|Day's Range||0.8400 - 0.8400|
Advanced technologies, precision agriculture and rising demand for replacing outdated equipment bode well for Deere (DE) despite a weak agricultural sector.
The Deere & Company (NYSE: DE) Board of Directors declared a regular quarterly dividend of $0.76 per share on common stock, payable February 10, 2020, to stockholders of record on December 31, 2019.
The farm-equipment giant’s shares caught the second downgrade in a week. Should investors buy cyclicals such as Deere stock now—before economic data improve—or could the macro worsen?
Shares of agricultural equipment maker Deere & Co. slid about 1.5% Monday, after BofA Merrill Lynch downgraded the stock to underperform from neutral following a disappointing earnings report and softer-than-expected guidance. Analysts led by Ross Gilardi lowered their stock price target to $150 from $175. "The set-up on agriculture into next year is very challenging, and there is no guarantee that FY20 is necessarily the bottom if US farmers respond with higher corn and soybean plantings," they wrote. "Deere also seems late in cutting production on construction equipment." The company's agriculture and turf division is suffering from steadily eroding margins, offsetting the good news in precision agriculture, said the note. Agriculture and turf margins have fallen for five straight quarters, predating the large production cuts in North America in the second half of 2019. "Deere supposedly had worked through supply chain efficiencies earlier in the year, but continued to blame higher production costs and SG&A in FQ4," said the note. "Now competitor CNH is getting a lot more focused on precision agriculture. End result, positive margin benefits of precision ag probably remain invisible to the casual glance until at least FY21-22." Deere shares have gained 11% in 2019, while the S&P 500 has gained 25%.
(Bloomberg) -- Sign up to our Brexit Bulletin, follow us @Brexit and subscribe to our podcast.Two people were killed in a terrorist attack in the heart of London on Friday. Three others were injured in the stabbing incident just before 2 p.m. in the London Bridge area, on the edge of the capital’s financial center. Members of the public wrestled with the suspect before armed police shot him dead.Confirming that two people had died, Metropolitan Police Commissioner Cressida Dick praised the “extraordinary courage” of those who tackled the man. Prime Minister Boris Johnson broke away from the general election campaign to rush back to his Downing Street offices, and will chair an emergency “Cobra” meeting this evening.Key Developments:Police shoot dead male terror suspect after stabbing in London Bridge at about 2 p.m.Two civilians killed in the attack, three being treated in hospital, police saidOfficers say suspect had a hoax bomb strapped to his bodyJohnson returned from his constituency to Number 10 for updates on incident; will chair emergency ‘Cobra’ meeting at 9:30 p.m.Labour suspends election campaigning in London on FridaySecurity strengthened around British capital, with more armed police deployed after terrorist attackPolice Trying to Identity Victims (8:25 p.m.)Metropolitan Police Commissioner Cressida Dick said officers are still working to identify the people killed in Friday’s terrorist attack and that three others are being treated in the hospital. ‘Our counter-terrorists detectives will be working around the clock to identify those who have lost their lives, to support all the victims and their families,” she said.“We will be working as fast as we can to understand who this man is, where he comes from and whether there is anyone else who we need to find quickly,” Dick said. She said she expects police cordons to remain in the area “for some time.”Dick said the attack started at Fishmonger’s Hall, a livery company building on the north side of London Bridge, and said members of the public had shown “extraordinary courage stepping in to tackle this attacker.”U.K. Police Confirm Two Dead (8:15 p.m.)U.K. police confirmed two members of the public died in the terror attack on London Bridge. “As well as the suspect, who was shot dead by police, two of those injured in this attack in the London Bridge area have tragically lost their lives,” Cressida Dick, Metropolitan Police commissioner, said in a statement outside the London police service’s headquarters.