(Bloomberg) — Demand for cars in China continues to go from strength to strength, making the automobile market in Asia’s biggest economy a lone bright spot as the coronavirus pandemic puts a damper on sales in Europe and the U.S.



a group of people standing on top of a car: A customer speaks with a sales agent while standing between a Ford Motor Co. Everest sport utility vehicle (SUV), right, and a Mustang sports car on display at a Ford dealership in Shanghai, China, on Thursday, July 19, 2018. The fledgling U.S.-China trade war will take a toll on companies from both sides, with some tariffs in place and the potential to escalate into consumer boycotts.


© Bloomberg
A customer speaks with a sales agent while standing between a Ford Motor Co. Everest sport utility vehicle (SUV), right, and a Mustang sports car on display at a Ford dealership in Shanghai, China, on Thursday, July 19, 2018. The fledgling U.S.-China trade war will take a toll on companies from both sides, with some tariffs in place and the potential to escalate into consumer boycotts.

Deliveries of sedans, SUVs, minivans and multipurpose vehicles increased 7.4% in September from a year earlier to 1.94 million units, the China Passenger Car Association said Tuesday. That’s the third straight monthly increase, and it was driven by demand for SUVs. A fuller sales picture will be reported later in the day by the China Association of Automobile Manufacturers.

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With auto sales in the U.S. and Europe still impacted by the Covid-19 outbreak, reviving demand in China is proving a boon for international and domestic manufacturers. China is set to be the first country globally to bounce back to 2019 volume levels, albeit only by 2022, according to researchers including S&P Global Ratings.

Automakers worldwide have invested billions of dollars in China, the world’s top car market since 2009, where the middle class is expanding but penetration is still relatively low. Brands from countries such as Germany and Japan have weathered the pandemic better than their local rivals — the combined market share of Chinese brands fell to 36.2% in the first eight months from a peak of 43.9% in 2017.

Even as the market recovers, it may still record

By Yilei Sun and Brenda Goh



FILE PHOTO: The GM logo is pictured at the General Motors Assembly Plant in Ramos Arizpe, Mexico


© Reuters/DANIEL BECERRIL
FILE PHOTO: The GM logo is pictured at the General Motors Assembly Plant in Ramos Arizpe, Mexico


BEIJING (Reuters) – General Motors Co’s (GM) vehicle sales in China grew 12% over July-September versus the same period a year earlier, the Detroit automaker’s first Chinese quarterly sales growth in two years. The second-biggest foreign automaker in China by units – after Germany’s Volkswagen AG – said on Monday it delivered 771,400 vehicles in China in the third quarter. That followed a second-quarter fall of 5%.

GM has a Shanghai-based joint venture with SAIC Motor Corp Ltd making Buick, Chevrolet and Cadillac vehicles. It has another venture, SGMW, with SAIC and Guangxi Automobile Group, producing no-frills mini-vans and which has started manufacturing higher-end cars.

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China sales of mass-market brand Buick rose 26% in the third quarter, GM said in a statement. Sales of its mass-market Chevrolet marque fell 20% whereas those of premium brand Cadillac jumped 28%.

Sales of no-frills brand Wuling grew 26%, whereas those of mass-market Baojun vehicles tumbled 19%.

GM has seen its China sales suffer in a crowded market and slowing economy. To revive its fortunes, it wants electric vehicles (EVs) to make up over 40% of new launches over the next five years in China, where the government promotes greener cars.

The automaker’s Wuling Hong Guang MINI EV, a micro two-door EV with a starting price of 28,800 yuan ($4,200), was China’s biggest-selling EV in August.

GM’s sales in 2019 fell 15% from a year earlier to 3.09 million vehicles. The automaker delivered 3.65 million vehicles in 2018 and 4.04 million units in 2017.

(Reporting by Yilei Sun and Brenda Goh; Editing by Christopher Cushing and Jacqueline Wong)

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The U.S. Capitol building on Oct. 8.



Photo:

Stefani Reynolds/Bloomberg News

Tuesday

U.S. consumer prices are expected to rise in September for a fourth consecutive month following a sharp drop at the height of pandemic lockdowns. The Covid-19 recession has scrambled prices for an array of goods and services, but overall inflation pressures are expected to remain muted, allowing the Federal Reserve to keep its easy-money policies in place.

