FT News Briefing

Europe’s battery darling runs out of juice

Sep 20, 2024

The S&P 500 hits a record high, but Europe's leading hope in EV batteries, Northvolt, faces dire challenges that could impact the automotive industry. The Bank of England decides to maintain interest rates at 5%, causing ripples in economic discussions. Meanwhile, frequent flyers express growing frustration with airline loyalty programs, as redeeming points becomes increasingly difficult in a post-COVID world. Emotional ties to these programs are strong, yet customers aren't happy with recent changes, raising concerns about their future.

11:37

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Quick takeaways

The S&P 500 reached a record high, fueled by investor optimism following the Federal Reserve's interest rate cuts, signaling economic stability.

Northvolt, Europe's leading EV battery manufacturer, is struggling with production challenges amid fierce Asian competition, threatening the continent's automotive future.

Deep dives

Market Optimism and Economic Indicators

Recent market trends indicate significant investor optimism, with the S&P 500 reaching an all-time high. This surge is attributed to expectations that the Federal Reserve's recent interest rate cuts will effectively mitigate the risk of recession. Notably, the tech sector has benefited the most from these low rates, leading to a notable increase in major tech indices like the NASDAQ. This positive momentum wasn't restricted to the U.S.; European and Japanese markets reflected similar gains, suggesting a broader global confidence in economic stability.

Low Rates Fuel Market Optimism

00:58

Emotional Investment Fuels Loyalty Programs

00:57

Intro

5min

Concerns in the Car Industry and Airline Loyalty Dynamics

2min

The Profitability Dilemma of Airline Loyalty Programs

2min

The Emotional Stakes of Airline Loyalty Programs

3min

The S&P 500 hit a record high, Europe’s biggest hope for dominance in EV batteries is struggling to hang on and the Bank of England held interest rates steady. Plus, the FT’s Brooke Masters explains why customers are getting fed up with airline loyalty programmes.

Mentioned in this podcast:

S&P 500 hits new record after Fed makes jumbo cut to US interest rates

Europe’s great battery hope Northvolt fights for survival

Bank of England holds rates at 5%

The fury of the frequent flyer

The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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