Deere (DE), which supplies machinery to the agriculture and construction industries, may be positively affected in the event of a default, according to IBISWorld.
With a significant chunk of its revenues coming from emerging markets, Deere will likely continue to enjoy good demand. A default will also pressure the dollar which will boost export revenues.
According to its lead analyst Justin Molavi, Deere would also benefit because higher interest rates will push more people to rent equipment in the U.S., giving a boost to its equipment leasing business.Deere posted a second-quarter net income of $904.3 million or $2.12 per share compared with $547.5 million or $1.28 per share last year, helped by strong demand for farm machinery. AGCO (AGCO) and Fiatare among the other industry players who are expected to benefit.
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