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Two US Senators demand investigation of Tesla's full self-driving response at rail crossings
Two U.S. Senators urged on Monday the country's automotive safety regulator to look into reported failures by Tesla's Full Self-Driving System to detect and respond safely to railroad crossings. They cited risks of "catastrophic collisions". According to Tesla, the Full Self-Driving System allows a car to drive its occupants “almost anywhere”, handling everything from navigation, lane changes and steering to parking. However, a human must still supervise. In a letter sent to the National Highway Traffic Safety Administration, Democratic Senators Ed Markey, and Richard Blumenthal called for an investigation. They cited the growing number of near-collisions reported. The letter was made public. "While mistakes like a missed sign or an illegal lane-change are dangerous, a mistake at a railroad crossing can cause catastrophic collisions that result in multiple fatalities involving train passengers, vehicle occupants and rail workers," wrote the senators. Tesla and NHTSA have not responded to comments immediately. The NHTSA has been investigating Tesla's Full Self-Driving System, which is more sophisticated than its Autopilot. In October 2024, the agency opened an investigation into 2.4 millions Tesla vehicles with FSD. This was after four collisions were reported in conditions of reduced visibility, such as sun glare or airborne dust. The two senators suggested that the NHTSA consider placing limitations on Tesla's usage of the system. The agency should take clear and obvious steps to protect the public. This includes limiting Tesla's FSD only to road and weather conditions that it was designed for. The NHTSA has also investigated Telsa's automated vehicle features. In January, the agency began an investigation into 2.6 millions Tesla vehicles after reports of crashes that involved a feature allowing users to remotely move their cars. NHTSA also examines Tesla's June launch of self-driving roboticaxis in Austin. In an email sent to Tesla on July 1, the agency stated that it was still reviewing its deployment and wanted Tesla to confirm if Tesla employees could remotely drive the cars.
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Allegiant and Frontier CEOs will testify before US Senate hearing on airline competition
Aides to Congress have confirmed that the chief executives of Allegiant Airlines, Frontier Airlines and other low-cost carriers will be testifying before a U.S. Senate Judiciary Antitrust Subcommittee Tuesday regarding air carrier competition. Allegiant Airlines' CEO Greg Anderson, Frontier Airlines' CEO Barry Biffle, and Sharon Pinkerton, Senior Vice President at Airlines for America (which represents United Airlines Delta Air Lines American Airlines Southwest Airlines) are all witnesses who will be called to testify. Focus on Air Traffic Control and Low-Cost Airlines Airlines for America stated that it is looking forward to "highlighting how robust competition led to historically low prices, a variety of options and high-quality customer service resulting in record-high demand." The group said that "our nation's antiquated and understaffed air traffic controls system is the biggest threat to a healthy, highly competitive airline industry." Frontier has confirmed that it will be attending the hearing. Allegiant has not responded to any requests for comment. Scott Kirby of United Airlines, a vocal critic against the no-frills airline business model, expressed doubts earlier this month about the future of bankrupt low cost carrier Spirit Airlines. Kirby said that the ultra-low cost airline model was "an interesting experimental" which had "failed." He added, "And I think it's unlikely for Spirit to keep flying as their customers dislike them and don’t want to travel." Spirit's customers are loyal to its low-cost fares and premium products. The airline suggested that United executives may be raving about them because of their low fares. Spirit filed for bankruptcy last month, the second time within a year. A previous reorganization had failed to improve its financial standing. Ganesh Sitaraman, professor of law at Vanderbilt University and Bill McGee - senior fellow for travel and aviation at the American Economic Liberties Project - will also be testifying. David Shepardson is the reporter. Mark Porter, Mark Potter and Mark Porter edited the article.
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Ancora, an activist, applauds CSX for replacing CEO
Ancora Holdings, an activist investor, welcomed the news on Monday that railroad operator CSX had replaced its CEO. It said they expected his successor to find a merger partner. Ancora Holdings, an activist investor, said it was pleased to hear that CSX had replaced its CEO Joe Hinrichs by Steve Angel on Monday. CSX responded after Ancora urged them to find a new leader or pursue a merger. Ancora announced in August that it was ready to engage in a proxy battle to force these changes. It said CSX stood to lose most after the news in July of Union Pacific's acquisition of Norfolk Southern for $85 Billion. The merger will create the United States' first coast-to-coast rail freight operator, and it will reshape how goods are moved across the country from grains to automobiles. Ancora stated that "although Steve Angel isn't a railroader, his M&A record and ability to create value indicate his appointment as an initial step in a positive direction for CSX." The firm said that it expected Angel and the board of directors to be more proactive about increasing shareholder value, and to identify a partner willing to merge with. Ancora, which held a small stake in CSX last month, said that it continues to buy CSX stock and hopes the company's leadership has been strengthened. Ancora said Monday that it continued to purchase CSX shares and hoped it had strengthened the leadership of the company. The company declined comment. Ancora was particularly critical of CSX’s operating ratio (an industry metric to measure efficiency), which has risen during Hinrichs’ tenure, reflecting a lower level of efficiency. The investment firm said also that U.S. president Donald Trump's remarks about the benefits of building a transcontinental railway and his support for the merger between Union Pacific and Norfolk Southern may indicate more deals to come in this sector.
