Rolls Royce shares up 7% as probe settled

Shares in Rolls-Royce jumped up to 7% yesterday after the British maker of engines for planes and ships settled a long-running bribery probe and said that 2016 profit would beat expectations.

The conclusion to the bribery investigations by British, US, and Brazilian authorities helped remove a cloud hanging over one of Britain’s biggest corporate names since 2013.

The settlement, and the forecast for better-than- expected profit, comes as a boost to CEO Warren East who, since joining in mid-2015, has led a drive to slash costs and restructure the group following a series of profit warnings.