US automakers will face easier federal rules in the race with China to develop self-driving cars
U.S. automakers developing self-driving cars will be allowed more exemptions from certain federal safety rules for testing purposes to help them compete against Chinese rivals, the Transportation Department said Thursday.
The department also said it will streamline crash reporting requirements involving self-driving features and will move toward national rules for the technology to replace a patchwork of state regulations.
'This Administration understands that we're in a race with China to out-innovate, and the stakes couldn't be higher,' said Transportation Secretary Sean Duffy in a statement. 'As part of DOT's innovation agenda, our new framework will slash red tape and move us closer to a single national standard that spurs innovation and prioritizes safety.'
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Reuters
25 minutes ago
- Reuters
TRADING DAY Good vibrations turn sour
ORLANDO, Florida, June 11 (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist I'm excited to announce that I'm now part of Reuters Open Interest (ROI), an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X. The US and China have reached a trade deal, or at least agreed on the framework of a deal, which together with surprisingly soft U.S. inflation data, gave markets a lift on Wednesday. But Wall Street's gains were mild, and they were later wiped out by rising tensions in the Middle East. In my column today I look at the 'equity risk premium' and other metrics that suggest relative U.S. equity and bond valuations are getting very stretched. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Good vibrations turn sour It's a "done" deal, according to U.S. President Donald Trump, although the he and Chinese leader Xi Jinping still have to finalize the wording of the trade agreement between the two superpowers and sign off on it. The main points of the deal appear to be: China will remove export restrictions on rare earth minerals and other key industrial components; U.S. tariffs on Chinese goods will total 55%; Chinese tariffs on U.S. goods will total 10%. Trump could not have been more enthusiastic in his praise for the agreement on Wednesday, and Commerce Secretary Howard Lutnick said 'deal after deal' with other countries will follow in the weeks ahead. Yet, judging by the relatively muted market reaction, investors are less enthused. And given the chaotic and unpredictable nature of the Trump administration's tariff announcements thus far, the irony of Treasury Secretary Scott Bessent calling on China to be a "reliable partner" in trade negotiations will not be lost on some observers. Especially, one suspects, in Beijing. Based on these proposed China levies, and with the US expected to conclude more trade deals in the coming weeks, the overall U.S. effective tariff rate will be lower than feared a couple of months ago. That's a relief. But the effective tariff rate of around 15% that many economists expect will still be significantly higher than the 2.5% rate at the end of last year, and would be the highest since the 1930s. Also, as the May inflation figures showed, tariffs have yet to be felt on prices. Investors - and Fed policymakers, who meet next week - are in a state of limbo. How will corporate profits and consumer spending be affected? What proportion of the tariffs will companies "swallow", and how much will they pass on to their customers? Zooming out, inflation appears to be cooling around the world, although this trend is expected to reverse once tariffs start to fuel higher goods price inflation. Figures on Wednesday showed that U.S. consumer inflation and Japanese wholesale inflation were lower than expected in May. These reports follow similar numbers from Europe recently, and China remains stuck in its battle against deflation. Next up is India, which releases consumer inflation figures on Thursday, which are expected to show annual inflation slowed to 3.0% in May, the lowest in more than six years. Another focus for investors on Thursday will be the auction of 30-year U.S. Treasury bonds. US stocks-bonds warnings flash amber again Calm has descended on U.S. markets following the 'Liberation Day' tariff turmoil of early April. But Wall Street's rally has revived questions about U.S. equity valuations, as stocks once again look super pricey compared to bonds. Since the chaotic days of early April, U.S. equities have rebounded fiercely, with the S&P 500 up 25%, putting the Shiller cyclically adjusted price-earnings (CAPE) ratio for the index in the 94th