The impact of the COVID pandemic has affected every part of the Australian economy including affecting asset values in the automotive, road transport, construction, manufacturing, mining, aviation and marine sectors.
- Government Stimulus has injected life into many markets. The instant asset write off that was boosted from $30,000 to $150,000, as well as the generous Accelerated Depreciation Deduction have assisted some markets from collapsing.
- Truck Sales rebound slightly for all but heavy-duty trucks in June, which helps lift the falls over the first half of 2020.
- Caterpillar Inc. has announced second-quarter 2020 sales and revenues of $10.0 billion, a 31% decrease compared with $14.4 billion in the second quarter of 2019.
- Tractor sales for April reported a year on year increase of 40% and May reported another solid increase of 30% over the same period in 2019.
- Virgin Australia’s preferred buyer has been announced as US private equity firm Bain Capital. With plans to pare back the airline, cut high-end comforts for flyers and relaunch with about half its existing fleet as early as September. Bain are not guaranteed the sale though with bondholders mounting a challenge.
- Sales of new cars in June 2020 were stronger than expected as buyers returned to showrooms. However, it was still a decline on last year with the 27 consecutive monthly sales slowdown.
- Manufacturers are now worried about stock shortages with global production slowing down due to the COVID pandemic.
View the full report online here