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US won't enforce Biden wheelchair passengers protection rule
U.S. Transportation Department announced on Monday it would not enforce certain provisions of the rule that was issued by the former president Joe Biden’s administration in December, which required new consumer protections to be provided for disabled passengers who use wheelchairs. United Airlines, Delta Air Lines, American Airlines, Southwest Airlines, JetBlue Airways, and the airline trade group Airlines for America sued in February to challenge the rule which set stricter standards for accommodating wheelchair-bound passengers. In addition, the rule requires that carriers reimburse wheelchair damage. USDOT stated in a filing that it is writing new rules and will not enforce requirements imposing airline responsibility for mishandled chairs or a requirement to reimburse passengers who use wheelchairs for the difference between the fare they paid for a flight and the fare they would have paid if their wheelchair had fit into the cargo or cabin of another aircraft. The administration of President Donald Trump will also not enforce the requirement that airlines inform passengers in writing about their rights when they check wheelchairs or scooters. USDOT estimated that 5.5 million Americans used a wheelchair last year. Data shows that out of 100 wheelchairs and scooters transported domestically, at least one was damaged, lost, or delayed. A spokesperson for Transportation Secretary Sean Duffy stated that the department will continue to provide support to flyers with disabilities, and enforce other provisions in the rule. The department is also reevaluating if these provisions "adhere" to the statute or are redundant. No final decision has yet been made." USDOT fined American Airlines $50 million in October 2024 for failing to provide adequate assistance to some disabled passengers and handling wheelchairs improperly. (Reporting and editing by Mark Porter, David Gregorio and David Shepardson)
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Highland selects Olympics-LA28 to provide 500 electric school buss for Games
LA28 announced on Monday that Highland Electric Fleets will be the official electric bus provider of the 2028 Olympic Games and Paralympic Games. This partnership will see 500 zero-emission school buses deployed to support transport operations. LA28 will repurpose yellow school buses that are already in use to transport accredited stakeholders to the Games. This approach, say the organizers, will reduce emissions and costs. Highland will be joining the LA28 Transport team to run a program that the partners have described as the first of its kind for electric school buses at the Games. The company will be responsible for the daily operations, including logistics and charging on site and depot management. Highland Electric Fleets, a division of Highland Electric Fleets, is proud to be partnering with LA28 in order to provide one of the largest electric school bus deployments ever assembled for an international sporting event. Together, we are proving that electric vehicles can be used to meet the needs of the largest stage in sport while providing zero-emission solutions for transportation. Los Angeles Mayor Karen Bass said the partnership was an example of utilizing existing resources to reduce emission and have a "lasting effect for Angelenos." Bass has called the Los Angeles Olympics a "no car" Games, and will encourage fans of the city to use public transport to navigate the vast city. Reynold Hoover, CEO of LA28, said that welcoming Highland Games was "an incredible move in the operational implementation of the 2028 games." LA28 has committed to minimizing the environmental impact of Games operations. The event will rely on the existing venues in Southern California and not build permanent infrastructure. Highland Electric Fleets, founded in 2019, provides electrification-as-a-service for school districts and other fleets. The company claims to have been the pioneer of the commercial vehicle-to grid program, using electric school buses. It also operates the largest project of its kind in the United States. (Reporting and editing by Lincoln Feast in Los Angeles. Rory Carroll is the reporter.
