Today is Tuesday, December 13, 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 of Insight Weekly, we examine the challenges for businesses and investors on the path to net-zero emissions. U.S. companies looking for carbon offsets find themselves in an unregulated market facing growing scrutiny and accusations of greenwashing. The absence of standardized requirements for emissions reporting prevents investors from directly comparing companies' climate programs. Russia's invasion of Ukraine has fueled coal's resurgence, but European utilities remain steadfast that net-zero targets are in reach.
The U.S. banking industry had more female employees than men in 2021, but less than 5% of publicly traded banks had female CEOs, according to an S&P Global Market Intelligence analysis. Out of the 1.9 million employees in banking and related activities last year, 56.3% were women, compared to 43.7% of men. Only 10 public banks had female CEOs while 337 had male CEOs.
There were five $10 billion-plus M&A transactions worldwide in November, snapping a streak of five consecutive months featuring two or fewer such deals, according to S&P Global Market Intelligence data. The five deals brought the fourth-quarter total of global M&A deals worth $10 billion or more to $104.05 billion, dwarfing the third-quarter total of $33.27 billion.
- In Focus: Path to Net-Zero
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Companies looking for carbon offsets find market in turmoil
The unregulated and rapidly growing voluntary market for carbon offsets is facing new scrutiny amid accusations of corporate greenwashing.
—Read the full article from S&P Global Market Intelligence
Lack of emission-reporting standard clouds oil, gas investment
The U.S. SEC is pondering new emissions reporting requirements to allow investors to easily compare companies. Any new rule joins an array of competing reporting formats, including those already required overseas.
—Read the full article from S&P Global Market Intelligence
EU utilities keep focus on climate goals as coal rebounds
Coal has returned to Europe's power systems as the continent heads into its first winter without Russian gas. Utilities have not made major moves to accelerate net-zero targets but remain steadfast that goals will be met.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Financials
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US banks had more female employees in 2021, only 10 as CEOs
In 2021, 56.3% of roughly 1.9 million total employees in U.S. banking and related activities were women, while 43.7% were men, according to an S&P Global Market Intelligence analysis.
—Read the full article from S&P Global Market Intelligence
Financials Research: Headwinds to dealmaking remain persistent
With any luck, the third quarter will end being a symbolic low point for M&A and equity offering dealmaking.
—Read the full article from S&P Global Market Intelligence
New liquidity risk metric to slow rise in Asia banks' systemic importance scores
The inclusion of trading volume has lowered the overall systemic scores of most Asian global systemically important banks, which have much smaller global trading and asset management operations than their U.S. and European counterparts.
—Read the full article from S&P Global Market Intelligence
Europe's digital challenger banks need revenues, profits to attract investment
Under pressure to scale and become profitable, digital challenger banks are increasingly using financial technology M&A as a way to bolster tech capabilities and grow their loan books.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Credit and Markets
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PMIs signal accelerating economic downturn in November
Global business activity fell for a fourth straight month in November, with the rate of decline accelerating to one of the fastest since the global financial crisis to signal a deepening economic downturn.
—Read the full article from S&P Global Market Intelligence
US Weekly Economic Commentary: Strong labor demand
Nonfarm payroll employment rose 263,000 in November, exceeding expectations.
—Read the full article from S&P Global Market Intelligence
US corporate bankruptcy filings fell in November
The industrials and consumer discretionary sectors had the most filings for the year at the end of November.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Real Estate
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US REIT same-store NOI growth held steady in Q3
Self-storage real estate investment trusts in the U.S. registered the highest gains in same-store net operating income during the third quarter, while regional mall and other retail sectors posted median losses.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Energy and Utilities
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Investors buy stakes in midstream companies linked to LNG, renewable fuels
Kinder Morgan and Williams, which had the highest net purchases by fund managers, are investing millions of dollars in projects connected to liquefied natural gas and alternative energy.
—Read the full article from S&P Global Market Intelligence
US West defies YOY downtrend in spot gas prices with 36% gain
Average November natural gas prices decreased from October and year over year across the other three U.S. regions.
—Read the full article from S&P Global Market Intelligence
RRA Research: Md. regulators say Columbia Gas rate settlement balances competing interests
The Maryland Public Service Commission decision, which became final Nov. 17, authorized the company a $4.8 million gas base increase including an above-average 9.65% ROE.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Metals and Mining
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Over half of 25 large miners miss EPS estimates in Q3'22
Four of the five largest mining companies by market cap beat analysts' earnings expectations for the third quarter, with Newmont's normalized EPS of 27 cents falling short of forecasts, according to an analysis of S&P Global Market Intelligence data.
—Read the full article from S&P Global Market Intelligence
Canada gets tough on Chinese state-owned investments in critical minerals
Canadian companies must become wary of taking investments from Chinese state-owned companies as Canada threatens divesture orders.
—Read the full article from S&P Global Market Intelligence
Technology, Media and Telecommunications
Early funding slump in infotech continues in Q3
The number of early funding transactions in the sector by private equity firms declined to 278 in the quarter ended Sept. 30, from 413 deals in the previous quarter, according to S&P Global Market Intelligence data.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Fintech
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451 Research: FTX collapse and the impact on the enterprise blockchain market
It is important to look beyond the immediate impact of FTX's collapse and begin to consider how the crisis may lead to reshaped regulation, revised enterprise blockchain strategies and a reconstituted competitive landscape.
—Read more on S&P Capital IQ Pro.
—Read more on spglobal.com.
—Read the full article from S&P Global Market Intelligence
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- The Week in M&A
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November brings megadeal resurgence with 5 $10B+ global M&A deals
Deal Profile: NBT Bancorp, Salisbury Bancorp to merge in deal worth $204M
Finance of America acquiring assets of reverse mortgage lender American Advisors
Deal Profile: Illinois-based Hometown Community Bancorp to buy in-state peer Marine Bancorp
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The Big Number
Trending
—Read more on S&P Global Market Intelligence and follow @EconomicsRisk on Twitter
The Big Picture
What will shape your big picture in 2023? How will disrupted supply chains, inflation, and new sustainability and M&A trends impact your sector? Our 2023 Big Picture Outlook reports can expand your perspective and enable decisions with conviction.
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IHS Markit is now part of S&P Global.
Written and compiled by Alex Virtucio