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Jerome Powell, chairman of the US Federal Reserve, during a roundtable event in York, Pennsylvania, US, on Monday, Oct. 2, 2023.

Ryan Collerd | Bloomberg | Getty Images

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

‘Policy should remain restrictive’
Federal Reserve officials were divided over the necessity of an additional interest rate increase, minutes of the central bank’s September meeting revealed. But they were unanimous on two points. First, they could “proceed carefully” on future decisions; second, that “policy should remain restrictive for some time until the Committee is confident that inflation is moving down sustainably toward its objective.”

Producer prices increased unexpectedly
The U.S. producer price index rose 0.5% for September, more than the expected 0.3% — but still lower than August’s 0.7% increase. On a yearly basis, producer prices increased 2.2%, the largest move since April and a tick above the Fed’s 2% inflation target. Core PPI, which excludes food and energy, rose 0.3% for the month.

Fourth straight winning session
U.S. markets rose Wednesday. All major indexes closed higher for the fourth consecutive session as Treasury yields pulled back slightly. Europe’s Stoxx 600 index inched up 0.15%. Shares of LVMH slipped 6.46% after the company reported third-quarter revenue grew 9% year on year, a sharp drop from 17% last quarter.

Exxon Mobil buys shale giant
Exxon Mobil has agreed to buy Pioneer Natural Resources, a big player in the shale industry, for $59.5 billion. The agreement’s structured as all-stock deal, which works out to $253 per share. This is Exxon’s biggest acquisition since buying Mobil in 1999 for about $75.3 billion at that time. Exxon’s production in the Permian Basin would more than double to 1.3 million barrels per day once the deal closes next year.

[PRO] What’s the SEC doing?
CNBC’s Bob Pisani is in Washington for the annual meeting of the Security Traders Association. There’s one theme dominating the conference this year: Trying to figure out what the Securities and Exchange Commission is doing — and how its actions will affect the future of the trading industry.

The bottom line

Investors shrugged off Fed minutes that tilted hawkish and a hotter-than-expected PPI report to give markets a fourth consecutive winning session.  

Though there were differences in opinion whether the Fed should hike rates one more time, Fed officials who were in favor of a hike outnumbered those who weren’t. “A majority of participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate, while some judged it likely that no further increases would be warranted,” stated minutes of the Fed’s September meeting, with my emphases added.

Chief among Fed members’ concerns was that “policy should remain restrictive for some time until the Committee is confident that inflation is moving down sustainably toward its objective.”

Unfortunately, September’s PPI report came in surprisingly hot. It’s true the PPI report focuses on producer prices, while the Fed tends to scrutinize the consumer side of the equation more. But the PPI, by charting inflation from the perspective of goods producers and service suppliers, serves as a leading indicator of where consumer prices will be in the future.

Hence, even if September’s consumer price index, which comes out later today, shows cooling prices, a hot PPI might persuade Fed officials that inflation isn’t exactly “moving down sustainably,” and compel them to keep policy higher for longer.  

“I think the overall trend of PPI, CPI and today’s Fed minutes are going to push the 10-year Treasury yield higher over the coming months,” said Derek Schug, head of portfolio management at Kestra Investment Management.

But investors weren’t fazed. Notably, yields on U.S. Treasurys actually fell — the 10-year note’s yielding 4.558%, compared with last Friday’s 4.782% — despite the prospect of higher-for-longer rates to combat stubborn inflation.

The S&P 500 rose 0.43%, the Dow Jones Industrial Average added 0.19% and the Nasdaq Composite advanced 0.71%, closing above its 50-day moving average for the first time in almost a month.

Investors could be feeling defiant — or wanting to seize the opportunity to snap up stocks at relatively cheaper prices — after September’s stocks slump. As long as the CPI print doesn’t give too unpleasant a surprise, this optimism might just continue.

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Elon Musk claims that Tesla’s always ‘coming next year’ Roadster can fly

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Elon Musk claims that Tesla's always 'coming next year' Roadster can fly

Elon Musk is again claiming that Tesla’s always “coming next year” Roadster will be able to fly.

The prototype for the next-generation Tesla Roadster was first unveiled in 2017, and it was supposed to come into production in 2020, but it has been delayed every year since then.

It has become a sort of running joke, and there are doubts that it will ever come to market despite Tesla’s promise of dozens of free new Roadsters to Tesla owners who participated in its referral program years ago.

But earlier this year, CEO Elon Musk made some rare new comments about the next-gen Tesla Roadster, reviving hope that the vehicle will finally happen.

Musk said that Tesla will unveil a much-needed updated version of the next-gen Roadster since the design of the yet-to-be-revealed vehicle is already 7 years old, and he said that vehicle would come to market in 2025.

