What's Happening
Rolls-Royce has raised its profit forecast for the year and announced plans for up to a $12 billion share buyback. The aerospace giant expects profits to exceed £4 billion, driven by strong demand for its engines and power systems.
Market Impact
The announcement has propelled Rolls-Royce shares up by 6%, reflecting investor optimism. The buyback is likely to support the stock price and improve shareholder returns.
Broader Implications
This move signals confidence in the aerospace sector's recovery post-pandemic and may encourage similar actions by other companies in the industry.
