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Traders work on the floor of the New York Stock Exchange during morning trading on August 20, 2024 in New York City.

Michael M. Santiago | Getty Images

This report is from today’s CNBC Daily Open, our 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

Stocks advance
Wall Street
rose as minutes from the Federal Reserve meeting and revision to payrolls raised hopes of a rate cut. The S&P 500 edged up 0.42% and is within 1% of its all-time record close. The Nasdaq Composite advanced 0.57%. Both the indexes notched their ninth positive day of 10. The Dow Jones Industrial Average rose 55.52 points. Meanwhile, the yield on the 10-year Treasury fell, while U.S. oil prices dropped 1.7% to below $72 a barrel.

Fed rate cut imminent?
The Federal Reserve officials at their July meeting moved closer to an anticipated interest rate cut, indicating that a September reduction was quite probable. “The vast majority” of members “observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting,” the summary of the minutes from the Fed’s last meeting showed. Markets are fully pricing in a September rate cut. Some officials were inclined to start easing at the July meeting rather than waiting until September, citing progress on inflation and the unemployment rate. Separately, nonfarm payroll growth was revised down by 818,000, making a case for rate cuts.

Ford EV shift
Ford Motor is postponing production of a next-generation electric pickup truck and canceling plans for a three-row electric SUV, instead prioritizing hybrid models. The move will result in a $400 million charge and up to $1.5 billion in additional expenses. Ford will lower its EV capital expenditure from 40% to 30% as it responds to slower-than-expected EV adoption and profitability challenges.

China hits out
China criticized the European Union’s tariffs on electric vehicle imports after the bloc lowered duties on several automakers. China’s Ministry of Commerce accused the EU of reaching “pre-set conclusions” in its subsidy investigation and promoting unfair competition. “China will take all necessary measures to resolutely defend the legitimate rights and interests of Chinese companies,” a commerce ministry spokesperson said, according to a Google translation. The EU lowered tariffs for Tesla, BYD, Geely, and SAIC.

Microsoft Recall
Microsoft plans to introduce its controversial Recall AI search feature for Windows users to test in October. Recall captures screenshots of on-screen activity, raising security concerns about potential exposure of personal information to hackers. While the feature will be disabled by default and Microsoft has committed to enhancing security, the company has not provided a timeline for a wider release of Windows featuring Recal.

[PRO] Crypto to data
Morgan Stanley sees potential for crypto miners to boost profits by converting their facilities into data centers, citing significant upside potential. Here are the miners that could possibly benefit

The bottom line

Ford‘s decision to slow the pace of its electric vehicle expansion and shift to hybrid technology probably shouldn’t come as a surprise. Consumers aren’t particularly enamored by the prospect of paying premium prices for vehicles with limited range, whose value plummets drastically compared to combustion engine vehicles. 

Amid EV hurdles, the road to net zero emissions by 2050 seems full of potholes. While Ford isn’t alone, OPEC and the International Energy Agency are at odds over when peak oil demand will materialise. The IEA, advisor to rich industrialised nations, brought its prediction forward to 2029. OPEC, on the other hand, doesn’t see a peak in oil demand in its long-term forecast.

OPEC projects that demand will rise to 116 million barrels per day by 2045, while the IEA predicts a peak at 105.6 million barrels within the next five years. OPEC Secretary General Haitham Al Ghais criticized the IEA’s report as “dangerous commentary,” warning that it could lead to unprecedented energy market volatility, particularly for consumers.

Amid stretched forecasts and slack EV take-up, Aramco, the Saudi oil giant, bought a 10% stake in engine manufacturer Horse Powertrains, a partnership between France’s Renault and China’s Geely. The joint venture anticipates that half of the vehicles on the road by 2040 will still be powered by combustion engines.

With Horse Powertrains car manufacturers can stop producing their own engines and instead source them from the company. Horse CEO Matias Giannini told the Financial Times, “If you are a car company today and you are focusing 100% on EVs and all of a sudden you realize that in one region your customers want a hybrid vehicle, you could partner with Horse Powertrains.”

Saudi Arabia, however, does not want to miss out on EVs, and is also investing in pure electric ventures, such as Lucid Group, which recently received a much-needed $1.5 billion investment. Additionally, the country is developing its own EV brand, Ceer, in collaboration with Foxconn.

Ford’s decision to slow its EV expansion was well-received by investors, boosting the stock by 1.6%. As for the broader market, it shook off earlier losses and rose after Fed’s minutes from their July meeting signaled a possible rate cut. 

With the nonfarm payroll data revised sharply lower, LPL Financial chief economist Jeffery Raoch suggests the Fed may opt for a larger interest rate cut in September

“A deteriorating labor market will allow the Fed to highlight both sides of the dual mandate and investors should expect the Fed to prepare markets for a cut at the September meeting,” Roach said. “A weaker-than-expected job market could pave the way for the Fed to cut by a half percentage point in September.”

