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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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There’s a brewing risk to the stock market rally — and it’s not the flare-up in China trade tensions

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Clear skies ahead – Delta partners with Maeve on M80 hybrid regional aircraft

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Clear skies ahead – Delta partners with Maeve on M80 hybrid regional aircraft

Delta Air Lines is teaming up with Dutch aviation startup Maeve Aerospace to take its idea for a more advanced, fuel-sipping hybrid-electric aircraft powertrain from the drawing board and into regional commercial service.

Delta Air Lines announced a new partnership with Maeve Aerospace meant to accelerate certification and deployment of the startup’s next-generation hybrid-electric regional aircraft – a move that could reduce the company’s fuel consumption on those routes by up to 40% compared to ICE-only assets.

“Delta is proud to collaborate with Maeve to help shape the next chapter of regional aviation and accelerate progress toward a more sustainable future of flight,” said Kristen Bojko, Vice President of Fleet at Delta Air Lines. “As we work toward the next generation of aircraft, we look to partners like Maeve who embody the bold, forward-thinking innovation we champion at Delta – solutions that advance aircraft design, enhance operational efficiency, elevate employee and customer experiences, and cut emissions. While driving toward transformative technologies that strengthen our network and redefine regional air travel remains a key priority, we’re equally focused on safety and a more sustainable future of flight.”

The collaboration positions Delta among a growing list of carriers investing in lower-carbon emission aviation tech as regulators, passengers, and activist investors alike push for cleaner operations.

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Maeve M80 hybrid


M80 hybrid-electric regional aircraft; via Maeve.

Maeve introduced its M80 hybrid-electric, 80-seater aircraft in November of 2023 as a sustainable, cost-effective aircraft designed to satisfy the operational needs of the majority of regional operators and airports.

As designed, the M80 promises an operating range of more than 900 miles (~1,500 km) with 40% higher fuel efficiency than conventional aircraft. Similar in concept to the way Toyota’s Prius uses its electric motors to accelerate and cruises on a small ICE engine, the Maeve’s hybrid engine architecture provides additional electric power assistance at low altitude, high-drag flight.

The M80’s electric motors can also be used during taxiing operations on the ground to reduce surface-level carbon emissions while also supporting a more efficient integration of more electric aircraft systems. Two facets of the aircraft’s designs that are specifically called out by Delta’s press material as being of extreme interest to the commercial carrier.

“It’s a privilege to have Delta as a partner in the development of groundbreaking technologies and processes,” shared Martin Nuesseler, Chief Technology Officer at Maeve Aerospace. “Their expertise in fleet innovation and commitment to aviation sustainability is unmatched, and we’re proud to work together to tailor the MAEVE Jet for the US market.”

SOURCE | IMAGES: Delta.


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Hear me out: instead of faster chargers, we should lobby for SLOWER gas pumps

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Hear me out: instead of faster chargers, we should lobby for SLOWER gas pumps

Utilities, state governments, and private developers are racing to roll out faster, more powerful EV chargers. At the same time, automakers and tech giants across the globe are pouring billions into R&D to develop batteries that can take ever-higher levels of power. But what if there’s a better, easier, cheaper, and more effective way to cut emissions?

What if, instead of faster chargers, we pushed for SLOWER gas pumps?

I want to start this conversation by pointing out that there’s a precedent for this idea. Back in 1993, the Environmental Protection Agency (EPA) finalized a rule that limited the rate that gas service stations could pump fuel to a maximum of 10 gallons per minute (gpm), with the stated goals of reducing evaporative emissions and promoting safety by ensuring the integrity of the nation’s refueling infrastructure.

Officially dubbed “61 FR 33033 – Regulation of Fuels and Fuel Additives: Controls Applicable to Gasoline Retailers and Wholesale Purchaser-Consumers; 10 Gallon Per Minute Fuel Dispensing Limit Requirement Implementation,” the rule was finalized in January of 1993 and went into effect in 1996. Now, almost thirty years later, I think it’s time to revisit 61 FR 33033 in a way that helps reduce emissions even more.

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To zero.

The pitch


Gavin Newsom high-fives JB Pritzker; by ChatGPT.

The basic idea is this: instead of “just” asking for utility rate-payers and State or local governments to help cover the costs of rolling out an increasingly huge EV charging infrastructure that will never be big enough to convince the red hats it’s ready, anyway, we focus our lobbying efforts on slower gas pumps in blue states. Like, significantly slower gas pumps.

By reducing the maximum pumping speed from 10 gpm to 3 gpm, we could increase the minimum time to fill up a half-ton Ford F-150’s 36 gallon fuel tank (yes, really) from under four minutes to nearly twelve (12). Factor in the longer wait times ICE-vehicles would have to endure waiting in line to refuel, as well, and we’re talking about a 20-30 minute turnaround time to go from just 10% to a usable 80-or-90% fill.

Y’all see where I’m going with this?

Everybody wins


EV charging, via BP Pulse.

Way back in 2022, oil giant BP claimed that its BP Pulse electric vehicle chargers were “on the cusp” of being more profitable than its gas pumps. Now, three years and several technological leaps since, BP is investing billions to expand its EV charging infrastructure – and it doesn’t take a genius to realize that they’re expecting a positive ROI.

You don’t have to take my word for that, though. You can take big oil’s. “If I think about a tank of fuel versus a fast charge, we are nearing a place where the business fundamentals on the fast charge are better than they are on the (fossil) fuel,” BP head of customers and products, Emma Delaney, told Reuters.

Those fundamentals revolve around amenities. If you’re popping into a gas station for a three or four minute visit, you’re probably getting in and out as fast as you can. But if you’re there a bit longer? That’s a different story. You might visit the rest room, might buy a snack or order a coffee or suddenly remember you were supposed to pick up milk on your way home, even – and that stuff has a much higher margin for the gas station than the dino-juice, totaling 61.4% of all fuel station profits despite being a fraction of the overall revenue.

The other big winner, of course, is literally everyone. The forgotten costs of fossil fuels cost Americans billions in healthcare bills and environmental clean up each year, and untold trillions of dollars of military spending (to say nothing of the toll on three generations of American blood spilled in the Middle East to secure an affordable supply of oil).

With this plan, ICE-holes and Hemi zealots can continue to have their gas (if they decide it’s worth the wait, so be it). Meanwhile, the well-adjusted normals figure out real quick that it’s better, cheaper, and easier to charge at home.

The rest will take care of itself.

What do you guys think? Does this low-cost, high-impact idea to cut the time delta between refueling your gas car and recharging your EV have legs? What concerns do we need to address before we take it to Gavin and JB? Let us know, in the comments!

Original content from Electrek; featured image by Wikimedia user Coolcaesar, under the Creative Commons Attribution-Share Alike 3.0 Unported license.


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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

FTC: We use income earning auto affiliate links. More.

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