Today is Tuesday, September 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.
In this edition of Insight Weekly, we examine the gender parity in banking boardrooms. Only seven of the 30 largest European banks by assets have more than 50% female representation on their boards, according to an analysis by S&P Global Market Intelligence. Several lenders could struggle to meet tougher regulatory requirements on gender parity. In the Gulf Cooperation Council region, most big banks do not have women directors. The findings are an indication of the work the banking sector must do to improve gender balance among top executives.
Efforts to get employees to return to offices full time have fallen flat, and foot traffic in office buildings continues to linger below pre-pandemic levels. The result is a widespread reimagining of the workplace that has ominous implications for commercial real estate owners and investors. Real gross investment in commercial structures is forecast to decline through 2025 in part due to challenges posed by remote work, according to Ben Herzon, economics director at S&P Global Market Intelligence.
Global imports of U.S. liquefied natural gas nearly doubled year over year to $21.2 billion in the first half of 2022, according to data from Panjiva. Many of those U.S. exports departed for Europe as the war in Ukraine prompted a scramble for LNG supplies. Market experts have warned that LNG shipments cannot quickly replace curtailed pipeline imports from Russia and that the region's need for significant LNG volumes will remain strong.
- In Focus: Bank Boardrooms' Gender Parity
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Some UK, German banks fall short of boardroom gender parity targets
Several large European banks could struggle to meet regulators' tougher recommendations on gender parity on boards, according to data compiled by S&P Global Market Intelligence.
—Read the full article from S&P Global Market Intelligence
Gulf banks lag regional peers on gender parity in boardroom
The two largest banks in the Gulf Cooperation Council region by assets have no women on their boards of directors, S&P Global Market Intelligence data shows. Twelve banks in the region do not have a single female board director.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Financials
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Criticized loans, leading indicator of credit stress, keep falling
U.S. commercial loans flagged as having a higher risk of default continued to drop in the second quarter, recovering from a pandemic surge amid new fears over the credit outlook.
—Read the full article from S&P Global Market Intelligence
Spanish banks see rate hikes offsetting slowdown in new lending through 2023
A faster-than-expected pace of interest rate rises has led several of Spain's largest banks to increase guidance for net interest income in 2022, with 2023 forecast to see the biggest gains in lending income.
—Read the full article from S&P Global Market Intelligence
Chinese banks face uphill task in maintaining earnings growth as economy slows
Chinese megabanks' earnings outlook hinges on their ability to keep loan books growing during the time of economic slowdown.
—Read the full article from S&P Global Market Intelligence
Banking risk monthly outlook: September 2022
S&P Global Market Intelligence's banking risk experts provide insight into events impacting the financial sector in emerging markets, including China, Turkey and South America.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Real Estate
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Future of the office in doubt as workers hesitate to return
Even as the threat of COVID-19 fades, landlords and employers are struggling to convince workers to return to the office. The implications for the commercial real estate sector are ominous.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Fintech
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Regulators cracking down on community bank-fintech partnerships
Banks partnering with fintechs could result in a "severe problem" or "crisis" without regulatory intervention, acting Comptroller Michael Hsu said after entering into a formal agreement with Blue Ridge Bank regarding its fintech ties.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Credit and Markets
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Dollar soars to 20-year highs on Fed rate hikes, Europe's energy woes
The dollar is outpacing all its major peers as the Federal Reserve is poised to announce further rate hikes before year-end.
—Read the full article from S&P Global Market Intelligence
Monthly PMI Bulletin: September 2022
August saw global economic activity contract for the first time since June 2020, as new order inflows declined, international trade volumes fell and signs of excess capacity grew.
—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 slip in August amid inflation, valuation concerns
Global private equity entries in August fell 45.8% to $42.23 billion from $77.95 billion in the same month a year ago, S&P Global Market Intelligence data shows.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Technology, Media and Telecommunications
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Amazon faces recruitment, retention challenges as labor competition grows
The company is facing pressure to revamp its corporate culture and compensation practices in a tight labor market.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Supply Chain
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New PMI Comment Tracker dataset reveals key insights into the global supply chain
The Global PMI Comment Tracker dataset can help to understand the extent to which manufacturers are facing delays on shipping as a lingering result of the pandemic.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Energy and Utilities
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Skills shortage imperils global energy transition
Skilled workers who can build the infrastructure needed to meet growing renewables targets will be in short supply in the coming years, putting project delivery at risk, industry experts say.
—Read the full article from S&P Global Market Intelligence
European imports of US LNG make up lion's share of over $21B in H1'22 exports
U.S. LNG went to France and Spain as the top destinations during the six-month period, with exports to these countries increasing fivefold from the same period of 2021.
—Read the full article from S&P Global Market Intelligence
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- Deep Dives: Insurance
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Insurance Insight: IBM $16B pension risk transfer deal to push US market to record heights in 2022
The transaction, which ranks as the second-largest on record, likely renders S&P Global Market Intelligence's projection for decade-high growth of 12.3% in direct group annuity premiums and considerations in 2022 overly conservative.
—Read the full article from S&P Global Market Intelligence
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- The Week in M&A
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Dearth of $10B deals produces slow summer for large M&A
Deal Tracker: PE helps infotech M&A sputter back to life in August
Deal Profile: Harmony Bank, Texas Brand Bank to merge
M&A Replay: Japanese steel deal tops metals, mining M&A in week ended Sept. 9
Buyers may be running out of sellers in Appalachia's shales
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Written and compiled by Louis Bacani