Today is Tuesday, November 08, 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 another look at how this month’s midterm elections will impact energy policies in the U.S. At the federal level, the outcome of Congressional contests will help to shape likely reforms of permitting legislation for energy infrastructure projects. Gubernatorial races and elections for state utility commissions will also greatly influence local energy agendas and the ongoing transition from fossil fuels to renewable energy sources.
The energy crisis could accelerate decarbonization efforts, resulting in faster deployment of clean power around the globe. The International Energy Agency highlighted Russia's invasion of Ukraine as the main cause of the diminishing use of gas, potentially bringing an "end to the golden age of gas."
U.S. banks reported further declines in deposits during the third quarter of the year. Nine of 13 lenders with assets of between $100 billion and $1 trillion posted quarter-over-quarter falls in deposits, according to S&P Global Market Intelligence data. SVB Financial Group had the largest drop-off at 5.9%.
- In Focus: Energy Reforms After Midterms
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US Midterms 2022: Makeup of next US Congress weighs on permitting reform push
U.S. lawmakers could pursue a federal permitting overhaul regardless of who controls the 118th Congress, but Washington observers expect the Nov. 8 election to have a significant influence on the course of any reform efforts.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Financials
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US bank stocks return to positive territory in October as broader market rallies
Major exchange-traded U.S. banks had a median return of 8.6% in October, compared to a negative 4.3% in September and a negative 1.7% in August, according to an S&P Global Market Intelligence analysis.
—Read the full article from S&P Global Market Intelligence
Deposit runoff among large US banks persists in Q3
Nine of thirteen U.S. banks with between $100 billion and $1 trillion in total assets that reported earnings as of Oct. 27 reported a quarter-over-quarter decline in deposits in the third quarter.
—Read the full article from S&P Global Market Intelligence
European banks remain key hacking target following Russian invasion of Ukraine
Distributed Denial of Service attacks, such as the one suffered by Portugal's Millennium BCP in October, have increased "substantially" since the Russian invasion of Ukraine, cybersecurity experts say.
—Read the full article from S&P Global Market Intelligence
Chinese banks to pivot to high-tech borrowers in search for next growth engine
Beijing will likely ask banks to step up lending to the high-tech sector after President Xi Jinping reaffirmed technological self-sufficiency and "high quality development" as priorities.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Insurance
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US P&C stocks weather sector downgrade during busy earnings week
Several high-profile property and casualty companies displayed resilience despite S&P Global Ratings revising its outlook for the sector to negative from stable.
—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: Housing price growth slowed further in August
The 20-City Composite Index recorded 13.1% year-over-year growth in August, while the 10-City Composite Index rose 12.1% during the same period.
—Read the full article from S&P Global Market Intelligence
Oil and gas revenue will boost real estate and construction spending in the Gulf
Construction and real estate are recovering from challenges posed by COVID-19 lockdowns in Saudi Arabia, the United Arab Emirates, and Qatar, bolstering efforts to diversify the nations' economies away from hydrocarbons./p>
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Credit and Markets
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Ghana's increasing risk of debt default
Ghana's public debt has increased nearly fourfold from around 20% of GDP in 2006 to 78.3% in June 2022.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Energy and Utilities
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Global green hydrogen pipeline swells to 957 GW, but most linger in early stage
Hydrogen project announcements are not slowing in the energy crisis, but most proposals remain early-stage ideas, energy think tank Aurora Energy Research said in a new report.
—Read the full article from S&P Global Market Intelligence
Energy crisis speeds transition, ends 'golden age of gas' – IEA
Forecasts see gas fade in significance in global energy use, and while coal is set for a revival this will be brief, the International Energy Agency said in its flagship outlook report.
—Read the full article from S&P Global Market Intelligence
Most European utility stocks rebound in October; Uniper logs 22.4% drop
Among the bottom-performing European utilities, Uniper recorded a negative stock return for the fifth straight month, at 22.4%, in October.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Metals and Mining
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Gold price drifts off earlier peak despite demand firming in some segments
The price of gold faltered during the third quarter, even as some segments of the gold sector recorded demand growth.
—Read the full article from S&P Global Market Intelligence
US Midterms 2022: Miners' campaign donations fall even as overall spending soars
Mining political action committees, led by coal interests, contributed less in the third quarter than they did during the same period in the past two election cycles.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Supply Chain
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Supply chain problems thwart Australian lithium producers
Australian lithium producers say supply chain issues continue to hinder their ability to expand output to meet soaring demand, but the shipping tightness appears to have peaked.
—Read the full article from S&P Global Market Intelligence
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- The Week in M&A
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Wings Financial CU to acquire Settlers Bank in 2nd bank buy in 2 years
SoFi's acquisition of Technisys represents largest bank-infotech deal since 2012
US banks' insurance brokerage M&A activity slows YTD
Credit unions sue Minnesota regulator over decision to bar acquisitions of banks
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Written and compiled by Waqas Azeem