percentile going back to the 1950s, according to bond giant PIMCO. Stocks are looking expensive in absolute terms, and in relation to bonds. The equity risk premium (ERP), the difference between equity yields and bond yields, is near historically low levels. According to analysts at PIMCO, the ERP is now zero. The previous two times it fell to zero or below were in 1987 and 1996–2001. In both instances, the ultra-low ERP precipitated a steep equity drawdown and sharp fall in long-dated bond yields. "The U.S. equity risk premium ... is exceptionally low by historical standards," they wrote in their five-year outlook on Tuesday. "A mean reversion to a higher equity risk premium typically involves a bond rally, an equity sell-off, or both." But reversion to the mean doesn't just happen by magic. A catalyst is needed. Equities have recovered largely because they were oversold in April, trade tensions have been dialed down, and investors remain confident that Big Tech will drive solid AI-led earnings growth. So even though huge economic, trade, and policy risks continue to hang over markets, there is no sign of an imminent catalyst that would cause an equity market selloff. The flip side of equities looking expensive is that bonds look like a bargain. Indeed, the relative divergence between stocks and bonds is such that, by one measure, U.S. fixed income assets are the cheapest relative to equities in over half a century. Using national flow of funds data from the Federal Reserve, retired strategist Jim Paulsen calculates that the total market value of U.S. bonds as a percentage share of the total market value of U.S. equities is the lowest since the early 1970s. "Since the aggregate U.S. portfolio is currently aggressively positioned, investors may have far more capacity and desire to boost bond holdings in the coming years than most appreciate," Paulsen wrote last week. But bonds are 'cheap' for a reason. Washington's profligacy – the reason ratings agency Moody's recently stripped the U.S. of its triple-A credit rating – and inflation worries have kept yields stubbornly high. The term premium - the risk premium investors demand for holding long-term debt rather than rolling over short-dated loans - is the highest in over a decade, reflecting concerns about Uncle Sam's long-term fiscal health. And the diagnosis here shows no signs of improving. Trump's 'Big Beautiful Bill' is expected to add $2.4 trillion to the U.S. debt over the next decade, according to the nonpartisan Congressional Budget Office, likely putting more upward pressure on yields. Of course, equity investors do seem to be pricing in a very rosy scenario, and the past few months have shown how quickly the market landscape can change. The U.S. economy could weaken more than expected, the trade war could escalate, or there could be a geopolitical surprise that causes bond yields and equity prices to fall. Investors should therefore be mindful of the warnings being sent by ERPs and other absolute and relative valuation metrics. However, they should also remember that stretched valuations can get even more stretched. As the famous saying goes, markets can stay irrational longer than investors can remain solvent. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
Scottish Sun
an hour ago
- Scottish Sun
New Tesla Model Y is a more chiselled, quieter version of mega-seller… it moves the game on for a tech-rich family motor
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) I'M struggling to keep up with Elon Musk and his on/ off bromance with Donald Trump. Are they buddies again? 6 The world's best-selling car was fugly… but two years on, it's had a sharp new makeover Credit: simon thompson 6 The cabin gets a techy glow-up with the gear selector shifted to the screen - and wraparound LEDs Credit: simon thompson 6 The new Model Y shines alongside its less attractive predecessor Credit: simon thompson Or still kicking lumps out of each other on X? One thing I do know is that Tesla sales are down eight per cent in Great Britainland. Some say it's because Musk backed Trump for President, followed by that awkward hand gesture at the inauguration. Some say it's the Chinese invasion. Maybe in part. But mostly it's due to Tesla halting production of the mega-selling Model Y at its Berlin gigafactory to tool up for the new one. Now everything is sorted and sales are likely to take off like a Space X rocket. Here are ten things you need to know about the new motor. 