“My heart goes out to their loved ones and to the three further injured victims who I understand are being treated at hospital,” she said. “The empty ideology of terror offers nothing but terror and today I urge everybody to reject that.”Johnson Cancels Saturday Campaign Events (7:50 p.m.)Prime Minister Boris Johnson canceled his planned events for campaigning in the election on Saturday, a Tory official said. He will focus instead on the government’s response to the London Bridge attack.The premier will lead a meeting of the government’s emergency “Cobra” committee at 9:30 p.m., his office said. He called Labour leader Jeremy Corbyn to discuss the incident earlier on Friday.Labour Suspends London Campaigning (6:50 p.m.)Labour leader Jeremy Corbyn suspended his party’s campaigning in London for Friday evening as he called on the U.K.’s “democratic process not to be derailed by terror.”“We are suspending campaigning in London tonight as a mark of respect for those who suffered in this attack,” Corbyn said in an emailed statement. “We will not be cowed by those who threaten us. We must and we will stand together to reject hatred and division.”Earlier Conservative leader Boris Johnson suspended his own campaigning for Friday evening.Two People Dead After Attack: BBC (6:36 p.m.)Two members of the public have died after the London Bridge attack, the BBC reported, citing a government source.Earlier the police said several people had been injured during the stabbing at a premises near London Bridge. A spokeswoman for the Met Police was unable to confirm the report.Johnson Praises Civilians Who Stopped Attacker (5:45 p.m.)Boris Johnson vowed to bring all involved in the attack to justice, promising the U.K. will not be intimidated by terrorism.“Anybody involved in this crime and these attacks will be hunted down and will be brought to justice,” Johnson said in a pooled TV clip. “This country will never be cowed or divided or intimidated by this sort of attack, and our values -- our British values -- will prevail.”Johnson said he would stop his own campaigning this evening and he would be reviewing the matter in the next few hours. In the middle of the 2017 election, campaigning was suspended across all parties after a terrorist attack.“I urge everyone to be vigilant and one cannot help but think back to what happened in 2017 in a similar part of the city, and I hope people as fast as possible will be able to go back to their business,” he said.Mayor Urges Londoners to ‘Stand Resolute’ (4:55 p.m.)Mayor of London Sadiq Khan called on his city to “stand united and resolute in the face of terror” in the aftermath of the “cowardly and evil” attack.Khan praised the “breathtaking heroism from members of the public who literally ran towards the danger, not knowing what confronted them.” he said they didn’t know the bomb strapped to the suspect was a hoax. “They really are the best of us, another example of the bravery and heroism of ordinary Londoners running towards danger, risking their own personal safety to try and save others,” he said.“I’m mayor of the greatest city in the world -- one of our strengths is our diversity,” he told journalists outside the Metropolitan Police headquarters. “We do know there are people out there who hate our diversity, who hate what we stand for and are trying to seek to divide us.”Khan said the attack on London Bridge “appeared to be an isolated incident,” and the police aren’t looking for any other suspects.Trump Pledges Support to U.K. (4:40 p.m.)U.S. President Donald Trump condemned the violence on London Bridge and offered his country’s full support, a spokesman said.“President Trump has been briefed on this morning’s attack at the London Bridge and is monitoring the situation,” said Judd Deere, deputy press secretary at the White House. “The United States strongly condemns all horrific acts of violence on innocent people, and we pledge our full support to our Ally, the United Kingdom.”Trump is due to visit the U.K. next week for a NATO summit.Police: London Bridge Attack Was Terrorism (4:24 p.m.)U.K. police confirmed they had shot dead one male suspect and declared the attack a terrorist incident. “I’m now in a position to confirm that it has been declared a terrorist incident,” said Neil Basu, Metropolitan Police assistant commissioner, in a statement outside the London police service’s headquarters. “I must stress we retain an open mind as to any motive. It would be inappropriate to speculate further at this time.”He added the police believe the item strapped to the body of the suspect was a hoax explosive device.Police Ordered Diners to Flee (4 p.m.)The streets around London Bridge were locked down and armed police cleared restaurants and shops in the area. Officers are treating the incident as terror-related “as a precaution,” although the circumstances are still unclear, the Metropolitan Police said in a statement.During the incident on Friday, armed officers burst into restaurants in the Borough Market area at London Bridge and urged diners to leave as fast as possible. They shouted “Out, out, out,” to people at the Black and Blue bar. Diners walked away with their hands