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Husqvarna releases new street bikes. But it may be hard to get one

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Trey Morita made a voyage from his home in Silver Springs, Maryland, to a dealership in York, Pennsylvania, just to buy a Husqvarna 701 Supermoto. That’s how badly he wanted one.

“I just dropped everything and went up there and got it the same day,” Morita told CNBC.

However, the software developer lamented that his new Swedish dirt bike, which is converted for street use, is “pretty hard to find. There are a lot of Husqvarna dealerships around. But the bikes usually sell out as soon as they come into stock.”

For Husqvarna Motorcycles, the brand with a cult-like following in dirt bikes and supermotos, it’s a good problem to have. The company is driving right into the street motorcycle market this year, with plans to release three new street motorcycles: two different Vitpilen (701 and 401), and the Svartpilen 401. Prices start at $6,299 for the 401 series, and $11,999 for the larger engine 701.

The company is owned by KTM AG, which manufactures motorcycles and sports cars. Husqvarna plans to release “a couple thousand” street motorcycles in North America this year, according to Blaine Schuttler, managing director for Husqvarna North America, in an attempt to position itself as a lifestyle brand.

Schuttler said the company will add additional street models to its collection in the future.

In March, the first batch of the motorcycles went on sale in Europe, Australia, New Zealand, Asia and select locations in India. All 200 Husqvarna dealerships in the U.S. and Canada will have the bikes in April, as well as some locations in and around Mexico City.

But it may still be hard to get your hands on one. Husqvarna recently oversold on dealer network orders for the first round of Vitpilen and Svartpilen bikes, according to Schuttler. He said the company has more street bikes arriving later this fall, and expects similar sales momentum.

“People are clamoring to get these new street bikes,” Andy Jefferson, media manager at Husqvarna Motorcycles and long-time bike enthusiast, told CNBC. “And we don’t see the demand letting up anytime soon. People who want these bikes should get them ASAP.”

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Will Smith, Kevin Hart fund pandemic-proof virtual events start-up Run The World

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Not all of China is recovering from coronavirus hit at the same rate, survey finds

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In this picture taken on September 22, 2020, people commute on shared bicycles along a street during the evening rush hour in Beijing.

Nicolas Asfouri | AFP | Getty Images

BEIJING — The economic recovery in China from the shock of the coronavirus is only happening in part of the country, according to an independent survey by the China Beige Book released Thursday.

The world’s second-largest economy was the first country to get hit by the coronavirus pandemic. More than half the country shut down in early February in an effort to limit the spread of the virus, contributing to a 6.8% contraction in growth in the first quarter. As the outbreak of the disease stalled in March, businesses began to reopen, and the official gross domestic product grew 3.2% in the second quarter. 

Government-released data in the months since have pointed to further recovery overall. China economists from Nomura expect third-quarter GDP to grow 5.2% from a year ago. 

An independent survey of more than 3,300 businesses in the country between Aug. 13 and Sept.12 shows that growth story is intact — in the wealthier, coastal regions, according to the China Beige Book’s early look brief. The firm conducts the survey quarterly.

“For large firms and those based in the Big 3 coastal regions surrounding Shanghai and Beijing, as well as Guangdong–the corporate elite–the economy is accelerating. This is the public face of Beijing’s recovery narrative,” the report said. “But the rest of China — most firms in most regions — are seeing a far more muted recovery. (Small and medium-sized enterprises) and companies outside the core are earning, selling, investing, and borrowing far less than their counterparts.”

The analysis found that third-quarter revenue and profit in every region fell double-digits from a year ago, while most provinces in the landlocked parts of the country saw output and domestic orders decline from the prior quarter.

Jobs situation stabilizes

Employment, which is a priority for the central Chinese government, did see broad improvement in the third quarter, according to the survey. Manufacturing saw the fastest gains in hiring, while retail showed the greatest improvement in sales volume and prices, the China Beige Book said. 

“Geographically, labor market conditions were better than Q2 in every region,” Shehzad Qazi, managing director at China Beige Book, said in an email. “That said, hiring was strongest on the coast, with locales like Shanghai seeing nearly twice the job growth of numerous interior provinces.”

The official, but highly doubted, unemployment rate as measured by the official survey of cities was 5.6% in August, 0.1 percentage points lower than July, the National Bureau of Statistics said last week.

Other underlying concerns

However, again, the broad recovery masks remaining challenges in sectors such as services, which has employed a growing portion of Chinese over the last several years as the government tries to boost the economy’s reliance on consumption for growth. 

Borrowing actually declined among services firms, which were twice as likely to be rejected for loans as businesses in property, Qazi said. 

“The primary Covid impact now seems to be on Services, which saw only marginal improvement over Q2 in revenue, profits, and sales prices, along with no uptick in hiring,” the third quarter brief said. “Either consumers aren’t convinced that Covid is under control or the long-anticipated rise of Services is in greater jeopardy.”

Looking at the longer-term growth prospects of the Chinese economy, other analysts are pointing to other issues that remain unresolved.

“China faces more risks on its current path than is commonly understood and that the country has encountered incidents of stress within its financial system that could have spread to broader crises,” Logan Wright, Lauren Gloudeman, and Daniel H. Rosen from consulting and research firm Rhodium Group said in a report titled “The China Economic Risk Matrix” released on Wednesday. 

“Cycles in the property sector strike at the heart of some of Beijing’s vulnerabilities in containing financial stress. There is no strong record of policymakers in any country being able to deflate a sizable property bubble without negative consequences,” the authors wrote.

They did point out that most analysts, under the presumption that the Chinese government has the will and capacity to intervene, generally describe authorities’ management of economic problems so far as: “When they want to do something, they can usually do it.”

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Bank of Japan, coronavirus, technology stocks

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Stocks in Asia-Pacific were set to trade lower at the open following overnight declines on Wall Street.

Futures pointed to a lower open for stocks in Japan. The Nikkei futures contract in Chicago was at 23,135 while its counterpart in Osaka was at 23,070. That compared against the Nikkei 225’s last close at 23,346.49.

Shares in Australia were also poised to dip, with the SPI futures contract at 5,850.0, as compared to the S&P/ASX 200’s last close at 5,923.30.

Investors will watch technology shares in the region after their counterparts stateside saw losses. 

Overnight on Wall Street, the Dow Jones Industrial Average fell 525.05 points, or 1.9%, to close at 26,763.13. The S&P 500 slipped 2.4% to finish its trading day at 3,236.92 while the Nasdaq Composite dropped 3% to close at 10,632.99.

Meanwhile, the Bank of Japan is also set to release its monetary policy meeting minutes at around 7:50 a.m. HK/SIN. 

In coronavirus developments, Johnson & Johnson said Wednesday it has begun its phase three trial testing its potential coronavirus vaccine. The firm is the fourth drugmaker backed by U.S. President Donald Trump’s administration’s Covid-19 vaccine program, Operation Warp Speed, to enter late-stage testing.

Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, sat at 94.389 following its rise from levels below 93 this week.

The Japanese yen traded at 105.37 per dollar after weakening from levels around 105 yesterday. The Australian dollar was at $0.7065 after falling yesterday from above $0.712.

Here’s a look at what’s on tap:

  • Japan: Bank of Japan’s monetary policy meeting minutes at 7:50 a.m. HK/SIN

— CNBC’s Berkeley Lovelace Jr. contributed to this report.

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