Deere Offers Cautious Net Income Outlook for 2020

The transcript discusses the impact of the trade war on operating leases, particularly in the construction equipment sector, and its broader effects on industrial confidence and economic growth. It highlights the cautious approach of companies like Parker Hannifin and the influence of the trade war on short and long cycle economic activities. The potential resolution of the trade war and its impact on investment timing is explored, along with the challenges faced by farmers due to shifts in soybean demand and retaliatory tariffs.

What is one of the main financial challenges faced by companies in the construction equipment business due to the trade war?

• Increased demand for equipment

• Overstated retail values leading to losses

• Higher production costs

• Lack of skilled labor

Which company is mentioned as being affected by the trade war in terms of long-cycle projects?

• Emerson

• Caterpillar

• General Electric

• Parker Hannifin

What is the strongest region mentioned in terms of industrial growth despite the trade war?

• Europe

• South America

• North America

• Asia

Which crop is most affected by China's retaliatory tariffs?

• Barley

• Rice

• Soybeans

• Wheat

What has been the impact on soybean demand due to the trade war?

• Stable demand worldwide

• Shift of demand to Brazil

• Increased demand in the US

• Decreased demand in Europe