CNBC’s Jeff Cox, Alex Harring, Samantha Subin, Pia Singh, Jordan Novet, Michael Wayland, Melissa Repko and Spencer Kimball contributed to this report.

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Volvo DD25 Electric compactor gets to work in Yolo County, California

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Volvo DD25 Electric compactor gets to work in Yolo County, California

Yolo County, California depends on its climate for continued agricultural success. As such, the county’s leaders are taking environmental stewardship seriously by aiming for full carbon neutrality by 2030. To help achieve that goal, they’re putting zero-emission machinery like the Volvo DD25 Electric compactor to work.

We got our first chance to sample the DD25 Electric at Volvo Days last summer, where the all-electric tandem roller’s vibrating drums impressed dealers and end users alike. It was no surprise, then, that when Yolo Country fleet superintendent, Ben Lee, when shopping for a compactor the DD25 Electric was high on his list.

“The DD25 Electric will help us achieve our goals in several ways,” explains Lee. “By reducing emissions, lowering noise levels, being more energy-efficient, improving working conditions and promoting environmentally friendly practices … we’ll use it to compact soil, gravel and other base materials for road and foundation projects, as well as rolling out and leveling asphalt during road construction and resurfacing.”

To help Lee handle those various projects, the Volvo’s drum frequency can be adjusted from 3500 vpm (55 Hz) to 4000 vpm (67 Hz) to cater to different applications and materials.

The DD25 Electric offers other benefits, as well – like a 20 kWh 48V battery that offers up between six and eight hours of continuous operation. That’s could be several shifts in the kind of conditions Yolo’s work crews will encounter, meaning it will only have to get put to bed (Volvo recommend overnight AC charging) two or three times a week.

Getting power to the compactor, too, is something Yolo is considering. “There are some remote areas in the county, so we’re looking into a mobile, self-contained charging unit as well,” explains Lee, apparently referencing the Volvo PU130 mobile battery. “So we wouldn’t have to bring the machine back to the yard each night during a long-term project.”

Yolo County views electric equipment as an essential step in reducing emissions and energy consumption, especially as communities work towards stricter regulations and sustainability goals.

Electrek’s Take

Ed Galindo, E-Mobility Product Manager at VCES, educates Yolo employees; via Volvo CE.

This press release came to us ahead of the devastating wild fires in Southern California that are dominating headlines right now – so much so that I effectively sat on the news for a few days, debating whether or not we should even be talking about a California news story that isn’t about the fires right now.

But I realized: this story is about the fires. Climate change driven by combustion and carbon emissions is driving climate change and that’s making fires like these possible … and I should have run it sooner.

SOURCE | IMAGES: Volvo CE.

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CES2025 | Kubota brings electric equipment, robots, and hydrogen to CES

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CES2025 | Kubota brings electric equipment, robots, and hydrogen to CES

Kubota came to this year’s CES with a sprawling display filled with electric equipment, hydrogen gensets, and an onslaught of commercial robots ready to mow, farm, dig, and build. If you weren’t impressed by Kubota’s display this year, you weren’t paying attention.

Kubota gave us a sneak peek of its KATR farm robot – itself a smaller, updated version of last year’s New Agri Concept – before the doors officially opened last week. Kubota’s robotic farm buddies promise to be able to quietly and autonomously haul stuff from one end of the farm to another, or pull carts and specialized implements along predetermined paths.

KATR uses self-leveling technology and active suspension to ensure its cargo deck stays level when working on the sort of uneven terrain found on farms or construction sites.

Kubota KATR w/ self-leveling cargo deck; photo by the author.

That doesn’t mean the New Agri Concept is dead, though. Agri Concept 2.0 debuted as an electric tractor concept offering AI-powered automation and a fully electric powertrain. The new version features a Lite Brite-style “grille” that it uses to communicate its current mode, direction, and other important information with the people it shares a job site with.

On the more practical side, Kubota showed off its KX38-4e Electric compact excavator. First shown in overseas markets in 2022, the KX38-4e Electric features a 49.2 kWh lithium-ion battery that’s good for up to five hours of continuous operation. More than enough to complete a typical day of work on a construction site when you factor out idle time.

An onboard DC fast charger means it can be quickly recharged between shifts, too. But when there’s no grid power on the site, charging can be a challenge. That’s why Kubota has hydrogen genset for zero-emission on-site power generation.

Looked at individually, each of the new electric Kubota products on display might be impressive. The real magic, though, is in the way the Kubota machines work together as a holistic job site or farm solution.

“At Kubota, we believe that truly listening to our customers drives innovation in every aspect of what we call the ‘Work Loop’,” explains Brett McMickell, Chief Technology Officer of Kubota North America. “The Work Loop — an essential cycle of assessing, analyzing, and acting — has always been fundamental to effective task management. With the integration of advanced sensors, AI-driven analysis, networking protocols, automation, and robotics, we are enhancing this cycle to be more seamless and efficient than ever before.”

