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People walk by the New York Stock Exchange (NYSE) on November 02, 2023 in New York City. 

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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

A fierce winning streak
U.S. stocks rose Tuesday to hit fresh winning streaks, their longest in three years. But Asia-Pacific markets were mixed Wednesday. Japan’s Nikkei 225 ticked down 0.1% despite rising confidence among large Japanese manufacturers, according to a Reuters Tankan survey. Meanwhile, Australia’s S&P/ASX 200 climbed 0.2% a day after the country’s central bank raised rates by 25 basis points.

Microsoft closes at a high
Microsoft shares climbed 1.12% to hit $360.53, a record high. It’s the eighth consecutive day in which the technology giant’s shares rose, a streak unseen since January 2021. Investors cheered Microsoft CEO Satya Nadella’s surprise appearance at OpenAI’s event, where he encouraged developers to build with Microsoft’s Azure cloud infrastructure.

‘Absolutely booming’ Chinese sector
China’s economy hasn’t recovered from its pandemic blues. But in the sectors of “electric vehicles and everything around sustainability and renewable power technology,” China is “absolutely booming,” Standard Chartered CEO Bill Winters told CNBC. Relatedly, China’s truck industry is increasingly using vehicles with assisted-driving technology, a critical step toward monetizing the nascent business.

Peak, not pause?
The U.S. Federal Reserve, European Central Bank and the Bank of England all paused interest rate hikes in recent weeks. This breather comes after dramatic hikes over the last 18 months as central banks grappled with unruly inflation. Some market watchers, in fact, think this lull in hikes isn’t so much a pause but the peak in rates — and are turning their attention to when central banks will start cutting.

[PRO] Buy BYD
Over the past 18 months, Warren Buffett’s Berkshire Hathaway has sold more than half its stake in Chinese electric vehicle maker BYD, according to stock filings. Despite that, analysts still think BYD’s a stock worth buying — and some even raised their price targets for the firm.

The bottom line

Last month’s sudden surge in Treasury yields and oil prices — both of which tend to suppress investors’ appetite for stocks — looks to be ending. No, scratch that — the increases aren’t just ending, they’re ebbing.  

Look at oil: Contracts for both West Texas Intermediate and Brent futures fell around $3. WTI’s now at $77.01 a barrel while Brent’s $81.44, their lowest since July. That’s almost $10 per barrel less compared with a month ago, when prices jumped on fears triggered by the Israel-Hamas conflict.

Meanwhile, the 10-year Treasury yield fell around 10 basis points to 4.569% and the 2-year yield slipped 3 basis points to 4.915%. As Treasury yields serve as the benchmark for interest rates on loans and cash investments, sinking yields generally benefit rate-sensitive companies more. In other words: the Magnificent Seven Big Tech. Amazon led the pack, shooting up 2.13% yesterday.

That explains why the Nasdaq Composite jumped 0.9%, more than the S&P 500’s 0.28% gain and the Dow Jones Industrial Average’s 0.17% increase. Still, that’s not downplaying the movements. The S&P and Dow are enjoying their seventh consecutive session of gains, while the Nasdaq’s basking in its eighth.

If the U.S. Federal Reserve does indeed steer the economy to a soft landing, in which inflation is contained below 2% without the economy contracting, then there could be a further rally in stocks, said HSBC. Within periods of soft landings, the S&P has jumped, on average, 22% in the space between a pause and six months after rate cuts begin, noted HSBC’s global equity strategist Alastair Pinder.

And that immaculate disinflation isn’t just a dream. Chicago Federal Reserve President Austan Goolsbee told CNBC, “Because of some of the strangeness of this moment, there is the possibility of the golden path … that we got inflation down without a recession.”

Both the economy and markets have truly acted in strange, unprecedented ways ever since the pandemic. From one of the worst years for stocks and bonds in 2022, to a widely heralded bull rally in the S&P — and then a correction — in 2023. And I haven’t even started on the U.S. labor market and inflation numbers. Strange may be new and unsettling, but it isn’t necessarily bad.

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Tesla owner admits to driving drunk on Full Self-Driving, proving Tesla needs to do more

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Tesla owner admits to driving drunk on Full Self-Driving, proving Tesla needs to do more

A Tesla owner admitted on video that he drives drunk on Full Self-Driving (FSD) – showing that Tesla doesn’t do enough to prevent abuse of its driver assist system.

29-year-old social media personality Landon Bridges went on comedian Bert Kreischer’s cooking show ‘Something’s Burning’ this week.

During the show, they were drinking, and Bridges admitted to being drunk. While visibly intoxicated, he accepted another drink from Kreischeir and then added:

“You know what’s the biggest game changer for me in 2025? I bought a Tesla, and it has Autopilot.”

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He then looked at Kreischer suggestively – hinting that you can use it when drunk.

Kreischer responded: “Does it work like that?” – suggesting that it is good enough to use while intoxicated – and then said in a drunk voice: “Tesla, take me home.”

The only answer here would be: “No, it’s a driver assistance system and the driver is always responsible for the vehicle and therefore, they can’t be intoxicated to supervise the system.”

Instead, Bridges said:

Yeah. That’s the problem. That’s literally the problem. I’ll go after it. I’ll press the home button (in the navigation system), and as long as you look forward, you are home.

He then suggested that Kreisher, known for his heavy drinking, should consider getting a Tesla with Full Self-Driving.

Here’s the part of the episode where they have the conversation:

Electrek’s Take

This is wild. He openly admits to a potential felony on a YouTube show. The way he is thinking proves that Tesla is not doing enough to communicate to its owners that FSD is not a self-driving system, but rather a driver assistance system that requires the driver’s full attention, meaning sober, at all times.

