Baltic
Dry Index. 780 +04
Brent Crude 75.19
Spot Gold 2932 US 2 Year Yield 4.31 -0.05
US Federal Debt. 36.477 trillion!
I wouldn't mind dying for France, but not for Air France.
Charles de Gaulle.
No need for my two cents worth today. Today tariffs galore from April, right or wrong.
Asia-Pacific markets mixed as
investors assess Trump reciprocal tariffs plan
Updated Fri, Feb 14 2025 12:45 AM
EST
Asia-Pacific markets were mixed
Friday, after Wall Street rose overnight as President Donald Trump signed
a reciprocal tariffs plan, but did not
enact the levies immediately.
Mainland China’s CSI 300 Index rose
0.65%, while Hong Kong’s Hang Seng index surged 1.86%,
extending its gains from the previous session.
South Korea’s Kospi was
up 0.37% and the small-cap Kosdaq advanced 1.12%.
The country’s seasonally adjusted unemployment
rate hit 2.9% in January, easing from its three-year high of 3.7% in
the month before.
Japan’s benchmark Nikkei
225 was trading down 0.68%, while the broader Topix index lost
0.14%.
India’s benchmark Nifty
50 lost 0.81%, while the BSE Sensex index was down 0.46%, in
choppy trading.
The South Asian country is expecting
its wholesale price inflation figures for January later in the day. The index
is expected to rise 2.5% in January, more than the 2.37% growth in the previous
month, according to LSEG data.
Australia’s S&P/ASX
200 closed 0.19% higher at 8,555.80.
In Southeast Asia,
Singapore’s economy expanded by 4.4% in 2024, its fastest growth since 2021, data from the
Ministry of Trade and Industry shows. GDP was up 5% year on year in the
fourth-quarter of 2024, surpassing the 4.7% growth rate expected by
Reuters.
Investors have been watching the
city-state’s Straits Times Index which hit an
all-time high at the start of the week. The 30-stock benchmark,
however, fell 0.17%, following the GDP announcement.
Meanwhile, Malaysia’s economy grew
5.1% in 2024, data from Bank Negara shows.
Its GDP expanded 5% in the last quarter of the year, better than the 4.8%
estimated by Reuters.
Overnight in the U.S., stocks rose
following fresh inflation data and updates on U.S. tariff plans.
The Dow
Jones Industrial Average jumped 342.87 points, or 0.77%, to
44,711.43. The S&P 500 climbed 1.04% to 6,115.07,
while the Nasdaq Composite advanced 1.50% to
19,945.64.
The Dow had hit session highs after
U.S. President Donald Trump signed a presidential memorandum to examine reciprocal
tariffs on foreign nations. As part of this, he noted that
the U.S. will treat other countries’ non-tariff policies
as unfair trade practices that warrant tariffs in response.
Asia
markets live updates: Asia markets mostly rise
S&P 500 futures are flat after
Trump delays new tariffs, Wall Street heads for winning week: Live updates
Updated Fri, Feb 14 2025 7:19 PM EST
S&P 500 futures were
little changed Thursday night after President Donald Trump held off on
imposing new reciprocal tariffs.
Futures linked to the broad market
index hovered near the flatline, while Dow Jones Industrial Average futures added
just 23 points. Nasdaq 100
futures dipped 0.1%.
During the day’s regular session,
the S&P 500 added
1.04%, while the tech-heavy Nasdaq
Composite rose 1.5%. The Dow advanced 0.77%, hitting
its session highs after Trump signed a presidential memorandum on reciprocal
tariffs but fell short of enacting them for the time being.
Investors were also seemingly
relieved after January’s producer price index, as well as Wednesday’s consumer
price index report, appeared to suggest a softer reading for the personal
consumption expenditures price index. The PCE price index is the Federal
Reserve’s preferred inflation gauge, and it is due later this month.
While markets managed to end
Thursday higher, Mark Malek, chief investment officer at Siebert, believes that
this relief and positive momentum over a pause in reciprocal tariffs may be
short-lived.