That was obvious in some of the more thoughtful implements and attachments on display, including a Smart Plant Imager that uses advanced robotics and “hyper-spectral imaging” cameras to capture real-time data and insights on a plant-by-plant level – as well as a Smart Autonomous Sprayer and Robotic Pruner that that classifies buds and canes based on position and fruiting potential, it optimizes production precision and accuracy.

The more you look, the more impressive Kubota’s farming solution gets. “We will continue to learn from many of our customers across segments to iterate the next product and technology solution that will help them manage tomorrow’s challenges and grow their businesses,” McMickell added. “This is how Kubota works to make a better quality of life for individuals and society.”

There was more, of course. Autonomous versions of the company’s electric zero-turn mower with GPS-powered route memory, fun accessory baskets for the robots, even a weird, jet engine looking thing that I forgot to ask about (below). I was genuinely impressed, in other words, and can’t wait to see what Kubota comes up with next year.

Kubota CES2025 | more photos

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Tenways C GO 600Pro commuter e-bike is as smooth as it gets

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Tenways C GO 600Pro commuter e-bike is as smooth as it gets

The e-bike industry has stalled a little bit in terms of features, and with harsh new legislation coming in from places like California, maybe it is time to start looking at e-bikes that are light, efficient, and smooth rather than how much wattage they can output. The Tenways CGO 600Pro, which comes in at just 37 pounds, is a model e-bike you should keep an eye on…

The CGO 600Pro comes in 2 flavors: a carbon belt single-speed version that Micah reviewed and this one, which is a chain and 8-speed Shimano gears. The belt drive is going to win out on simplicity and weight but if you are expecting to get close to the ‘class 1’ top speed of 20mph or need to go up some significant hills, you’ll want to opt for the chain/gear version here.

One thing I love about this bike is the tradeoff decisions. These keep the price low and weight down while still providing a great ride. The spec sheet overall is solid but not top-shelf.

Tenways CGO600 Pro tech specs (chain/geared version)

  • Motor: 350 Watt rear hub motor with 45 Nm of torque
  • Top speed: 20 mph (32 km/h)
  • Range: Claimed up to 53 miles (85 km)
  • Battery: 36V 10Ah (360 Wh)
  • Weight: 37 lb (16.8 kg, over 40lbs with fenders, kickstand, etc)
  • Frame: 6061 aluminum alloy
  • Tires: CST Puncture-proof 700*45C-size Tires
  • Brakes: Tektro dual-piston hydraulic disc brakes
  • Gearing: Shimano 8-Speed Claris
  • Extras: Compact LED display, 4 pedal assist levels, slim fender set, kickstand, internally routed cables, LED lighting, removable battery, Tenways app integration, torque sensor, four color options

No Throttle?

Note that as a class 1 e-bike, neither belt/chain version has a throttle. While this may be controversial to some, it not only simplifies the bike, it makes it a Class 1, which will be legal in the most places. I tend to think of no throttle as a “foot throttle” and for the commuter application, this will serve well. Would I appreciate a throttle on a hill start? Perhaps.

The idea of this bike is to just enhance your pedal bike experience. You are going to get some exercise on this bike versus a bike that is a glorified low-power moped that runs on throttle with vestigial pedals.

More importantly, the torque sensor here is phenomenal; I mean, it is probably the best torque sensor I’ve ridden connected to a rear hub motor. The acceleration is smooth and strangely powerful for the 350W/45nm motor. Significant hills are a breeze, and this is one of the few bikes where I forget that I’m using an e-bike sometimes (until I look down and I’m going 20mph with little effort). Hills are also where the gearing really helps.

The tires are also the perfect size for a commuter with puncture resistance and treads that will do OK in rain and snow.

The bike itself is also very stealthy in terms of showing that it is a powered e-bike. The small 36V, 10Ah battery is integrated magnificently into the narrow downtube of the bike. All of the cables are integrated into the bike frame for a super-clean look. The rear hub motor is small but packs a punch. Many people won’t even recognize this as an e-bike. While I’m proud to be riding an e-bike around, perhaps some people would like to keep that on the down-low.

Brakes are great with hydraulic Tektros clasping against 160mm rotors in front and back. It is such a light bike that stopping can be jarring.

Assembly was super easy and took about 30 minutes with the included tool set. The battery came about 40% charged but was ready to go within a few hours with the 3A charger. Shoutout to Tenways for using a water-resistant standardized barrel charger adapter and not some proprietary adapter so that I can use one from another bike when I inevitably lose it.

Electrek’s take

The Tenways CGO600 is a fantastic light, clean, stiff and smooth e-bike that I have 0 reservations about recommending. While the battery and motor are small, they power the light bike admirably and for around 50 miles (your mileage will vary).

Currently there is a $200 off promotion code “HAPPY2025TW” at checkout bringing the CGO600Pro down to $1399 which is an amazing price for this bike:

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