He says “Autopilot”, but the way he describes the system points to it being “Full Self-Driving (Supervised)” as Autopilot wouldn’t be able to take you through surface streets to take you home.

Tesla has been extremely careless in how it discusses its system publicly.

For example, Tesla recently tweeted that “FSD Supervised gives you back time”:

This suggests that you can do something else while driving, but this is not true based on the automaker’s own warnings and owner’s manual. The driver needs to be paying attention to the vehicle’s driving at all times and be ready to take control.

It is a direct contrast to how Tesla discusses FSD in court after being sued over the numerous accidents involving Autopilot and Full Self-Driving.

In court, Tesla is quick to remind everyone that the driver is always responsible for the vehicle and that, despite its name, Full Self-Driving is only a level 2 driver assistance system, not a level 3-5 automated driving system.

Tesla needs to bring that same energy to its communications with buyers. Otherwise, it contributes to these morons thinking that they can use FSD drunk.

I hope Bridges realizes the carelessness and the danger of his behavior and suggests that others, like Kreischer, should do it.

But it wouldn’t be the first time a Tesla owner would think it OK to use FSD while drunk. We even learned of a crash in 2022 where a Tesla employee decided to use FSD, according to a witness, after day drinking, and his drive ended in a crash, leaving him dead.

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Honda launches the N-ONE e: An $18,000 small EV that delivers big where it counts

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Honda launches the N-ONE e: An ,000 small EV that delivers big where it counts

It may be small, but Honda’s new EV offers “class-leading” range and more interior space than you’d expect. Honda introduced the N-ONE e on Thursday, its first electric kei car, with prices starting at just over $18,000.

Honda launches the N-ONE e, an $18,000 mini EV

It’s pretty rare to find any vehicle, let alone an all-electric one, for under $20,000 these days. In the US, the average asking price for a new car was nearly $52,000 last month.

While some of the biggest names in the auto industry, including Volkswagen, Hyundai, Kia, Ford, and GM, to name a few, are gearing up to launch more affordable EVs, Honda just got a head of the game.

Honda introduced the N-ONE e on Thursday, its first electric kei car. The N-ONE e is Honda’s second mini-EV, following the N-VAN e, launched last year. However, unlike the van, Honda’s new model is designed for passenger use rather than commercial.

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The new EV will go on sale in Japan on September 12, priced from just ¥2.7 million ($18,300). It’s based on the current gas-powered N-ONE, Honda’s retro-looking kei car sold in Japan.

Powered by the same 29.6 kWh battery as its electric van, Honda said the N-ONE e delivers “class-leading range” of up to 295 km (183 miles). That’s even more than the Nissan Sakura, Japan’s best-selling electric car with a WLTP range of up to 180 km (112 miles).

Although it may not seem like much with most EVs offering over 300 miles of range nowadays, it’s perfect for daily commutes in Japan.

Honda said the biggest challenge was ensuring it had enough space to make it fit for everyday use. To open up the interior, the company developed a thinner battery pack that lies flat beneath the floor.

It already has the most popular kei car and best-selling vehicle in Japan, the N-Box, but Honda believes its new EV could be an even bigger hit.

Mini EVs account for about 40% of new car sales in Japan. With more range, interior space, and more, Honda is betting on its small new EV to stay ahead of the competition. Honda expects the market to heat up with rival brands, including global EV leader BYD, Toyota and others, preparing to launch mini-EVs soon.

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Offshore wind has no future in the U.S. under Trump administration, Interior Secretary says

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Offshore wind has no future in the U.S. under Trump administration, Interior Secretary says

U.S.’ Burgum: Reducing Russian gas sales stops funding for Moscow’s war

Offshore wind has no future as a source of electricity generation in the United States under the Trump administration, Interior Secretary Doug Burgum said at an energy conference in Italy this week.

“Under this administration, there is not a future for offshore wind because it is too expensive and not reliable enough,” Burgum told an audience at the Gastech conference in Milan on Wednesday.

It is the clearest statement yet from a senior Trump administration official that the president aims to shut down the nascent offshore wind industry in the U.S. Burgum oversees the leasing and permitting of offshore wind farms in federal waters as head of the Department of Interior.

President Donald Trump barred new leases for offshore wind farms on his first day in office through an executive order that was framed as “temporary.” Trump also ordered a review of permits, but the industry had hoped projects under construction would be allowed to move forward.

But Interior is “taking a deep look” at five offshore wind farms that are already under construction in the U.S., Burgum said Wednesday without naming the projects.

The offshore wind farms under construction are Revolution Wind off Rhode Island; Vineyard Wind 1 off Massachusetts; Coastal Virginia Offshore Wind; Sunrise Wind off New York; and Empire Wind also off New York.

“Yes, they were permitted but they got moved through a very fast ideologically-driven permitting process,” Burgum said at the conference in Italy.

Interior ordered Danish renewable energy company Orsted to halt construction of Revolution Wind on August 22, citing national security concerns. The project is fully permitted and 80% complete with billions of dollars invested, according to Orsted.

Energy Sec. Wright: Big demand for U.S. to displace Russian gas to Europe

Interior had issued a stop-work order for Empire Wind in April, but ultimately let the project resume construction in May after apparently striking a deal over new natural gas capacity.

Burgum told CNBC’s Brian Sullivan this week that the Trump administration is in discussions with Orsted and New England governors on Revolution Wind, though he wouldn’t say that the project might restart work.

“I can’t say for certain because some of these projects are a literal train wreck in terms of their economics,” Burgum told CNBC. “If we were to complete them then we’re just locking in billions and billions of taxpayer money which might be going to a hedge fund.”

Renewable energy executives told CNBC in August that the Trump administration’s attacks on solar and wind will lead to a power crunch that increases electricity prices.

(Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here.)

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