Invesco Perpetual selling down Rolls-Royce as Harrison buys in

'It is a quality defensive stock that deserves its premium rating. It also is looking to improve operating margins on its energy and marine engine businesses where there could be further upside potential.

Smokescreen

Haines added that rumours about a recent 'catastrophic failure' of one of the Trent engines being tested for the Boeing Dreamliner aircraft had been exaggerated by Boeing, which had already faced various delays in producing the new wide berth aircraft.

'It is probably a smokescreen by Boeing and has very little material impact on Rolls Royce,' he added.