General Motors and Volkswagen See No Future for Hybrids
If you like news and podcasts here's some podcast news. You'll love now. You can listen to podcasts on spotify. Click the podcast tab and your spotify app to find all your favorites and discover cover new ones all your podcasts all in one easy place. Listen free on spotify jeffrey epstein's death in manhattan jail on saturday has sparked a federal enroll probe and calls to continue the investigation into his alleged crimes where i believe that <hes> a number of women are still going to prosecute their claim aimed and g._m. And volkswagen sake by hybrid vehicles when the biggest car company in the world in expanding their hybrid lineup plus hung on cancels fights after thousands of protesters fill the city's airport. This is what's news from the wall street journal. I'm kim gittleson. Let's get started now before we take a look at why general motors and volkswagen say they see no future for hybrid cars. Here's what you missed. Jeffrey epstein died in an apparent suicide in manhattan jail on saturday morning. He'd been accused of sex trafficking minors charges which he'd denied although earlier in july he'd been found in his jail cell with bruises around his neck in recent weeks. Mister epstein had been taken off suicide. Watch at the request of his attorneys attorney's he'd been downgraded to quote special observations status that meant guard had to check on him every thirty minutes and also required him to have a soulmate. That's according according to people familiar with the matter yet. In the hours leading up to his death it appears he had no cellmate and wasn't receiving the required checks spencer couvin an attorney any representing some of mr epsteins accusers said his clients were shocked at mr epstein's death where i believe that <hes> a number of the women are still going to prosecute their claims not only against mr epstein but against the people that assisted him in this process <hes> there are a number of co-conspirators that allow these things to occur active co-conspirators as well as passive that watched what he was doing and said nothing over the years so our hope is that the federal authorities go after after them as well and continue this investigation even after his death. We report that the f._b._i. And justice department have both devoted additional manpower to investigating the the circumstances of mr epstein's death and saudi arabia's state oil company aramco has just released its earnings. The world's top oil producer reported first-half net income of forty six point nine billion dollars. That's a decline from the same period in two thousand eighteen when the company made fifty three billion dollars. I just for comparison apple made thirty one point five billion dollars in its first six months of its financial year. The earnings come a few days. After we reported that aramco's plans to list its shares publicly in what's expected to be the biggest ever i._p._o. Are now back on. We reported that the listing could come as soon as next year and that was the scene in hong kong airport today where thousands thousands of demonstrators were gathered to protest the government's handling of this summer's protests by monday afternoon and hong kong authorities said they'd canceled more than one hundred flights. It's hong kong is one of the world's busiest airports <music> now our main story this morning. If you live in san francisco chances are you've gotten used to being surrounded by toyota. Prius is everywhere you go but two of toyota's rivals general motors and volkswagen now say that they see no future for hybrid cars to find out more at charlie turner has been speaking to a reporter mike colitis mike mike a couple of automakers are essentially saying there's no future in hybrid vehicles which combined gas engine with an electric motor. Which companies are we talking about yeah general motors. There's in volkswagen not coincidentally. They've probably been the two that are most aggressive about pushing into fully battery electric cars but both of them have. I've tried hybrids in the past g._m. Is trying to <hes> many times and still sells hybrids and so it's kind of unusual when you see you know two of the biggest car company in the world go down one pass in some of the biggest not only continuing to to offer hybrids toyota and ford but they're they're expanding their hybrid lineup in the u._s. If you're like it's it's an important technology to have as sort of an in between going from gas engines to fully electric. What's the reasoning behind what g._m. And v._w. Were doing as far as forsaking hybrids well. I think there's a couple of things one. I feel like i think they think that they're too expensive. There's more investment that goes into the car hard. They're they're more difficult and complicated to build and they just feel like you know listen. If we think that the future is electric with which both companies have said <hes> we feel like this is just sort sort of a getting in the way of of the ultimate solution. There's also one common denominator with the two of them. They're they're number one and two and sales in china and china's requiring hiring zero emission cars. You're gonna have to have those in order to sell in china and so it's really important for them to maintain sales. They're a big presence sir and that's why they they're going to need these electric vehicles there anyway so they're gonna populated across across their lineups and other countries to there are also tougher. Emission standards sanders in europe aren't there that's right. Those are the two regions that car companies are really struggling with europe has some of the most stringent c._o. Two regulations regulations <hes> in the world in terms of the car companies are going to have to have electric offerings there in order to meet the regulations hybrid will help but g._m. And volkswagen for their part feel like they're going to get more bang for their buck by investing in electric vehicles there instead yeah and as you mentioned before mike toyota's pretty much sticking with its hybrid strategy and why not when you have a winner which is what the previous isn't it yeah i mean the prius you know really almost synonymous with hybrid came came out in the late nineties and early two thousands it