Abacus | What the lolly for a UK lorry means for the wonga of a Hongkonger

Lorry drivers in Britain are now earning more than junior analysts at Goldman Sachs in the US as economic predictions are upturned

Unemployment is dropping, inflation is rising and what happens in the UK, EU and US will impact Hong Kong through the HKMA peg – unless it decouples

Reading Time:5 minutes

A heavy goods vehicle driving instructor directs a student in Wolverhampton, Britain. Photo: Bloomberg

Published: 7:00am, 20 Sep 2021

These are unusual times, I think everyone would agree, as the impact of the Covid-19 pandemic continues to roll over our daily lives.

Although some folks had hoped it would be over by the summer of 2020, scientists are having to use more of the Greek alphabet to keep track of variants. Like mathematicians, and indeed options traders like myself 30 years ago, they need the Greeks to keep their variables in order.

But three strange things happened last week, none of which I had considered possible, nor had economists or mathematicians predicted it with their Greek letters:

My son made an 8 per cent profit on his 2019 Toyota Corolla when he sold it online
Apple announced a major product with no shipping date
UK lorry drivers now earn more than junior analysts at Goldman Sachs

Now, you may be thinking to yourself, “he’s lost it”, but these three events have got me thinking – and there are investment considerations and potential long-term impacts.

The microchip shortage has lowered production to a point where it’s raising the prices of second-hand cars. Photo: Akio Kon/Bloomberg

Selling your used car

I have not made a profit selling any car I’ve ever owned and always believed in the rule that as soon as a new car comes out of the showroom, it falls in value by a third.

I have owned numerous cars over the years, but only an Audi 80 and a beautiful red Nissan ZX200 came with a new car smell. Everything else I bought second-hand so as not to lose too much money when I sold it.

So when I heard my son had turned a profit on his 2019 Toyota Corolla, chopping it in for a Prius hybrid, I wondered, “how did he do that?”.

It turns out that the microchip shortage has lowered production in the automobile industry to a point where it’s raising the prices of second-hand cars, and as he was being chased by an online second-hand car dealer, he hit the bid.

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