on their heads. Nearby, police shouted to pedestrians to “run.”Officers closed off the bridge and evacuated passers-by from the surrounding area. On the north bank of the River Thames, police officers shouted to pedestrians to move back from the bridge 100 meters, and then urged them to take shelter in any nearby building, shouting: “Move inside for your own safety.”Incident Revives Memories of 2017 Attack (3:45 p.m.)The same area of London was the scene of a terrorist attack just a few days before the general election in June 2017 in which eight people were killed and 48 injured. Three Islamist terrorists drove a van at pedestrians on the bridge before arming themselves with knives and running into Borough Market, where they stabbed people in restaurants and pubs. Armed police responded and killed the attackers.Johnson returning to Central London (3:35 p.m.)Boris Johnson is returning to his office in central London after police shot a man at London Bridge and a number of people were injured.“The prime minister is on his way back to No 10 from his constituency where he will receive further updates on the London Bridge incident,” Johnson’s spokesman James Slack said in a statement.Labour leader Jeremy Corbyn also expressed his concern. “Shocking reports from London Bridge. My thoughts are with those caught up in the incident. Thank you to the police and emergency services who are responding,” he said on Twitter.Johnson Being Kept Updated on London Incident (3:10 p.m.)Boris Johnson said he’s being kept informed about the unfolding incident at London Bridge, in which there have been reports of gunshots and stabbings. Police said they are “currently responding to this incident as though it is terror-related.”Armed police locked down the bridge and evacuated the area. The Metropolitan Police said in a statement that after being called to a stabbing at a premises nearby, they had detained one man. A number of people have been injured, they said.“I’m being kept updated on the incident at London Bridge and want to thank the police and all emergency services for their immediate response,” Johnson said on Twitter.Home Secretary Priti Patel also posted on Twitter, saying she’s “very concerned by ongoing incident at London Bridge. My thoughts are with all affected.” She urged people to follow the advice of the police. London Mayor Sadiq Khan said he’s in “close contact” with the Metropolitan Police Commissioner.Corbyn in Fresh Attack on Billionaires (12:45 p.m.)Jeremy Corbyn opened a new broadside on billionaires opposing his plans for a re-distributive socialist economy after The Daily Mail and General Trust bought the i newspaper in a 50 million pound deal ($64.5 million).“Two billionaire press barons now own half of the top 10 daily newspapers,” Corbyn said in a posting on Twitter. “Remember this when they attack Labour’s plan to make the super-rich pay their fair share.”“We are committed to preserving its distinctive, high quality and politically independent editorial style,” DMGT said in a statement on its acquisition of the i newspaper.Free Trade Group Attacks State Aid Proposals (12:20 p.m.)The Adam Smith Institute, a think tank aimed at promoting free trade which had close links with former Conservative Prime Minister Margaret Thatcher, said it was disappointed with Boris Johnson’s plan to change state aid rules and procurement provisions to make it easier to support British companies, calling it a “form of Trumpian protectionism.”“We shouldn’t free ourselves from the European Union in order to just enslave ourselves to the whims of Whitehall,” said Matthew Lesh, head of research at the Adam Smith Institute. “Making a profit is a proof of the value added to society, and there must be no business that is too big to fail.”Tories Pledge Tougher Foreign Takeover Rules (12:05 p.m.)The Conservatives plan to strengthen protections against foreign takeovers of British companies, Cabinet Office Minister Michael Gove said, in answer to a question about Chinese investment in the U.K.“We certainly don’t believe that the current provisions which are in place are robust enough,” Gove said at a press conference. He said he’s undertaken to “strengthen” a unit in his department that examines foreign takeovers, and “strengthen protections in the future.”Speaking alongside him, Boris Johnson agreed, before saying the country must strike a “balance” between “continuing to be open to investment from China” and making sure the U.K. doesn’t do anything “that prejudices our critical national infrastructure, our security, or do anything that would compromise our ability to cooperate with five-eyes security partners.”