STORY ONE · METALS & MINING

SLACK DEMAND, SURGING INVENTORY

US Coal Prices Under Pressure — And Why the Squeeze Won’t Last Forever

Picture a warehouse that never stops filling up while the loading dock stays quiet. That is roughly what happened to the US coal market this spring. Producers built up large stockpiles just as demand slowed, and by June, all that extra supply pushed prices down. US coal companies pointed to this combination — rising costs and soft demand — as a reason first-quarter earnings came in weaker than hoped.

There is a bright spot overseas. Demand across Asia-Pacific for coking coal, which is used to make steel, and thermal coal, which is burned for electricity, could help absorb some of that oversupply. But global energy markets remain unsettled, so this offset is a partial cushion rather than a full solution.

What is more interesting for long-term investors is the role Washington is playing. Federal policy has delayed the retirement of some coal plants and funded refurbishments and new generating units. That has created a steadier demand and regulatory backdrop for coal than the sector has seen in years. Firmer natural gas prices in 2025 added to this stability by making coal more competitive again in a process called gas-to-coal switching, where power plants burn coal instead of gas when gas gets expensive.

Even with that support, the forecast through 2027 points to continued pressure, since today’s high stockpiles need time to clear. Looking further out, the picture shifts again: after 2027, coal is expected to face renewed competition from solar and wind power, particularly in regions where state policy and project economics favor renewables.

STORY TWO · SUSTAINABILITY

A REGIONAL MODEL FOR DISCLOSURE

Inside Mexico’s Sustainability Standards for Public and Private Companies

Sustainability reporting is quickly becoming a shared global language for how companies talk about their environmental and social impact, and Mexico just became one of its newest fluent speakers. Mexico is now one of more than 40 jurisdictions worldwide that have adopted, or are in the process of adopting, the disclosure standards set by the International Sustainability Standards Board, known as the ISSB.

What sets Mexico’s approach apart is customization. Rather than importing a single global rulebook wholesale, Mexican standard-setters adapted the ISSB framework to fit local business conditions. A recent episode of S&P Global’s “All Things Sustainable” podcast brought together S&P Global’s Jennifer Laidlaw and Patricia Moles of the Mexican Financial and Sustainability Reporting Standards Board to explain how that tailoring worked in practice, and why regulators created a separate, lighter-weight standard specifically for private companies.

That distinction matters. Large public companies typically have the staff, budget, and existing reporting infrastructure to handle detailed sustainability disclosures. Smaller private companies usually do not. By building a separate track, Mexico is giving private businesses room to grow into sustainability reporting instead of forcing an all-or-nothing standard on them from day one.

Mexico has also taken on a regional leadership role, helping form an alliance of Latin American countries focused on promoting sustainability reporting across the region without overburdening the companies that adopt it. That kind of coordinated, multi-country approach tends to make standards more durable, since neighboring economies are less likely to compete by racing each other toward the loosest rules.

STORY THREE · ARTIFICIAL INTELLIGENCE

FROM PRIVATE ROUNDS TO PUBLIC MARKETS

Q2 GenAI Funding Drops as Big Players Move to Public Markets

Second-quarter financial backing for generative AI application companies was cut roughly in half compared to the previous quarter, totaling about $70 billion across 18 deals, according to S&P Global Market Intelligence data. That drop looks dramatic on its own, but it makes more sense once you understand what came before it. The first quarter of 2026 was a record-breaker, and that record was driven overwhelmingly by a single event: OpenAI’s $120 billion funding round.

In other words, Q2 was not necessarily a sign that investors lost confidence in generative AI. It was more a case of the first quarter being unusually front-loaded by one enormous deal. Even so, the largest single investment of the second quarter was itself massive: Anthropic secured $65 billion, the biggest raise of the quarter by a wide margin.

The more important story underneath the numbers is a structural shift. The generative AI industry is visibly transitioning away from relying purely on private venture funding, and toward public markets and strategic acquisitions instead. The clearest example: Space Exploration Technologies, better known as SpaceX, acquired X.AI for $250 billion just before SpaceX itself went public in June. That is a company buying another company for a quarter of a trillion dollars days before selling shares to the public itself.

This pattern is not isolated. Industry leaders including OpenAI and Anthropic have confidentially filed regulatory paperwork for their own public offerings, which are expected to launch by late 2026 or early 2027. When the sector’s most closely watched private companies start lining up IPOs, it is a signal that the center of gravity for AI capital is shifting from venture capital term sheets to public stock exchanges.

FREQUENTLY ASKED QUESTIONS

Q. Why are US coal prices under pressure in mid-2026?

Slack demand and high inventories built up over spring pushed US coal prices down through June 2026. Producers cited weak demand and rising costs as reasons first-quarter earnings fell, even as Asia-Pacific appetite for coking and thermal coal offers a partial offset.

Q. How long will high coal stockpiles constrain US coal production?

Forecasts point to elevated stockpiles constraining US coal production through 2027. Federal policy has delayed some plant retirements and funded refurbishments, stabilizing near-term demand, but renewed pressure from expanding solar and wind generation is expected after 2027.

Q. What sustainability standards has Mexico adopted for companies?

Mexico is one of more than 40 jurisdictions adopting or transitioning to the ISSB’s disclosure framework. Mexico has tailored the standards to local conditions and created separate, lighter requirements for private companies.

Q. Why did Mexico create separate sustainability standards for private companies?

Mexican standard-setters designed a distinct disclosure track for private companies so smaller, non-listed businesses could build sustainability reporting capacity without facing the same compliance burden as large public companies.

Q. How much did generative AI funding fall in Q2 2026?

Generative AI application company funding roughly halved quarter over quarter, totaling about $70 billion across 18 deals in Q2 2026, according to S&P Global Market Intelligence. The prior quarter had been record-breaking, driven heavily by OpenAI’s $120 billion funding round.

Q. Which company raised the most generative AI funding in Q2 2026?

Anthropic secured the largest single investment of the second quarter, raising $65 billion, according to S&P Global Market Intelligence data on generative AI application company funding.

Q. Why is generative AI funding shifting from private rounds to public markets?

Major generative AI companies are moving toward strategic acquisitions and public listings rather than relying solely on private funding rounds. SpaceX acquired X.AI for $250 billion shortly before its own June 2026 public offering, and OpenAI and Anthropic have confidentially filed paperwork for public offerings expected by late 2026 or early 2027.

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