Hello, N2K’ers!

The winner of our world famous News Haiku^TM competition is Samantha Sigelakis-Minski, who wrote this abour ChatGPT-5 being “warmer” and “friendlier” now:

Amazing! I like the way she humanized the robot. Here’s what she has to say on the win:

“Amazing! To my adoring Cheddar public, I'll see you all on the other side when our Paperclip overlord grants us leave.”

Cough never gonna happen cough. Cough. Still, here’s a gif of a robot for your trouble, Samantha! (It’s Sean Young playing Rachael the smoking Replicant in “Bladerunner”, which I think we can all agree, is a film that very much humanizes the robot…)

The subject of this week’s News Haiku^TM competition is OpenAI boss Sam Altman saying we might be in an “AI Bubble.” Send me your entry by Thursday at noon eastern for the chance to win a gif, and of course, capture the glory.

Congratulations again to everyone who entered. I’m blown away by how successful this idea has been since we started it and consistently amazed at your creativity and poetic prowess. Thank you!

Now, let’s talk about the news you Need2Know?

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Europeans still really hate to buy a Tesla

• It’s getting a tad cheaper to buy a home

• Trump fires rail board member before merger vote

• Pressure washers recalled after explosions

• AI sim of Fuji eruption helps Japan prepare

• Poll of the day: Free Tesla, anyone? Or, er…not?

What’s the stock market up to, eh?

$SPX ( ▼ 0.64% ) $DJI ( ▼ 0.2% ) $NDX ( ▼ 1.15% )

Companies mentioned in today’s newsletter

$TSLA ( ▼ 3.5% )  $NSC ( ▲ 0.79% )  $UNP ( ▲ 1.18% )  $HD ( ▼ 0.17% )  

Europeans still really hate to buy a Tesla

It turns out it’s not a good idea to do a confusing arm gesture on inauguration day if you want to sell cars in a country where they have long memories about such arm gestures.

Tesla's European sales have taken a significant hit for the seventh month in a row, with July figures down 40% from the previous year, as reported by the European Automobile Manufacturers Association. Despite the broader electric vehicle (EV) market surging by 39%, Tesla sold only 6,600 cars across the EU last month compared to 11,465 a year ago. Industry observers are pointing to Elon Musk's polarizing political statements as a key factor keeping European buyers away from Tesla’s brand.

Musk’s controversial comments have sparked widespread backlash across the continent. Recently, Musk endorsed far-right candidates and criticized the British Prime Minister as "an evil tyrant who belongs in prison." In Germany, he warned voters of dire consequences unless they supported the anti-immigrant “Alternative for Germany” party. The fallout has included public protests, such as a hanging of Musk in effigy in Milan and posters in London likening him to a Nazi.

Tesla is further plagued by delayed European regulatory approval for its Full-Self Driving (FSD) software, once expected to drive interest by March, and temporary factory closures that disrupted production earlier this year. Musk remains optimistic about a rebound, hinging on new, lower-cost models set to launch soon. Nevertheless, Tesla faces steep competition, with Chinese rival BYD claiming an 11% market share against Tesla’s 0.7%.

Song of the day: The Beaches, ‘No Hard Feelings’

Aside from looking a bit like the Spice Girls, Toronto foursome The Beaches make a lot of music about breaking up with their exes. It’s wonderful. You’ll enjoy it regardless of whether you’ve been through a breakup recently. This is the title track of their new album, which dropped on Friday. Listen here.

It’s getting a tad cheaper to buy a home

Is the housing glass half full? Or is it still three quarters empty? I’m afraid I have good news and then probably bad news for you on this front.

The average rate on a 30-year mortgage in the U.S. has dipped to 6.56%, marking the lowest level in 10 months, according to Freddie Mac. While the drop offers a glimmer of hope for prospective homebuyers, the housing market remains sluggish, with elevated borrowing costs and cautious sentiment among buyers and sellers.

For comparison, the average rate a year ago stood at 6.35%. Federal Reserve Chair Jerome Powell recently addressed the economic pressures impacting the housing market, signaling that the central bank may cut interest rates soon. While Powell acknowledged risks such as rising unemployment and higher inflation, he hinted at potential adjustments to the Fed’s policy stance.

However, economists remain cautious about how this will impact mortgage rates. Lisa Sturtevant, chief economist at Bright MLS, pointed out, “While the Fed is likely to cut interest rates at their September meeting, it is not at all certain that mortgage rates are going to come down.”

