Daily Update — June 6, 2025
Lessons from Spain’s Blackout; Europe’s AI U-turn; and Ocean Carrier Profits
Today is Friday, June 6, 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
Blackout in Spain: what we know and lessons for the future
The April 28 blackout of historic proportions on the Iberian peninsula has sparked debate on responsibility and prevention; the investigation into its causes is ongoing.
One conclusion is that grid investments are becoming more important, S&P Global Commodity Insights analysts Kerry Thacker-Smith and Alexandre Mace explained on the latest episode of the “Energy Evolution” podcast. Albéric Mongrenier, executive director of think tank European Initiative for Energy Security, said grids have become critical in Europe's push for more independence and security.
Artificial Intelligence
Europe's AI U-turn raises doubts, hopes
The EU is launching a €200 billion investment initiative to establish new AI datacenters and supercomputers as part of its AI Continent Action Plan, which seeks to position the bloc as a global leader in AI. This plan includes goals such as tripling the EU's datacenter capacity within the next five to seven years and improving access to the high-quality data needed to train AI models.
The plan, alongside efforts to deregulate, is a significant shift as the EU has historically been skeptical of technology companies and inclined toward regulation. Experts said the EU must also implement deeper reforms, particularly in areas such as immigration policies and energy generation, to compete effectively.
Global Trade
Global uncertainty to erode ocean carrier profits in 2025
The container shipping industry is projected to remain profitable in 2025, although less so than in 2024 due to rising operating expenses and ongoing tariff uncertainties. Analysts estimate that revenue for nine publicly traded ocean carriers will fall to $138.2 billion in 2025 from $155.5 billion in the previous year. The significant increase in freight rates in 2024, driven by robust consumer and industrial demand, contributed to the year's strong results, with the Platts Global Container Index rising significantly.
Despite elevated freight rates, especially in the transpacific market, the industry's earnings outlook is less optimistic. Net income is expected to drop to $11.6 billion in 2025 from $28.6 billion in 2024. Following the release of first-quarter earnings, analysts reduced their collective earnings forecasts for ocean carriers by $600 million, citing a lack of market catalysts to replicate the previous year's performance amid tariff challenges.
In case you missed it
- Easing oil prices on the back of rising supplies will help India cut its oil import bill and encourage the country's refiners to further diversify to maintain a higher level of stocks.
- New South Korean President Lee Jae-myung's efforts to increase renewables in the country's power mix and ensure a stable electricity supply are expected to boost LNG demand.
- As electric vehicle adoption expands, Asian households in the US have shown a strong preference for EVs, significantly outpacing other demographic groups in their adoption.
Upcoming events
- Unlocking Opportunities: Global Metals Trends and Argentina's Mining Landscape | June 10 (Webinar)
- Simplifying ISDA Notices - Bringing a Modern Practice to a Critical Process | June 10 (Webinar)
- Supply-Chain Risk Trends – A Credit Perspective Update | June 10 (Webinar)