The New York Stock Exchange welcomes executives and guests of Ormat Technologies, Inc. (NYSE: ORA), on Sept. 6, 2023, to celebrate entering its 20th year of trading on the NYSE.
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
Bracing for Fed meeting U.S. stocks were little changed Monday as traders await the Federal Reserve’s September meeting. Asia-Pacific markets retreated Tuesday. Australia’s S&P/ASX 200 slipped around 0.4% as minutes from the RBA’s last meeting revealed the central bank thinks inflation is still “too high.” Meanwhile, Japan’s Nikkei 225 slumped 1.1%, leading losses in the region.
Rare returns Early-stage investing in China hasn’t been lucrative. Only four U.S. dollar-denominated venture capital funds established between 2015 and 2020 have returned investors the money they put in, according to data from Preqin, a research firm. The four firms are: Fengshion Capital Investment Fund, LYFE Capital USD Fund II and GGV Capital V.
Top of the shelf Instacart priced its initial public offering at $30 a share, the top end of its expected range. That gives the grocery delivery company a valuation of about $10 billion, a figure around 3.5 times its annual revenue. By comparison, DoorDash, a competitor, trades at 4.25 times. Instacart’s the first venture-backed tech startup to list since December 2021, and will signal the health of the IPO market.
Monthly payment for X X, previously known as Twitter, will charge users “a small monthly payment” to combat “vast armies of bots,” Elon Musk said. Musk also divulged that X has 550 million “monthly users” who generate 100 million to 200 million posts per day. Separately, Turkish President Recep Erdogan invited Musk to build his next Tesla factory in Turkey, reported the country’s state media.
Extra pricey olive oil Olive oil prices have surged to $8,900 a ton this month amid severe droughts in the Mediterranean. That’s over 100% higher than the year before — and far higher than the record of $6,242 set in 1996, according to the U.S. Department of Agriculture. And with extreme weather not abating and supplies depleting, prices might continue climbing.
[PRO] Oiling up real estate Oil prices are currently more than $90 per barrel, and could rise further on the supply cuts by Saudi Arabia and Russia. It’s natural to expect energy and oil firms to reap the rewards from this. But, rather surprisingly, two global real estate stocks could also benefit from higher oil prices, said Morgan Stanley.
The bottom line
Stocks barely budged yesterday. All major indexes ticked up, but the gains were so tiny — measured in the hundredths of a percentage point — that it’s better to think of them as unchanged. Trading volume was muted, too. Both the SPDR S&P 500 and the Invesco QQQ, which tracks the Nasdaq 100, traded around 25% fewer shares than their 30-day average.
It’s not that investors aren’t sure about what the Fed might do at its meeting Wednesday. They’re all but certain the central bank will keep interest rates the same for now, according to the CME FedWatch Tool. It’s the November meeting investors are fretting over. Currently, markets think there’s a 28.7% chance of a hike — but that percentage has reached as high as 50.89% in late August (and was 31.3% just five hours ago!). Those wild swings reflect the uncertainty over the November meeting.
Still, Goldman Sachs thinks “the FOMC can forgo a final hike this year, as we think it ultimately will,” as the bank’s chief economist Jan Hatzius wrote in a Sunday note. But with the U.S. economy running hot, the labor market remaining tight — and roiled by strikes — and oil prices surging again, it’s no surprise the broader market doesn’t really know what inflation — and hence interest rates — will look like for the rest of the year.
Hence, the Fed’s dot plot, which charts where the central bankers think interest rates will be in the short- and long-term, will be closely scrutinized by investors. But Hatzius thinks even if members pencil in one more hike for the year, the Fed won’t actually pull the trigger. It’s “only to preserve flexibility for now,” he wrote.
Perhaps we should give the Fed some benefit of the doubt. Ed Yardeni, president of Yardeni Research, is certainly doing so. “Generally speaking, Fed watchers like to criticize the Fed and suggest that they’re always wrong about their forecast and what they are doing,” Yardeni said on CNBC’s “Squawk Box.”
“But I think they’re actually getting it right this time,” Yardeni said. “And I think we may very well have immaculate disinflation, where inflation comes down without an economy-wide recession.” This might be a brazenly optimistic prediction. But it’s an undeniably cheery thought — one of the few certainties to be had today.
Volvo’s flagship electric sedan is almost here. With its debut just weeks away, Volvo previewed the new ES90, boasting it’s “one of the most technically advanced cars on the market today.” Packed with two high-tech NVIDIA computers, it will also be the most advanced Volvo car yet.
Volvo teases new ES90 EV ahead of its debut
The ES90 is Volvo’s first vehicle to feature dual NVIDIA Drive AGX Orin computers, making it the company’s most powerful in terms of computing capacity.
NVIDIA’s new in-vehicle computer platform delivers around 508 trillion operations per second (TOPS). To give you a better idea, the most powerful PlayStation (PlayStation 5 Pro) has 16.7 trillion, or around 3% of the computing power. It’s even an eightfold improvement from Volvo’s previous models.
Combined with Volvo’s Superset tech stack, the electric sedan is a “truly software-defined car,” making it more efficient and safe than ever.
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Anders Bell, Volvo’s chief engineer, claimed, “The Volvo ES90 is one of the most technically advanced cars on the market today. It will also improve with regular OTA updates that are now standard on all Volvo models based on the Superset.
