Hello again from Geneva. Peter Vanham here, replacing Alan, who is taking part in a 200-mile relay race from the summit of Mount Hood to the Pacific Ocean.
If Alan doesn’t yet drive electric in Oregon, he won’t have a choice in ten years. California yesterday announced its timeline for 100% of new car sales to be electric by 2035. Starting from a base of 15% today, 35% of new car sales must be electric in 2026 and 68 % in 2030.
Catching up with some other parts of the world, it may be too little, too late. The European Parliament has passed a 2030 ban on sales of new petrol cars. European Renault, Stellantis (owner of Fiat and Chrysler) and luxury car maker Bentley will phase out gasoline car production at the same time. Even China has a province banning gas-powered cars by 2030: Hainan Island announced the news on Monday.
But with the Golden State as the frontrunner, it seems increasingly likely that 2035 will mark the “RIP” year for new gas-powered car sales in the United States.
More than a dozen states generally follow California’s lead in vehicle standards, including all of the Pacific Northwest, most of New England, and many mountainous states. General Motors has announced its own phase-out of gas-powered cars by 2035, and Chrysler is even more ambitious, targeting 2028. The latest developments may well force Ford, which has so far only targeted 40% of electric sales in the United States by 2030, to increase this percentage. .
Finally, the California calendar also sets a deadline for transitions in the energy mix of American oil companies. About 60% of U.S. oil consumption in 2021 was used for motor gasoline and diesel, much of which will become redundant after California’s ban takes effect.
And since it’s Friday, some reactions to yesterday’s Texas ESG story:
“BlackRock and others are still investing in energy companies. [Yesterday’s announcement is] political dog hiss. –JF
“It will be interesting to see if banning social, political or ideological investment works both ways.” – SR
“The entire ESG concept must be migrated into federal law.—JLG
“Fortune would be better served by a ‘report’ rather than another ‘opinion piece’.-AA
More news below.
The Federal Reserve Bank of Kansas City’s annual rally in Jackson Hole, Wyoming is underway and Fed Chairman Jerome Powell is scheduled to speak this morning at 10 ET. Few past gatherings at Grand Teton National Park have featured such high stakes. With U.S. inflation near a 40-year high, unemployment at a 50-year low, and a global economy hit by multiple shocks – the pandemic, the Russian-Ukrainian conflict, extreme weather and climate change. massive fiscal and monetary policy moves – investors will be looking for clues on the pace of the US central bank’s interest rate increases and examining how Powell plans to rein in price increases without increasing unemployment. the wall street journal
Zuck’s Morning Blues
Meta CEO Mark Zuckerberg has joined Joe Rogan’s hugely popular Spotify podcast The Joe Rogan Experience for an interview in which he lamented that his days started out so negatively. “You wake up in the morning, look at my phone, get a million messages,” he said. “It’s usually not good. People save the good things to say to me in person. He faces jujitsu. “It’s really important for me, in terms of what I do, to maintain my energy levels and stay focused.” Fortune
Hong Kong’s shrinking workforce
Since 2018, Hong Kong’s labor force has fallen by 6% to a ten-year low of nearly 3.75 million. In April 2022 alone, the city lost 33,700 workers, the most since 1990. Ongoing pandemic restrictions and civil liberties crackdowns have caused workers to flee, and the number of new arrivals is rapidly declining. The government only approved 5,701 visas for international workers in the first half of this year. Together, these trends threaten the city’s efforts to revive its role as a global hub for finance and commerce. Bloomberg
AROUND THE WATER COOLER
Unexpected deal could save $1.3 trillion in US-listed Chinese stocks from massive Wall Street delisting by Nicholas Gordon
As Inflation Soars, U.S. Companies Just Racked Up Their Biggest Profit Margins Since 1950 Per Bloomberg
Big US banks like Goldman Sachs and Bank of America are pretty ‘meh’ on Colin Lodewick’s Biden student loan forgiveness
Where have all the workers gone? Long COVID has forced up to 4 million people out of the workforce by Chloe Berger
Billionaire BMW heir urges Europe to do everything to help prevent Donald Trump’s re-election by Christiaan Hetzner
Ex-Obama adviser slams Biden’s ‘reckless’ student loan forgiveness as ‘pouring about half a trillion dollars worth of gasoline on inflationary fire’ by Tristan Bove
This edition of Daily CEO was edited by Claire Zillman.
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