“Those are the parameters,” Johnson said. “I am very, very far from a Sinophobe. I want to have good relations with China, but there are clear difficulties and clear boundaries that we have to set.”U.K.’s No-Deal Preparations to Continue (12 p.m.)Boris Johnson confirmed the U.K. will continue to make preparations for a disorderly exit from the European Union. “Of course the preparations will remain extant,” he said. “There’s no reason to dismantle them.”He described the preparations which he put in place prior to the Oct. 31 deadline as being “thoroughly useful” in achieving the deal made with the EU, as it convinced Brussels the U.K. was “in earnest” about leaving.Johnson said he is confident of completing a deal with the EU by the end of 2020 and “sees no reason” to extend that deadline, meaning the U.K. crashing out without a deal is still a possibility.State Aid Plan Compatible With EU: Johnson (11:50 a.m.)Taking questions from the press after his speech, Boris Johnson said that “of course” the U.K.’s new state aid rules (see 11:35 a.m.) would be compatible with those of the European Union, dismissing the idea that they could endanger a new free trade deal with the bloc.“Were there to be any issues arising, then as you know, under any big free trade deal, there’s a joint committee to arbitrate on whether some unfair subsidy or dispensation has been made,” Johnson said. “But it would be a committee of sovereign equals.”Johnson later said he believed in competition and in a “level playing field.”Tories Vow to Change Public Procurement (11:40 a.m)The Tories vowed to break away from EU state aid rules that the party said have a “chilling effect” on government support for industry, because of the need to wait for “months or years” for decisions on whether measures by member states are permissible or not.Existing rules “mean that the U.K. government cannot take steps to quickly and effectively help companies that are in danger,” the Conservative Party said in the statement. New rules will be developed in consultation with British businesses, it said.The Tories promised a new state aid system that sets out clear principles when the government will intervene, based on the U.K.’s needs. Ministers will have “more discretion” over decisions, which they will be able to take within “days.” A new government body would be set up to manage the system, the party said.On public procurement, the Tories pledged to ditch “absurdly complex” EU rules with their “pointless tendering requirements.” It also promised “simpler and cheaper” regulations that are “geared towards supporting local business and promoting British business.” The new system will be in place by Jan. 2021.Tories Announce State Aid Plans (11:35 a.m.)The Conservatives unveiled a package of measures that they described as “immediate steps to realize the benefits of Brexit,” including a pledge to overhaul the country’s state aid system to make it “faster and easier for the government to intervene to protect jobs when an industry is in trouble.”A Tory government will also change public procurement policy to support local businesses and promote a “buy British” approach for public bodies that purchase food, in an effort to back farmers, the party said in an email.“People voted to take back control -- and we want to deliver that change,” Johnson said in a statement. “One of the crucial ways we will do that is by improving our rules so that we can back British businesses and unleash their true potential.”Stuart Tells Labour Voters to Back Johnson (11:30 a.m.)Gisela Stuart, the former Labour MP who helped run the Leave campaign in the 2016 Brexit referendum, urged traditional Labour voters to back the Conservatives in what she called the Dec. 12 “Brexit election.”“Voting for Brexit this time does not make me a Tory now or in the future,” Stuart said as she stood alongside Johnson and Michael Gove. “Rather, it is the best option.”Labour Step Up Pressure Over Johnson Comments (10:40 a.m.)Labour criticized Prime Minister Boris Johnson over past remarks he made about single mothers in a column from the 1990s (See 10 a.m.)“Boris Johnson’s refusal to apologize for his hateful comments about single mothers, their children and working class men is an absolute disgrace,” Labour’s education spokeswoman, Angela Rayner, who has herself been a single mother, said in a statement. “He tried to deny what he wrote, but the evidence is there in black and white for us all to see, proving once again that he’s a liar as well as a sexist.”Johnson Signals to Trump to Stay Quiet (10:15 a.m.)Ahead of Donald Trump’s visit to the U.K. next week, Boris Johnson said the two allies “traditionally” do not get involved in each others’ domestic politics -- an apparent signal to the U.S. president not to say anything that could potentially undermine the Conservative Party’s election campaign.