Daily Update — May 19, 2025
Global Credit Conditions Update; US House Discusses AI; and Tariffs Weigh on Private Equity Firms
Today is Monday, May 19, 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.
Economy
Global Credit Conditions Special Update: US-China Tariff De-Escalation Brings Some Temporary Relief
On May 14, the US and China announced a significant reduction in bilateral tariffs, along with a 90-day pause on reciprocal tariffs. This development improves the macroeconomic outlook by decreasing policy uncertainty, boosting asset prices and reopening markets, according to S&P Global Ratings Chief Economic Paul Gruenwald.
Despite this, S&P Global Ratings has not yet revised its growth forecasts due to ongoing unpredictability in policy developments, particularly from the US, and an upcoming quarterly forecasting round. While the global trade environment is anticipated to continue influencing credit conditions and the overall rating outlook, tail risks have eased. The effects of these changes are expected to vary significantly across sectors and countries, indicating a complex and uneven recovery landscape.
Artificial Intelligence
House committee advances AI, spectrum reconciliation measures
In a recent markup session of the House Committee on Energy and Commerce, discussions surrounding spectrum allocation and AI revealed a growing partisan divide among lawmakers. Historically, these topics received bipartisan support. However, the May 14 session highlighted sharp disagreements between House Republicans and Democrats. The committee focused on legislative measures aimed at deregulating and reallocating spectrum, alongside efforts to restrict state and local regulations on AI.
Committee Chairman Brett Guthrie (R-Ky.) proposed a significant addition to the federal budget reconciliation bill, projecting that it could generate $88 billion by reauthorizing the Federal Communications Commission's spectrum auction authority. The proposal also includes $500 million for the Commerce Department to enhance federal IT systems.
Private Markets
Tariffs weigh on sentiment of Big 4 private equity firms
First-quarter earnings reports from the four largest publicly traded alternative private equity firms by assets — Apollo Global Management, Blackstone, The Carlyle Group and KKR — indicate a decline in optimism due to tariff-related uncertainties. According to an analysis by S&P Global Market Intelligence, the average net positivity score for these firms fell to its lowest level in over a year. This decrease, while significant, was not as steep as the broader decline observed in sentiment across the S&P 500.
Among the Big Four, KKR experienced the largest drop in its sentiment score compared to its average over the previous four quarters, highlighting the challenges that alternative asset managers face as they navigate a complex economic landscape.
Learn more with S&P Global Market Intelligence’s Private Markets Solutions.
In case you missed it
- An outbreak of foot and mouth disease in Germany earlier this year has reshaped trade flows of European pork and led to significant pricing volatility in the region.
- Alaska is hoping to forestall a slowdown in cargo air traffic with the establishment of a sustainable aviation fuel plant in Anchorage that will help retain the state’s position as a profitable pit stop.
- Monthly global corporate defaults declined to eight in April 2025 from 18 in April 2024 despite market volatility and tariff uncertainty. In the year through April, there were 34 corporate defaults, compared with 55 over the same period in 2024.
Upcoming events
- Sustainability Nexus Webinar Series: Scaling Sustainable Agriculture | May 21 (Webinar)
- Renewable Pathways: Empowering Datacenter Energy Procurement | May 21 (Webinar)
- Tariffs and Supply Chain Dynamics: Assessing Customer and Supplier Risk in a Global Market | May 22 (Webinar)