“The market will have pressure on
Friday — there was not enough clear stimulus for the market to trade this way …
nothing that would justify this late-day move. I listened very carefully to the
president speaking, and there was nothing in there that stood out to me as
great for the market,” he told CNBC in an interview. “Friday is going to be one
of those days where people are going to try to figure out what this all means.”
For now, the major averages are all
on pace to end the week higher. The S&P 500 and the Dow are respectively
set for a gain of about 1.5% and 0.9%. The Nasdaq is 2.2% higher week to date.
Biopharma giant Moderna will report earnings
Friday before the bell. Traders will also watch out for the latest retail sales
data.
Stock
market today: Live updates
Trump signs sweeping reciprocal
tariff plan, says more coming
Published Thu, Feb 13 2025 9:15 AM
EST Updated Thu, Feb 13 2025 3:03 PM EST
President Donald Trump on Thursday
signed a presidential memorandum laying out his plan to impose “reciprocal
tariffs” on foreign nations.
“They charge us a tax or tariff and
we charge them,” Trump said during a press event in Oval Office.
The president said that under the
plan, the U.S. will treat other countries’ non-tariff policies as unfair trade
practices that warrant tariffs in response.
Those include value-added taxes, or
VATs, and other practices that the office of the U.S. trade representative
deems to be unfair trade limitations.
Trump said that foreign countries
will not be allowed to send merchandise or other items to the U.S. through
another country.
He also suggested that additional
tariffs, including on auto imports, are on the way, Reuters reported.
“We want a level playing field,”
Trump said.
VATs are consumption taxes levied at
different stages of a supply chain. They are “trade neutral,” the nonpartisan
Tax Foundation noted Wednesday in a report accusing the Trump administration
of mistakenly blaming VATs for a lack of U.S.
competitiveness in Europe.
The reciprocal tariffs will not go
into effect immediately. Trump said that Howard Lutnick, his nominee for
Commerce secretary, will lead the studies to determine the appropriate tariff
levels for each affected country.
Lutnick said in the Oval Office that
he expects those studies will be complete by April 1.
In a Truth Social post sent after the event, Trump said his
plan will include provisions for “subsidies” and “Nonmonetary Tariffs and Trade
Barriers” that other countries employ.
“America has helped many Countries
throughout the years, at great financial cost. It is now time that these
Countries remember this, and treat us fairly,” Trump wrote.
The new tariffs will follow duties
Trump has already slapped on China,
Canada and Mexico, as well as on imports of steel
and aluminum. Trump’s tariffs on Canada and Mexico are currently
on pause after both countries pledged to crack down on illegal
crossings and drug trafficking at their respective borders with the U.S.
As a presidential candidate, Trump
floated the possibility of imposing across-the-board tariffs on all U.S.
imports. But he also advocated for Congress to pass what he called the “Trump Reciprocal Trade Act,” which would empower him to
slap tariffs on the goods of any country that has higher tariffs on U.S.-made
goods.
Since taking office, Trump has signaled
his plans to impose tariffs
on the European Union. He has highlighted U.S. trade deficits with European
partners and complained that EU nations do not purchase enough American cars or
farm equipment.
EU leaders have vowed to retaliate against new U.S.
tariffs, while warning that Trump’s actions risk sparking a widespread trade
war that ultimately hurts everyone.
Trump
signs sweeping reciprocal tariff plan, says more coming
‘Reciprocal’ Tariffs Make No Sense
How is it in America’s national interest
to let other countries decide what duties we pay?
By Douglas A. Irwin Feb. 13, 2025 4:47 pm ET
At an Oval Office press conference
Thursday, President Trump confirmed that he’s going ahead with his reciprocal
tariff plan. The U.S., he said, will impose the same tariffs on other countries
as they impose on the U.S.: “No more, no less.” That sounds fair—we treat them
the way they treat us—but it’s actually a terrible idea.
It amounts to outsourcing U.S. tariff
policy to other countries. They would dictate what our tariffs would be. If
other countries put high tariffs on American goods, then we would impose high
tariffs on their goods. So much for American sovereignty. So much for deciding
what’s in our own national interest. The British economist Joan
Robinson once said that a country shouldn’t throw rocks into its own
harbors just because other countries have rocky coasts. The same principle
applies here: The U.S. shouldn’t have stupid tariff policies just because other
countries have stupid tariff policies.