The International Monetary Fund releases forecasts for global economic growth that are expected to show a less-severe contraction in 2020 than initially anticipated. The latest outlook report comes as finance ministers and central bankers gather virtually for the IMF and World Bank’s annual meetings, which are often catalysts for global responses to crises but are unlikely to spark unified action against the Covid-19 recession this year.

Thursday

U.S. jobless claims have remained stubbornly high in recent weeks, a sign layoffs are still elevated even as the overall economy adds jobs. Figures for the week ended Oct. 10 are expected to show a slight decline in new applications for benefits from the previous week—though not nearly enough of a drop to change the picture of continued economic disruption.

European Union leaders meet in Brussels on Thursday and Friday to take stock of Brexit negotiations. The EU and U.K. face a Dec. 31 deadline to finalize terms for the breakup or face new barriers to trade and heightened economic disruption. The sides remain at odds on issues including appropriate levels of state aid, fishing rights and new U.K. legislation that appears to breach terms of a withdrawal agreement.

Friday

U.S. retail sales are expected to advance in September for a fifth consecutive month, underscoring a strong rebound in consumer spending on goods. Another month

So far this year, Airbus has sold 379 planes or a net total of 300 after cancellations. Photo: Getty
So far this year, Airbus has sold 379 planes or a net total of 300 after cancellations. Photo: Getty

Airbus (AIR.PA) reached the highest number of monthly deliveries in September, although order activity remained quiet as COVID-19 continues to hammer the aviation sector.

It delivered 57 jets in September this year, up from 39 in August and exceeding the 55 achieved in February 2020, just before the onset of the airline crisis.

The European planemaker made 341 deliveries over the last nine months including 18 A220s, 282 A320 Family, 9 A330s and 32 A350s. This figure was down 40% from the 571 deliveries the same period last year, with the fall in output triggered by the pandemic.

A significant number of planes were delivered from a parked backlog. Its backlog stands at 7,441 aircraft compared to 7,133 at the same point in 2019.

The only order change registered was the reduction of Macquarie Financial Holdings’ order for 40 A220-300s, which has been revised to 37.

In total, Airbus booked 300 net commercial plane orders compared with 127 net orders compared to the same time period last year.

READ MORE: Coronavirus: Future of airline industry in governments’ hands

While the company axed guidance at the outset of the coronavirus crisis, industry sources told Reuters that it is targeting 500 deliveries in 2020, having delivered more than three quarters of that “target” already.

In 2019, Airbus delivered a record annual total of 863 jets. So far this year, it has sold 379 planes or a net total of 300 after cancellations.

Airbus trails ahead of US rival Boeing (BA), which sold 67 jets by the end of August and had a negative net total of 378 orders dominated by cancellations for the 737 Max, which has been grounded for 18 months after

By Shreyashi Sanyal

Oct 8 (Reuters)The Brazilian real traded lower on Thursday on continued worries about the country’s public finances, although a record reading on retails sales helped limit declines, while other Latin American currencies struggled for direction.

The real BRBY, BRL= edged 0.2% lower, as investors worried about a new fiscal package, known as Renda Cidada, overshooting the government’s spending limit after a volley of mixed information.

“The (Brazilian) government’s intention to create a new social welfare program poses additional risk to the trajectory

of the public accounts,” economists at Credit Suisse noted.

“Despite the government’s decision to revise the proposal after strong backlash, the source of funding for the new program remains uncertain. The main concern is the observance of the spending cap.”

Data from Latin America’s biggest economy provided some support to the currency after Brazilian retail sales rose to their highest on record in August, as economic activity continued to recover from the worst of the nationwide lockdown measures from earlier this year.

Mexico’s peso MXN= was mostly flat in volatile trading. Data showed Mexican inflation cooled to 4.01% in the year through September as consumer prices for energy dropped and food price rises were lower.

A recent Reuters poll showed that Latam currencies are set to remain weighed down this quarter by continuing fears about Brazil’s public finances and Mexico’s close link to U.S. politics before the November presidential vote.

However, Goldman Sachs said lighter investor positioning in emerging markets heading into the U.S. presidential election than before the 2016 vote, suggests “knee-jerk” reactions to the outcome may be contained.

Argentina’s peso ARS=RASL steadied after hitting a record low it hit in the previous session.

The currency was exposed to a fresh bout of selling pressure after the country’s central bank