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The US Treasury building in Washington, DC, US, on Tuesday, Aug. 15, 2023.

Nathan Howard | Bloomberg | 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

Mixed markets
U.S. stocks traded mixed Monday, with the Dow Jones Industrial Average the only major index to rise. Europe’s Stoxx 600 gained 0.75%, with almost all sectors and major bourses in positive territory. Siemens Energy shares popped 6% on reports the German government will provide a financial guarantee to safeguard the company’s order book.

Consumer spending fell
U.S. October retail sales, excluding autos and gas, fell 0.08% month on month, while core retail, which excludes restaurants, declined 0.03%, according to the new CNBC/NRF Retail Monitor. The data differs from the Census Bureau’s retail sales report as it’s the result of actual consumer purchases — analyzing over 9 anonymized billion credit and debit card transactions — while the Census relies on survey responses.

Exxon invests in green tech
Exxon Mobil, one of the world’s largest oil and gas companies, said it aims to become a leading producer of lithium for electric vehicle batteries. The company will kick off this plan through a drilling operation it’s launching at a geological site it purchased earlier this year in southern Arkansas. Exxon said it will produce battery-grade lithium at the site as soon as 2027.

Jumbo Emirates order
Emirates Airline is ordering 95 Boeing aircraft in a deal worth $52 billion. Dubai’s state-owned flagship carrier is ordering 55 Boeing 777-9s and 35 777-8s, bringing the airline’s total orders for the 777X widebody jets to 205 units. This is the first major deal of the 2023 Dubai Airshow.

[PRO] Streaming wars
Streaming services are proliferating: there’s Netflix, Max, Disney+, Hulu, Prime Video — to name just a few. With such a crowded field, it’s no surprise competition is stiff and winners are scarce. But the sheer number of streaming services vying for viewers isn’t the only reason why Warren Buffett thinks it’s a tough industry.

The bottom line

This week will be a significant one for markets. October’s consumer price index comes out later today, while U.S. President Joe Biden will meet his Chinese counterpart Xi Jinping in person for the first time since last November. Investors, focused on the week ahead, are already shrugging off bad news from last week.

On Friday, Moody’s Investors Service cut its ratings outlook on the U.S. government from stable to negative. The ratings agency pointed to the country’s large fiscal deficits and the political polarization within Congress as risk factors for Treasurys.

Moody’s move wasn’t entirely new. (Standard & Poor’s and Fitch have issued similar cautions.) And even if it were, it’s hard to imagine investors spontaneously pivoting from U.S. Treasurys — the world’s largest and most liquid market.

“If we go from triple-A to double-A, what does that practically mean? … There’s still going to be demand for U.S. Treasurys en masse,” as Michael Reynolds, vice president of investment strategy at Glenmede Investment Management, put it.

Indeed, Treasury yields hardly budged Monday despite Moody’s warning. The yield on the 10-year note ticked up 1 basis point to 4.638%, while that of the 2-year shed around 3 basis points to end at 5.033%.

Stocks didn’t experience major turmoil, either. In fact, the S&P 500 was mostly flat, the Dow Jones Industrial Average added 0.16% and the Nasdaq Composite slipped 0.22%. Trading volume, based on the SPDR S&P 500, was below the 30-day average.

Today’s CPI report is likely to cause more gyrations for stocks. Economists expect October’s prices to rise 0.1% from September, and 3.3% from a year earlier.

If numbers come in close to or lower than the estimate, that’ll please investors because it means the Federal Reserve might be done with rate hikes for the year — or for the whole cycle, the optimistic will say.

As Goldman Sachs strategist Peter Oppenheimer said, the “good news is that inflation and interest rates now appear to have peaked and our economists continue to expect a soft landing. This backdrop is benign for equity markets, reducing the downside risks for investors.”

Of course, reduced headwinds don’t mean a smooth journey ahead. With the Israel-Hamas war still developing and economic data in the U.S weakening, risks persist.

— CNBC’s Jeff Cox contributed to this report.

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Go West, young brand – GreenPower Motor Company sells 11 more BEAST buses

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Go West, young brand – GreenPower Motor Company sells 11 more BEAST buses

GreenPower Motor Company says it’s received three orders for 11 of its BEAST electric Type D school buses for western state school districts in Arizona, California, and Oregon.

GreenPower hasn’t made the sort of headline-grabbing promises or big-money commitments that companies like Nikola and Lion Electric have, but while those companies are floundering GPM seems to be plugging away, taking orders where it can and actually delivering buses to schools. Late last year, the company scored 11 more orders for its flagship BEAST electric school bus.

As far as these latest orders go, the breakdown is:

  • seven to Los Banos Unified School District in Los Banos, California
  • two for the Hood River County School District in Hood River, Oregon
  • two for the Casa Grande Elementary School District in Casa Grande, Arizona

Those two BEAST electric school buses for Arizona will join another 90-passenger BEAST that was delivered to Phoenix Elementary School District #1, which operates 15 schools in the center of Phoenix, late last year.

