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A Chanel handbag is classic, designed to withstand upheavals in fashion and taste. But not price. The Paris-based fashion house has announced that the prices will go up in Europe, and down in Asia.

The move will affect the 11.12, the 2.55, and the Boy Bag models.

At the moment, there's a significant difference in cost between the two regions. Hana Ben-Shabat, a retail and consumer goods specialist at A.T. Kearney, tells NPR that a bag that costs $3,500 in Europe can run up to $6,000 in China.

Chanel will narrow that price gap, bringing the two regions more in line. The Wall Street Journal says the classic handbags are expected to rise 20 percent in Europe and decline 21 percent in China. It says prices of those bags will also decline in Hong Kong, Korea, Vietnam and Russia, but will remain unchanged in the U.S.

In a statement, Chanel said the decision will enable the company to offer products at a "harmonized" price to customers wherever they are in the world, according to Reuters. Chanel says the decision is driven in part by the depreciating Euro, which has slid to a 12-year-low.

Ben-Shabat says the new prices are expected to eliminate this so-called gray market.

"People would actually take the trip to Europe and buy in quantities that they can go back to China and charge more than they pay for it but less than the local market and make money on that." Ben-Shabat says by aligning prices, Chanel will get rid of the incentive.

"This behavior is really undermining the brand because the product starts to show up on all sorts of websites where Chanel or any other luxury brands really don't have control any more of that," she says.

But Ben-Shabat says the move by Chanel to lower costs in China may be a way to re-energize that important market. Sales in luxury goods there have slumped recently because of slower growth, and an anti-corruption crackdown.

Chanel's price changes are set to take effect on April 8. The Swiss watchmaker, Tag Heuer, announced that it also plans to realign its prices. Other luxury goods companies are expected to follow suit.

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Economy

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Chanel

Roars of disapproval rang out in Australia's Parliament Thursday, after Prime Minister Tony Abbott called Labor leader Bill Shorten "the Dr. Goebbels of economic policy." In the ruckus that ensued, three lawmakers were ejected and another walked out.

"I withdraw, I withdraw," Abbott said after making his comment during Question Time. But Labor members were up in arms, with some of them standing to denounce Abbott's comparison of Shorten to Joseph Goebbels, the propaganda chief of Adolph Hitler's Nazi government.

Amid the din, Speaker Bronwyn Bishop also stood — to demand that everyone else be silent and sit down.

"There will be silence," she said, before ejecting Labor member Mark Dreyfus, who is Jewish. Dreyfus had left his seat to shout across the table at Abbott; he also continued yelling as Bishop spoke.

When Bishop was asked to reconsider the ejection, "given the nature of what the prime minister said," she refused.

From Australian broadcaster ABC:

"That prompted Labor backbencher Mr. Danby, who is a prominent member of Melbourne's Jewish community, to rise to his feet and declare that 'if he's out, I'm out over this.'"

After walking out, Danby later told ABC, "He's the Prime Minister — he is supposed to have standards."

In Parliament, a senior member of Abbott's Liberal party, Christopher Pyne, stood to say that Dreyfus had once "used exactly the same description about Tony Abbott when Tony Abbott was the leader of the opposition."

In the yelling that continued, a voice in the chamber could be heard saying, "You are a disgusting, disgusting man."

ABC notes that this is the second controversial Nazi reference for Abbott in recent weeks: "Last month, the Prime Minister was forced to apologize after accusing the Opposition of presiding over a "Holocaust" of job losses in the defense sector."

Tony Abbott

Australia

There comes a day in every car owner's life when she knows, it's time. For Carolyn Ballard of Atlanta, that was on a hot day last July, while driving her SUV with misfiring cylinders.

"I drove to the dealership with the car literally chugging along," she says. "I mean, in traffic on the interstate. I was just sweating, thinking I've just got to get to the dealership so I can get rid of this, before I put any more money into it."

Ballard wanted a late model Honda Accord that she'd seen on the dealership's website. By the time she got there, it was gone. But there were plenty of new Accords.

"I don't know what the average marriage lasts in the U.S. today. Might be less than the average car loan."

- Honda Executive Vice President John Mendel

"I said 'if you can get my payments under $250 a month I will consider taking this car,'" she says.

No problem. Ballard got a loan from Wells Fargo at a rate of 2.5 percent. But for 74 months. That's six years.

Six-year car loans used to be in the minority. They're now the norm and loans of seven or eight years are even becoming popular. New car sales in the U.S. are booming and longer car loans are playing a role. Nearly a third of new loans are now 74 months or longer.

