will suffer £650m loss after weakening demand for jet engines; as a result the stock is down 20%, trading at 548.00p on the market open in London. Currently it is the worst performing stocks on the Stoxx600, after issuing a profit warning this earlier morning. Rolls-Royce CEO Warren East see further headwinds in 2016 in particular in the Aero-space and Marine industry due to the weaker oil industry, softening profits by as much as £100m. East has new plans to restructure and reduce cost of the 131-year old company in the hope to make savings of £200m as of 2017. Details of the plans will not be announced until 24th of November, but we suspect this will include a number of job cuts.   

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