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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.

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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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What EV sales slump? Illinois’ EV sales outpace the nation by 4:1

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What EV sales slump? Illinois' EV sales outpace the nation by 4:1

Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.

Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.

Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)

What’s going on in Illinois?

File:Illinois Governor J. B. Pritzker (33167937268).jpg
Illinois Governor JB Pritzker at the Chicago Auto Show; by Ray Cunningham.

While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.

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At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).

We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.

SOURCES: Chicago Business, Ray Cunningham; featured image by the author.

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XCMG launches XE215EV battery swap electric excavator ahead of bauma

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XCMG launches XE215EV battery swap electric excavator ahead of bauma

The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.

Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.

XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.

We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).

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XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?

Easy in, easy out

XCMG battery swap crane; via Etrucks New Zealand.

The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.

You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.

SOURCE | IMAGES: XCMG.

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Volvo shows off production PU500 battery energy storage system

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Volvo shows off production PU500 battery energy storage system

As “extreme” weather events become more commonplace, the demand for reliable and portable energy continues to rise. In response to that growing demand for dependable off-grid power, Volvo has developed the new PU500 Battery Energy Storage System (BESS) designed to take electrical power when it’s needed most.

Designed to be deployable in a number of environments at a moment’s notice, the Volvo Energy PU500 BESS is equipped with approximately 500 kWh of usable battery capacity (up to 540 kWh total). More than enough juice, in other words, to power a remote construction site, disaster response effort, or even a music festival – anything that needs access to reliable electricity beyond a grid connection.

That’s great, but what sets the PU500 apart from other battery storage solutions is its integrated 240 kW DC fast charger.

“With an integrated CCS2 charger, the PU500 is designed to work with all brands of electric equipment, trucks, and passenger cars,” says Niklas Thulin, Head of BESS Product Offer at Volvo Energy. “This ensures that no matter what type of electric vehicle or machinery you rely on, the PU500 can provide the power you need, making it a truly flexible solution for any grid constrained site or location.”

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The integrated charger in the PU500 has the impressive ability to charge a heavy equipment asset (be that an electric semi truck or something like a wheel loader) in under two hours. Its on-board capacity allows to fully recharge up to 3 electric HD trucks or 20 electric cars per day, making it an incredibly versatile disaster response asset.

Electrek’s Take

Stockholm progresses with electric construction site from Volvo CE
Electric job site; via Volvo CE.

As we often say over at The Heavy Equipment Podcast, “just because you’re working for the power company doesn’t mean you have power,” and there are hundreds of scenarios where the extra power provided by something like the new PU500 would be useful. Its ability to be palletized and easily moved or swapped out of a larger BESS array, too, just add to its flexibility.

SOURCE | IMAGES: Volvo.

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