But some worry the trend will hurt the auto industry in the future. Others worry it's hurting consumers right now. Ed Kim, an analyst with AutoPacific, says one thing driving the trend is the cars themselves.

"Consumers are demanding a lot more technology in their vehicles, infotainment technologies," he says. "There's also a lot more safety features that are in vehicles right now. Emissions and efficiency technology that are in vehicles right now, that are making vehicles cost a lot more."

But Kim says the main reason is many consumers haven't recovered from the recession. So that new car payment has to be stretched out over more years.

Economy

Increase In Subprime Car Loans Could Lead To Trouble

News

Auto Loan Surge Fuels Fears Of Another Subprime Crisis

Melinda Zabritski isn't too worried for consumers. She's with Experian Automotive, a subsidiary of the credit rating agency Experian. She says longer car loans often make sense, especially for people on a tight budget.

"Well if we all had the luxury to take a 36- or 48-month term, but the bottom line is you know the average consumer just can't afford that," she says.

That reasoning drives consumer advocate Mike Sante nuts. He's with Interest.com and says people on a budget are precisely the ones who shouldn't be taking out long loans.

"They're a way to get people into cars that are more expensive than they should really be buying," he says. "It's these kinds of decisions that you make, that will truly determine how much money you have later in life."

Sante argues that people should pay off their cars within four years, which can mean buying a less expensive or used car.

While it's relatively easy to get a long loan at certain automakers, Honda is trying to buck that trend. After all, the equity that owners still have in their vehicles come trade-in time is a big selling point for Honda. Long loans destroy that equity.

Honda Executive Vice President John Mendel says loans beyond five years are just too long to pay off a car.

"I don't know what the average marriage lasts in the U.S. today," he says. "[It] might be less than the average car loan."

Mendel hopes his competitors start using more discipline. But that may be wishful thinking. When interest rates go up, a new car will become even more expensive, which will likely push more consumers into longer loans.

car loans

CAR

Honda

One of the nation's savviest politicians is in an unexpected fight.

Chicago Mayor Rahm Emanuel, President Obama's former White House chief of staff, is in an unprecedented runoff election next month.

The challenger, Cook County Commissioner Jesus "Chuy" Garcia, contends that Emanuel favors the rich and powerful over working-class Chicagoans. But Emanuel is firing back, attacking Garcia for having no plan to deal with the city's deep financial problems.

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Samantha Hernandez, 17, poses for a selfie with Chicago mayoral candidate Jesus "Chuy" Garcia during the St. Patrick's Day parade in Chicago. Paul Beaty/AP hide caption

itoggle caption Paul Beaty/AP

Samantha Hernandez, 17, poses for a selfie with Chicago mayoral candidate Jesus "Chuy" Garcia during the St. Patrick's Day parade in Chicago.

Paul Beaty/AP

Emanuel is the first incumbent Chicago mayor to be forced into a primary runoff — and it's a race that's signaling a deeper, growing divide between liberal and more moderate Democrats.

Several national progressive groups, including Democracy for America, MoveOn.org and the American Federation of Teachers, have banded together to take the fight to Emanuel in what they see as a fight between the "Elizabeth Warren Wing" and the "Wall Street Wing" of the Democratic Party.

Taking It To The Streets

Garcia walked through the Englewood neighborhood on the city's South Side with a natural ease that comes from three decades in Chicago politics, shaking hands with residents, talking with them about their jobs, families, and schools. And, of course, asking for their support.

For many residents of this mostly African-American community, the attention is welcome.

"I'm a neighborhood guy," he told residents.

That is the key distinction Garcia is trying to make in his campaign to unseat Emanuel, the first-term mayor: that he is of the neighborhoods and for the neighborhoods, while Emanuel's policies benefit the wealthy downtown.

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Chicago Mayor Rahm Emanuel, ahead of a televised debate Monday. Charles Rex Arbogast/AP hide caption

itoggle caption Charles Rex Arbogast/AP

Chicago Mayor Rahm Emanuel, ahead of a televised debate Monday.

Charles Rex Arbogast/AP

"Chicago neighborhoods are hurting," he said. "They haven't seen much recovery since the recession, and that will be the paradigm shift under my administration."

Garcia walked door to door on this block during recent campaigning, in particular because it's home of one of the 50 schools Emanuel's administration closed two years ago.