A reciprocal policy would enormously
complicate the U.S. tariff system. The Harmonized Tariff Schedule of the U.S.,
which details individual rates on particular commodities, has about 13,000 line
items. The U.S. trades with roughly 200 countries. Is Washington ready to
impose and manage 2.6 million individual tariff rates? The lobbying pressures
for exemptions and exceptions on the U.S. side would be enormous. This would
fill the swamp, not drain it. Foreign exporters would go to great lengths
either to get their products under a lower tariff classification or to
transship them to another country to reduce the duty they would face.
More, subscription required.
‘Reciprocal’ Tariffs Make No Sense - WSJ
Trump’s Tariffs Obscure a Much Bigger Challenge
for the World
The global economy is utterly dependent on
the US. Growth elsewhere doesn’t look promising.
February 13, 2025 at 9:00 PM GMT
For all the outrage at President Donald
Trump’s swift and broad imposition of tariffs, there’s a bigger challenge for
the world. The US economy is on a roll, doing much better than anyone
anticipated just a few years ago and surpassing partners and competitors alike.
Behind the tut-tutting about the negative consequences of levies and the
dangers of protectionism is an underlying fear that long-held assumptions that
China and, possibly, India will eclipse the US are wide of the mark.
This outperformance precedes Trump's
return and is unlikely to be undone, at least in the immediate term, by the
impact of new duties. His administration this week ordered tariffs on imported
steel and aluminum, and threatened reciprocal charges on countries that tax
imports from the US. The step roiled
markets from Thailand to South Africa. India intervened to prop up the rupee after the currency fell to a record
low. The People's Bank of China is resigned to managing the yuan's retreat
rather than trying to prevent its weakening. The greenback's upward march the
past few years shows little sign of reversing despite the Trump-induced
upheaval. Tariffs are widely considered to be inflationary and likely to slow
the pace of interest-rate cuts, assuming they still happen at all, in the next
few months.
More, subscription required.
Trump's Tariffs Obscure a Much Bigger Challenge for the World - Bloomberg
In other news.
UK dealers warned over EV battery fire safety
following multi-million pound claims
By Tom Seymour 11 February 2025
Allianz UK is warning motor traders to be
aware of the risks associated with electric vehicle (EV) battery fires when
damaged, mishandled, stored or transported incorrectly.
While research, including findings from
Thatcham Research, indicates that EVs are generally less likely to catch fire
compared to traditional combustion engines, the intensity and severity of these
fires can be significantly greater.
This is due to the ferocity with which
lithium-ion batteries can burn, posing unique challenges for motor traders,
particularly in relation to health and safety.
Two recent motor trade premise fires
resulted in over £5 million and £1.5m worth of claims.
Both were the result of a faulty EV
battery that had been removed and was stored at the garage awaiting collection
from the manufacturer for investigation.
It is not just EV batteries that
businesses should be aware of, many portable hand tools contain lithium-ion
batteries too.
A recent fire at a tyre fitting centre
resulted in a £250,000 claim after a power tool caught fire while being
charged.
Olivia Baker, head of motor trade, Allianz
UK, said: "The severity and financial impact of lithium-ion battery fires
are considerable.
“Due to the chemical reactions and toxic
material that are left behind, these fires can render buildings beyond
economical repair.
“Understanding the risks and implementing
effective prevention and management strategies are crucial to safeguarding
businesses and ensuring the safety of employees, though thankfully at the
moment the total number of claims is relatively low."
Motor traders frequently interact with
EVs, but the risks are heightened when vehicles are showing signs of battery
defects or are subject to recalls or advisory notices linked to the battery.
Businesses with high vehicle throughput, such as sales companies and repairers,
are particularly affected.
Franchised dealers often face additional
exposure when EVs are brought in for diagnostics or warranty work. Breakdown
recovery operators will also need to quickly assess the issues with the
vehicles they are asked to pick up.