“We have very close relationships with the United States at every level of government, but what we don’t do traditionally -- as loving allies and friends -- is get involved in each other’s election campaigns,” Johnson told LBC radio.The comment comes amid Tory party fears of an intervention by the president in the run-up to the Dec. 12 vote. Labour leader Jeremy Corbyn is using Johnson’s links to the president and pursuit of a post-Brexit U.S. trade as a central attack line in the campaign, especially on the potential dangers to Britain’s state-run National Health Service.Johnson pointed out that former President Barack Obama’s intervention in the 2016 Brexit referendum campaign didn’t help the government’s argument for staying in the European Union. Obama’s comments were “not entirely conducive to the good of that cause,” he said.Johnson Under Fire for Controversial Comments (10 a.m.)Boris Johnson said the quotation of comments from his newspaper columns about Muslims, black people and single mothers were a “distortion” of his true views. In a 1995 article republished this week, he blamed single mothers for “producing a generation of ill-raised, ignorant, aggressive and illegitimate children.”“These are 25 year old quotations culled from articles written before I was even in politics,” Johnson said in response to an angry call from a single mother to a phone-in on LBC. “Almost invariably when you look at these articles what the actual piece is saying the opposite of what is claimed.” Johnson also refused to say how many children he has and whether he is involved in all of their lives.The description of single mothers was not the first time Johnson’s comments have attracted condemnation. He has previously come under fire for referring to black people as “piccaninnies” with “watermelon smiles,” while last year he used the terms “bank robber” and “letterbox” to describe Muslim women who wear burqas.Johnson also refused to say whether Jacob Rees-Mogg would still be in his cabinet if he wins the election after the leader of the House of Commons suggested people could have survived the Grenfell Tower fire if they’d shown “common sense” to escape. “I’m not going to get into measuring up the curtains type conversations,” Johnson said.Johnson Defends Tory Plans on NHS (9:40 a.m.)During his Q&A appearance on LBC radio, Boris Johnson was repeatedly challenged on his Conservative Party’s plans for the National Health Service. He acknowledged that a pledge to add 50,000 nurses actually includes persuading 19,000 to stay in the profession -- a discrepancy that opposition parties have said shows the Tories are misleading voters.“I do understand the controversy about this,” Johnson said, referring to the 19,000 figure. “The risk is that they will leave the profession and we’re putting in the funds to ensure they will stay.”Britain’s beloved state-run NHS is a key battleground in the election campaign after Labour accused Johnson of using it as a bargaining chip in talks with the U.S. on a post-Brexit trade deal. The prime minister reiterated on Friday that’s not the case, calling it “Bermuda Triangle stuff” from Corbyn’s party.Johnson was also on the back foot over his widely disputed plan to build 40 new hospitals, with opposition parties arguing the real number is only six. The prime minister was forced to acknowledge that some voters will not regard hospital refurbishments and upgrades as new hospitals. He also said the Conservative manifesto does not include a plan to resolve the crisis in social care because the precise details have not been “thrashed out” -- despite it being a key pledge in his first speech as prime minister.Johnson: Working on ‘About a Dozen’ Trade Deals (9:15 a.m.)Boris Johnson could not give a figure for how many trade deals the U.K. has ready ahead of its departure from the EU. “I can’t give the answer to how many deals are actually formalized,” he said in a phone-in with listeners on LBC radio. “There are a number that are virtually ready to go.”“I imagine we have about a dozen we’re currently working on,” he said, naming China, India, New Zealand and Australia as examples.If his Conservative Party wins a working majority, the U.K. will leave the EU on Jan. 31, Johnson said. A trade deal will also be agreed with the bloc by the end of 2020, he said: “I see no reason to go beyond that deadline,” he told listeners.Williamson Denies Tory Threat to Channel 4 (9 a.m.)Education Secretary Gavin Williamson denied the Conservative Party is threatening to review Channel 4’s broadcasting license following its decision not to allow Cabinet minister Michael Gove to sub in for Boris Johnson in a leaders’ debate on climate change on Thursday.Speaking on BBC radio, Williamson said the party has raised a complaint with the broadcasting regulator Ofcom. The row came after Johnson declined to appear in the debate, sending Gove in his place. Channel 4 refused to allow Gove, who appeared at the venue with his own television crew, to take part -- on the basis that the invitation was to the leaders of the political parties.