Carrissa Johnson, 38, who works in the Social Security Administration, says her son now has to walk a longer, more dangerous route to school. And she's also upset about the lack of investment in Englewood and neighborhoods like it under Emanuel.

"I don't think that he really cares about the inner community," she said. "I think everything goes more so up north than comes here."

Johnson admitted she "really doesn't know too much about" Garcia, but she added, "I don't think that it can get any worse, because Emanuel is not really doing his job, so I think that a change is very much needed."

Money Talks

Progressives have highlighted the millions of dollars Emanuel has spent to underscore the perception that he favors the well-heeled and well-connected.

Campaign finance reports show Emanuel has raked in about eight times as much as Garcia has. Emanuel has raised close to $20 million, including a recent $1.4 million haul from just eight wealthy donors, as of Wednesday.

Garcia, meanwhile, has raised $2.6 million, much of it from the Chicago Teachers Union, other unions, and progressive groups such as Democracy for America.

Looking to boost those figures, Garcia has a trip scheduled Thursday to Los Angeles to raise money from Latino business and community leaders.

'A Total Disconnect"

Helping lead Garcia around this neighborhood that has almost as many vacant lots and boarded-up buildings as there are occupied homes and businesses was Bishop James Dukes, pastor of nearby Liberation Christian Center. Dukes said he endorsed and worked for Emanuel's campaign four years ago.

"It's a total disconnect," he said of Emanuel now. "At no point does the administration seek the advice and help of those who are in the community until voting time — until they need us. ... In the meantime, all the decisions are made in a silo."

The message that Emanuel seems disengaged from the city's poorer neighborhoods, that he's arrogant and even abrasive, appears to be getting through to the mayor. He opened a recent campaign ad this way:

"They say your greatest strength is also your greatest weakness. I'm living proof of that. I can rub people the wrong way, or talk when I should listen. I own that."

It's the first ad Emanuel started airing after failing to get more than 50 percent in February's election, forcing him into this runoff.

Emanuel told voters he's driven to make a difference. That can require tough, even unpopular choices.

"Look, I'm not going to always get it right," he said. "But when it comes to fighting for Chicago and Chicago's future, no one's going to fight harder."

Trying To Rally Unions

Emanuel has clashed with many of the city's unions, most notably Chicago's teachers, who enlisted Garcia to challenge Emanuel.

The Service Employees International Union, or SEIU, which played a critical role on the ground during President Obama's two presidential campaigns, endorsed Garcia, too.

Many in labor worry about Emanuel's close relationship with Illinois' Republican billionaire Gov. Bruce Rauner, who often criticizes unions.

Emanuel met this week with several African-American labor leaders to try to allay their concerns. When one leader said, "We cannot let Illinois become a right-to-work state," Emanuel quickly agreed, adding, "I think right-to-work takes the rug from underneath the middle class."

On that and other issues, many of the labor leaders said they came away satisfied.

"We're looking for opportunities for people of color that look like us and a pathway to careers," said Will Irving, who is with Laborers Local 1001, "and I think we've accomplished a steppingstone out of this meeting."

When it comes to Emanuel, Irving added, "There are opinions that people have; there are facts about what the mayor has done. The mayor has done a lot of good things with the schools."

Irving also cited Emanuel's efforts in helping develop pathways to careers in the trades, among others, and said the mayor is more inclusive than he gets credit for.

"We have had a seat at the table," Irving said.

Laborers Local 1001 President Nicole Hayes echoed that.

"I think he has done a great job," she said, adding, "Under his leadership, the last four years, we've acquired almost 400 new positions with him. So we're endorsing him."

Earl Jackson of Plumbers Local 130 said his group is throwing its support to Emanuel.

"He's doing a good job," Jackson said.

Emanuel Comes Out Fighting

Never the political equivalent of a shrinking violet, at a debate Monday night, Emanuel hammered Garcia for failing to detail how he would fix city finances.

"Let me be clear here, there's a real difference," he said. "Chuy, you laid out a commission, not a plan."

Garcia didn't back down.

"This mayor has provided corporate welfare to his cronies, millionaires and billionaires in Illinois," he hit back, "and he promised four years ago to put Chicago's fiscal house in order, [but] we're in a financial free fall."

With less than three weeks to go until the April 7 runoff, Emanuel has a sizable lead in the latest polls.

Progressive groups concede defeating Emanuel is an uphill climb, but they are already satisfied with forcing him into a runoff. And they are confident their message is resonating beyond Chicago.

Domenico Montanaro contributed to this report.

Chicago mayor

Rahm Emanuel

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