1. The old one was fugly. The world's best-selling car two years on the bounce, yes. But still fugly. That's sorted now. This new one is more chiselled. First glimpse at limited edition EV hitting UK in just weeks with slick new look It's like they've taken a photo of the Cybertruck to a surgeon and gone, 'This please'. The lower nose helps it slice through the air, adding a bit more range. 2. They've deleted the Tesla badge from the bonnet. Confident move. 3. But the biggest change is at the back. There's a new reflective lightbar which highlights T E S L A written out in full. Also, the rear diffuser sticks out more. So repair bills will be lower if you reverse into something you shouldn't. Which helps with insurance too. 4. The 'frunk' — front trunk — now has a plughole in it. So you can fill it with ice for summer barbecues. Or store muddy boots. 5. Cabin. The gear selector has moved to the big screen — like a Model 3. But they've kept the indicator stalk. Unlike a Model 3. The wrapround LED strip is new. The front seats will warm and cool your back. They didn't before. Other things. The seat bases are longer in the back. So they're more comfortable. There's a little entertainment screen to play arcade games. The front passenger seat moves forward at the touch of a button for limo-like legroom. 6. Sound. It's now much quieter in here which makes it feel more expensive. There's extra insulation. Acoustic glass. Redesigned door seals. All little details that add up. 7. The boot is a smidge smaller. But you'll never notice. I had to look it up. The seats now fold up and down automatically, where they only folded flat before. You had to push them back up. 8. The suspension has been tweaked so it rides better. Batteries and motors are unchanged. But improved regenerative braking tech adds more electrons. Every version should do 300 miles-plus, with the rear-wheel drive Long Range hitting 387 miles. There's talk of a bigger battery nudging 500 miles. 9. Price. The standard rear-drive Model Y starts at £45k, which is £2k more than before. Not bad. The all-singing all-wheel drive Long Range is £52k. 10. This isn't specific to Model Y but Tesla's Supercharger network blows everyone else out of the water. It's next-level good. Quick. Easy. No cards. No apps. And cheaper too. It doesn't really matter if you like Musk or not. If you want a minimalist, tech-rich family motor, Model Y moves the game on. 6 There's a little entertainment screen to play arcade games Credit: simon thompson 6 The old one was fugly. The world's best-selling car two years on the bounce, yes. But still fugly Credit: simon thompson 6 Elon Musk's Tesla brand has been having a tough time recently, but sales are now likely to take off Credit: Getty
Scottish Sun
2 hours ago
- Scottish Sun
Popular fast food chain with more than 140 UK sites reveals plans for new Scots restaurant
COMING SOON Popular fast food chain with more than 140 UK sites reveals plans for new Scots restaurant A POPULAR fast food chain with over 140 diners across the UK is set to open a brand-new branch in Scotland. German Doner Kebab will open its doors next month at Maurice's Gate in Cumbernauld, near Glasgow. 2 German Doner Kebab is set to open in Cumbernauld next month Credit: Getty 2 CEO Simon Wallis said he was "thrilled" to announce the opening Credit: Gary Stone The new eatery will mark the brand's tenth location in Scotland. Known for its 'bold flavours, premium ingredients, and 100% halal-friendly menu', GDK has become a firm favourite among food lovers. The mouth-watering menu includes doner wraps, burgers, Doritos-flavoured 'kebags', veggie kebabs and rice bowls. GDK boss Simon Wallis said he was "thrilled" about the latest addition, saying the opening has 'been in the pipeline for a while'. He said: 'Our menu is built around quality ingredients, bold flavours, and a new perspective on a nationwide favourite. 'As we continue growing, openings like Cumbernauld are testament to the driving force behind the GDK brand. 'We're incredibly proud of how far we've come and would like to extend a special thanks to our hard-working team across the country. 'Congratulations to our new franchise partner on his first GDK – we wish him the very best of luck on this exciting journey and can't wait to introduce Cumbernauld to 'Kebabs Done Right'.' Elsewhere, Nando's has announced the opening of its first restaurant in a Scots town. The chain revealed it is bringing its famous grilled peri-peri chicken to Kilmarnock "later this year". UK's biggest kebab chain trials 'robotic shavers' to slash costs after Labour's hated budget tax on business And Scotland's favourite takeaways have been revealed. One in four Scots selected Chinese cuisine as their top choice for a tasty treat.