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Democratic lawmakers oppose US plans to end government subsidies on school bus internet
A group of U.S. Democratic legislators on Monday called on the Federal Communications Commission chairman to withdraw plans to stop government subsidies for wireless technology on school buses, which were originally created as part of a COVID era program. The lawmakers, led by Senator Ed Markey, noted that the FCC had allocated $48 million in its budget for 2024 to fund Wi-Fi for buses. More than 8,000 libraries and schools have also requested tens or millions of dollars to provide more than 200 hotspots for students and teachers. The letter, signed by over 50 Democratic legislators, including Senators Ron Wyden and Mark Kelly as well as Ben Ray Lujan and Peter Welch, said that removing federal support would "force cutbacks in services and impose sudden costs on libraries and schools across the country." Brendan Carr, FCC Chair, asked the commission to reverse policies that were adopted by then-President Joe Biden. These policies allowed for subsidies for Wi-Fi on school buses as well as wireless hotspots which could be borrowed from libraries for online access. Carr stated that the proposal would "end the FCC funding of unsupervised screentime for young children." Carr's spokesperson did not comment immediately. In May, the U.S. Senate voted to repeal FCC subsidies for hotspots and internet on school buses. Ted Cruz, chair of the Senate Commerce Committee, said that the rule does not require schools obtain parental consent prior to distributing hotspots subsidized by FCC or set meaningful filtering requirements. The House hasn't taken up the measure. Jessica Rosenworcel, FCC chair at the time, said that by approving this program schoolchildren would be able to complete their homework on bus rides. She pointed out that some children in rural areas spend up to an hour on the bus going to or from school, or to athletic events. Those without internet access at home find it difficult to complete their nightly homework. Rosenworcel stated that the idea was "smart, creative and in line with the law". Reporting by David Shepardson, Editing by Mark Porter & Hugh Lawson
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PG&E announces $73 billion plan to meet data center energy demand
PG&E Corp, a U.S. utility, announced on Monday that it will spend $73 billion between now and 2030 to upgrade transmission systems to meet the surge in demand for electricity due to data centers. In July, the company said it was working on supplying 10 gigawatts of new electricity from data center projects in the next ten year. According to the U.S. Energy Information Administration, power consumption will reach record levels in 2025 and in 2026. This is due to a surge of demand in data centers, as a result of increased adoption in artificial intelligence. PG&E Corp. has also been accused of igniting many wildfires in California, including some that were the most deadly. It has made investments to improve its grid's reliability. The company stated that it would build 700 miles underground power lines, and upgrade 500 miles of wildfire safety systems between 2025-2026. California's utility announced on Monday that its share of the $18 billion Wildfire Fund Continued Account, under SB 254, will drop to 47.85%. It was previously 64.20%. Utilities now have first refusal rights on insurance subrogation. SB 254 is a California law that reforms California's wildfire liability framework and funding for utilities including PG&E.
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S&P 500 and Nasdaq are up as investors ignore hawkish talks, wait for shutdown clarity
S&P 500 index and Nasdaq index both gained on Monday. Investors shrugged of hawkish remarks by a Federal Reserve official, and weighed in on the potential impact of a government shutdown. These moves are a continuation of Friday's gains. An in-line inflation reading kept the hopes for rate reductions alive, and lifted all three main indexes despite their weekly declines. Beth Hammack of the Cleveland Fed, one of the Fed's most hawkish officials, and who did not vote on the policy for this year, stated that the central bank must maintain a restrictive monetary policy in order to cool the inflation. The traders, however, have priced in a 91.4% probability of a 25 basis-point cut during the next Fed meeting. At 10:03 am. The Dow Jones Industrial Average dropped 17.64 points or 0.04% to 46,228.17 ET. The S&P500 gained 25.48, or 0.38 %, to 6,669.18. Meanwhile, the Nasdaq Composite grew 178.39, or 0.79% to 22,662.67. The S&P 500 Technology sector gained about 1 percent. Nvidia gained 2.8% while Micron Technology gained 4.9%. Lam Research gained 2.6% after Deutsche Bank upgraded its rating for the chip-making company to "buy" instead of "hold". Stocks drove the Nasdaq to record highs and the semiconductor index. S&P 500 stocks in communication services increased by 0.8%. Stocks in the energy sector fell 1.9%. Dow Jones suffered from losses in stocks like Chevron (down 2.3%) and McDonald's (down 0.7%). The focus of attention is