UK dealers warned over EV battery fire safety following multi-million pound claims
I might have had trouble saving France in 1946 - I didn't have television then.
Charles de Gaulle.
Global Inflation/Stagflation/Recession Watch.
Given
our Magic Money Tree central banksters and our spendthrift politicians,
inflation now needs an entire section of its own.
I predict you will sink step by step into a bottomless quagmire, however much you spend in men and money." (On the Vietnam War)
Charles de Gaulle.
US
Inflation News Gets Worse as Wholesale Prices Jump
February
13, 2025 at 11:10 PM GMT
US
wholesale prices rose in January by
more than forecast on higher food and energy costs, adding to the
growing pile of bad inflation news ahead
of more potential tariffs threatened by the Trump administration.
The
producer price index for final demand climbed 0.4% from a month earlier, and
that after an upwardly revised 0.5% increase in December, the Bureau of Labor
Statistics said Thursday. The data on wholesale prices comes just a day after a
consumer price index report showed underlying inflation at
its highest in more than a year.
Together,
the figures are making the prospect of an interest rate cut this year by
the Federal Reserve decidedly
unlikely. Some economists are already settling on no rate cuts for 2025,
while a few pessimists on Wall Street say any more bad news may prompt the
central bank to actually start raising rates again.
Fed
Chair Jerome Powell told
lawmakers this week that inflation expectations “appear to remain
well-anchored.” Still, Trump’s fixation
on tariffs has introduced
some uncertainty into the economic outlook, as has his failure to
address the key issue behind his election last November—inflation. The latest
readings on consumer expectations, from the University
of Michigan and the New
York Fed, suggest Americans are becoming worried about the economy’s
prospects, and that it’s all the tariff talk that’s doing it. —Jordan
Parker Erb
US Inflation News Gets Worse as Wholesale Prices Jump: Evening Briefing Americas - Bloomberg
Wholesale
prices rose 0.4% in January, more than expected
Published
Thu, Feb 13 2025 8:34 AM EST
A
gauge of wholesale prices rose in January, indicating that pipeline inflation
pressures are persisting and likely keeping the Federal Reserve on the
sidelines regarding interest rate cuts.
The
producer price index, which measures what producers get for their goods and
services, increased by a seasonally adjusted 0.4% on the month, compared to the
Dow Jones estimate for 0.3%, the Bureau of Labor Statistics reported Thursday.
Excluding
food and energy, core PPI was up 0.3%, in line with the forecast.
The
release comes the day after the BLS reported that the consumer price index rose
0.5% on the month, putting the annual inflation rate at 3% and well out of
reach of the Fed’s 2% long-run goal.
Together,
the releases likely will push back expectations for a rate cut until the second
half of the year, though inflation data can be volatile and the outlook could
change depending on what subsequent months show.
Scores
of firings have begun at federal agencies
Updated
4:54 PM EST, Thu February 13, 2025
Scores
of firings have begun at federal agencies, with terminations of probationary
employees underway at the Department of Education and the Small Business
Administration, federal employees and union sources told CNN on Wednesday.
The
probationary employee firings mark the first from the Trump administration as
President Donald Trump and Elon Musk’s Department of Government Efficiency aim
to dramatically shrink the federal workforce. Until now, federal employees
across all government agencies had only been placed on paid administrative
leave.
The
move came the same day as a federal
judge allowed the administration’s deferred resignation program to
proceed. About 77,000 employees have accepted the offer, which generally allows
them to leave their jobs but be paid through the end of September.
A
form letter sent to Department of Education employees, obtained by CNN,
informing them of their termination stated: “The Agency finds, based on your
performance, that you have not demonstrated that your further employment at the
Agency would be in the public interest.”
At
the Department of Education, the firings have impacted employees across the
agency from the general counsel’s office, to the Office of Special Education
and Rehabilitation Services that supports programs for children with
disabilities, to the Federal Student Aid office, a union source told CNN.
The
source said they have heard from dozens of employees who have been fired, but
the full scope of the firings was not immediately clear.
