With full penetration rates, increasing vehicle useful lives and the threat of autonomous vehicles increasing utilization rates, it's difficult to see how "normalized" auto sales aren't substantially lower than the current run-rate of 18mm.
China's President Xi Jinping called Donald Trump and told him that cooperation was the only choice for relations between the world's two largest economies, with Trump saying the two had established a "clear sense of mutual respect". "The facts prove that cooperation is the only correct choice for China and the United States," China Central Television (CCTV) cited Xi as saying.
US Index futures, together with European and Asian shares surged after the FBI cleared Hillary Clinton one last time of her handling of emails as secretary of state which it repeated wasn’t a crime. Oil, gas rise, together with most industrial metals; the yen and Swiss franc retreated with gold, silver and other flight to safety assets.
As a result of slowing demand and declining US auto sales coupled with growing inventory, Ford Motor is halting one of two plants that builds its top-selling F-150 pickup as it idles four factories this month amid slowing U.S. auto sales.
While many were wondering if China would unleash QE (which it has been effectively doing for years, using various liquidity conduits), Beijing has quietly launched the biggest fiscal stimulus in history, one that is even bigger than 2009-10, following the global meltdown.
Global auto sales just hit an all time high of 78 million units in September, however the explanation is simple: China. Of the impressive 4.4 million unit rise in global auto sales since June, China alone contributed for 84% of this global increase, or 3.7mn units.
In the US focus will be on the market's reaction to the second presidential debate, FOMC Minutes but also retail sales, import and producer prices and Michigan sentiment. We also hear from various Fed speakers throughout the week, and Chair Yellen gives a keynote speech on Friday.