on the funding standoff between Republicans, and Democrats. This has led to the possibility of a government shutdown starting Wednesday. Mel Casey is senior portfolio manager of FBB Capital Partners. It could be an opportunity for Republicans, to push through additional government spending cuts. Some analysts have warned, however, that a government shutdown could delay the release of important economic data. This includes Friday's report on nonfarm payrolls, which could cloud the market outlook. The S&P 500 index has been strong for 103 days, BTIG noted, and that it may be due for a correction. Investors will be watching the comments of other Fed policymakers throughout the day for signs of concern about the possible loss of economic visibility if a shutdown occurs. Canopy Growth, Cronos Group, and Tilray Brands all have shares listed in the United States. Canopy Growth grew by 16.3%, Cronos Group by 11.6% and Tilray Brands gained 36.1%. Trump shared a video on Sunday promoting hemp-derived cannabidiol's health benefits. Electronic Arts rose 4.8% following the agreement to be taken privately in a deal worth $55 billion. Western Digital reached a new record high and was last up by 9.2% to top the benchmark after at least 2 brokerages increased their target price for the data storage product maker. Seagate Technology soared 7.1%, hitting a new record after at least two brokers raised their price targets. Carnival's annual profits rose despite a 2.3% decline. On the NYSE, advancing issues outnumbered declining ones by a ratio of 1.15 to 1 and by a ratio of 1.24 to 1 on the Nasdaq. The S&P 500 recorded 25 new 52-week lows and four new highs. Meanwhile, the Nasdaq Composite registered 76 new highs with 41 new lows. (Reporting and editing by Sriraj Kalluvila, Shilpa Majumdar and Niket Nishant in Bengaluru)
S&P and Nasdaq rise as investors ignore shutdown worries, hawkish talks
Investors shrugged off concerns about a government shutdown, and Federal Reserve officials' hawkish comments. The S&P 500 index and Nasdaq index rose on Monday.
The rise in stock prices reflects a risk-on attitude among investors. Their expectations of a Fed that is dovish have allowed equities to maintain lofty valuations even as inflation fears and labor market uncertainty persist.
"Dip purchasers are rewarded on this market." "One day, they will not, but until proven differently, you need to buy dips," Matthew Tuttle said, CEO of Tuttle Capital Management.
At 11:52 am. The Dow Jones Industrial Average dropped 92.77, or 0.2% to 46,154.52 ET. The S&P500 gained 11.59 points or 0.17% to 6,655.29 while the Nasdaq Composite increased 104.87 or 0.47% to 22,588.94.
The focus of attention is on the funding standoff between Republicans, and Democrats. This has led to the possibility of a government shutdown starting Wednesday.
Financial markets have generally ignored government shutdowns. Goldman Sachs economists wrote that prior shutdowns were not comparable to the possible shutdown this week.
A possible shutdown could delay the release of important economic data including the nonfarm payrolls report on Friday and affect the markets' outlook.
Investors also monitor the comments of several Fed policymakers to see if they show any concern about a possible loss of visibility of the economy should a shutdown occur.
Beth Hammack of the Cleveland Fed, one of the Fed's most hawkish officials, and who has not voted on the policy for this year, stated on Monday that the central bank must maintain a restrictive monetary policies to cool the inflation. The traders, however, have priced in a 91.4% probability of a rate cut of 25 basis points at the next Fed Meeting.
The S&P technology sector increased by about 0.5%. Micron Technology grew by 4.1% while Nvidia gained 2.1%. Lam Research gained 2.4% after Deutsche Bank upgraded its rating for the chip-making company from "hold" to "buy".
The Nasdaq was also boosted by the stocks, which catapulted a broader semiconductor index into a new record high.
AppLovin broke a record, and the stock was up 5.8%. Morgan Stanley increased the target price for the stock from $480 to $750.
Dow Jones was weighed down by losses in stocks like Chevron (down 2.4%) and McDonald's (down 1%).
The S&P 500 index has gone 103 days without dropping below its 50-day mean. This is an unusually high number of trading days that shows the strength of the market, BTIG noted, adding that the index could be due for a correction.
Canopy Growth, Cronos Group, and Tilray Brands all have shares listed in the United States. Canopy Growth rose 15%, Cronos Group 13% and Tilray Brands 39.2%. Trump shared a video on Sunday promoting hemp-derived cannabidiol's health benefits.
Electronic Arts rose 4.7% following the agreement to be taken privately in a deal worth $55 billion.
On the NYSE, advancing issues outnumbered declining ones by a ratio of 1.18 to 1 and by a ratio of 1.1 to 1 on the Nasdaq.
The S&P 500 recorded 30 new 52-week lows and four new highs. Meanwhile, the Nasdaq Composite registered 93 new highs with 55 new lows. (Reporting and editing by Sriraj Kalluvila, Shilpa Majumdar and Niket Nishant in Bengaluru)
(source: Reuters)