Probationary
employee firings were also expected at the US Energy Department Thursday
evening, according to six people familiar with the situation. The people said
the situation inside the department was fluid and were so far unclear how many
total employees could face termination.
There
are around 2,000 probationary employees at DOE, a person familiar with the
agency’s staffing told CNN, but it was unclear how many could be affected by
Thursday’s actions. CNN has reached out to DOE for comment.
The
Energy Department’s acting general counsel had a Thursday meeting with heads of
department offices and asked offices to compile lists of “mission-critical”
probationary employees who could potentially be exempt from the layoffs, the
person told CNN. But those lists hadn’t been finalized as of Thursday
afternoon, the person said.
Probationary
employees are defined as federal employees who have been with the department
for less than a year, but a recent Office of Personnel Management memo also
stated federal employees working for less than two years could also be
considered probationary.
The
dismissal of probationary workers has been in the works since Inauguration Day,
when the acting head of OPM sent a memo to all agencies ordering them to
compile a list of all their probationary workers and send it to the office. The
January 20 memo noted that it is easier to terminate these employees.
More
Scores
of firings have begun at federal agencies | CNN Politics
U.S.
embassies told to prepare for staff cuts as Trump overhauls diplomatic corps,
Reuters reports
Published
Thu, Feb 13 2025 10:25 PM EST
President
Donald Trump’s administration has asked U.S. embassies worldwide
to prepare for staff cuts, three sources familiar
with the matter told Reuters on Thursday, as part of the Republican
president’s effort to overhaul the U.S. diplomatic corps.
The sources said
some embassies had been asked to look into reducing both
U.S. staff as well as locally-employed staff by 10% each,
with a list of the workforce due to be sent to the State Department by Friday,
which will then determine further actions.
U.S. embassies around
the world employ both diplomats and local staff. Most
embassy staff come from the host country, according to the National
Museum of American Diplomacy.
Separately,
a U.S. official said that around 60 contractors at the State Department’s
bureau of Democracy, Human Rights and Labor had been terminated in recent weeks
and that there was a possibility of further cuts in other bureaus.
ABC
News first reported that U.S. embassies had been told to
start planning for staff reductions.
The
State Department said in a statement that it does not comment on internal
personnel matters.
“The
State Department continues to assess our global posture to ensure we are best
positioned to address modern challenges on behalf of the American people,” a
spokesperson said.
The
moves come as Trump tries to reshape the diplomatic corps,
issuing on Wednesday an executive order directing Secretary of State
Marco Rubio to revamp the foreign service to ensure “faithful and effective
implementation” of his foreign policy agenda.
The
order, which follows efforts to dismantle the U.S. Agency for International
Development, comes as Trump makes changes to ensure U.S. foreign
policy is aligned with his “America First” agenda. He has also repeatedly
pledged to “clean out the deep state” by firing bureaucrats that he deems
disloyal.
The
order, which was titled “One Voice for America’s Foreign Relations”
also says failure to implement the president’s agenda is grounds for
professional discipline, which may result in firing personnel.
More
U.S. embassies told to prepare for Trump staff cuts, sources say
Nissan
projects an annual loss as it drops its talks with Japan rival Honda
13
February 2025
Nissan’s
April-December profit crashed to 5.1 billion yen ($33 million), a tiny fraction
of the 325 billion yen the Japanese automaker
earned the previous year.
Nine-month
sales dropped less than 1% to 9.14 trillion yen ($59 billion). Nissan projected
red ink of 80 billion yen ($519 million) for the full fiscal year through
March.
Besides
announcing the dismal results, Nissan Motor Corp. also announced Thursday it
was dropping the talks it had started in December with Japanese rival Honda Motor Co.
for a business integration.
Nissan
Chief Executive Makoto Uchida told reporters the focus of the talks had changed
from forming a joint holding company to making Nissan into a subsidiary of
Honda.
He
said that was unacceptable, although the efforts to realize “synergies through
a strategic partnership” on electric vehicles and other research will continue.
He
said Nissan will try to achieve a turnaround without Honda, while being open to
various options, and that a detailed plan will be outlined within a month.
