Today is Tuesday, December 20, 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.
Note: Insight Weekly will not publish on Tuesday, Dec. 27, 2022 or Tuesday, Jan. 3, 2023. Our next issue will be Tuesday, Jan. 10, 2023. We wish our readers happy holidays and a wonderful new year!
In this edition of Insight Weekly, we continue to examine efforts across industries to achieve net-zero carbon emissions. Major mining companies seek partners to help them finance their transition to renewable energy. Experts say big tech firms are likely to significantly increase investments in renewables due to lucrative federal tax incentives and growing pressure from shareholders. European insurers and reinsurers stick to pledges to reduce underwriting emissions even though several countries are reverting to fossil fuels to combat energy shortages.
Private equity and venture capital entries worldwide fell 53.5% to $63.51 billion in November from $136.72 billion a year earlier, according to S&P Global Market Intelligence data. The number of deals announced during the month declined 40.5% year over year to 1,429 from 2,402. Asia-Pacific led all regions in dealmaking, while the technology, media and telecommunications sector garnered the most capital from private equity firms.
U.S. lithium-ion battery imports surged 88% year over year in the third quarter, extending their growth streak to nine quarters thanks to continued demand for electric vehicles, storage systems and electronics, according to data from Panjiva, the supply chain research unit of Market Intelligence. China accounted for 76.3% of the battery shipments as it is home to major manufacturers including CATL, the world's largest lithium-ion battery maker.
- In Focus: Path to Net-Zero
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Miners seek partners to achieve renewables goals
Miners are searching for reliable public and private partners to support their major renewable energy plans as they pursue net-zero goals.
—Read the full article from S&P Global Market Intelligence
Datacenter demands push Amazon, Big Tech toward renewables
Amazon and other Big Tech companies are facing increased pressure from investors to achieve ambitious net-zero goals, even as the energy needs of their hyperscale datacenters rise.
—Read the full article from S&P Global Market Intelligence
Europe's insurers stand firm on ESG goals amid energy crisis
As some European countries reembrace coal to combat energy shortages, insurers say they are sticking to their short- and longer-term plans to reduce greenhouse gas emissions from their underwriting portfolios.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Financials
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Facing unrealized losses, US banks hesitant to invest in bond market
U.S. banks were even more hesitant to deploy cash in their securities during the third quarter, as bond portfolios moved deeply underwater.
—Read the full article from S&P Global Market Intelligence
Large US banks expected to hike dividends in 2023 despite capital questions
Of the 17 public U.S. banks with more than $100 billion in total assets as of Sept. 30, 16 are expected to raise dividends next year, according to an S&P Global Market Intelligence analysis.
—Read the full article from S&P Global Market Intelligence
European bank 2022 shareholder returns likely to be highest in years
Banks in Europe are set to return more money to shareholders in 2022, in the form of dividends and buybacks.
—Read the full article from S&P Global Market Intelligence
Asia-Pacific banks leverage ratios decline amid strong credit growth
Several Asia-Pacific banks decreased their leverage ratios in the quarter ended Sept. 30, with some Indian banks seeing strong credit growth that led to their leverage ratios declining in the period.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Insurance
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MetLife, Prudential book largest YOY Q3 jumps in total annuity considerations
MetLife's total annuity considerations grew 507.8% year over year, while Prudential saw growth of 49.5%.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Fintech
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Investors in European fintech get pickier; consolidation looms
Macroeconomic uncertainty and the end of the era of cheap money means European financial technology investors in 2023 are likely to focus on profitable companies with simple operating structures.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Real Estate
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US housing market chills as home sales drop at unprecedented rate
Buyers are leaving the market due to high mortgage rates and a pandemic housing price rally.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Private Equity
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Global private equity entries plunge YOY in November
The total deal value for the year through Nov. 30 was $677.23 billion, down 37.3% from about $1.079 trillion in the same period in 2021.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Credit and Markets
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Asia PMI indicates region slipping further into contraction ahead of 2023 arrival
The Asia region as a whole had seen a shallower decline in the early months of the COVID-19 pandemic but consequently found the recovery pace paling in comparison to the rest of the world in 2021 and 2022, according to PMI data.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Energy and Utilities
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RRA Research: Usual sun states shine bright at top of US solar capacity factor leaderboard
The U.S. Desert Southwest maintained its tight grip on the top rankings of solar capacity factors in 2021. The region now combines high insolation levels and many areas potentially qualifying as energy communities under the Inflation Reduction Act.
—Read the full article from S&P Global Market Intelligence
US books 9th consecutive quarter of rising battery imports, fueled by China
Lithium-ion battery shipments into the United States hit 156,801 tonnes in the third quarter of 2022, jumping 88% from a year ago and 6% from this year's second quarter, according to data from Panjiva.
—Read the full article from S&P Global Market Intelligence
November hydropower generation climbs in US Pacific Northwest
Hydroelectric power generation in the U.S. Pacific Northwest was up 8.4% year over year and 1.4% above the 10-year average in November.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Technology, Media and Telecommunications
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451 Research: Sustainability becomes a core tenet of the Open Compute Project
The OCP is putting stronger emphasis on sustainability, making it a key component that all projects must incorporate. It is also teaming up with the Linux Foundation for joint projects that require an intertwining of hardware and software design.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Metals and Mining
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Metals and Mining Research: Consensus price forecasts – Metal prices rally on softer US inflation, dollar
Metal prices rallied in November on softer U.S. inflation, a weaker dollar and an easing of China's COVID-19 rules.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: ESG
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Mining CEO bonuses increasingly tied to ESG outcomes
Boards of companies across the economy are incorporating more environmental, social and governance metrics into the calculation of executive pay packages, and the mining sector is particularly flush with such programs.
—Read the full article from S&P Global Market Intelligence
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- The Week in M&A
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Deal Profile: NJ-based First Bank to acquire Pa.-based Malvern Bancorp for $149.5M
HSBC $10B Canada deal underscores pivot to Asia, raises promise of payouts
String of sizable Q4 deals boosts total value for US bank M&A
Global venture capital deal value drops 66.7% YOY in November
Deal Tracker: Infotech M&A slides to 2-year low in November
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The Big Number
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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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Written and compiled by Waqas Azeem