A view of a gas station as gas prices are at the highest level from last year in Virginia, on August 16, 2023.
Celal Gunes | Anadolu Agency | Getty Images
This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Biggest monthly jump this year The U.S. consumer price index for August rose 3.7% from a year ago and a seasonally adjusted0.6% for the month, mostly in line with the expected 3.6% and 0.6%, respectively. Though expected, it’s still the biggest month-on-month increase in prices this year. Energy prices, which soared on the month, were mostly to blame. Core inflation, which excludes food and energy prices, was up 4.3% on the year and 0.3% on the month.
An Arm and a leg Arm is pricing its initial public offering at $51 per share, the top of its expected price range. That values the company at over $54 billion, giving it a price-to-earnings multiple of about 104. By comparison, Apple’s multiple is around 30, Tesla’s is 77 and Nvidia’s is 110 for the previous 12 months. Softbank, Arm’s current towner, will control about 90% of the company’s outstanding shares.
Rebuilding Citi Citigroup CEO Jane Fraser reorganized the firm, dividing it into five main business lines that report directly to her. Previously, the bank had only two main divisions. The corporate shuffling will include job cuts, though the number is yet to be decided. Shares of Citigroup have declined about 40% since Fraser assumed the top job in March 2021, and trades for the lowest valuation among U.S. big banks.
[PRO] Joining the Tesla party On Monday, Morgan Stanley published a note asserting Tesla could rally 60%. But that’s nothing compared to the call made by Ron Baron, the billionaire investor who founded Baron Capital in 1982. Baron thinks Tesla could grow to as much as five times its current stock market capitalization — here’s what he has to say about the electric vehicle manufacturer and Elon Musk’s other companies.
The bottom line
At first glance, August’s CPI report seems bad news. The month-over-month jump in prices is the highest in a year. And even core inflation came in hotter than expected. But look more closely and you’ll find things aren’t as terrifying as they seem.
The headline number was pushed up by rising oil prices, which have been steadily increasing in recent weeks, as we’ve talked about. Gasoline prices soared 10.6% in August, the largest contributor to inflation last month, according to the U.S. Bureau of Labor Statistics.
But it’s likely gasoline prices will fall after a month or two, according to Andrew Hunter, deputy chief U.S. economist at Capital Economics. And gasoline prices have actually retreated 3.3% from a year ago, suggesting that they’re still on a downward trend in the long run.
Excluding volatile energy prices, monthly core inflation was up 0.3% against the expected 0.2%. Here, shelter costs were the main culprit for the hotter-than-expected increase. “Housing continues to contribute an outsized share to the inflation measures,” said Lisa Sturtevant, chief economist at Bright MLS.
But, Sturtevant added, “rent growth has slowed considerably and median rents nationally fell year-over-year in August.” That slowdown in prices will show up in future reports, meaning that August’s core CPI numbers is just “a little bump in the road,” as Kayla Bruun, senior economist at Morning Consult, put it.
“It doesn’t mean it’s turning around and going in the other direction,” Bruun said. “Overall, most of the pieces are headed in the right direction.” Indeed, the annual measure of core CPI still dropped from 4.7% in July to 4.3% in August.
Markets took the numbers in their stride. The Dow was the only major index to fall, losing 0.2% as shares of 3M and Caterpillar sank. The S&P 500 added 0.12% and the Nasdaq Composite rose 0.29%, helped by gains in Tesla and Amazon. And traders are still betting the Federal Reserve won’t raise rates next week, according to the CME FedWatch Tool.
Markets can act in irrational ways sometimes. But sometimes, the crowd psychology of markets manifests as collective wisdom.
— CNBC’s Jeff Cox and Greg Iacurci contributed to this report
Toyota’s smallest electric vehicle might actually hit the road. Thanks to new funding from the UK government, Toyota is one step closer to turning this pint-sized EV with a solar roof into a reality.
The Toyota FT-Me is a micro EV with a solar roof
It may be only 2.5 meters (98″) long, but Toyota believes the tiny electric car could be an affordable way to zip around the city.
The FT-Me is “a ground breaking concept” that blends premium design with affordability, Toyota said after unveiling it in March.
After securing a £15 million ($20,000) investment from the UK government’s DRIVE35 program, Toyota is moving closer to actually launching the pint-sized EV.
Advertisement – scroll for more content
The Advanced Propulsion Centre UK, which manages the funding, announced that the £30.3 million ($40,500) project includes a £15 million grant from the Department for Business and Trade. Toyota is expected to fund the other roughly £15 million.
Toyota is working with several partners, including urban delivery specialist ELM Mobility and the University of Derby, to develop a new lightweight battery electric vehicle (BEV) in the L6e category.
Toyota FT-Me micro EV (Source: Toyota)
Meanwhile, Savcor will design and develop the solar roof, which Toyota claims can extend a vehicle’s range by 20%, or about 20 to 30 km per day.
The pint-sized EV will be manufactured at Toyota Manufacturing UK’s Burnaston site, where it currently builds the Corolla.
Toyota FT-Me micro EV concept (Source: Toyota)
Although it’s about the size of a golf cart, Toyota promises the micro EV fits two passengers comfortably. The company also claims the FT-Me’s propulsion system uses 3X less energy per km than current high-capacity electric vehicles.
The interior of the Toyota FT-Me EV concept (Source: Toyota)
Inspired by a jet helmet, Toyota said the vehicle’s compact design makes it perfect for getting around the city. It only takes up about half a parking spot.
