Market forecaster Jim Bianco expects inflation’s intensity to catch up with central bank policymakers worldwide, including the Federal Reserve.
The fallout could make stocks less attractive, and knock them off record highs.
“Inflation is persistent and you’ve got to start thinking about moving your policies more aggressively towards tightening,” the Bianco Research President told CNBC’s “Trading Nation” on Tuesday. “None of these central banks want to do that. They’re in denial that the markets are telling them that.”
Bianco points to trading activity in bonds.
“What’s happened in the markets in the last couple of weeks is short-term interest rates have moved up and moved up a lot especially in countries like Australia and New Zealand,” he said. “They’re saying that you’re behind the curve.”
According to Bianco, it’s evidence inflation is widening its grip across the globe. He contends it’s tough to just pin it on temporary supply chain issues.
Bianco lists wide-ranging issues from surging food and commodity inflation to wage growth as tell-tale signs the backdrop isn’t changing anytime soon.
‘Everywhere you turn prices are up’
“Everywhere you turn prices are up, and they’re going higher,” he said. “The Fed likes to use the word transitory. But every day it looks less transitory, and to use the opposite word more persistent.”
“If the market stay at these high interest rate levels on the short-end of the yield curve signaling that they should be moving faster, they’ll [the Fed] eventually come around to accepting that,” said Bianco. “You’re going to start to see more aggressive rate hikes in 2022 than most are giving credit for right now.”
At the moment, Bianco suggests the stock market is in a sweet spot. He sees retail investors vigorously putting money in stocks through year-end.
“You’ve got huge amounts of cash in accounts after 18 months of stimulus and people not spending money,” he said. “So, they’re figuring out ways to invest their money. Well, welcome to 2021. There’s really only one investment, and that is to buy an index ETF probably based on the S&P 500 like SPY [SPDR S&P 500 ETF Trust].”
But it appears the bullish activity would have a shelf life.
“If interest rates continue to head higher, and continue to put pressure on central banks and they kind of buckle and say ‘Maybe we ought to start thinking about persistent inflation in raising rates.’ Then, the market can be vulnerable,” Bianco said. “That’s probably not a story until next year. Maybe the first quarter.”
Multi-million-dollar grants adding up to more than $46 million from the US Federal Highway Administration (FHWA) will help support electrification efforts at several American ports.
The Long Beach Container Terminal (LBCT) in Long Beach, California has received a $34.9 million grant from the FHWA to replace 155 on-site commercial trucks and buses with zero-emission vehicles (ZEV). The grant will fund both the purchase of new electric trucks and the necessary charging infrastructure to support them.
LBCT said the grant dollars will allow it to continue its multi-billion dollar investments in more sustainable logistical operations. “Our vehicle electrification project, coupled with previous investments, enables LBCT to achieve a unique status that is reframing the way the world views sustainable goods movement, enhancing community quality of life and climate change,” said Anthony Otto, CEO of LBCT.
“This investment is a huge win for clean air, electrification and the region,” said US House Rep. Robert Garcia. “These federal dollars will make our port cleaner, safer and help us meet our climate goals.”
Container ports used to be some of the dirtiest, most heavily polluted areas in the world. That was bad for everyone – but it was especially bad for the people who lived and worked near them. That’s why any positive change is good. Beyond just “positive change,” however, ports today seem to be leading the way when it comes to electric vehicle and hydrogen adoption.
How things change!
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German equipment manufacturer Kramer showed off a pair of zero-emission equipment options at the Paris Intermat show last week – the 5065e electric wheel loader and 1445e electric telehandler.
Kramer says the quiet operation of its new electric wheel loader and telehandler are ideal for noise-sensitive areas such as city centers, cemeteries and golf courses, hotels, and suburban parks and recreation areas, where it can operate without emitting harmful diesel particulate matter and other forms of air pollution.