really took off as kind of a status symbol for environmentalists and you know you've seen him all over places like new york and in other places where taxi drivers really wanna get the best fuel economy they can enjoy those really had success in spreading that technology across lineup they actually sell more hybrid rab rab fours which is a small s._u._v. than they do prius anymore because of the shift to jesse and they feel like they can continue with that strategy and spread hybrids across more their nameplates. Whether it's a hybrid or electric there are a lot more expensive to make than regular gasoline engines. That's one thing and the other thing is they both account for a very small portion of overall sales. That's right. They're they're costly to make and that leads to higher price tag. Which which i think is why you're you see hybrids. Only about about three percent of the market and electric are are only one percent now. Everybody expects those numbers to grow but the the question is by how much and the risk you know. There's the risk and both these strategies the risk for just going electric like g._m. And volkswagen are doing you know. Nobody really knows how quickly we're gonna take off and if you don't have sort of a go between clean technology <hes> you might have trouble meeting some of the regulations in places like china in europe but on the other hand you can you afford you know. Toyota and ford aren't saying that they're not doing. They're still they're still investing in electric vehicles so now they're investing bowl tyrod's and electrics and some people question whether or not they'll be able to do that. Affordably wall street journal reporter mike elias. Thanks a lot like you bet. Thanks for having me you can find makes article up on wsj.com dot com if you like news zim podcasts. Here's some podcast news you love now. You can listen to podcasts on spotify. Click the podcast tab and your spotify apps. Find all your favorites and discover new ones <music> all your podcasts all in one place. Listen free on spotify on two markets. Here's a question for you what are investors to do if bond yields turned negative in the world's biggest economy that once unthinkable situation is now something that some investors are taking seriously after last last week slide in the bond markets are markets reporter. Steve russillo breaks it down so we're talking about a scenario where bond yields can actually go into negative negative territory and it's something that we've seen happen around the world your effort for for the past few years but it's a phenomenon that we really just never really thought could actually happen in the u._s. Especially when rates started to rise when the fed was increasing interest rates but now you have a scenario where a lot of investors are starting learning to consider a scenario where this could actually take place so if we think about the ten year treasury note which is sort of the benchmark yield that is used to set everything being from mortgage rates to other different types of of rate instruments <hes> the tenure yield is now at around one point seven percent and it's pretty close to its record low of one point three percent and if you think about it that's not very far from getting to zero and perhaps even below that which is a scenario that you see in places like germany and other places in europe that have negative yields right now so negative bond yields. Were something that you know. No one really considered whatever happened in the u._s. Now there's a scenario scenario where it could actually happen and now the skied. Here's what else were paying attention to today <music> when you think of california chances are one of the things that comes to mind is still valley but now the state which was once a champion of the tech industry industry is emerging as its greatest foe. The state legislature is back in session today and it will consider a bill that if passed could classify drivers for ride hailing companies like guber and lift as employees that would entitle those drivers to better wages and benefits. We report that that bill along with state laws pending or passed on issues ranging. I'm from privacy to net neutrality could substantially reshape companies across the tech sector and what do you think is one of the best performing investments in the world right now. If you guessed carbon emission credits won't congratulations from london. David harry explains so essentially a carbon credit. It is a contract which is either given to or soul to a producer by the european union says you are allowed to emit one ton of of carbon dioxide and for years after the financial crisis when emissions fell that was a surplus of credits floating around in the system prices languished below ten euros per tonne of carbon dioxide released for about five years so the east or the system wasn't working <hes> lawmakers got together a couple years ago on decided that they were going to start reducing the number credits on the system by twenty four percent each year from in two thousand nine hundred and that twenty nineteen rule change has really transformed the market. Here's david again this shrinking and supply has made it increasingly wrigley on some might say prohibitively expensive for big companies to pollute on because of the carbon credits have become one of the most valuable assets money can buy if feudal kit over the last few months and carbon credits have drawn longlist investors who cancelled that position years ago when prices plummeted speculators interested once again the same polluters who have always been interested are still bad but now there's this new wave of investors starting to invest in carbon credits. It's the very own commodity. Finally if your best friends with your boss well it turns out that might cost you new research in the journal of experimental social psychology has found that when managers are handing out bonuses. They want to make sure they don't appear biased. That means that in order to do that. They sometimes passover their friends in favor of other workers. Here's one way to try and mitigate against this make. The criteria for awarding bonuses really clear that way favouritism allegations are more difficult to substantiate. That's what's news from the wall street journal. Thanks for listening.