So, I said that Rolls Royce might be a beneficiary of Brexit.
This is what makes Rolls Royce so attractive as a hedge or speculation upon Brexit. If the worst – or for people like me politically, the best – happens and Britain leaves with no deal and settles for WTO terms. Rolls Royce carries none of the costs, as other exporters will have to. But has all of the gains of the falling currency. And do note that aviation is priced in US dollars, the entire market is. So this doesn’t just apply to sales of engines, but also to the decades long service and maintenance contracts the company has with all those foreign airlines.
A fall in sterling from a messy Brexit would be great for Rolls Royce.
Of course, sterling has risen just recently……sigh.