Toyota’s pint-sized EV could arrive as a potential rival to the Citroen Ami. The Ami starts at £7,695 ($10,000) OTR, offering a WLTP range of up to 46 miles.
Would you buy Toyota’s micro EV for about $10,000? It could be a fun (and efficient) way to zip around town. It’s basically a futuristic electric golf cart with a solar roof. Unfortunately, it likely will never make it to the US with America’s growing love for big trucks and SUVs.
FTC: We use income earning auto affiliate links.More.
For years, Norway has been the poster child for electric vehicle adoption, a perfect example of how a combination of ambitious goals and robust incentives can transform a nation’s entire automotive industry.
Now, with the country on the cusp of achieving its goal of 100% all-electric new car sales by 2025, the Norwegian government is signaling a new phase in its EV strategy, proposing changes to its incentive program that include the introduction of taxes on electric vehicles.
We have often used Norway’s success in electrifying its vehicle fleet as an example of how quickly the electric transition can impact the automotive market under the right conditions.
They made it happen through a comprehensive package of incentives, including exemptions from purchase taxes and VAT, free access to toll roads and bus lanes, on top of properly taxing internal combustion engine vehicles.
Advertisement – scroll for more content
This resulted in EVs being the preferred choice for a vast majority of new car buyers. In 2024, a staggering 88.9% of new cars sold in Norway were all-electric, a figure that has continued to climb in 2025.
Gasoline and diesel cars are now obsolete in the Norwegian new car market, with a few hundred new cars per month, while EVs represent roughly 95-97%.
Finance Minister Jens Stoltenberg has announced mission accomplished (via Reuters):
“We have had a goal that all new passenger cars should be electric by 2025, and … we can say that the goal has been achieved.”
With the finish line in sight, the Norwegian government is now fine-tuning its approach.
The current incentive program maintains the crucial VAT exemption for EVs, but only up to a purchase price of 500,000 Norwegian kroner (approximately $49,000 USD). This move is designed to target more expensive, luxury EVs, ensuring that the incentive benefits a broader range of consumers.
However, the latest budget proposal aims to reduce the EV tax exemption to vehicles costing 300,000 Norwegian kroner (~30,000 USD).
This would apply for 2026, and then the tax exemption would completely end in 2027.
Additionally, the government plans to increase taxes on new gasoline and diesel cars, further widening the cost gap between polluting and zero-emission vehicles.
However, the proposal still needs to be adopted by Norway’s government, and there is some opposition.
EV associations are advocating for a more extended phase-out period to ensure that the adoption rate doesn’t decline.
Electrek’s Take
For EV enthusiasts such as myself, Norway’s journey has been a source of inspiration and a powerful argument against the claims of EV detractors. The country has proven that with the right policies, a rapid and comprehensive transition to electric mobility is not just a distant dream but an achievable reality.
That said, I do understand that Norway has a lot going for it. It is wealthy. And therefore, it made the transition easier than in most other markets.
Regarding the policy changes, I wouldn’t interpret them as a sign of retreat from the country’s electrification goals. Instead, they represent a maturation of Norway’s EV policy.
The proposed changes to Norway’s incentive program are a logical next step in this evolution. As the EV market matures, it’s natural for governments to reassess and adjust their policies. The key is to do so in a way that doesn’t derail the progress that has been made.
However, I do agree with the local EV advocates that it would make sense to extend the phase-out to ensure the market maintains its current near-100% EV rate for a few years.
The rest of the world has much to learn from Norway’s experience. The country has provided a blueprint for how to kickstart an EV revolution, and now it is showing us how to manage the transition to a fully electric future.
The message from Norway is clear: the age of the internal combustion engine is over. The future of transportation is electric, and it’s happening now.
FTC: We use income earning auto affiliate links.More.
Fully autonomous technology developer Waymo continues to expand the reach of its test fleet as well as bona fide customer rides without a driver present. This morning, Waymo shared plans to expand across the pond to London, with public robotaxi rides expected sooner than you might think.
2025 has already been a notable year for autonomous rideshare developer Waymo, as it continues to expand across the United States. This year alone, the Alphabet, Inc. subsidiary began offering customer rides in Austin, Texas, in addition to expansion plans for other cities such as Dallas and Nashville.
In late 2024, Waymo also announced plans to begin testing its robotaxis in Tokyo, Japan, marking the company’s first international expansion. Today, Waymo shared plans for global market growth in the opposite direction, laying the groundwork for robotaxi operations in London as early as next year.
Waymo to offer public robotaxi rides in London in 2026
According to a release from Waymo this morning, the company has begun plans to expand its driverless robotaxi operations to London, laying the initial groundwork for certifications to start commercial operations by 2026. The company said it will be working with existing fleet partner Moove, which will assist with London operations. Per Waymo co-CEO Tekedra Mawakana:
Advertisement – scroll for more content
We’re thrilled to bring the reliability, safety and magic of Waymo to Londoners. Waymo is making roads safer and transportation more accessible where we operate. We’ve demonstrated how to responsibly scale fully autonomous ride-hailing, and we can’t wait to expand the benefits of our technology to the United Kingdom.
Over the coming months, Waymo plans to test its technology on London roads, seeking permission from local leaders. Once that happens, Waymo will be able to begin offering the public robotaxi services using all-electric I-Pace vehicles from UK automaker Jaguar Land Rover. When available, Londoners will be able to hail a ride via the Waymo app.
FTC: We use income earning auto affiliate links.More.