Meanwhile, July saw a 0.4% dip in pending home sales compared to the previous month, signaling that the recovery in home buying could be slow. Stubbornly high home financing costs and inflation fears continue to pose challenges, leaving the market in a gridlock.

Today on the ‘gram: 10th time lucky, eh?

Post of the day: It’s how LBJ became president

Quote of the Day

Trump fires rail board member before merger vote

President Donald Trump has dismissed Robert E. Primus, a Democratic member of the U.S. Surface Transportation Board (STB), just as the board prepares to weigh in on what could be the largest railroad merger in U.S. history — the proposed $85 billion acquisition of Norfolk Southern $NSC ( ▲ 0.79% ) by Union Pacific $UNP ( ▲ 1.18% ) . The merger would create the nation’s first transcontinental railroad, consolidating the number of major freight railroads in the U.S. to just five.

Primus, who was appointed by Trump during his first term and was later named STB chairman by President Joe Biden, called the firing unwarranted.

It follows Trump’s firings of board members at the National Transportation Safety Board, Federal Reserve, Equal Employment Opportunity Commission and Nuclear Regulatory Commission, which are all supposed to be independent agencies.

Primus hasn’t yet taken a position on the merger but has opposed other mergers in the past and said they don’t help grow the rail industry.

“If that’s not being in line with America first, then I don’t know what America he’s saying is first,” said Primus, emphasizing his efforts to grow freight rail.

Critics, including Sen. Tammy Baldwin (D-WI), accused Trump of undermining independent agencies to favor Wall Street. Unions condemned the move as unprecedented and said it undermines the credibility of federal regulators.

Should you check your 401(k) today?

👍️ 

Yes, it should be a nice way to start the working week.

Pressure washers recalled after explosions

Ryobi pressure washer owners, take note: roughly 780,000 units sold in the U.S. and Canada are being recalled after reports of overheating capacitors causing explosions and injuries. The recall affects two specific models—RY142300 and RY142711VNM—sold between July 2017 and June 2024. Priced at $300-$400, these devices were sold at major retailers, including Home Depot $HD ( ▼ 0.17% ) , as well as through Direct Tools Factory Outlet.

The recall stems from overheating capacitors that can burst, ejecting parts with dangerous force. So there have been 135 reports of capacitor failures in the U.S. Of these, 41 resulted in explosions that caused 32 injuries, including fractures and injuries to fingers, hands, and even faces.

The recall notice urges consumers to stop using the affected products immediately and visit Ryobi’s recall website for a free repair kit to replace the faulty capacitor. This is not the company’s first recall. Earlier this year, Ryobi-branded mowers and hedge trimmers were recalled over fire and laceration hazards.

AI sim of Fuji eruption helps Japan prepare

Mount Fuji, Japan’s iconic yet still-active volcano, hasn’t erupted since 1707. Which is great, right?

On the other hand, if you know what I mean, it hasn’t erupted since 1707. Which means it’s kinda overdue…

Tokyo officials are leaving nothing to chance. In honor of Volcanic Disaster Preparedness Day (which is an actual thing), the Tokyo Metropolitan Government released AI-powered simulation videos imagining the impact of a future eruption. The videos aim to educate the city’s 37 million residents about the catastrophic consequences of such an event.

Described as a disaster that could strike “at any moment, without warning,” the simulation shows central Tokyo blanketed in volcanic ash within hours of an eruption. The ashfall, as the video warns, could cripple transportation, disrupt food and power supplies, and cause long-term respiratory issues. To conclude, the video reminds residents: “We need to arm ourselves with facts and prepare for disaster in our daily lives.” It also shows a family stocking up on canned food and first-aid essentials.

While some residents welcomed the message, others expressed anxiety. “Are there actually any signs of eruption?” asked Shinichiro Kariya, a hospital worker. Hiromi Ooki, who lives near Mount Fuji, shared her reaction: “Nature’s power is so great that maybe it’s better if it scares us a little,” she said.

Experts, however, urge calm. Professor Naoya Sekiya from the University of Tokyo assured, “There’s no particular significance to the timing” of the simulation, the professor said, emphasizing its focus on long-term preparedness.

My guess is it’ll explode next week, now, just to show ‘em. If I lived in the shadow of an active volcano I would resign myself to fate rather than stress all the time. Then again I don’t live in the shadow of an active volcano for a reason.

Poll of the day: Free Tesla, anyone? Or, er…not?