“The Conservative Party isn’t threatening Channel 4, we’re raising a complaint with Ofcom which is perfectly legitimate,” Williamson said. “Frankly they reduced the quality of the debate that happened yesterday by refusing to let Michael Gove go on.” The Telegraph cited a source in the Tory party it didn’t identify as saying Channel 4’s public broadcasting license is under threat.McDonnell: Johnson ‘Running Scared’ (Earlier)Labour economy spokesman John McDonnell said Boris Johnson is “running scared” from scrutiny after the prime minister refused to attend a leaders debate on climate change on Thursday evening. He has also refused to be interviewed by Andrew Neil, who has the reputation of being one of the BBC’s most forensic interviewers.“The reason he is doing it is because he thinks like, you know, his Bullingdon Club friends, that they’re above the rest of us,” McDonnell said. “Because he knows that Andrew Neil will take him apart. He’s running scared. But even if he does it now, he’s played you because he’s pushing it later and later beyond the postal vote returns.”The Conservatives wrote to OfCom, the media regulator, on Thursday evening to complain that Channel 4, the host of the climate debate, had replaced Johnson with a melting ice sculpture during the debate.Labour is not changing its strategy, McDonnell said, denying reports that the party is switching its focus to leave voting areas after polling showed that it was set to lose seats in its north of England hearltlands.Earlier:The Tories Secretly Fear Trump Could Wreck Johnson’s ElectionU.K. Consumer Confidence Lowest Heading Into Election Since 2010Johnson Warns Against Complacency Over Lead: U.K. Campaign TrailTories Riled After Iceblock Replaces U.K. PM in Climate Debate\--With assistance from Alex Morales, Stuart Biggs, Eddie Spence and Kitty Donaldson.To contact the reporters on this story: Greg Ritchie in London at email@example.com;Jessica Shankleman in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Tim Ross at email@example.com, Thomas PennyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Deere & Co. shares slid 4.5% in premarket trade Wednesday, after the maker of agricultural equipment issued a profit warning for fiscal 2020 that it said reflects uncertainty in its equipment business.
Agricultural machine manufacturers are working with banks in Brazil to avoid a repeat of slumping sales when public financing is expected to run out next year, the head of the local unit of U.S. tractor maker Deere & Co told Reuters on Thursday. The Brazilian government's moves to reduce its role in the sector disrupted one of the world's largest markets for agriculture machinery earlier this year. "The money was over, and we stayed 90 to 120 days with very low activity (in sales)," said Paulo Herrmann, Brazil CEO for the maker of John Deere brand machines.
Wall Street's main indexes closed at record levels for a third straight day in a muted volume session on Wednesday ahead of the Thanksgiving holiday, as fresh data pointed to an economy on solid footing, while investors remained cautiously optimistic about a resolution to U.S.-China trade tensions. U.S. economic growth picked up slightly in the third quarter, rather than slowing as first reported, and a steady increase in consumer spending in October indicated the economy will probably maintain its moderate pace of growth in the fourth quarter. The Dow Jones Industrial Average rose 42.32 points, or 0.15%, to 28,164, the S&P 500 gained 13.13 points, or 0.42%, to 3,153.65 and the Nasdaq Composite added 57.24 points, or 0.66%, to 8,705.18.
Deere earnings just beat fiscal Q4 views, but the farm equipment giant sees lower equipment sales and net income in 2020.
Wall Street's main indexes hit record highs on Wednesday ahead of the Thanksgiving holiday, as fresh data pointed to a resilient domestic economy, while investors remained optimistic about a resolution to U.S.-China trade tensions. U.S. economic growth picked up slightly in the third quarter, rather than slowing as initially reported, and a steady increase in consumer spending in October suggested that the economy will probably maintain its moderate pace of growth in the fourth quarter. President Donald Trump's comments on Tuesday that the United States was in the "final throes" of work on an agreement added to optimism.
The three major U.S. stock market indexes traded about flat, near record levels, as investors remained optimistic about trade talks between the U.S. and China.