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The Dow Jones Industrial Average plunged more than 500 points on Tuesday after hot inflation data for January dimmed hopes that the Federal Reserve would begin cutting interest rates next month.

The Dow, which tumbled as 750 points, slid 1.4% — its worst day since since March 2023. The S&P 500 slipped 1.4%, while the tech-heavy Nasdaq Composite fell 1.8%.

Both the Dow and the S&P 500 had hit record highs this year before plunging following the release of the Consumer Price Index, which rose a stiffer-than-expected 3.1% on an annual basis.

The figure — which tracks changes in the costs of everyday goods and services — remains far off from the Fed’s 2% target.

Core CPI a number that excludes volatile food and energy prices increased 0.4% in January, to 3.9%.

The figure, a closely-watched gauge among policymakers for long-term trends, was also higher than what economists anticipated.

“Inflation staying sticky is everyone’s biggest fear and this report is showing its not going down,” Chris Zaccarelli, the chief investment officer of Independent Advisor Alliance, said. “The knee- jerk reaction is for stocks and bonds to sell off. That makes sense. Then we’ll wait for the next report and if that’s lower this will turn out to be just a blip.”

The increase could delay the prospect of three interest rate cuts the Fed anticipates to make in 2024.

Wall Street had initially expected that the first time rates were brought down from their current 22-year high would be in March.

Fed Chair Jerome Powell said after the latest policy meeting that “it’s not likely that this committee will reach that level of confidence in time for the March meeting.”

The CME FedWatch Tool shows that a May rate is also largely off the table.

The probability of a May rate cut slumped from 52.2% to 36.6% on Monday while the chance of a slash in June now stands at 78.6%, down from 92.2%.

Atlanta Fed President Raphael Bostic, who is voting on the Federal Open Market Committees policy decisions this year, told CNN that he’s anticipating the first of three cuts to take place in the fourth quarter — weeks after the mid-year slowdown Wall Street is now expecting.

By the end of the year, inflation will be near “the lower twos,” he said.

This isnt a TikTok video or something like that where you get trends happening so fast. It takes a while for the decisions of individual decisions and millions of people to come together and to start to create trends, he told CNN.

At the same time, theres a significant risk if the Fed leaves interest rates where they currently are for too long, Bostic warned.

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He also noted how difficult it’s been to tamp down inflation as the job market has remained surprisingly strong.

Januarys monthly jobs report added a blockbuster 353,000 new jobs to the economy — nearly double analysts’ expectations. 

Although inflation appears to be slowing, the economy remains Americans overall top concern, cited by 22% of poll respondents, as they have struggled with inflation and other aftershocks of the COVID-19 pandemic, according to a Reuters/Ipsos poll released last month.

Since taking office, Biden has made a pitch for lower supermarket prices, pushed drug makers to lower insulin costs, hotel chains to reduce fees and tried to diversify the meat-packing industry after beef prices skyrocketed in the aftermath of the pandemic.

Alfredo Ortiz, president and CEO of Job Creators Network, told The Post in a statement that “inflation remains historically high and is nothing to cheer about.”

“Talk to any American going to the grocery store, hardware store or pharmacy, and they’ll tell you prices continue to rise at a painful rate.”

A December 2023 report on shrinkflation — when businesses cut product sizes but keep prices the same — found that household paper products were 34.9% more expensive per unit than they were in January 2019, with about 10.3% of the increase due to producers shrinking the sizes of rolls and packages.

Researchers also found that the price of snacks like Oreos and Doritos had gone up 26.4% over the same period, with shrinking portions accounting for 9.8% percent of the increase.

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MG begins deliveries of the world’s first mass-produced EV with a semi-solid-state battery

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MG begins deliveries of the world's first mass-produced EV with a semi-solid-state battery

SAIC MG delivered the first MG4 model with a semi-solid-state EV battery in China, starting at under $15,000.

The MG4 is the first EV with a semi-solid-state battery

In August, SAIC MG launched the all-new MG4 at the Chengdu Auto Show, deeming it “the world’s first mass-produced semi-solid-state” electric vehicle.

The new MG4 is available in five different trims: Comfort, Ease, Freedom, Smart, and the semi-solid-state “Secure” edition.

SAIC MG announced on Thursday that it had delivered the first MG4 equipped with the new battery tech. The new MG4 is on sale starting at 68,800 RMB ($9,800), with prices rising to 102,800 yuan ($14,500) for the semi-solid-state battery model.

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It’s available with two lithium iron phosphate (LFP) battery sizes: 42.8 kWh or 53.95 kWh. The three lowest-priced trims are equipped with the smaller (42.8 kWh) battery, providing 437 km (271 miles) CLTC driving range, while the Smart version uses the 53.95 kWh battery, delivering 530 km (330 miles) of range.

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The new MG4 with a semi-solid-state EV battery (Source: SAIC MG)

Meanwhile, the semi-solid-state variant is powered by a 53.95 kWh semi-solid manganese-based lithium-ion battery, delivering 530 km (330 miles) of CLTC range.

All new MG4 models are powered by a single front-mounted “six-in-one” electric motor with 120 kW (161 hp) and 250 Nm torque. Using DC fast charging, it can recharge from 30% to 80% in 20 minutes.

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The new MG4 (Source: SAIC MG)

The electric hatch is 4,395 mm long, 1,842 mm wide, and 1,551 mm tall, with a wheelbase of 2,750 mm. That’s about the size of the BYD Dolphin.

Like most Chinese EVs nowadays, the new MG4 is loaded with modern tech and features. The smart cockpit is powered by a Qualcomm Snapdragon 8155 in-car chip.

