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SHARE PRICES AND MARKET ANALYSIS

A snapshot of bike and ATV industry share performance across key manufacturers and major global markets at the trading week closure on Friday 2 December 2022. BDN financial editor Roger Willis reports.

USA — FRESH INFLATION FEARS

American employment data for November showed a much higher increase in new jobs than forecast, fuelling fears that the US economy is still overheating and inflation is unlikely to subside. This put added pressure on the US Federal Reserve to maintain its pace of interest rate rises and stock prices declined after recent gains.

Among Wall Street market indices, the Dow Jones Industrial Average and S&P’s MidCap 400 fared worst, respectively closing on marginal 0.2% and 0.6% weekly advances. The blue-chip S&P 500 put on a better 1.1% and Nasdaq’s Composite beat the lot, 2.1% up.

Currency: dollarPriceWeekMonth
Harley-Davidson47.65-0.1%+5.1%
Polaris Industries116.56+3.7%+12.6%
Textron71.30-0.3%+4.1%
Ideanomics

(Energica)

0.234-3.3%-13.3%
Niu Technologies4.26+30.3%+36.1%
LiveWire6.88+18.6%-2.5%

EUROPE — EMPLOYERS GET OFF LIGHTLY

Germany’s biggest trade union IG Metall struck surprisingly modest pay deals giving 3.9 million of its members (including Volkswagen employees) an 8.5% rise over two years, comprising a 5.2% hike next June and further 3.3% in May 2024. They will also collect two tax-free bonus payments worth about £1300 each. Similar deals are expected for other manufacturers and will engender sighs of relief for employers, given such settlements are well below the annualised 11.6% German and 10% eurozone inflation rates in November.

Nevertheless, market indices finished mildly negative. Frankfurt’s Xetra Dax dropped by 0.1% while the FTSE MIB in Milan was 0.4% down. However, the automotive stocks with biker associations listed here remained positive, given their narrow escape from more punitive labour cost increases.

Currency: euroPriceWeekMonth
BMW85.17+1.4%+6.7%
Volkswagen183.85+0.4%+5.7%
Pierer Mobility64.50N/A+4.7%
Piaggio Group2.92+5.8%+11.9%

JAPAN — ENDLESS ECONOMIC DEBATE

A stand-off between the Bank of Japan and the Japanese government continues unabated. Latest tirade from BoJ deputy governor Masazumi Wakatabe has reiterated warnings about “Japanification” — prolonged low inflation leading to economic stagnation — even though BoJ monetary policies have promoted exactly that for years. The government wants a stronger yen, while exporting industries prefer the currency to be weak. Whose winning is moot.

Against this background, Tokyo’s Nikkei 225 index fell by 1.8% and all four indigenous motorcycle manufacturers lost value.

Currency: yenPriceWeekMonth
Honda3272-2.9%-3.3%
Yamaha3285-2.2%+6.5%
Suzuki4782-4.6%-4.8%
Kawasaki2833-1.9%+8.6%

INDIA — MARKING TIME

Still bouncing along the bottom of a post-Diwali slump in consumption and investor enthusiasm, Mumbai’s BSE Sensex 30 stock index growth slipped even lower week-on-week, rising by only 0.9%. Motorcycling stocks were decidedly mixed. But Hero MotoCorp got a boost from news that it had recovered retail sales top-dog status, after briefly surrendering bike market leadership to Honda subsidiary HMSI for the first time ever.

Authorities in the heavily polluted Indian capital announced a ban on the petrol and diesel three-wheeled auto-rickshaws clogging Delhi’s streets from 2027 onwards. In future, they will have to be powered by electricity or compressed natural gas. No doubt Mahindra, Bajaj and TVS, the manufacturers of most of these devices, will be looking forward to a replacement bonanza. Mahindra already makes electric three-wheelers.

Currency: rupeePriceWeekMonth
Hero MotoCorp2820.45+4.1%+8.9%
Bajaj Auto3659.35+0.5%-3%
TVS Motor1048.40+1.1%-5.9%
Eicher Motors3331.85-2.4%-10.1%
Mahindra1264.60+0.3%-5.5%

CHINA — SPOOKED BY PROTESTERS

President Xi Jinping’s iron hand of social discipline crumbled in the face of unprecedented mass anti-lockdown protests that in some areas turned into riots. Investors began to bet on Beijing relaxing strict Covid quarantine restrictions and effectively reopening the Chinese economy through a swing to large-scale vaccination.

Market indices responded accordingly. Shanghai’s SSE Composite finished 1.8% up and the blue-chip CSI 300 climbed by 2.5%. A narrow majority of motorcycle manufacturer listings yurned positive.

Currency: yuanPriceWeekMonth
Qianjiang21.19+2.1%-8.2%
Zongshen6.51+3.3%-2.3%
Sundiro2.48+2.1%+2.9%
CETC (Jialing)14.78+1.9%+0.9%
Lifan4.26+2.2%-7.8%
Loncin5.21-2.6%-3.7%
Linhai10.05-1%+17.3%
Guangzhou Auto12.00+4.1%-4.9%
CFMoto127.60-3.5%-12%
Xinri E-Vehicle20.41-0.2%-9.2%

 

Currency: 

HK dollar

PriceWeekMonth
Jianshe5.04-0.8%-2.5%
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