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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, August 29, 2023.

Brendan McDermid | Reuters

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

Some up, some down
U.S. stocks were mixed Wednesday, with the Dow Jones Industrial Average slipping 0.2%, the S&P 500 mostly unchanged and the Nasdaq Composite adding 0.22%. The 10-year Treasury yield hit its highest since 2007. Asia-Pacific markets fell Thursday as Japan’s Nikkei 225 led losses in the region. Meanwhile, the Singapore Exchange, in an attempt to revive itself, launched its first structured certificate.

Fuel to the fire
Oil prices surged to their highest in over a year during Asian trading hours. Futures for West Texas Intermediate crude rallied around 1% to $94.61 while Brent added 0.86% to $97.38. The spike in price’s largely because of a report that crude inventories in Cushing, Oklahoma fell close to their operational minimum.

Exchange suspends Evergrande
Shares of China Evergrande Group were suspended Thursday. The move comes after Bloomberg reported that Evergrande’s chairman was placed under police surveillance. On Wednesday, Evergrande reported a loss attributable to shareholders of 33 billion yuan ($4.15 billion) for the six months ended June. Total net loss for 2021 and 2022 hit $82 billion.

Meta doubles down on the metaverse
Meta announced Quest 3, the latest version of its virtual reality headset. Available for $499 — $200 more expensive than the Quest 2 — the headset includes a feature called “passthrough” that allows users to see the world outside quickly. At the company’s event, Meta also announced new artificial intelligence software and digital assistants modeled by celebrities.

[PRO] Real yields, real losses
It’s not just U.S. Treasury yields that have been hitting surging lately. Real yields — that is, the yield after factoring in inflation — are also at their highest in decades. That spells trouble for global stocks that have “long duration exposures,” according to Morgan Stanley.

The bottom line

September’s story hasn’t changed: High yields and oil prices are dragging down stocks. But a twist in the story — a potential and increasingly unavoidable U.S. government shutdown — is making it truly difficult for stocks to have any confidence to climb.

Let’s look at each factor in turn.

Yields on the U.S. 10-year Treasury breached 4.6%, while that of the 2-year Treasury inched up to 5.137% yesterday. If yields continue on their upward trend, it’s likely they’d trigger fresh fears of recession as the cost of borrowing increases.

Rising Treasury yields aren’t the only costs weighing on the economy — oil prices are surging again. As oil is an input cost for so many components of the economy — from the obvious like gasoline for vehicles, to the more unexpected like food and grocery prices — there’s a possibility companies and consumers will cut back on spending.

Last, a government shutdown means economic data will be delayed, hobbling a Federal Reserve that’s repeatedly said it’s “data-dependent.” With interest rates the highest they’ve been in more than 20 years, even the most careful calibration will have an outsized impact on the economy. Going at it blind — through no fault of the Fed’s — won’t inspire confidence in markets.

And a shutdown risks another downgrade by ratings agencies. Indeed, the U.S. is weaker now, fiscally speaking, than it was in 2011 when S&P Global Ratings downgraded the country’s long-term credit rating from AAA to AA+, said John Chambers, former chairman of S&P’s ratings committee.

Even though September’s already ending, things, as BTIG’s Jonathan Krinsky puts it, “are likely to remain messy.”

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Wheel-E Podcast: 65 MPH ONYX moped, lightweight Dahon e-bikes, more

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Wheel-E Podcast: 65 MPH ONYX moped, lightweight Dahon e-bikes, more

This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes a new ONYX RCR 80V electric moped, new lightweight e-bike motors, Aventon’s powerful update, California cops catching illegal e-bike riders with drones, a super lightweight new e-bike from Dahon, and more.

Today’s episode is sponsored by CYCROWN, an e-Bike company born from a passion for cycling. Its lineup now includes the new CYCROWN Dremax – a high-performance urban commuter e-bike now on sale in the US and Canada. Use Electrek50 to save $50 off your new eBike when you order.

