Today is Tuesday, May 17, 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 examine the impact of the Russia-Ukraine war on the metals and mining industry. Supply and trade risks arising from the conflict have triggered a short squeeze in the nickel market and are stoking demand for cobalt as an alternative to nickel in battery applications for electric vehicles. In Ukraine, the war has brought existing and prospective graphite mining operations to a halt, derailing the country's ambition to become a major global supplier of the mineral. Meanwhile, Russian miners' stocks have plummeted, pushing some companies to consider spinning off certain assets outside of Russia in a bid to appeal to more risk-averse investors.
U.S. banks posted slower growth on both sides of the balance sheet in the first quarter, according to S&P Global Market Intelligence data. Total deposits across the industry were up 1.2% quarter over quarter, which was the weakest growth since the third quarter of 2020. Total loans and leases increased 1.0% in the first quarter, down from the 3.0% growth rate in the previous quarter. Also notable was growth in total securities falling to a three-year low of 0.2%.
Inflation and supply chain disruptions have affected cloud computing providers worldwide over the past year. Tech companies — including hyperscale cloud providers Amazon Web Services, Microsoft and Google — have enough market power and margin to absorb some cost increases, but they are not immune to wider and longer-lasting economic trends. Those with infrastructure in Europe are especially vulnerable to the impact of the war in Ukraine and efforts to reduce dependence on Russian energy supplies.
- In Focus: Ukraine War Impact On Mining
-
Ukraine aims to become major graphite supplier — when the war ends
The war in Ukraine has sharpened the focus on diversifying graphite supply, as the conflict has hindered potential production from Ukraine and Russia and has exacerbated supply chain issues.
— Read the full article from S&P Global Market Intelligence
Russian miners spinning off global assets to ease 'crushing impact' of war
Russia's invasion of Ukraine has crushed the stock prices of Russian mining companies, leading to an exodus from the country and pushing Russian miners to consider isolating any assets located elsewhere.
— Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Financials
-
Growth slowing at US banks
U.S. commercial banks, savings banks, and savings and loan associations, which ramped up their balance sheets in the last quarter of 2021, are experiencing more tepid growth rates in the first quarter of 2022.
— Read the full article from S&P Global Market Intelligence
US bank M&A pace plunges as sellers seek higher prices
Only 10 U.S. bank deals were announced in April, down from 24 in April of 2021, as sellers' price expectations surge and the decline in U.S. bank stock prices makes it harder for buyers to meet those targets.
— Read the full article from S&P Global Market Intelligence
Slow US, Europe progress in digital currencies leaves holes in sanctions
Western nations' failure to keep pace with China and Russia in developing central bank digital currencies is weakening their ability to influence and oversee new global payment systems.
-
- Deep Dives: Insurance
-
Total US annuity considerations climb 7.5% in '21, hit record high
U.S. life insurers' total annuity premium and considerations jumped 7.5% in 2021 to $397.53 billion, according to a review of annual regulatory statements.
-
- Deep Dives: Fintech
-
Large payments, fintech companies post strong YOY results in Q1
The largest payments and financial technology companies delivered positive performances year over year in the quarter that ended March 31.
-
- Deep Dives: Insurance
-
Insurers' $15B Russia aviation puzzle will take years to solve
The industry expects disputes over coverage triggers and which types of cover will apply to the hundreds of foreign-owned jets stranded in Russia as a result of the Ukraine war.
—Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Credit and Markets
-
Fed's big rate hike may do little to counter soaring inflation
The central bank faces criticism for continuing to drag its feet on monetary policy tightening despite the largest rate hike in 22 years.
-
- Deep Dives: Real Estate
-
Dividend rates for nearly half of US REITs surpass pre-pandemic levels
Dividend rates for 48.3% of publicly traded U.S. equity real estate investment trusts now exceed the pre-pandemic levels reported at the end of 2019, but 37.4% still pay lower dividend rates, according to an S&P Global Market Intelligence analysis.
— Read the full article from S&P Global Market Intelligence
-
- Deep Dives: Metals and Mining
-
Rail service 'meltdown' constraining US coal sector in hot market
U.S. coal producers have been struggling to increase sales despite improved prices, in part due to constraints in shipping the coal to customers.
-
- Deep Dives: Energy and Utilities
-
Nearly 15 GW of batteries planned at US solar, wind, gas plants in 2022, 2023
Developers plan to bring online 5,260 MW of battery capacity at new and existing power plants in 2022, nearly twice as much as in 2021, S&P Global Market Intelligence data shows. Another 9,662 MW of hybrid storage is planned to go online in 2023.
-
- Deep Dives: ESG
-
European green bond market slows in Q1 as Germany, France lead issuance
Green bond issuance fell in Europe in the first quarter amid macroeconomic and geopolitical headwinds, though the continent is expected to remain a key driver for the market's growth.
— Read the full article from S&P Global Market Intelligence
-
- The Week in M&A
-
National Fuel subsidiary sells California oil and gas assets for up to $310M
United Community eyes high-growth Southeast markets in Progress Financial deal
Out-of-state buyers responsible for 2 of 3 Pa. bank buys in 2022
Asia-Pacific financial institutions M&A interest tracker
-
The Big Number
Trending
—Read more on S&P Global Market Intelligence and follow @YizhuEvy on Twitter
Seek & Prosper
Essential Intelligence from S&P Global — a powerful combination of data, technology, and expertise — helps you push past the expected and renders the status quo obsolete. Because a better, more prosperous future is yours for the seeking.
Additional Insights from S&P Global Market Intelligence
Check out other weekly newsletters highlighting our exclusive features and analysis:
ESG Insider: News and insights into environmental, social and governance developments driving change in business and investment decisions. Click here to subscribe.
Policy Intel: Explore exclusive news and research on policy and regulatory developments in the U.S. and around the globe. Click here to subscribe.
Private Equity Pulse: Need-to-know investments. Sharp insight. Private Equity Pulse offers our top picks of global private equity news stories. Click here to subscribe.
NEXT: Stay up to date on how technology is reshaping the future of industries across global markets. Click here to subscribe.