US default watch '23 | RGE accused of deforestation | Aircraft supply chain shortage continues to impact industry
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Theme summaries are curated by Auquan’s analyst team using our Portfolio Intelligence Engine to uncover investment insights at scale using NLP and generative AI.?
US debt ceiling negotiations continue as a default draws near
While the conventional wisdom in Washington and on Wall Street is that a deal to raise the US debt limit will be reached, concern is growing that this time may be different from past standoffs.?
“If the trustworthiness of (Treasurys) would become impaired for any reason, it would send shockwaves through the system ... and have immense consequences for global growth.” — Maurice Obstfeld, senior fellow at the Peterson Institute for International Economics and former chief economist at the International Monetary Fund (source)
“I just concluded a productive meeting with Speaker McCarthy about the need to prevent default and avoid a catastrophe for our economy. We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement. While there are areas of disagreement, the Speaker and I, and his lead negotiators Chairman McHenry and Congressman Graves, and our staffs will continue to discuss the path forward.” — President Biden (source)
”President Biden ignored this crisis for months—slow-walking the United States into default. No household in America could work like this, and we should expect better from our government too. That's why Republicans acted responsibly and voted to raise the debt limit a month ago.” — Speaker McCarthy (source)
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RGE accused of deforestation?
A new report by Greenpeace International reveals that the Royal Golden Eagle (RGE) Group, the world's largest viscose producer and major paper products company, continues to rely on deforestation in its supply chain despite a high-profile commitment to “No-Deforestation”.
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“RGE’s role in forest destruction is only made possible by those bankrolling and excusing their destructive practices. RGE’s top 15 banks have pumped more than USD 5 billion into the group’s forest-sector operations since 2016." — Tom Picken, Campaign Director for Forests & Finance, Rainforest Action Network (source)
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Aircraft supply chain shortage hindering the industry
Boeing CEO Dave Calhoun warned that supply constraints in the aerospace industry could last for more than half a decade, hampering the industry's rebound from the COVID-19 pandemic.
“I can see supply constraints for a very long time. We have backlogs that go out five to six years so if the backlogs would suggest supply constraints that far, that means it’s even further.” — Dave Calhoun, CEO of Boeing
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