The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

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After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the Wheel-E podcast today:

Here’s the live stream for today’s episode starting at 9:00 a.m. ET (or the video after 10:00 a.m. ET):

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China’s nationwide ‘cash for clunkers’ trade-in program causing huge e-bike boom

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China's nationwide 'cash for clunkers' trade-in program causing huge e-bike boom

While much of the Western world is still figuring out how to get more people on electric bikes, China just flipped a switch, and the results are staggering. Thanks to a generous nationwide trade-in program rolled out around six months ago, China has seen an explosive surge in electric bicycle sales, with over 8.47 million new e-bikes hitting the road in the first half of 2025 alone.

The program, which offers subsidies to riders who trade in their old, often outdated electric bikes for newer, safer, and more efficient models, has sparked a new e-bike sale boom in a country already dominated by e-bike travel. In major provinces like Jiangsu, Hebei, and Zhejiang, over one million new e-bikes were sold in each region in just six months. That’s a tidal wave of e-bike sales.

The incentives vary depending on location and the model being traded in, but for many consumers, the subsidies cover a substantial portion of a new e-bike’s price – enough to turn a “maybe next year” purchase into a “right now” upgrade. And these aren’t just budget bikes either. The program has driven demand for higher-quality models with better batteries, safer braking systems, and more reliable electronics, accelerating both adoption and innovation across the industry.

The move has proven successful in replacing the millions of older models with lower-quality lithium-ion batteries that had posed safety risks around the country. Instead, China has pushed for higher-quality lithium-ion batteries, a return to a newer generation of higher-performance AGM batteries, and even interesting new sodium-ion battery options.

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Most e-bikes in China look more like what we’d consider seated scooters

According to China’s Ministry of Commerce, more than 8.4 million consumers have participated in the e-bike trade-in program so far, contributing to a sales increase of 643.5% year-over-year and more than doubling sales month-over-month. Meanwhile, production of new electric bicycles rose by nearly 28%, as manufacturers scrambled to meet demand. The sales boosts have already been seen in the financial reports of major industry players like NIU.

And it’s not just the big players benefiting – over 82,000 small independent e-bike dealers reported average sales increases of ¥302,000 (around US $42,000), giving a serious boost to local economies.

What’s particularly striking here is how fast this happened. The program was officially launched late last year as part of a broader effort to stimulate domestic consumption and phase out outdated vehicles and appliances. But while most analysts expected gradual growth, the e-bike sector responded much more quickly. In less than a year, the trade-in subsidies have reshaped the electric bicycle market, creating a consumer-driven boom that shows no signs of slowing.

For those of us watching from outside China, it’s hard not to wonder what might happen if other countries tried something similar. While most families in Chinese cities already own an electric bike and thus see this as an opportunity to trade it in for a newer model, Western countries like the US are still figuring out how to stimulate commuters into buying their first e-bike.

It’s too soon to know exactly how long the boom will last or whether the momentum will carry into 2026 and beyond. We’ve seen bicycle industry bubbles grow and burst before. But one thing’s clear: with the right incentives, even modest ones, it’s possible to ignite real, large-scale change. China just proved it with nearly 8.5 million new e-bikes to show for it.

And if you’re wondering what it looks like when a country takes electric micromobility seriously, this is it.

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Day 1 of the Electrek Formula Sun Grand Prix 2025 [Gallery]

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Day 1 of the Electrek Formula Sun Grand Prix 2025 [Gallery]

Today was the official start of racing at the Electrek Formula Sun Grand Prix 2025! There was a tremendous energy (and heat) on the ground at NCM Motorsports Park as nearly a dozen teams took to the track. Currently, as of writing, Stanford is ranked #1 in the SOV (Single-Occupant Vehicle) class with 68 registered laps. However, the fastest lap so far belongs to UC Berkeley, which clocked a 4:45 on the 3.15-mile track. That’s an average speed of just under 40 mph on nothing but solar energy. Not bad!

In the MOV (Multi-Occupant Vehicle) class, Polytechnique Montréal is narrowly ahead of Appalachian State by just 4 laps. At last year’s formula sun race, Polytechnique Montréal took first place overall in this class, and the team hopes to repeat that success. It’s still too early for prediction though, and anything can happen between now and the final day of racing on Saturday.

Congrats to the teams that made it on track today. We look forward to seeing even more out there tomorrow. In the meantime, here are some shots from today via the event’s wonderful photographer Cora Kennedy.

Stay tuned for more!

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