Kramer-Werke GmbH is serious about promoting its new EVs in the French market. “That’s why Intermat is an important platform for us,” explains Christian Stryffeler, Kramer’s Managing Director. “We are also looking forward to showcasing our new generation of (electric) wheel loaders and telescopic wheel loaders here.”
Kramer 5065e wheel loader
The 5065e loader is powered a 37.5 kWh, 96V lithium-ion battery that’s good for up to four hours of continuous operation – which is a lot more than it sounds, considering idle time in an EV doesn’t drain batteries the way idling a diesel drains fuel. A 23 kW (30 hp) electric motor drives the electric wheel loader around the job site, while a 25 kW (approx. 35 hp) motor powers the machine’s 40 liters hydraulic system.
Kramer says the battery on its electric loader can be fully charged in just 5.1 hours using a “Type 2 Wallbox” (that’s an L2 charger to you and me). Max payload is 1750 kg, with a 2800 kg tipping load. Top speed is 20 km/h (approx. 12.5 mph).
Kramer 1445e telehandler
The 1445e telehandler uses a 96V battery architecture that’s similar to the one in the wheel loader, but in a smaller 18 kWh or 28 kWh pack. This enables a fleet manager to right-size their equipment’s batteries to provide four hours of run time in different types of work environments. And, also like the wheel loader, a 23 kW (30 hp) electric motor provides the drive while a 25 kW (approx. 35 hp) powers the hydraulics.
Level 2 charging comes standard on Kramer’s electric telehandler, enabling a full charge of the larger, 28 kWh battery in about five hours. Max payload is 1450 kg.
Electrek’s Take
It’s always good to see more manufacturers pushing out electric equipment options. It’s still the “wild west” out there, even more so than in automotive, and Kramer’s offerings seem to be a step behind in some ways (no DCFC capability) and ahead in others (96V where others are 48V), so it’s hard to know where they stand.
The robotics experts at ETH Zurich have developed an autonomous excavator that uses advanced AI to help it complete high-skill tasks without a human operator.
Dry stone wall construction typically involves huge amounts of operator labor. Doing it right requires not just hours of labor, but hours of skilled, experienced labor. At least, it used to. If the crew at ETH is successful, building stone retaining walls will soon become a “set it and forget it” task for robots to complete. Robots like their HEAP excavator.
HEAP (Hydraulic Excavator for an Autonomous Purpose) is a customized Menzi Muck M545 developed for autonomous operation that uses electrically-driven hydraulics to operate an advanced boom arm equipped with draw wire encoders, LiDAR, Leica iCON site-mapping, and a Rototilt “wrist” on the end that makes it look more like a high-precision robotic arm than a traditional heavy equipment asset.
ETH HEAP tech stack
Which makes sense. After all: the ETH guys are roboticists, not skilled heavy equipment operators. So, how does their robot do against skilled operators?
“We are currently outperformed by human excavator operators in placement speed,” ETH researchers wrote in Science Robotics. “Such operators, however, typically require string and paint references with which to register their construction and often a second or third person outside the machine to provide guidance and to insert small supporting stones, gravel, and soil by hand and shovel. In contrast, our process can build complex nonplanar global surface geometries without physical reference markers, does not require a skilled driver or small supporting stones, and provides a full digital twin of the built structure for better accountability and future reuse.”
Translation: the robot is slower, but it gets the job done.
You can watch the ETH HEAP put all its onboard tech to work building a 215 foot long, 20 foot high retaining wall all on its own in the video, below.
Autonomous excavator constructs dry stone wall
The completed project can be seen at Circularity Park in Oberglatt, Switzerland, and illustrates the potential for autonomous equipment to build with irregularly-shaped materials. And with skilled operators in short supply everywhere, the potential to free up operators so they can go where they’re really needed.
That said, the electrically driven hydraulics and high-precision Rototilt wrist on the end of the boom arm’s “claw” alone make this futuristic excavator worth some attention. As more and more manufacturers switch to full electric or even “just” electric drive, research into better solutions for existing hydraulic equipment and expertise could lead to big market wins.
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