Wall Street Journal (WSJ: 11-27-24) reported that powersports manufacturers Polaris and BRP are both on track to get hit by potential Trump tariffs. UBS analysts say in a research note that Polaris sources about 19% of its parts from China, which are already subject to tariffs, and about a third of their cost of goods sold is sourced from Mexico. BRP, meanwhile, does the majority of manufacturing for the U.S. market in Canada and Mexico. Japanese motorcycle makers and Harley-Davidson all have little or no exposure to Mexico or Canada.
BRP has reported Q3 revenues down by -17.5% compared to Q3, 2023 (CAN$1,955.7m) "resulting from softer demand and continued focus on reducing network inventory levels." North American retail sales were -11%; NA Off-Road Vehicle network inventory decreased by -22% compared to last year-end, achieving BRP's previously stated objective one quarter ahead of plan. Net income was -69.7% (CAN$27.3 m.); EBITDA was - 42.9% (CAN$264.1 m.); diluted EPS of CAN$1.16 was a decrease of CAN$2.08 per share, and diluted earnings per share of CAN$0.37, a decrease of CAN$0.79 per share. Full year-end guidance adjusted for Marine discontinued operations was reaffirmed with revenues of between CAN$7.6 and CAN$7.8bn. José Boisjoli, President and CEO said: "Our disciplined execution allowed us to deliver results above expectations, despite the macroeconomic context and the promotional intensity in the industry. We were the first Powersports OEM to prioritize network inventory depletion, and we are on track to deliver on our objective to reduce levels by 15% to 20% by the end of the current fiscal year."
An annual research project by The Economist has scored Spain as having the fastest growing economy among developed nations in 2024. From being regarded as a byword for economic failure a dozen years ago, Spain is now scored as having the best-performing rich-world economy of 2024 across a range of measures including GDP growth, inflation, unemployment, fiscal policy and the performance of the Madrid stock market. Both overall economic growth and the pace of job creation are running faster than in USA. Greece and Ireland, which were also crisis-stricken a decade ago, have also fared well. The performance of all three points to not all European economies being doomed to stagnation, with increases in foreign born workforce numbers boosting growth at a time of otherwise declining populations. Spain's foreign-born workforce grew by 1.2m since 2019 in a country where total population was 48m in 2013.
Yamaha Motor Corp has told its U.S. dealers that it will have withdrawn from the e-bicycle sector in the USA by the end of 2024.
In an annual research project that surveys 173 cities, rating them across five categories - stability, health care, culture and environment, education, and infrastructure - The Economist has named the Austian capital, Vienna, as the world's "most liveable" major city for a third consecutive year. Three other European cities made the top five - Copenhagen, Zurich and Geneva. All three are notable for their modest population size, which tends to lead to lower crime rates and less crowded roads and public transport systems. Two Canadian cities - Calgary and Vancouver and four in Asia-Pacific - Melbourne, Sydney, Osaka and Auckland complete the top ten. Damascus remains rooted at the bottom of the table, tied with Karachi. Honolulu is named the "most liveable city" in the USA, followed by Atlanta, Seattle, Chicago, Washington DC and Boston. New York City is judged to be the least "liveable" major city.
