Daily Update — Decemeber 01, 2025
Sustainability in Consumer Goods; South Korean Short Interest Down; and 2026 US Economic Outlook
Today is Monday, December 1, 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
Listen: CSO Insights: Why consumer goods giant P&G wants to reinvent the business case for sustainability
In this episode of the “All Things Sustainable” podcast, Procter & Gamble Chief Sustainability Officer Virginie Helias explained how the company is navigating sustainability challenges, economic and geopolitical headwinds, and changing consumer behavior.
"We need to reinvent the business case,” Helias said. "We need to create new tailwinds and the new tailwinds will be, first, innovation that delivers superior value. And for us, that means where sustainability becomes an amplifier of performance.”
Artificial Intelligence
South Korean Short Interest Declines Amid AI-Driven Market Rally
South Korea’s equity market has been on a remarkable run, with the Korean Composite Stock Price Index soaring 61% year to date, fueled by the global AI boom. An important trend has emerged from this rally: Short interest, measured as a percentage of market capitalization on loan, has steadily declined since early September. Short interest now stands at 0.92%, down from a high of 1.33% in April, signaling a notable shift in investor sentiment.
The spike in short interest earlier this year was driven by trade tensions and tariff uncertainties, which rattled investor confidence and prompted bearish positioning. However, as these fears subsided and optimism around AI-driven growth grew, short sellers began to retreat. The decline in short interest suggests that market participants are increasingly reluctant to bet against Korean equities, even as valuations climb.
Economy
Economic Outlook US Q1 2026: Steady As She Goes But On A Narrow Path
S&P Global Ratings projects US economic growth to slow to 2% in 2025 and 2026 on an annual average basis, from 2.8% in 2024. This represents a modest uptick from the September forecast and is slightly above near-term potential growth.
S&P Global Ratings anticipates that President Donald Trump's tax and spending bill, also known as the One Big Beautiful Bill Act, will support consumer spending in 2026. Nevertheless, year-over-year consumer spending growth is expected to reach a cycle low and decrease to 1.8% in 2027, based on net immigration growth tracking close to zero. Additionally, S&P Global Ratings expects the fiscal impulse from direct government spending, which was negative in the second half of 2025, to turn positive next year.
In case you missed it
- Numerous cyberattacks across a range of industries this year have not produced sufficient claims to increase premiums in the cyber insurance market.
- Investment funds are increasing their exposure in the EU carbon market while curtailing positions in the natural gas market amid an expected shift in fundamentals from 2026 onward.
- The UK government unveiled a new critical minerals strategy aimed at strengthening the country's access to vital raw materials and reducing its overreliance on foreign suppliers.
Upcoming events
- Analyzing Your World: Leveraging Asset-Level Data for Climate Solutions | December 3 (Webinar)
- Global Credit Outlook 2026 (AMER/EMEA Session) | December 4 (Webinar)
- Energy & Power Markets: A wave of reform or optimism? | December 4 (Webinar)