“As school districts continue to make the change from NOx emitting diesel school buses to a cleaner, healthier means of transporting students, school district transportation departments are pursuing the gold standard of the industry – the GreenPower all-electric, purpose-built (BEAST) school buses,” said Paul Start, GreenPower’s Vice President of Sales, School Bus Group. “(The) GreenPower school bus order pipeline and production schedule are both at record levels with sales projections for (2025) set to eclipse the 2024 calendar year.”

GreenPower moved into an 80,000-square-foot production facility in South Charleston, West Virigina in August 2022, and delivered its first buses to that state the following year.

Electrek’s Take

GreenPower electric school buses
BEAST and NanoBEAST; via GreenPower Motor Company.

Since the first horseless carriage companies started operating 100 years ago (give or take), at least 1,900 different companies have been formed in the US, producing over 3,000 brands of American automobiles. By the mid 1980s, that had distilled down to “the big 3.”

All of which is to say: don’t let the recent round of bankruptcies fool you – startups in the car and truck industry is business as usual, but some of these companies will stick around. If you’re wondering which ones, look to the ones that are making units, not promises.

SOURCE | IMAGES: GreenPower Motors.

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Harbinger electric truck brand gets real with $100M Series B funding raise

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Harbinger electric truck brand gets real with 0M Series B funding raise

While some recent high-profile bankruptcies have cast doubt on the EV startup space recently, medium-duty electric truck maker Harbinger got a shot of credibility this week with a massive $100 million Series B funding round co-led by Capricorn’s Technology Impact Fund.

It’s been a rough couple of weeks for fledgling EV brands like Lion Electric and Canoo, but box van builder Harbinger is bucking the trend, fueling its latest funding round with an order book of 4,690 vehicles that’s valued at nearly $500 million. Some of the company’s more notable customers including Bimbo Bakeries (which owns brands like Sara Lee, Thomas’, and Entenmann’s) and THOR Industries (Airstream, Jayco, Thor), which is also one of the investors in the Series B.

Other prominent investors include Tiger Global, the Coca-Cola System Sustainability Fund, and ArcTern Ventures.

As for what makes Harbinger such an attractive investment prospect, Dipender Saluja, Managing Partner of Capricorn Investment Group’s Technology Impact Fund explains that, “Harbinger has demonstrated a remarkable ability to reach significant milestones far quicker than other EV companies … the market has been impressed by their ability to develop large portions of the vehicle in-house to drive down unit costs, while remaining capital efficient.”

The company plans to use the funds to ramp up to higher-volume production capacity and deliver on existing orders, as well as build-out of the company’s sales, customer support, and service operations.

“Harbinger is entering a rapid growth phase where we are focused on scaling production of our customer-ready platform,” said John Harris, co-founder and CEO. “These funds catalyze significant revenue generation. We’ve developed a vehicle for a segment that is ripe for electrification, and there is a strong product/market fit that will help fuel our upward trajectory through 2025 and beyond.”

The company has raised $200 million since its inception in 2021.

SOURCE | IMAGES: Harbinger.

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Michigan State Police deploy their first electric patrol vehicle

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Michigan State Police deploy their first electric patrol vehicle

There is no state more associated with cars and car culture than Michigan – and the state that’s home to the Motor City has just taken a huge step into the future with the deployment of its first-ever all electric police vehicle.

The 2024 Ford Mustang Mach-E patrol vehicle is assigned to the Michigan State Police State Security Operations Section, and will be to be used by armed, uniformed members of the MSP specializing in general law enforcement and security services at state-owned facilities in the Lansing, MI area.

“This is an exciting opportunity for us to research, in real time, how a battery electric vehicle performs on patrol,” says Col. James F. Grady II, director of the MSP. “Our state properties security officers patrol a substantially smaller number of miles per day than our troopers and motor carrier officers, within city limits and at lower speeds, coupled with the availability of charging infrastructure in downtown Lansing, making this the ideal environment to test the capabilities of a police-package battery electric vehicle.”

The MSP’s Precision Driving Unit is nationally renowned for its annual Police Vehicle Evaluation, which our own Scooter Doll participated in last year, driving the then-new Chevy Blazer EV Police Pursuit Vehicles in a game of “cops and robbers.”

In those tests, the EVs have impressed – but the MSP has been hesitant to commit to a BEV until now. “We began testing battery electric vehicles in 2022, but up until now hybrids were the only alternative fuel vehicle in our fleet,” said Lt. Nicholas Darlington, commander of the Precision Driving Unit. “Adding this battery electric vehicle to our patrol fleet will allow us to study the vehicle’s performance long-term to determine if there is a potential for cost savings and broader applicability within our fleet.”

Michigan joins other states like Wisconsin and California in deploying electric patrol cars and saving big money on fuel and maintenance, with many more out there and many more to come.

SOURCE | IMAGES: Michigan State Police.

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