Traders work on the floor of the New York Stock Exchange during morning trading on August 12, 2024 in New York City.
Michael M. Santiago | Getty Images News | 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.
September rate cut Philadelphia Fed President Patrick Harker endorsed an interest rate cut for September during an interview with CNBC at the Fed’s Jackson Hole retreat. His comments follow minutes from the central bank’s last meeting indicating growing confidence in inflation trends and concerns about labor market weakness. “I think it means this September we need to start a process of moving rates down,” Harker said, adding the Fed should ease “methodically and signal well in advance.” Harker is undecided between a 25 or 50 basis point reduction. CNBC’s Jeff Cox has more on what to expect from Powell’s speech.
Peloton soars Peloton posted its first sales increase in nine quarters, driven by cost-cutting measures and a focus on profitability. Sales rose by 0.2% to $643.6 million during its fiscal fourth quarter. The troubled connected fitness company also narrowed its losses to $30.5 million, compared to a loss of $241.8 million a year ago. Peloton has struggled post-pandemic and is currently run by two board members since former CEO Barry McCarthy resigned earlier this year. The company’s shares shot up as much as 40% after the earnings release.
Covid jab approval The Food and Drug Administration has approved updated Covid vaccines from Pfizer and Moderna amid a summer surge of the virus. The vaccine targets the KP.2 strain, a descendant of omicron subvariant JN.1, although it was the dominant strain in May it now accounts for about 3% of cases. However, both drugmakers say the KP.2 jab can produce a stronger response against other variants, such as KP.3 and LB.1.
Driverless rides General Motors‘ Cruise has partnered with Uber to offer driverless rides to Uber users as early as next year. The move comes as Cruise attempts to revive its robotaxi venture aftera serious accident last year and subsequent investigations, which led to the resignation of its CEO and co-founder.Uber abandoned its own self-driving project after a fatal 2018 incident and now collaborates with other developers like Google‘s Waymo.
[PRO] Bullish signals With the S&P 500 within touching distance of its July all-time high, Ned Davis Research chief U.S. strategist Ed Clissold suggest stocks could rally after two signals flashed in the stock market’s favor this week.
The bottom line
Whether traders are working from home or in the office, at 10 a.m. ET everything will come to a halt as Fed Chair Jerome Powell delivers one of the most anticipated economic speeches of the year.
With the “vast majority” of Fed members advocating for a rate cut in September, markets are banking on a 100 basis point reduction for 2024. The expectation suggests at least one 50 basis point cut, given that there are only three rate-setting meetings left this year.
“I don’t think he’s going to pre-commit to a specific easing path,” Brown told CNBC. “Instead, I think he’s going to frame it as they will be data dependent and they will let the data guide them in terms of their decisions.”
“A lot of his speech will focus on the risks of being too aggressive with rate cuts versus being too late to cut rates — and I think his comments will really focus in on trying to find that middle ground, which helps to maintain or safeguard the economic expansion while ensuring inflation remains contained.”
Henry Allen, Deutsche Bank macro strategist, thinks the market’s rate cut forecasts for the next year are overly dovish given the current state of the economy. Markets are “pricing 200 bps of cuts in the next year alone and those are the sort of paces you only normally see during a recession, not in a non-recession.”
Despite this, the Fed has faced criticism for keeping rates high for too long, with some arguing that its heavy reliance on data could negatively impact the economy and stocks.
“A soft landing, the probabilities are going up, and that’s why this should be a benign cutting cycle … good for markets. But I think the key is the Fed getting off data dependence, because data dependence is the reason they missed the inflation turn,” Tom Lee, Fundstrat’s head of research, told CNBC’s “Squawk Box” in an interview Thursday.
— CNBC’s Jeff Cox, Fred Imbert, Gabrielle Fonrouge, Lora Kolodny, Pia Singh, Alex Harring and Spencer Kimball contributed to this report.
National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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