Daily Update — June 12, 2026
Solving China’s Energy Puzzle; AI Networking; and Subdued Global Economic Growth
Today is Friday, June 12, 2026, 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 Expansion
Sustainability Insights: China's Energy Transition: Cracking The Profit Puzzle Of Power Storage
The power storage sector is the key to China’s energy transition. As the country develops a modern power system for this transition, it will need to ramp up its energy storage and grid networks to fully leverage its burgeoning renewables sector.
Power storage, led by pumped-hydro projects and batteries, will facilitate the integration of wind and solar, while reducing curtailment and enhancing system reliability. The additional storage is also expected to help the country’s rated renewable power firms switch to market-based pricing, according to S&P Global Ratings.
Artificial Intelligence
Listen: AI Networking
Networking, an often overlooked part of IT infrastructure, is essential for keeping AI applications supplied with data. New AI models and agents require additional data sources, fueling the need for dynamic connectivity. It is forcing network expansion and driving M&A, as network providers seek to enhance automation in response to customer demands.
Mike Fratto, a senior research analyst at 451 Research from S&P Global Energy Horizons, joined host Eric Hanselman on this episode of the "Next in Tech" podcast to discuss the local and long-term requirements for AI networking. The efficient linking of infrastructure has always been important, but AI’s appetite for data has drastically increased the scope and scale of the need. There is a need to rethink how networks are built.
Economy
Global economy stuck in slow lane as advanced economies see falling demand for services
Global economic growth remains stable, but has slowed since the outbreak of the US-Israel war with Iran at the end of February, according to Purchasing Managers' Index (PMI) survey data produced by S&P Global.
The JPMorgan Global Composite PMI Output Index held steady at 51.8 in May, showing an expansion of business activity for the 40th consecutive month. The PMI readings are indicative of global GDP growth running at an annualized 2.5% rate over April and May, down from about 3% at the start of the year. However, a divergence has emerged. Economic weakness has spread to more advanced economies, partly because of surging prices, particularly in services. Conversely, emerging markets have reported stronger growth and fewer price pressures.
In case you missed it
- Same-store net operating income growth for US real estate investment trusts, excluding hotel-focused REITs, rose by a median 2.6% year over year in the first quarter, according to S&P Global Market Intelligence.
- India's top four listed steel producers plan to increase their aggregate capital expenditure for fiscal 2027 by 40% year over year. This should support the country’s aim to expand steel capacity to 300 million metric tons by 2030, according to S&P Global Ratings.
- The share prices of Europe’s three largest reinsurers declined in the second week of June after they missed first-quarter revenue expectations.
Upcoming events
- London Climate Action Week: Turning Uncertainty into Opportunity | June 20–26 (London)
- Navigating Financial Institutions and Private Markets Profitability and Deployment in a Volatile Landscape | June 24 (Webinar)
- Global Iron Ore, Steel Raw Materials and Semi-Finished Steel Outlook | June 24 (Webinar)
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