We haven’t heard anything bout the vehicle since and it wasn’t in Tesla’s shareholders meeting presentation.

Now, Musk has again made a rare new comment about the new Tesla Roadster – saying that it “can fly”:

The CEO had previously talked about an updated version of the new Tesla Roadster with something called ‘SpaceX package’, which would include cold air thrusters that could theoretically make the vehicle “fly”, or rather jump and possibly hover, for short distances.

Electrek’s Take

It’s pretty funny that Elon is responding to a guy using the classic technology complaint that “we were promised flying cars, but they are never coming” with a vehicle that Tesla has been promising every year for the past 4 years.

At this point, the Roadster, like FSD, is something that entered the “put up, or shut up” phase.

Bring it or stop talking about it, especially the flying part. The Roadster was supposed to be the “halo effect” for electric cars. I’m not sure how the cold air trusters play into this.

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Tesla Cybertruck deliveries halted amid problem with giant windshield wiper

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Tesla Cybertruck deliveries halted amid problem with giant windshield wiper

Tesla has reportedly halted Cybertruck deliveries amid a problem with the motor of its giant windshield wiper.

The Cybertruck is equipped with the biggest wiper put on a consumer vehicle.

It’s the result of Tesla’s design, which aimed to have a straight line from the front-end all the way to the apex of the roof – resulting in nowhere to hide wipers between the hood and the windshield.

Instead, Tesla opted to have a single giant exposed wiper with a vertical resting position for aerodynamic reasons.

In my review of the Cybertruck, I noted that we had some problems with it, like starting on its own for no reason and staying down as a resting position rather than up. However, I chalked this up as being due to Tesla’s notoriously bad auto windshield wiper system, which is common on all Tesla vehicles – not just the Cybertruck.

Now, many Cybertruck buyers are reporting that Tesla has delayed their deliveries, indicating a roughly week-long halt on deliveries, and some were told by Tesla that it had to do with the windshield wiper motor (via Cybertruck Owners Club).

Some buyers were told that Tesla would have to replace the windshield wiper motor on all Cybertruck, but this has yet to be confirmed.

No recall notice has been released yet.

Electrek’s Take

As I previously reported, we had some issues with ours last month when reviewing the Cybertruck.

I chalked it up to the terrible Tesla auto wiper, but now that I think about it, it’s possible that it wasn’t that.

Tesla’s auto wipers are known to start when they shouldn’t and don’t start when they should. The Cybertruck’s wipers were doing that, but they were also starting and stopping at the bottom rather than at the top position and just staying there.

I’m not sure if it has to do with this or if it’s completely unrelated. I expect that we will learn more in the next few days.

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E-quipment highlight: Bobcat pitches electric telehandler concept

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E-quipment highlight: Bobcat pitches electric telehandler concept

Bobcat unveiled the all-new TL25.60e electric telehandler concept at Intermat last month, with a 2.5 ton rated capacity, three electric motors, and the promise of unmatched energy efficiency and performance that’s objectively superior to diesel.

The Bobcat TL26.60e gets its energy efficient edge from its “actively cooled” li-ion batteries, which are designed to deliver consistent performance in any weather and help fleet operators maintain low running costs while maximizing efficiency and, as a consequence, savings.

Those batteries send power to three separate electric motors, one each to power drive, the rotating superstructure/cab, and the boom/attachments. Bobcat says the arrangement helps its electric telehandler concept consume energy only when it’s needed, and claims that the setup provides immediate responsiveness for all the machine’s movements. That kind of quiet, vibration-free precision control should make the TL26.60e’s operator cab a great place to work from.

Speaking of the cab, it’s the same one found in Bobcat’s larger TLS models, despite the TL26.60e’s smaller footprint. The compact nature of the the machine’s electric components means there’s room for stuff like that – and, as a consequence, more room for operators.

“At Bobcat, we are committed to innovative design that prioritizes both cutting-edge technology and operator wellbeing,” says Vijay Nerva, Innovation Lead, Bobcat EMEA. “Our integration of ergonomics and digitization, exemplified by the transparent T-OLED screen, allows us to introduce customizable, interactive features without compromising the comfort and spacious design of our cabs.”

The TL26.60e features a top speed of 25 km/h, a 6 meter lifting height, and a 2.5 ton lifting capacity. The liquid-cooled battery has a 30 kWh capacity, which should be good for a full shift at most low-speed job sites.

Electrek’s Take

Bobcat’s electric telehandler concept is still just that, but as more and more construction companies come up agains no-drip job sites, low emissions zones, tightening noise regulations, and the ESG goals of both corporate and government clients, it seems like only a matter of time before machines like this become more the rule than the exception.

SOURCES | IMAGES: Bobcat, via Heavy Equipment Guide, Canada.

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