Market Beats | US New-Home Sales Beat Estimates in July; Swiss Post to Halt Deliveries to the US; Seven-Year Car Loans Becoming the Norm in the US; Pinault Family Weighs Puma Sale; PDD Posts Revenue Beat but Faces Slowing Growth; US Regulators Probe Engine Failure Risk in 1.4 Million Honda Vehicles; AI Disrupts Software Industry

—— Swiss Post to Halt Deliveries to the US; Seven-Year Car Loans Becoming the Norm in the US; Pinault Family Weighs Puma Sale; US New-Home Sales Beat Estimates in July; PDD Posts Revenue Beat but Faces Slowing Growth; US Regulators Probe Engine Failure Risk in 1.4 Million Honda Vehicles; AI Disrupts Software Industry

1. Swiss Post to Halt Deliveries to the US

Swiss Post will temporarily stop delivering goods to the United States starting Aug. 26, following President Donald Trump’s decision to eliminate the exemption limit for low-value imports. According to a White House fact sheet, beginning Aug. 29, packages valued at $800 or less will no longer be exempt from tariffs.

Trump initially targeted mainland China and Hong Kong with the policy, but last month expanded it to all countries worldwide. Under the new rules, US importers must either pay a percentage levy based on the reciprocal tariff rate applied to the country of origin — 39% in Switzerland’s case — or, for the first six months, pay a flat duty ranging from $80 to $200 per item.

Following negotiations with Trump, Switzerland was hit with the highest import tariff rate among developed nations, posing serious challenges to its businesses and economy.

Swiss officials are still working to ease the situation and have offered new trade terms to the US, but the country continues to struggle under the tariff shock.

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2. Seven-Year Car Loans Becoming the Norm in the US

Seven-year car loans are rapidly becoming mainstream in the United States. According to data from Edmunds.com, such loans accounted for 21.6% of all new-vehicle financing in the second quarter of 2025, while six-year loans — once considered long — are now the most common, representing 36.1%. Some buyers are even opting for eight-year loans, though they remain a tiny share of the market.

The shift is driven by surging vehicle prices. Over the past five years, the average new-car price in the US has jumped 28% to nearly $50,000. Compared to a five-year loan, a seven-year loan can make a big difference in monthly payments, lowering them from $1,000 to about $780. But it also means higher total interest and prolonged debt. Industry data show that an 84-month loan costs an average of $15,460 in interest.

One illustrative case is Shirria McCullough, a 42-year-old clinical social worker in North Carolina. After buying a $45,000 Honda Pilot SUV in 2023, she later discovered through TikTok comments that her loan stretched seven years. The realization made her feel “sick to my stomach.” McCullough and her husband refinanced to a six-year loan through a credit union and then paid it off entirely in June. “It was not a financially wise decision, but thank God it’s paid off now,” she said.

Experts caution that while longer terms make cars more affordable month-to-month, they slow equity building and increase the risk of being “upside down” on a loan, where the car’s value is lower than the remaining debt.

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3. Pinault Family Weighs Puma Sale

The Pinault family is considering options for its stake in Puma SE, including a potential sale, after the German sportswear company lost about half of its market value over the past year, according to people familiar with the matter.

The billionaire clan has been working with advisers and reaching out to potential buyers such as Anta Sports Products Ltd. and Li Ning Co., as well as other US sportswear companies and Middle Eastern sovereign wealth funds. The family owns a 29% stake in Frankfurt-listed Puma through Artémis, which also controls Kering SA, and is expected to seek a sizable premium in any deal.

Puma shares have plunged 50% in the past 12 months amid weak demand for sports and fitness gear and concerns over US tariffs, leaving the company with a market value of about €2.6 billion ($3 billion). Under new Chief Executive Officer Arthur Hoeld, Puma has been trying to revamp its brand but issued a profit warning last month.

The company recently appointed former Adidas executive Andreas Hubert as chief operating officer. Hubert, a 20-year Adidas veteran, served the last four years as chief information officer.

