Daily Update — April 29, 2025
Indices for Energy Transition; AI Neoclouds; and OPEC+ Outputs Amid Tariffs
Today is Tuesday, April 29, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Energy Transition & Sustainability
Bricks of Transition
As the world shifts toward more innovative and efficient energy sources, indices are playing an important role by providing diverse metrics that capture various aspects of the energy transition. This is especially relevant in the real estate sector, which is responsible for a significant share of global energy consumption.
The Dow Jones Global Select ESG Tilted Real Estate Securities Index, launched in 2021, is a prime example of how indices can facilitate the energy transition. The index measures the performance of publicly traded real estate securities that comply with specific sustainability criteria. It also aims to enhance its total GRESB score compared to its benchmark, the Dow Jones Global Select RESI, by favoring companies with higher GRESB scores and minimizing exposure to those with lower or no scores, thereby promoting a more sustainable approach within the real estate market.
Artificial Intelligence
Listen: How AI Workloads Are Shining a Light on Neoclouds
In the latest episode of the "MediaTalk" podcast, host Mike Reynolds and S&P Global Market Intelligence senior reporter Iuri Struta delve into the burgeoning world of AI neoclouds, a new type of cloud service provider that developed from the remnants of the crypto mining industry. Neoclouds rent out graphics processing unit capacity to support AI workloads. This pivot has attracted significant investment, with over $10 billion allocated to the sector in 2024.
CoreWeave, which operates in the neocloud sector, has shown significant growth potential. The company established a strategic partnership with NVIDIA, highlighting the intricate relationship between chipmakers and neocloud providers. However, challenges remain, including potential tariff impacts, a limited customer base and the need to avoid commoditization of the business.
Global Trade
Listen: From tariffs to OPEC+ output increase — how will Asia navigate through the changes?
The sweeping tariffs announced by the US in early April, China's retaliatory levies on US imports and OPEC+'s decision to significantly increase output in May have driven Platts Dated Brent to its lowest price since April 2021. As one of the largest oil-importing regions, Asia is poised to face substantial implications from these developments.
In this episode of the “Platts Oil Markets” podcast, S&P Global Commodity Insights’ Asia energy editor Sambit Mohanty, head of Asia content Calvin Lee and executive director Premasish Das discuss the key themes that are likely to keep Asian oil markets on edge.
In case you missed it
- South Korean refiners and petrochemical producers have nearly ruled out the resumption of Iranian crude trade this year, though industry participants believe that Seoul's new leadership after the June election could make feedstock procurement activities more flexible.
- With 37% of retail real estate investment trusts on positive outlook, S&P Global Ratings expects the positive ratings momentum to continue in 2025. Still, upward ratings momentum could be tempered by expectations for slower economic growth and weaker consumer spending given the potential effects of recently announced tariffs.
- The UK government opened a technical consultation on draft legislation for a Carbon Border Adjustment Mechanism and issued a policy update clarifying the scope, calculation and administration of the tax.
Upcoming events
- Credit Outlook for Korean Corporates and Financial Institutions Amid Rising U.S. Tariffs | April 30 (Webinar)
- Analyzing the Material Impacts of Recent Policy Developments | April 30 (Webinar)
- First 100 Days Recap: What We're Watching For U.S. Public Finance | May 1 (Webinar)