Today is Tuesday, November 15, 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 take a close look at the recent shifts in nuclear power. Climate change and the global energy crisis are making nuclear power attractive again. In the U.S., federal and state governments are offering new subsidies to keep aging nuclear plants online. Europe also is discussing life extensions for nuclear fleets to replace the loss of Russian natural gas. These efforts to revive nuclear power are creating a potential boom for uranium producers. Pressure for new uranium mines will build, but not until later in the 2020s and into the 2030s, according to analysts.
U.S. financial institutions welcome the return of higher interest rates, but it brings its share of risks as well, according to the 2023 Financial Institutions Industry Outlook, a new report published by S&P Global Market Intelligence. Higher interest rates and elevated inflation have raised recessionary fears and the prospect of notably higher loan losses for banks, slower growth for life insurers, risks to downside for the property and casualty insurance space and much greater demands from investors supporting fintech startups.
2022 is set to rank as one of the top years for global private equity investment in the electric vehicle ecosystem after a surge of deals in the third quarter. Through the first 10 months of the year, global private equity and venture capital investments in electric vehicles and components stood at $9.45 billion, compared to a record-high $12.64 billion in 2021, according to S&P Global Market Intelligence data.
- In Focus: Nuclear Power
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Climate, conflicts prompt new look at old nuclear
Under increasing pressure because of a warming climate and energy security concerns, governments across the globe are reconsidering plans to decommission portions of their nuclear fleets.
—Read the full article from S&P Global Market Intelligence
Nuclear revival buoys uranium sector, but new mines not on horizon
Renewed interest in nuclear energy in the U.S. and EU is likely to result in uranium supply deficits that could increase uranium mining outside of Russia.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Financials
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Financials Research: The Big Picture: 2023 outlook for US Financial Institutions
S&P Global Market Intelligence offers a look ahead to the key strategic trends and opportunities expected to drive U.S. financial institutions through 2023 and beyond.
—Read the full article from S&P Global Market Intelligence
Many US banks increase exposure to healthcare industry in Q3
S&P Global Market Intelligence collected 18 disclosures of healthcare and related outstanding exposure of greater than $300 million from 15 select banks. Among those disclosures, only eight declined sequentially.
—Read the full article from S&P Global Market Intelligence
Midterm elections stand to shake up key banking lawmakers, policy agendas
If the GOP gains a majority in either or both chambers, Republican legislators are expected to put pressure on Biden-appointed regulators through hearings or the introduction of legislation.
—Read the full article from S&P Global Market Intelligence
Chinese banks expect easing property troubles to keep asset quality steady
China's megabanks will likely maintain credit quality as top regulators indicate marginal improvement in the property sector, in which risks remain manageable.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Insurance
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Calif. regulators finally sign off on new private auto rate increase
One Allstate unit received approval to boost its private auto rates in the Golden State, the first such approval by California regulators in more than two years.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Fintech
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Apex Fintech selling crypto unit that complicated its SPAC merger plan
Apex Fintech Solutions is selling its crypto business and the financial technology company aims to go public via a traditional IPO in the future.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Real Estate
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NAV monitor: US equity REITs trading well below NAV, see some improvement
The office sector continued to trade at the largest discount to NAV, while the casino sector traded at the largest premium.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Credit and Markets
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How nighttime lights illuminate economic activity
Alternative data, which includes night-time lights or "luminosity" data, is a critical resource when it comes to understanding the variation in the economic and risk landscapes of larger countries.
—Read the full article from S&P Global Market Intelligence
Tool time? The outlook for the home improvement market
Two experts discuss the near-term outlook for home improvement spending, which reached an all-time high in 2021.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Energy and Utilities
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COP27: Energy security concerns collide with climate agenda
The Russia-Ukraine conflict has caused severe energy supply disruption in the EU and forced a near-term policy divergence between energy security and the climate agenda.
—Read the full article from S&P Global Market Intelligence
With retirements, US, Canada generating capacity slips in September
Generating capacity in the U.S. and Canada slipped in September largely due to only two capacity additions compared to large-capacity coal and gas retirements.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Technology, Media and Telecommunications
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US Supreme Court to consider recommender algorithms in key internet shield case
In Gonzalez v. Google, the court will determine if Google's YouTube is liable for the promotion of an Islamic State recruitment video by its algorithms.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Metals and Mining
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Barrick's 2022 grassroots exploration budget surges 51%
Barrick ranked second on planned grassroots spending this year and fourth on overall exploration budgets.
—Read the full article from S&P Global Market Intelligence
Metals and Mining Research: Lithium project pipeline insufficient to meet looming major deficit
Lithium chemical supply is still set for a major deficit by 2029, even with assumed aggressive development of 53 projects in the post-preliminary economic assessment pipeline.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: ESG
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Amid geopolitical, economic stress, nations gear up for pivotal climate talks
The COP27 climate negotiations kicked off Nov. 6 in Egypt. Compensation for loss and damage as well as boosting climate finance for developing nations are high on the agenda.
—Read the full article from S&P Global Market Intelligence
451 Research: The growing imperatives of ESG and how cloud computing providers measure up
Leveraging S&P Global Sustainable1 environmental, social and governance metrics, 451 Research analysts examine the impact of environmental initiatives across the IT infrastructure industry and highlight the need for more progress on ESG variables.
—Read the full article from S&P Global Market Intelligence
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- The Week in M&A
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Pennsylvania bank M&A rebounds amid deal doldrums
ASR Nederland's €4.94B deal with Aegon tops European financials M&A in October
Kroger's Albertsons acquisition was October's only $10B+ global M&A deal
Kentucky bank M&A wakes up with largest deal since 2018
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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 Roma Arora