Nissan has said announced it will trim its operations, including closing lines,
perhaps entire plants, while slashing 9,000 jobs.
Nissan projects an
annual loss as it drops its talks with Japan rival Honda
Nissan
to close 3 factories, cut shifts in U.S., in bid to end back-to-back quarterly
net losses
February
13, 2025 12:02 PM
TOKYO
— Nissan CEO
Makoto Uchida,
desperately trying to dig out from back-to-back quarterly net losses, plans to
shutter three factories in the next two years, cut shifts at U.S. plants, slash
executive ranks by 20 percent and cast about for new partners in a bid to keep
the Japanese carmaker going.
More,
subscription required.
Nissan earnings: 3
factories to close after quarterly losses - Automotive News
Chevron
to cut up to 20% of global workforce
by Adam McCulloch 13 Feb 2025
Oil
giant Chevron Corporation is to make up to 8,000 employees redundant by the end
of 2026 in a bid to cut costs.
Between
15% and 20% of jobs will be lost from the 40,000-strong global workforce.
Company
vice-chairman Mark Nelson said: “Chevron is taking action to simplify our
organisational structure, execute faster and more effectively and position the
company for stronger long-term competitiveness.
“We
do not take these actions lightly and will support our employees through the
transition. But responsible leadership requires taking these steps to improve
the long-term competitiveness of our company for our people, our shareholders
and our communities.”
The
company said it was targeting up to $3bn in costs by the end of 2026 from
leveraging technology, asset sales and changing how and where work is done.
The
refining sector is wary of the possibility of oil price pressures in coming
years as global production growth outpaces demand. As a result, the oil
industry as a whole has been consolidating, focusing more on mergers and
operational efficiency than on drilling new wells.
Over
the past decade employment in the US oil and gas sector has fallen sharply,
even as production continues to expand.
Chevron
has also been experiencing some production challenges, including cost overruns
and delays at a large Kazakhstan oilfield project. The company’s oil and gas
reserves have declined to their lowest point in at least a decade, raising
concerns about its long-term prospects.
The
company moved its headquarters from San Ramon, California, to Houston last year
and replaced several long-serving managers.
Chevron’s
$53bn deal to buy the oil producer Hess is in limbo due to a court battle with
its rival Exxon Mobil, which has more aggressively expanded its own production.
It
also announced a new hub in India that will be its largest technology centre
outside the US.
Chevron to cut up to 20% of global workforce
Covid-19
Corner
This section will continue until it becomes unneeded.
5
Years Later: America Looks Back at the Impact of COVID-19
Most
Americans say the pandemic drove the country apart
February
12, 2025
The
most significant pandemic of our lifetime arrived as the United States was
experiencing three major societal trends: a growing divide
between partisans of
the left and right, decreasing trust
in many institutions,
and a massive
splintering of the information environment.
COVID-19
did not cause any of this, but these forces fueled the country’s divided
response. Looking back, nearly three-quarters of U.S. adults (72%) say
the pandemic did more to drive the country apart than to bring it together.
Fundamental
differences arose between Americans over what we expect from our government,
how much tolerance we have for health risks, and which groups and sectors to
prioritize in a pandemic. Many of these divides continue to play out in the
nation’s politics today.
The
pandemic left few aspects of daily life in America untouched. Looking back on
it nearly five years later, three-quarters of Americans say the
COVID-19 pandemic took some sort of toll on their own lives. This
includes 27% who say it had a major toll on them and 47% who
say it took a minor toll.
The
virus itself also had a staggering impact. A large majority of U.S.
adults have had COVID-19 at some point, and more than 1 million Americans died from it. Millions
continue to struggle with long COVID. And most say they know
someone who
was hospitalized or died from the virus.
But most
Americans have moved on. The vast majority of those who say their
lives were impacted report having recovered at least somewhat. Among U.S.
adults overall, about one-in-five (21%) now say the coronavirus is a major
threat to the health of the U.S. population as a whole. And a majority (56%)
think it’s no longer something we really need to worry about much.
