Economy

Auto Industry Gripped by Fear of Impending Car-Price Collapse – Bloomberg

by dldamore

The auto industry — already fretting lengthy factory shutdowns and depressed new-vehicle demand — is starting to sound the alarm about a potential used-car price collapse that could have far-reaching consequences for manufacturers, lenders and rental companies.
— Read on www.bloomberg.com/news/articles/2020-04-13/fear-of-an-impending-car-price-collapse-grips-the-auto-industry

*How will consumers react? Huge incentives on manufacturers to move more new cars? If the values and prices for gently used cars drop people may feel better buying used rather than new. Many new people without regular income will lead to uncertainty and caution in household expenditures, especially large purchases like automobiles. Home price may also see a reset which could be rather significant. The home price reset may take time to become apparent. Look for a lengthening of days-on-market.

Signs of a Growing Hush in China’s Economy – The New York Times

by dldamore

Signs of a Growing Hush in China’s Economy – The New York Times:

 

‘Of course car sales have not returned to normal levels — people are still very wary,’ Cui Dongshu, the secretary general of the China Passenger Car Association, which represents manufacturers, said on Friday. ‘They feel this spike in the stock market today is probably not sustainable.

Even with the rebound, $3.1 trillion in market value, much of it financed with borrowed money, has been erased since mid-June. Many experts worry about the damage to the Chinese economy, particularly if stocks continue to fall. Consumer confidence could suffer, weighing on the country’s growth and on economies elsewhere that depend on exports to China.

*Is Apple seeing fewer sales of the Apple Watch Edition (U.S. Apple Store pricing) in China? If yes, what is the degree of change in sales?