The new EV is loaded with an array of sensors, including a lidar, five radars, eight cameras, and twelve ultrasonic sensors, for advanced safety and driver assistance functions.
Volvo’s safety system, called “Safe Space Technology,” is designed to detect and avoid other vehicles, bystanders, and objects, even in the dark.
Volvo ES90 teaser (source: Volvo Cars)
The ES90 is Volvo’s second EV, following the three-row EX90 SUV, built on the Superset tech stack. Volvo also plans to upgrade the EX90 with dual NVIDIA Drive AGX Orin computers as it improves the lineup. Existing EX90 customers will get an upgrade free of charge.
In the preview, you can see that the ES90’s profile resembles that of its hybrid S90 sedan. The teaser hints at a more modern design, with elements pulled from the EX90, including upright tail lights.
Tesla announced that it would finally launch wait queues at Superchargers, a feature long requested by Tesla owners after a fight broke out at a station between owners arguing about who is next to charge.
For years, Tesla owners have been asking the automaker to implement a system to queue at Supercharger stations when they are full.
It doesn’t happen often — in fact, we now learn that it happens about 1% of the time — but when it does, it can be problematic.
When a Supercharger station is full, and more Tesla drivers arrive, they generally try to form a physical queue at the station. However, the parking lot can sometimes be limited, leading to issues with people cutting ahead.
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We reported that this would become a bigger problem after Elon Musk fired Tesla’s entire charging team last year. This slowed down Tesla’s Supercharger deployment, which was already expanding at a lower rate than Tesla’s fleet.
A simple solution would be for Tesla to include a system to queue through the Tesla app or in-car system for people as they arrive at the station.
This week, Tesla finally announced that it is going to pilot a virtual queue at some sites next quarter:
Virtual queuing pilots starting in Q2 at select sites. Goal is a net customer experience improvement for the ~1% cases of a wait time. Wider rollout this year if feedback is positive. We also continue to expand the network 20%+ year-over-year, closely tracking site-level demand.
What did it take for Tesla to move forward with that finally? A fight.
The above message from Tesla’s charging team about launching a queue system was in response to this video of a fight between Tesla owners at a full Supercharger station that has been going viral:
While this is the first time I have seen a video of such a fight at a Tesla Supercharger, there have been many reports of such incidents over the last few years.
It’s good to hear that Tesla is finally addressing the issue. Now, the question is: will this virtual queuing system also work with non-Tesla vehicles, which Tesla is onboarding on Tesla’s Supercharger network – contributing to the crowding issue.
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Kia just pulled the covers off its new electric van, the PV5, giving us our first look at the futuristic model. The mid-size model is the first in Kia’s upcoming lineup of purpose-built electric vans that’s expected to shake up the growing market. From the first look, the PV5 will rival the Volkswagen ID.Buzz and Ford E-Transit. Check it out below.
Here’s our first look at the Kia PV5 electric van
We first saw the PV5 concept at CES last January after Kia introduced its “game-changing” Platform Beyond Vehicle (PBV) platform.
The PV5 was showcased alongside the larger PV7 and smaller PV1 models. Unlike Ford’s E-Transit, Kia’s electric van rides on a dedicated EV (PBV) platform. The flexible modular architecture will underpin the entire lineup as part of Kia’s plans to secure a leadership role in the electric van market.
After teasing the production model last week, Kia unveiled the exterior design for the first time on Thursday. The PV5 will be available in several configurations, including Passenger and Cargo models.
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Kia said it will introduce another model during its upcoming EV Day on February 24. As you can see, Kia went all out with this one.
Like its newest EV models, the PV5 features a bold, almost futuristic-like design. In Kia’s words, the electric van’s “contemporary design transcends traditional light commercial vehicles.”
Kia PV5 Passenger electric van (Source: Kia)
Massive windows that span the entire Passenger model add to the modern look, but also make it easier to see when driving.
Added black geometric wheel arch claddings and rocker panels give the PV5 a slightly rugged, off-road feel, “confidently linking the high-tech upper cabin with the more rugged and purposeful lower body.”
Kia PV5 Cargo (Source: Kia)
Although the Cargo model has a similar design, the boxy profile enables more interior space for delivery and other business uses (and don’t forget the camp lifers). Kia also included twin side-opening tailgate doors, making it easier to load and unload.
Kia will reveal additional info, including powertrain specs, seating setups, and more, during its EV Day next week. The event will be held in Tarragona, Spain, on February 24. Official details will be released on February 27. Check back next week for more on the Kia PV5.
Kia PV5 Cargo electric van (Source: Kia)
At the event, Kia will also introduce the EV4 electric sedan and hatchback models alongside a smaller, more affordable EV2 concept.
With its official debut coming up, the PV5 was spotted testing in the US this week (check them out here). Images and a video sent to Electrek byAlex Nguyen reveal a Volkswagen ID.Buzz-like design.
Kia’s PV5 Cargo Compact concept, the most basic model, is 177.2″ long, 74.8″ wide, and 74.8″ tall. However, that’s the “Compact” model. The regular Passenger and Cargo variants will be bigger. To give you a comparison, the US-spec ID.Buzz (LWB) is 195.4″ long, 78.1″ wide, and 76.2″ tall, while Ford’s E-Transit is 237.6″ long, 81.3″ wide, and 83.9″ tall.
What do you think of Kia’s mid-size electric van? Do you like the look better than the ID.Buzz or E-Transit? Let us know in the comments below.
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