International Share Prices

USA – DOMINO CONTAGION

The collapse of tech-oriented funding specialist Silicon Valley Bank (SVB) in the second week of March initiated a domino contagion effect across the banking sector, leading to bail-outs and plunging stock values. The value of US banking equities sank by $268bn in total.

To some extent, New York market indices concealed the degree of panic. The blue-chip S&P 500 actually finished positive by 1.4%, as investors viewed its big-league bank listings as safe-haven destinations for punters’ wealth. But the Dow Jones Industrial Average closed 0.1% down and S&P’s MidCap 400 fell by 3.2%. Petrolhead powersports producers, led by Harley-Davidson, were among the victims. Harley shares have now lost more than 20% of their value since SVB folded. Conversely, tech stocks were fairly buoyant, with the NASDAQ Composite gaining 4.4%. Many of these companies had been quick to move their loot out of afflicted banks, responding much faster than old-school depositors.

EUROPE – RUNNING FOR COVER

The runs on the banking system crossed the Atlantic rapidly – wiping $163bn off the value of European banks. The effect on European stock markets beyond the banking sector was self-evident. Confidence ebbed away. Among key indices featuring powered two-wheeler presences, Frankfurt’s Dax Performance and the FTSE MIB in Milan respectively dropped by 4.3% and 6.6%. Austria’s ATX suffered a 9.3% dive. Every biker stock fell. Volkswagen Group, despite issuing excellent fullyear results including record figures for Ducati, executed a double-digit percentage plunge.

JAPAN – NO ESCAPE IN THE FAR EAST

Japanese investors were thrust into disarray by the prospect of a financial crisis repeat appearance as well. Perennially stable indigenous banking stocks saw $29bn slashed off their value over five tumultuous trading sessions.

Tokyo’s Nikkei 225 index booked a 2.9% weekly loss, sentiment sapped out of a broad cross-section of solid manufacturing and exporting companies. All four biker stocks saw their weekly rides ruined by greater degrees.

INDIA – BEGGING FOR MERCY

Increasingly dependent on Western capital investment to fund a hopefully expanding economy, Indian entrepreneurs

Milestone, before his flailing motorcycle left the track and killed two spectators – Dean Jacob from Kidderminster and Australian Gregory Kenzig. A TT marshal, Hilary Musson, also suffered life-changing i njuries. All three were stood in an official prohibited area patently lacking exclusion enforcement. In the aftermath, an absolutely scathing coroner’s inquest verdict tore into almost every aspect of the TT organisers’ performance and ACU Events was appointed to replace them.

To his credit, ACU Events managing director Jim Parker moved decisively to clean up TT safety procedures. Restricted and prohibited areas around the TT course were urgently reviewed, enlarged exponentially where necessary and rigorously enforced. TT marshalling was also radically reformed, with better training and a line-of-sight objective established between marshal posts.

And to minimise risk for riders, long stretches of Recticel air fencing had begun to replace the 7000-odd straw bales that had previously provided scant protection from head-butting hard scenery.

But only six years later, on the opening lap of 2013’s Senior TT, a similar incident occurred. Jonathan Howarth lost control and binned his bike at the bottom of Bray Hill. It skittled 11 spectators on an exposed pop-up viewing point, which clearly hadn’t benefited from any risk assessment. Most were hospitalised, typically with lower limb injuries, some serious. Substantial claims for injury, trauma and loss of earnings dragged on for years without settlement, even though ACU Events had already admitted liability in several cases at an early stage.

A very different sort of incident in 2018, where confusing radio communications from Race Control during an all-sectors red flag interruption put more egg on the ACU’s face, had tragic consequences too. A number of halted riders were ill-advised by marshals, who had misunderstood a radio message, that they could return to the paddock in an unsupervised reversed-direction convoy. At the same time, a course car was speeding towards them, the presence of which had also been notified to marshals.

A head-on collision between the car and one of the riders, Steve Mercer, left the latter with horrendous life-changing injuries. A stand-off between lawyers representing the ACU Events insurer and Mercer’s self-funded legal team seeking compensation is apparently still unresolved despite the passing of four years.

Whether any direct connection exists between much higher insurance costs for this year’s TT and the “copycat” deaths of two sidecar crews in 2022 is information beyond my reach. But it is feasible. And should that rate of attrition on three wheels be repeated, insuring TT sidecar races will become utterly impossible. We can but hope such impossibilities don’t eventually extend to the solo classes as well.  perceived the US and European financial chaos with trepidation. Mumbai’s BSE Sensex 30 market index closed 2.9% down. And, reflecting the sombre mood, all five major indigenous motorcycle manufacturers declined in value.

CHINA – LAUGHING OR OTHERWISE

Although the Chinese don’t like to admit it, funding stability from a reliable US dollar is vital to restore China’s ailing export markets. So US banking woes cause few smiley faces. Shanghai’s SSE Composite index just managed stay 0.6% positive, but the CSI 300 covering the Shanghai and Shenzhen exchanges stayed 0.2% in arrears. The vast majority of biker stocks were losers except the Communistcontrolled Jialing parental conglomerate CETC which spectacularly bucked market trends.

New scooter and motorcycle registrations for February 2023

Top Ten Manufacturers

February

February

Rolling Year Comparison

2022

For statistics for alternative power two-wheelers, see page 41

Registration statistics supplied by the MCIA; tel 02476 408000; www.mcia.co.uk

Euro market maintains steady position

ACEM’S FULL-YEAR RESULTS FOR 2022 show that the European PTW market managed to hold station, despite the financial strictures initiated by the conflict in Ukraine and the resultant cost of living crisis.

Compared to 2021, overall motorcycle sales in the five biggest markets (France, Germany, Italy, Spain, and UK) grew by a marginal 0.1%, with France and Spain being the biggest movers, dropping 6.6% and gaining 6.3% respectively. Meanwhile, moped sales across Belgium, France, Germany, Italy, Netherlands and Spain fell by a more significant 3.4%; big increases in Belgium and Germany failing to counteract the falls in the larger markets of France and Netherlands.

Commenting on the current situation of the sector, Antonio Perlot, ACEM secretary general, said: “The latest registration data shows that the European market has overall remained stable in 2022, compared to 2021. Within a changing mobility environment, it is a confirmation that citizens continue to positively value two or three-wheeled vehicles, for their convenience in daily personal mobility and small logistics and for the recreational opportunities they provide”.