Today is Tuesday, August 30, 2022, and here’s your weekly selection of essential intelligence on financial markets and the global economy from S&P Global Market Intelligence. Subscribe to be notified of each new Insight Weekly.
In this edition, we take a closer look at CEO remuneration across sectors. The 10 highest-paid CEOs at major U.S. fossil fuel production, refining and transportation companies saw their pay increase in 2021 as the oil and natural gas sector bounced back from the pandemic. Compensation also surged for many CEOs in the infotech, fintech and life insurance industries due to large stock and option awards or non-equity incentives.
The difference between the yield on the benchmark 10-year U.S. Treasury note and the 2-year note is falling toward levels not seen since the early 1980s. As the Federal Reserve continues to raise interest rates to combat inflation, the yield curve will likely invert further, boosting the probability of a severe recession, analysts said.
Europe's largest wind-turbine makers continue to raise their prices in a market battered by inflated raw-material costs and supply chain snarls. Despite the price hikes, the major players incurred second-quarter losses as new orders dwindled, eating into profitability. Analysts and company executives expect the challenges will persist into 2023.
- In Focus: CEO Compensation
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Many fossil fuel CEOs saw pay increase in 2021 amid pandemic rebound
The head of Noble Corp., Robert Eifler, led the 10 highest-earning CEOs in the oil and gas sector, raking in $25.3 million over 2021.
—Read the full article from S&P Global Market Intelligence
Digital ad company CEO out-earns Big Tech peers in 2021
The Trade Desk's Jeffrey Green earned total adjusted compensation of $835 million in 2021, thanks largely to a stock option award.
—Read the full article from S&P Global Market Intelligence
Bright Health's George Mikan top-paid US fintech CEO in 2021
Stock incentives and option awards bolstered George Mikan's total 2021 payout, which increased 3,194.2% from 2020 to $180.8 million.
—Read the full article from S&P Global Market Intelligence
Prudential Financial's Lowrey tops list of highest-paid US life insurer CEOs
Charles Lowrey's compensation grew 37.3% year over year to $19.0 million in 2021. Lowrey's compensation was roughly 172x the median employee salary at Prudential Financial.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Financials
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US bank margins jump in Q2 at quickest pace in a decade
Aggressive tightening by the Federal Reserve offered banks relief in their net interest margins in the second quarter, and further increases in interest rates should help push the key profitability metric even higher.
—Read the full article from S&P Global Market Intelligence
US credit unions continue to set high-water marks with bank acquisitions
Harvesters CU's announced acquisition of First National Bank Northwest Florida would boost the total assets of banks sold to credit unions to $4.22 billion in 2022, breaking the previous record of $3.92 billion across 13 targets in 2019.
—Read the full article from S&P Global Market Intelligence
Barclays leads US, European peers in strong Q2 for banks' trading desks
Most large U.S. and European banks posted higher income in their equities and fixed-income, currency and commodities businesses thanks to market volatility in the second quarter, S&P Global Market Intelligence data shows.
—Read the full article from S&P Global Market Intelligence
Indian banks to gain from rising credit demand in a humming economy
Indian banks will likely extend their growth trajectory for the remainder of fiscal 2023, but they still need to be on the lookout for rising costs that may impact profitability.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Credit and Markets
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Treasury yield curve set for deep inversion as inflation persists
The difference between the 10- and 2-year Treasury notes is dropping toward 1980s levels as the Federal Reserve continues to raise interest rates.
—Read the full article from S&P Global Market Intelligence
With inflation cresting, the global economy can achieve a soft landing
Western Europe is expected to experience a mild recession in late 2022 and early 2023, while other major countries may avert recessions but perform below potential.
—Read the full article from S&P Global Market Intelligence
Six charts showing three key themes to look out for in the August PMIs
Inflation, recession risk and labor market conditions are major themes to keep tabs on in the S&P Global Purchasing Managers Index data for August.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Energy and Utilities
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Struggling wind giants lift turbine prices as 'last resort' to fight inflation
Europe's turbine majors have hiked the price of their machines to long-term highs in 2022 to overcome inflated raw material prices. While that has hit their order intake, the new U.S. climate bill is expected to boost their fortunes.
—Read the full article from S&P Global Market Intelligence
Global EV, energy storage M&A collapses as investors moderate tempo
Investment into developers of electric vehicles, charging infrastructure, battery storage and related technologies got off to a slow start in 2022 after 2021's record levels.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Technology, Media and Telecommunications
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Bearish investors shrink ranks of large-cap infotech companies in H1'22
The number of information technology companies in the U.S. and Canada with a market capitalization of greater than $10 billion fell to 103 as of July 1, down from 131 at the start of this year.
—Read the full article from S&P Global Market Intelligence
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- The Week in M&A
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The Week in M&A
M&A slowdown fails to dent long-term optimism for dealmaking in Gulf region
Soros increases stakes in Amazon and Alphabet, buys Tesla stake in Q2'22
Elliott Management's Q2 exits include Twitter, Evergy
Wellington ups stake in Coterra Energy, trims Pioneer Natural Gas, Exelon in Q2
Chinese aluminum deal leads metals, mining M&A for week ended Aug. 19
Virginia-based TowneBank, Farmers Bankshares to merge
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Written and compiled by Louis Bacani