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The interior of the new MG4 with a semi-solid-state battery (Source: SAIC MG)

While the three lower-priced trims feature a 12.8″ central infotainment screen, upgrading to the Smart and semi-solid-state models adds a bigger 15.6″ display with 2.5K resolution.

The company said that by reducing the liquid electrolyte content to just 5%, the semi-solid-state EV battery significantly reduces the risk of combustion and improves the cycle life.

In two recent needle penetration tests, the new battery produced no smoke, no fires, and no explosions after two hours. SAIC MG said it was an industry first, exceeding industry standards by 20%.

SAIC MG delivered over 13,000 new MG4 models in November. It’s also the best-selling independent Chinese car brand overseas, A “beacon of Chinese automotive success,” in the EU and British markets, the company said.

Source: CarNewsChina, SAIC MG

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GM considers former Tesla Autopilot head Sterling Anderson as next CEO, report says

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GM considers former Tesla Autopilot head Sterling Anderson as next CEO, report says

GM CEO Mary Barra is reportedly considering Sterling Anderson, the former head of Tesla Autopilot and co-founder of Aurora, as her potential successor. But first, she is putting him through a “tough test” in his new role as Chief Product Officer.

We reported back in May that GM hired Anderson as its new Chief Product Officer in a surprising move that put a tech executive in charge of the legacy automaker’s entire vehicle development program.

Anderson is well-known in the EV community. He led the Model X program at Tesla and was the director of the Autopilot program during its formative years (2015-2016). He later left to co-found Aurora Innovation, a self-driving startup that has focused heavily on autonomous trucking.

Now, a new report from Bloomberg states that Barra sees Anderson as a frontrunner to replace her when she eventually steps down.

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According to the report, Barra is “gauging” Anderson for the top job by giving him a massive portfolio that serves as a trial by fire. Since joining in June, Anderson has been tasked with overseeing the end-to-end lifecycle of GM’s products, both gas and electric, including the critical integration of hardware and software.

The “test” essentially boils down to whether Anderson can successfully execute Barra’s vision of transforming GM into a tech-first company. This involves untangling the automaker’s software woes and delivering on the promise of “eyes-off” autonomous driving for personal vehicles, a pivot away from the robotaxi-focused strategy of its former Cruise unit.

While Barra, 63, hasn’t announced a retirement date, the pressure is on to find a leader who can navigate the rapid transition to electric and software-defined vehicles. If Anderson passes this “test,” he could become the first outsider with a tech background to lead the 117-year-old automaker.

Electrek’s Take

“Tech background” is not entirely true, but mostly accurate. He has spent a few years at Tesla and then built Aurora; both are in the auto industry, but certainly on the techy side of it. Before that, he spent years at MIT, and the ‘T’ stands for technology.

I’ve only had a few interactions with Sterling, but from what I could tell, he is a smart guy who was among the most realistic about autonomy at Tesla, which is probably why he didn’t last long at the head of the program and went on his own.

He helped build Aurora into a multi-billion-dollar company that is now seen as the leader in autonomous trucking.

GM is starting to build an extensive and impressive EV lineup, but it still has issues committing to high volume due to the political landscape, which, in my opinion, the company itself often lobbied the wrong way.

I think some fresh blood could help.

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House passes bill to ease permits for building out AI infrastructure

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House passes bill to ease permits for building out AI infrastructure

House passes bill that would help advance AI data center buildout

The House of Representatives on Thursday passed a bill aimed at making it easier to get federal permits to build infrastructure for artificial intelligence projects.

The bill, known as the SPEED Act, is backed Big Tech giants such as OpenAI, Micron and Microsoft

The bill cleared the House in a 221-196 vote, overcoming a conservative rebellion that nearly sank the legislation in a procedural vote earlier this week.

The bill now heads to the Senate, where it is likely to be part of a larger conversation around permitting reform. 

The SPEED Act’s proponents argue it is critical to help the U.S. outpace China and other global competitors in the race for AI dominance. 

“The electricity we will need to power AI computing for civilian and military use is a national imperative,” said Rep. Bruce Westerman, R-Ark., the bill’s sponsor and chair of the House Natural Resources Committee. 

The SPEED Act would reform the 1969 National Environmental Policy Act, which mandates federal reviews for projects that would impact the environment.

It would tighten the timelines for NEPA reviews and shrink the statute of limitations for NEPA litigation to 150 days from the current six years. 

Permitting reform has drawn bipartisan support recently as clean energy projects supported by Democrats became ensnared in permitting delays.

Pressure has built on Congress to act as AI has emerged as a key sector and power-hungry data centers have placed an increased strain on the electric grid. 

Read more CNBC politics coverage

The Democratic cosponsor of the bill, Rep. Jared Golden of Maine, said the SPEED Act would allow the U.S. to be “nimble enough to build what we need, when we need it.”

Most Democrats opposed the SPEED Act, however, demanding that any permitting bill overturn President Donald Trump‘s moves to choke renewable energy sources like offshore wind

Democratic resistance was only compounded after GOP leadership inserted language to exempt Trump’s efforts to block renewables from provisions in the SPEED Act that would limit the White House’s ability to arbitrarily yank permits it does not like.

The amendment was added after a standoff on the House floor during a procedural vote, where conservatives opposed to renewable energy demanded concessions for their votes.

“That provision codifies a broken permitting status quo,” said Rep. Scott Peters, D-Calif., who supports permitting reform but opposed the SPEED Act.

“I look forward to working with my colleagues across the aisle in the Senate to craft a bipartisan product that can become law.”

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