Gasoline prices for full serve and self serve are displayed at the Union 76 gas station ahead of the Labor Day weekend on August 28, 2023 in Beverly Hills, California.
Mario Tama | Getty Images
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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.
Optimistic markets U.S. markets were mixed Wednesday, with the Dow Jones Industrial Average the only major index to fall. Asia-Pacific stocks mostly rose Thursday. Japan’s Nikkei 225 climbed 1.47% even as shares of Softbank slipped slightly. Australia’s S&P/ASX 200 added around 0.55% as data showed unemployment rate in the country holding steady at 3.7% in August.
The risks of shadow banks in China The difficulties faced by China’s real estate sector recently have highlighted, once again, the risks of shadow banking — a term that refers to financial services offered outside the highly regulated banking system. Chinese developers “were able to borrow liberally from shadow banks,” a researcher said, which pushed up land prices and housing costs. That contributed to the developers’ huge debt today.
Taiwan is ‘not for sale’ At the All-In Summit, a conference on technology and markets, Elon Musk commented that China probably views Taiwan as “analogous to Hawaii or something like that, like an integral part of China that is arbitrarily not part of China.” It drew a swift rebuke from Taiwan’s Ministry of Foreign Affairs, which said Taiwan is “not part of the PRC and certainly not for sale!”
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
The new Quantum 3 battery energy storage system (BESS) from Wärtsilä is being describes as an intelligent, cutting-edge solution designed to meet the ever-evolving needs of utility-scale energy storage customers.
Housed in a 20-foot ISO container with single-side access, Quantum 3 is a complete AC block solution, with fully integrated and internalized batteries and string-based power conversion systems (PCS). That size was strategically chosen to facilitate global shipping and on-site transport using (relatively) small wheel loaders and top loaders, aiding in efficient on-site deployment and back-to-back configuration.
Quantum 3 also features a sustainably designed housing (read: aluminum) for low weight, as well as advanced thermal controls that include low noise levels and a low global warming potential (GWP) cooling system, makes it a groundbreaking offering for meeting customers’ environmental and decarbonisation goals.
Wärtsilä built-in enhanced fire safety features are designed to ensure customer facilities are both fire-proof and future-proof.
“These are features we have worked extremely hard on and are very proud of. We have a proven track record of safe and reliable delivery worldwide,” says Andrew Tang, vice president of Energy Storage & Optimisation, Wärtsilä Energy. “Quantum 3 will help to further strengthen confidence among customers (utilities), local communities, and first responders that Wärtsilä’s systems will stand the test of time.”
Wärtsilä is sourcing Quantum 3 components from a geographically diverse set of suppliers, with manufacturing capacity across different regions of North America, Asia, and Europe. This should enable the company’s customers to take advantage of any local tax incentives while avoiding the kind of tariffs currently impacting global battery markets.
Wärtsilä grid scale BESS Specs:
Fully integrated AC block for high system availability and optimised rack-level control to maximise system performance
Industry-leading fire safety and cybersecurity features
Increased energy density and back-to-back layout for optimum land use and efficient on-site deployment and configuration
Standard 20-foot ISO container with a convenient weight for global shipment
Sustainable design and cooling system with low GWP
Advanced monitoring, control, and optimization from battery to fleet with Wärtsilä’s GEMS Digital Energy Platform
Chinese heavy equipment manufacturer SANY has signed a strategic Agreement with European brand Alltrucks to fuel its expansion into the European market. (Probably.)
With this Agreement, the well-known brand Alltrucks will take on responsibility for the maintenance, diagnosis, and repair of the Chinese SANY eTruck vehicles in the EU. The company hopes an alliance with a trusted brand will help to alleviate customers’ concerns about adding “unknown” Chinese-built heavy equipment to their fleet.
“In Alltrucks, we have found a partner that shares our vision of sustainable mobility and has the necessary expertise and infrastructure to provide our customers with the best possible support,” explains Kevin Eichele, Head of Business Development at SANY eTrucks Europe. “Together, we will shape the future of freight transport in Europe.”
Alltrucks is a joint venture between Bosch, Knorr-Bremse, and ZF that offers 24-hour breakdown service, technical and marketing support, and an OEM-quality replacement parts network to truck fleets across the EU.
“We are delighted to be partnering with SANY eTrucks,” says Homer Smyrliadis, Managing Director of Alltrucks. “Our goal is to always offer our customers the best service. By working with such an innovative partner as SANY, we can further expand our service portfolio in the field of electromobility and make our contribution to sustainable mobility.”
The E-mixer shown (above) is the same model already in service at Pan-United Corp. It sends power to its wheels through a 6-speed transmission with significant torque multiplication, enabling it to claw up a 30% grade, even when fully loaded. (!)
Electrek’s Take
As a semi-professional journalist and passably professional person in general, I like to find at least two sources for any story. In this case, though, I couldn’t do that. As such, I feel like I need to tell you that the quotes used in this story are translated from a German email reportedly received by Electrive. The story does not appear on either the SANY Global or Alltrucks news pages, or (from the Google searches I tried) anywhere else.
It’s a significant story if it’s true – one that solves for the question of, “Where do I get my Chinese electric semi truck serviced?” with a very neat and tidy, “The same place you get your truck serviced now,” and I’m hoping that we’re just ahead of an embargo or something and that verification will come soon.
That said, take this one with a bit more than a grain of salt until that verification comes. Call it a teaspoon.
“FedEx is cultivating a strong roster of electric vehicle models that can meet the demands of our network,” says Pat Donlon, Vice President, Global Vehicles, FedEx. “In joining our fleet, the electric Workhorse W56 will be part of our story as we aim to transition our global parcel pickup and delivery fleet to all zero-tailpipe emissions vehicles by 2040.”
That fleet won’t just be cleaner – it’ll be much more efficient. According to the company’s press release, the W56 achieved an impressive 31 MPGe during FedEx’ real-world delivery route testing. That compares favorably to the national average fuel economy of 7 MPG for similar diesel delivery trucks, demonstrating significantly lower energy consumption per mile. Based on an average of 31,875 miles driven per vehicle per year, Workhorse says FedEx will be able to avoid an estimated 607 metric tons of harmful tailpipe emissions annually.
We’re well into Q3 2024, obviously, but I don’t want to be seen as unreasonably harsh on Workhorse. Heck, a few quarters here or there seems downright reasonable on a Tesla Semi timeline – I just think a bit of historical context is needed whenever we talk about startups like this. Head down to the comments and let me know if you agree.