S&P Global — 13 September 2024
Daily Update: September 13, 2024
Quantum Computing Could Supercharge AI Applications
By Nathan Hunt
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The following article is based on “Artificial Intelligence and Quantum Computing: The Fundamentals” written by a team at S&P Global.
To understand the benefits of quantum computing, it helps to understand the limitations of classical computing. Outside of a few, specialized labs, all computers today use classical computing. This means they operate using digital switches that can either be “on” (having a value of 1) or “off” (having a value of 0). The output of every classical processor is simply a series of ones and zeros, translated into words, numbers, calculations and visuals by programming languages that sit on top of this binary code. Each one or zero exists independently, and each processor on a chip can only conduct one operation at a time. The speed and power of modern computers have been achieved by continually adding more processors to each chip. Quantity compensates for the simplistic output and serial operation of the processors.
New types of computers are being developed that overcome some of these limitations. Quantum computers, which already exist in the labs of companies like IBM, Google, Microsoft, Rigetti and IonQ, have processors called qubits that can contain multiple values (not only zero and one) and perform multiple interrelated calculations simultaneously.
These computers use quantum mechanics, a branch of physics that describes the motion and interaction of subatomic particles. Quantum-scale particles have the surprising characteristic of occupying multiple states at the same time, known as superposition, and they can become entangled with other particles so that an action affecting one entangled particle can affect the other entangled particles, even at a distance. Quantum computing works by maintaining qubits in a quantum state for very brief periods so they can use superposition and entanglement to perform multiple interrelated calculations very, very quickly.
Classical computer limits today’s AI applications because detecting patterns requires multiple complex calculations that must be performed sequentially from simplistic inputs. An AI algorithm trained and operating on a quantum computer would be able to perform multiple interrelated calculations at the same time, using complex inputs. This would allow existing AI applications in industries such as healthcare, financial services, supply chain management and cybersecurity to operate more quickly and efficiently and process greater levels of complexity. However, the combination of AI and quantum computing could also trigger privacy and cybersecurity issues.
Quantum computing remains a difficult technology to implement. Maintaining qubits in a quantum state is an engineering challenge, requiring physical and environmental controls that are, at present, poorly matched to commercial applications. However, the advantages of quantum computing combined with modern AI techniques are too large to ignore.
Sustainability Insights: Power Sector Update: European Offshore Wind Is Racing Ahead
S&P Global Ratings expects a continued steep buildup of offshore wind power capacity in European waters over 2024-2030, implying about $270 billion in investment, although Europe is likely to remain the second largest market after China. It projects that the levelized cost of electricity in Europe could rise by as much as 26% over the next two years after decreasing over the last decade, diverging from Asia-Pacific, where costs are still decreasing.
—Read the article from S&P Global Ratings
Detailed PMI Sector Data Underscore Growing Rift Between Manufacturing And Services Economies In August
A renewed fall in manufacturing output signaled by the August global manufacturing PMI raises worries about spillover effects to the service sector, which is now the main driver of global economic growth. Although only accounting for around one-tenth of GDP in most developed economies, the manufacturing sector's health carries overweight importance because of its leading indicator properties: the historical data from the PMI indicates that a deteriorating manufacturing performance tends to be followed by a noticeable weakening of the service sector within the next six months.
—Read the article from S&P Global Market Intelligence
Financial Performance Down For Most US Office REITs Amid Occupancy Dip
The majority of US office real estate investment trusts ended the second quarter with relatively weaker operating metrics, with the demand for offices declining further as reflected in the sector's most recent dip in occupancy rates. Nine office REITs reported quarter-over-quarter declines in their operating funds from operations (FFO) per share during the second quarter. Operating FFO per share improved sequentially for seven REITs while remaining flat for three REITs during the fourth quarter, according to an S&P Global Market Intelligence analysis.
—Read the article from S&P Global Market Intelligence
US Gulf Coast Producers Shut In Oil Output Ahead Of Tropical Storm Francine
US Gulf Coast drillers were shutting in oil and gas production, and ports were starting to close Sept. 10 in preparation for Tropical Storm Francine's landfall. Upstream producers had shut in 412,070 b/d of oil production, or around 23.55% of the US Gulf's total crude output of 1.85 million b/d, and also 494,000 Mcf/d, or about 25.56% of the Gulf's total gas production of 1.9 Bcf/d, according to the US Bureau of Safety and Enforcement, using US Energy Information Administration figures.
—Read the article from S&P Global Commodity Insights
OPEC+ Aug Crude Output Down 300,000 b/d On Declines In Libya, Kazakhstan: Platts Survey
OPEC+ crude output fell by 300,000 b/d to 40.73 million b/d in August, as maintenance in Kazakhstan and outages in Libya hit the group's production, the Platts OPEC+ survey from S&P Global Commodity Insights showed Sept. 9. Despite this decline, countries with quotas produced 327,000 b/d above target in August. This was down from overproduction of 437,000 b/d in July. Overproduction continues to be a major issue, as the group struggles to shore up falling oil prices amid demand uncertainty, and high production levels outside the group.
—Read the article from S&P Global Commodity Insights
NBC Sports Sets Strong Viewership Tone With Record Audience For NFL Kickoff Game
The NFL started its 2024–25 regular season with carriers delivering year-over-year viewership gains in all but one window. NBCUniversal Media LLC's NBC Sports opened the campaign with a record audience for its NFL Kickoff Game, while Walt Disney Co. reported its second-strongest "Monday Night Football" entry since ESPN became the package's primary rights holder in 2006. The strong viewership comes as advertisers and programmers lean heavily on live sports to deliver big viewership numbers amid a shrinking linear audience base.
—Read the article from S&P Global Market Intelligence
Webinar: Beyond ESG with Seizing the Transition Opportunity at Climate Week (Sept. 18, 2024)
As we look ahead to Climate Week NYC at the end of September, S&P Global Sustainable1’s next Beyond ESG webinar will explore the unprecedented market opportunities and equally unprecedented and complex risk scenarios as we transition to a net-zero, sustainable future.
—Register for the webinar from S&P Global Sustainable1