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In this edition, we take a close look at the fallout of Hurricane Ida, which made landfall on the southeastern coast of Louisiana as a Category 4 storm on Aug. 29. The storm caused widespread damage, knocked out transmission lines and left more than a million Gulf Coast residents, primarily Entergy Corp. customers in Louisiana and Mississippi, without power. However, preliminary loss estimates from Ida could reach $25 billion, well below the devastation caused by Hurricane Katrina in August 2005, according to rating agencies and analysts.
The U.S. Small Business Administration, which administered the now closed Paycheck Protection Program, has turned its attention to simplifying the loan forgiveness process. Meanwhile, banks, eager to recognize fee revenue, have prodded their borrowers to submit applications. But with deadlines for repayments yet to come due, some borrowers may not see an immediate incentive for PPP loan forgiveness, analysts said.
A rush of labor strikes rattled mine operators this summer as negotiations and walkouts at operations across the Western Hemisphere threatened to exacerbate a supply crunch for key metals needed for infrastructure, renewable energy, and electric vehicle batteries.
Hurricane Ida in Focus
Hurricane Ida losses likely short of Katrina totals, could hit $25B
Despite the significant impact to the U.S. Gulf Coast, insurers and reinsurers should be able to absorb claims caused by the storm without injury to their capital positions, Wells Fargo analyst Elyse Greenspan said.
— Read the full article from S&P Global Market Intelligence
More than 1 million without power in Louisiana, Mississippi as Ida moves east
"It would be premature for me to speculate at this time when power will be restored," Entergy New Orleans President and CEO Deanna Rodriguez said during a midday news conference with New Orleans city officials Aug. 30.
— Read the full article from S&P Global Market Intelligence
'We've been here before': Entergy exec addresses Ida's destruction
Rod West, group president of utility operations for Entergy, said the storm trailed along the company's transmission system in Louisiana, leaving New Orleans in the dark.
— Read the full article from S&P Global Market Intelligence
Deep Dives
In-depth features looking at the impact of major news developments in key industries.
Financials
Top 50 US banks in Q2'21
The aggregate efficiency ratio for U.S. banks crept up to 61.0% during the second quarter. The deterioration was a result of a modest increase in expenses and a continuation of the stressed revenue growth environment.
— Read the full article from S&P Global Market Intelligence
Criticized loans at US banks recede as pandemic deferrals dwindle
Loans that banks have tabbed as having higher chances of default declined at a majority of big U.S. banks for the third straight quarter, though such balances remain well above pre-pandemic levels.
— Read the full article from S&P Global Market Intelligence
Banks prod hesitant borrowers to apply for PPP forgiveness
Now that the Paycheck Protection Program is closed, the U.S. Small Business Administration has turned its attention to simplifying the forgiveness process, while banks have prodded their borrowers to submit applications.
— Read the full article from S&P Global Market Intelligence
US banks' efficiency ratios come under pressure again in Q2
The aggregate efficiency ratio for U.S. banks crept up to 61.0% during the second quarter. The deterioration was a result of a modest increase in expenses and a continuation of the stressed revenue growth environment.
— Read the full article from S&P Global Market Intelligence
Insurance
Largest US-listed commercial insurers all logged earnings beats in Q2
The earnings beats provide evidence for investors that the positive rate momentum seen in U.S. commercial lines in the last two to three years is flowing through to the bottom line, UBS analyst Colm Kelly said.
— Read the full article from S&P Global Market Intelligence
Credit and Markets
Short bets rise against consumer discretionary stocks as stimulus fades
The sector is now the most shorted on major U.S. exchanges for the first time since January.
— Read the full article from S&P Global Market Intelligence
Energy and Utilities
FERC's Chatterjee prepares to leave agency as 'the Green New Neil'
"I think, hopefully, that history will judge that I at least tried to do what I thought was best in the public interest," Federal Energy Regulatory Commission member Neil Chatterjee told S&P Global Market Intelligence ahead of his Aug. 30 departure.
— Read the full article from S&P Global Market Intelligence
Rich in renewable energy, Chile seeks to become global hydrogen powerhouse
Chile's early bet on clean energy paid off. Now the government has offered up the country as a hydrogen laboratory to the world, with a goal of becoming one of the top three exporters by 2040.
— Read the full article from S&P Global Market Intelligence
Healthcare
Telehealth, virtual care CEOs see 2020 pay climb while hospitals suffer drop
Virtual primary care provider One Medical's Amir Rubin topped S&P Global Market Intelligence's list of the highest-paid healthcare provider CEOs.
— Read the full article from S&P Global Market Intelligence
Private Equity
More than $19B in PE insurance sector M&A already at record high
This year's disclosed deal value already exceeds the full year 2020 total of $12.88 billion and is the highest value on record for at least 10 years, according to S&P Global Market Intelligence data.
— Read the full article from S&P Global Market Intelligence
Blackstone's 2021 stock performance outpaces peers, S&P 500
The private equity giant, which entered the second year of its C-corp conversion, credited its share price appreciation to its financial performance and access of its stock to a wider investor pool.
— Read the full article from S&P Global Market Intelligence
Technology, Media and Telecommunications
AMC Networks at crossroads amid CEO change, streaming competition
Longtime CEO Josh Sapan's move to executive vice chairman raises questions about who will steer the content company through the rapidly evolving streaming ecosystem — and whether a sale could be on the horizon.
— Read the full article from S&P Global Market Intelligence
Biden faces looming deadline for FCC pick as acting chair's term winds down
Since January, the FCC has been deadlocked in a 2-2 partisan split, and the White House has yet to nominate a new commissioner. At the same time, FCC Acting Chairwoman Jessica Rosenworcel's term is already running on overtime.
— Read the full article from S&P Global Market Intelligence
Metals and Mining
Labor unrest threatens to disrupt commodities boom
From Canada to Chile, labor unrest has been slowing production as demand and prices climb for minerals critical to the renewable energy transition.
— Read the full article from S&P Global Market Intelligence
Top miners' copper output climbs 2.2% in Q2'21
Codelco and Freeport-McMoRan led the pack of top copper producers in terms of year-over-year output gains in the second quarter of 2021.
— Read the full article from S&P Global Market Intelligence
The Week in M&A
BHP-Wyloo bidding war for Noront reflects top miners' exploration M&A focus
Read full article
Ginger, Headspace merger opens door to further mental health app consolidation
Read full article
Santander Consumer's perseverance rewarded with minority stake buy-in
Read full article
I-bank advisory revenue sees strong growth in Q2 on increased M&A activity
Read full article
The Big Number
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