This
is reflected in Americans’ behavior: Just 4% regularly wear a mask, while
most never do. And fewer than half of U.S. adults said they planned to
get an updated COVID-19 vaccine last fall, a stark contrast to the
long lines and widespread demand that met the initial rollout of vaccines.
At
the five-year anniversary of the coronavirus outbreak, a major Pew Research
Center survey conducted in late October 2024 provides insight into how
Americans assess the nation’s pandemic response. These findings are paired with
an analysis of trends dating to early 2020. The report sections take a closer
look at COVID-19’s impact in four specific areas of American life: health,
work, religion and technology.
More
How COVID-19 Changed American Life: Looking Back 5 Years Later | Pew Research Center
Technology
Update.
With events happening fast in the
development of solar power and graphene, among other things, I’ve added this section.
Updates as they get reported.
‘A house
battery you can drive around’: how a handful of Australians are selling power
from their cars back to the grid
Story
by Scott Dwyer, University of Technology Sydney; Jaime Comber, University
of Technology Sydney, and Kriti Nagrath, University of Technology Sydney
13
February 2025
Our
cars sit unused most of the time. If you have an electric vehicle, you might
leave it charging at home or work after driving it. But there’s another step
you could take. If you have a bidirectional charger, you can set it to sell
power back to the grid when demand is high.
Fewer
than ten people across Australia actually do this, because the technology
– known as Vehicle-to-Grid (V2G) – is very new. To date, it only
works with a single car model (Nissan LEAF) and a single charger (Wallbox
Quasar 1). We’ve estimated the number of users based on sales of this charger.
The chargers are expensive and there’s a thicket of regulations to navigate.
But
that could soon change. Last year, Climate Change Minister Chris Bowen
announced new
Australian standards and communications protocols for
bidirectional chargers in a bid to make it mainstream. Cheaper EVs and
bidirectional chargers will make this more appealing.
If it
takes off, V2G could become extremely useful to the power grid as a way to
release power as required and stabilise the grid against fluctuations.
This
week, Australia’s renewable energy agency released
a V2G roadmap, which notes widespread uptake could “materially reduce
electricity costs for consumers and accelerate national emissions reduction”.
To
understand why people are using the technology and the challenges to do so, we
interviewed five early adopters from New South Wales and South Australia. Our
findings are released
today.
Setting
up V2G isn’t easy
Our
interviewees reported a long, complex journey to set up V2G. These early
adopters had no playbook to follow, so the process was one of trial and error.
Some
relied on professional networks or social media groups to gather information.
They spent significant time and energy finding electricians, installers and
charger manufacturers to set up their systems. Strata approvals were required.
They also had to negotiate with power retailers and distributors.
Delays
were common, especially when seeking approval from the energy distributor. Some
interviewees reported delays of months to years.
Most
interviewees had experience in a technical field such as engineering or
technology. Some reported a significant learning curve, while others using new
software from their retailer reported a smoother “set and forget” process.
So why
do it? Our interviewees had several reasons, ranging from getting the most out
of expensive assets (solar and the EV) to offsetting power bills entirely.
Four
out of five interviewees reported making a small profit of about A$1,000
annually instead of a bill. Many wanted to be able to reduce dependence on the
grid and reduce their environmental impact.
As one
told us:
you
originally think of it as a car you can also use to power your house. [But
actually] it’s a house battery you can drive around.
Maximising
savings
Typically,
our interviewees plugged their car in at home during the day to charge from their
rooftop solar. In the evenings when power prices peaked, they used an app to
sell power back to the grid. This maximised their cost savings for charging the
car battery and their earnings from the grid.
More
Next, the
world global debt clock. Nations debts to GDP compared.
World Debt
Clocks (usdebtclock.org)
Another weekend and what fiendish new plans for next
week will Trump and Musk cook up over this weekend? In tomorrow’s LIR, Charles
de Gaulle’s prophetic 1965 case for gold over fiat, and Uncle Scam wasn’t even
one trillion in official debt. (It only hit 998 billion in 1981.) Have a great
weekend everyone.
The
future does not belong to men.
Charles de Gaulle. (Predicting AI?)
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