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

Spencer Platt | Getty Images News | 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

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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U9 supercars from BYD’s new Yangwang brand are en route to the UK to compete at Goodwood

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U9 supercars from BYD's new Yangwang brand are en route to the UK to compete at Goodwood

BYD’s young performance EV brand Yangwang wants to turn some heads in Europe by debuting its U9 supercar at the 2024 Goodwood Festival of Speed. The annual event hasn’t seen many Chinese entrants, but Yangwang has at least two cars on their way to the UK to show performance enthusiasts the potential of its e⁴ platform technology.

Yangwang operates as one of the newest all-electric brands under the BYD umbrella. BYD launched the sub-brand in January 2023 while showcasing a new performance EV architecture called e⁴.

When paired with Yangwang’s DiSus-X Intelligent Body Control System, the automaker says these two core technologies will “revolutionize the pure electric supercar segment, seamlessly integrating track performance, street adaptability, and playful features.”

Like supercars than call ollie, for instance.

At the brand launch, Yangwang unveiled its first two models—the borderline amphibious U8 SUV and the U9 supercar, designed to compete with Ferrari. We’ve since seen a third, less extreme model called the U7 sedan emerge, but only its two siblings are currently available on the Chinese market – the most recent being the U9 this past February.

The U9 features quad motors, 1,287 horsepower (960 kW), and 1,200 lb-ft (1,680 Nm) torque for a 0 to 62 mph (0-100 km/hr) sprint time of 2.36 seconds. This summer, Yangwang will show the public at Goodwood what the U9 is capable of on the track, and its supercars are already making their way over from China.

Yangwang Goodwood
The U9 supercar, which will make its overseas debut at the Goodwood Festival of Speed / Source: Yangwang

Yangwang U9 to make overseas debut at Goodwood

According to CnEVPost, BYD’s Yangwang brand plans to compete at the annual Goodwood Festival of Speed held each year in West Sussex in the UK. According to a recent Weibo post from Yangwang’s general manager of sales, Hu Xiaoqing, two U9 supercars departed China by boat on May 7 and are on their way to England.

According to Hu, Yangwang looks forward to showcasing its U9s at Goodwood while “meeting with supercar enthusiasts around the world.” The Goodwood Festival of Speed began in the early ’90s and is considered by many to be one of the pinnacle motorsport events for showcasing vehicle capabilities and attempting record track times.

As a UK event, China has not had much of a presence at Goodwood in the past, but Yangwang hopes to change that this year. For example, NIO was the only China-based automaker present at last year’s event. Still, we expect to see more and more EVs making their way overseas as Chinese automakers continue to expand into new markets around Europe.

The 2024 Goodwood Festival of Speed will take place July 11-14 this year, and we hope to do a full recap of the EVs (including the Yangwang U9) that stand out and hopefully don’t crash into a pile of hay. Stay tuned.

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Tesla is about to remove steering wheel nag with new Full Self-Driving update

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Tesla is about to remove steering wheel nag with new Full Self-Driving update

Tesla is planning to remove the steering wheel nag, which alerts drivers to apply torque on the steering wheel, with a new Supervised Full Self-Driving (FSD) update coming next week.

Yesterday, we reported on CEO Elon Musk giving an outline of the upcoming FSD software updates.

The CEO says that Tesla is preparing to launch fully retrained models in FSD v12.4 as soon as next week.

Musk used his usual hyperbole, like “mind-blowing”, to describe the update, but he didn’t go into much detail about it otherwise… until now.

The CEO has now confirmed that Tesla plans to remove the steering wheel nag with the upcoming Full Self-Driving v12.4:

“Steering wheel nag” is what Tesla drivers call the alerts the vehicle sends to remind drivers to apply pressure on the steering wheel. Tesla doesn’t have a way to detect hands on the steering wheel, so it can “confirm” drivers keep their hands on it – by detecting torque being applied on the wheel.

Tesla sends out those alerts every minute or so, depending on your driving speed on FSD.

The alerts can get annoying and redundant because Tesla now uses its cabin-facing camera to detect driver attention and it will send out alerts if it detects that the driver is not looking at the road for more than about three seconds.

Electrek’s Take

This was always a very poor driver monitoring system, anyway. I wouldn’t have a problem with it going away if it wasn’t for the infamous loophole in the camera-based driver monitoring system.

There will be more abuse, but it wasn’t like there wasn’t any in the first place with defeat devices.

It is certainly a ballsy move for Tesla, considering NHTSA is opening a new investigation into its recall that involved more alerts for Autopilot/FSD.

Either way, regardless of Tesla’s level nag, the drivers should always keep their hands on the steering wheel and be ready to take control at all times when using Autopilot or FSD features.

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Amazon puts first electric semi trucks into ocean freight operation

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Amazon puts first electric semi trucks into ocean freight operation

Southern California truck spotters will have plenty of electric semi trucks to watch out for as Amazon adds fifty Class 8 EVs to its commercial fleet.

The fully electric Volvo semi trucks purchased will haul both heavy cargo containers and customer package loads in Amazon’s first- and middle-mile operations in California. The trucks will join the hundreds of last-mile electric vans from Ford and Rivian that are already delivering packages across the golden state.

These are the first-ever electric trucks in the company’s ocean freight operations, also known as drayage operations. They’ve already started hitting the road at the ports of Los Angeles and Long Beach, with a dozen expected to be in service by the end of the year.

“We’re proud to launch our largest fleet of electric heavy-duty vehicles yet in California,” said Udit Madan, vice president of Worldwide Amazon Operations. “Heavy-duty trucking is a particularly difficult area to decarbonize, which makes us all the more excited to have these vehicles on the road today. We’ll use what we learn from deploying these vehicles as we continue to identify and invest in solutions to reduce emissions in our transportation network, and to impact sustainability in the trucking industry more broadly.”

Amazon picks Volvo VNR Electric semi

Volvo VNR Electric heavy-haul Class 8 BEV; via Amazon.

Amazon’s electric semi of choice this time is the Volvo VNR Electric. These class 8 trucks have a range of up to 275 miles with a gross combined vehicle weight rating (GVWR) of 82,000 pounds. The heavy-duty Volvo trucks ship with a number of safety features that will be familiar to Volvo Car owners, including active collision mitigation, blind-spot detection, lane departure warning, lane keeping assist, and adaptive cruise control.

Altogether, the Volvo VNRs Amazon just added to its fleet are projected to travel more than 1 million miles each year with zero harmful carbon and diesel particulate emissions coming out of their exhaust pipes.

Electrek’s Take

Volvo VNR Electric in oceanside drayage operation; via Amazon.

On the one hand, Amazon is making a big deal out of buying electric drayage trucks – which isn’t really big a deal in 2024, since that’s a legal requirement at this point. You literally can’t buy a new, internal combustion drayage truck in California as of this year.

That said, I’m a “celebrate every positive change” kind of guy, and the people who live and work around Amazon’s operations will be literally and figuratively breathing easier with these trucks in operation. As such, I’m willing to give California Governor Gavin Newsom a victory lap.

“California continues to lead the way in setting world-leading climate goals. No other state has created the kind of environment where Amazon and other businesses can lead on sustainability and take major steps forward like deploying this fleet of electric trucks,” said Gavin, in a statement. “California’s climate action continues powering our economy and creating jobs.”

SOURCE | IMAGES: Amazon.

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