Founded in 1948, Puma reported €281.6 million in net income and €8.8 billion in sales last year, with a global workforce of around 22,000. It sponsors sports teams including Manchester City in the English Premier League, Portugal’s national team and Denmark’s men’s handball squad.

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4. US New-Home Sales Beat Estimates in July

Sales of new single-family homes in the US exceeded expectations in July, with contract signings running at an annualized pace of 652,000, compared with the median forecast of 630,000. The strongest demand was in the West, according to Commerce Department data released Monday. June’s figures were also revised higher.

Despite the upside surprise, the market remains heavily reliant on discounts and incentives amid high mortgage rates. The share of builders offering sales incentives climbed to 66% this month, the highest since the pandemic. Entry-level builder DR Horton Inc. said on its earnings call that it was subsidizing rates to as low as 3.99% for some buyers, while more customers are turning to FHA loans that accept lower credit scores.

Broadly, demand may stabilize as financing costs ease somewhat. Mortgage rates in the week ended Aug. 15 hovered near their lowest since April.

The report also showed the median sales price of a new home fell nearly 6% from a year earlier to $403,800 — the lowest July level since 2021. Prices have dropped year-over-year in all but one month this year.

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5. PDD Posts Revenue Beat but Faces Slowing Growth

PDD Holdings reported second-quarter results that slightly exceeded expectations, helped by Beijing’s efforts to spur consumer spending and cushion the impact of US tariffs.

Revenue rose 7% to about 104 billion yuan ($14.5 billion), the slowest pace of growth in years but just above analysts’ forecasts. Net income slipped 4%, while adjusted operating income also topped estimates. The shares were largely unchanged after climbing as much as 11% in US pre-market trading.

PDD has faced a volatile year amid weak Chinese consumption, escalating tariffs, and the US decision to scrap a de minimis tax loophole that once fueled discount retailers like Temu and Shein. Without it, Temu now faces fiercer competition with Shein in the US.

“Revenue growth further moderated this quarter amid intense competition,” Vice President of Finance Liu Jun said in the statement. “As we remain focused on long-term value creation, the sustained investments may continue to weigh on short-term profitability.”

China’s economy recorded its deepest slowdown of the year in July, prompting expectations of more stimulus measures. Beijing has already boosted subsidies for consumer goods such as phones and appliances to stimulate spending.

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6. US Regulators Probe Engine Failure Risk in 1.4 Million Honda Vehicles

US auto safety regulators have launched an investigation into about 1.4 million Honda vehicles over potential engine failures.

The National Highway Traffic Safety Administration (NHTSA) said it has received roughly 3,000 complaints alleging that 3.5-liter V6 engines in Honda and Acura vehicles from model years 2016 through 2020 failed due to defective connecting rod bearings.

The agency’s Office of Defects Investigation opened the probe after reviewing complaints during a separate recall related to another faulty engine component. Officials said the new engine failure reports fell outside the scope of that earlier recall and represent “a potential safety risk that warrants further investigation.”

Seven of those cases involved crashes or fires, though no deaths or injuries have been reported.

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7. AI Disrupts Software Industry

Fourteen years after Marc Andreessen declared that “software is eating the world,” artificial intelligence has flipped the script — with investors betting that large parts of the software sector may now be the ones consumed.

Salesforce, Adobe and ServiceNow are among the worst S&P 500 performers this year, each down at least 17% and erasing a combined $160 billion in market value. According to EPFR data, software and services funds saw outflows in two consecutive months through June, compared with only one monthly pullback in the prior 18. A Morgan Stanley SaaS basket has fallen over 6% this year, while the Nasdaq 100 is up 11%. Companies like Asana, Hubspot, Bill Holdings and Vertex are among the hardest hit, each down more than 29%.

Investors see AI as an imminent threat to firms providing code for digital services like CRM and back-office functions. “Tech obsolescence can come out of nowhere,” said Robert Ruggirello, CIO at Brave Eagle Wealth Management. “There’s good reason people are growing cautious.”

Still, some software players are thriving. Microsoft, Oracle and Palantir are outperforming as they aggressively leverage AI.

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