Insight Weekly: Stocks limp into 2023; GCC banks set for rebound; deep-sea mining faces pushback
Insight Weekly: Recession risk persists; Banks pull back from crypto; 2022 laggard stocks rally
Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage
Insight Weekly: Inflation eases; bank M&A slows; top companies boost market share
Activity Volumes Across the Equity Capital Markets Dropped Significantly in 2022
Today is Tuesday, January 10, 2023, 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 look back at U.S. equity market performance in 2022. The S&P 500 closed the year with a total return of negative 18.1%, its worst annual return since the Great Recession. Bank stocks fell back to negative territory in December as the Federal Reserve made its latest move to slow inflation. Gas utility stocks rebounded in the fourth quarter, but the rally failed to push the sector into profitability for the year.
Banks in the Gulf Cooperation Council region are set for higher profits in 2023 as they continue to reap the benefits of an economic recovery and moves by central banks to tighten monetary policy. Banks may also see increased underwriting activity thanks to the region’s IPO boom.
Deep-sea mining will have a pivotal year ahead as the International Seabed Authority faces a July deadline to approve exploitation regulations. Some countries have called for a delay in issuing the new rules due to environmental concerns — a move that could cause financial trouble for some industry players.
S&P 500 logs its worst annual performance since 2008
Major stock indexes closed 2022 in the red as inflation soared and interest rates rose.
—Read the full article from S&P Global Market Intelligence
US bank stocks end 2022 in negative territory
Major exchange-traded U.S. banks had a median return of negative 4.8% in December 2022, compared with positive 1.9% in November 2022 and positive 8.6% in October 2022, according to an S&P Global Market Intelligence analysis.
—Read the full article from S&P Global Market Intelligence
End-of-year gas utility stock rally fails to push sector into the black in 2022
A basket of gas utility stocks rose 6.9% in the final quarter of 2022, continuing a trend of bumpy trading in the second half as investors grappled with a changing interest rate environment and other mixed market signals.
—Read the full article from S&P Global Market Intelligence
Credit Suisse expected to underperform global peers in 2023 after bruising year
Hefty losses and asset outflows in 2022 have left Credit Suisse vulnerable as it embarks on yet another major restructuring over the next three years, which could hurt the bank’s competitive position in the foreseeable future, analysts said.
—Read the full article from S&P Global Market Intelligence
Turkish banks eclipse European peers with heady FY’22 shareholder returns
Turkish retail investors turned to the stock market to protect savings from rampant inflation, helping İşbank and its domestic peers achieve strong profit growth and bumper shareholder returns.
—Read the full article from S&P Global Market Intelligence
Japan megabanks to lean on M&A to grow presence in Asia despite recession risk
Following years of expansion, Japanese megabanks’ risk and earnings profiles are becoming more susceptible to the global economic cycle as their revenue from operations outside Japan increases.
—Read the full article from S&P Global Market Intelligence
US life outlook 2023: Mortality to improve; capital levels in focus; LDTI reform
Many life insurance companies will have to wrestle with long-awaited accounting changes on Jan. 1, 2023, as the impact of the coronavirus continues to wane.
—Read the full article from S&P Global Market Intelligence
Life insurer mortgage acquisitions tumbled in Q3 amid stiff market headwinds
As the industry’s acquisitions of commercial mortgages tumbled during the period given increases in both interest rates and market volatility, additions of residential mortgages took on greater importance.
—Read the full article from S&P Global Market Intelligence
Distribution deals crucial for Asia’s growing insurance technology companies
Embedded insurance is becoming increasingly popular across Asia, but distribution partners can capture the lion’s share of the transaction values.
—Read the full article from S&P Global Market Intelligence
Fed tightens money supply as US inflation falls from 2022 peak
The Federal Reserve’s aggressive push to tighten financial conditions has pulled some of the record-shattering money supply out of the U.S. economy, a sign that persistently high inflation is in decline.
—Read the full article from S&P Global Market Intelligence
Debt repayments weigh more heavily on US companies
After two years of declines, median interest coverage ratios are rising.
—Read the full article from S&P Global Market Intelligence
Steep drop in private equity fund launches in 2022
Private equity fund launches across the world fell to 481 year-to-date through Dec. 19, 2022, from 1,464 in full year 2021, according to S&P Global Market Intelligence data.
—Read the full article from S&P Global Market Intelligence
Transmission permitting reform faces partisan showdown in new US Congress
Construction of new transmission lines will be key to maximizing clean energy investments under the Inflation Reduction Act, but Democrats will need buy-in from the Republican-controlled U.S. House of Representatives in 2023.
—Read the full article from S&P Global Market Intelligence
In ‘changing of the guard,’ new class of top US utility executives steps up
The next generation of leaders at U.S. investor-owned utilities is poised to guide the sector to a cleaner, greener future in 2023.
—Read the full article from S&P Global Market Intelligence
‘We’re in a perpetual short’: US energy storage CEOs face limits of growth
New and improved U.S. tax credits are supercharging energy storage demand. But widespread delays related to battery shortages, transmission interconnection bottlenecks and other obstacles have illustrated that the industry can only go so fast.
—Read the full article from S&P Global Market Intelligence
Deep-sea mining may slam into regulatory wall
A United Nations body will decide whether to approve deep-sea mining for battery minerals by July 2023, following a two-year regulatory development process.
—Read the full article from S&P Global Market Intelligence
Metals and Mining Research: Africa – mining by the numbers, 2022
Africa is rich in resources but comes with high political and security risk.
—Read the full article from S&P Global Market Intelligence
Chinese investments in US mining face ‘uphill battle’
The U.S. government is expected to use its foreign investment review power to ramp up efforts to curb Chinese investment in the domestic mining sector.
—Read the full article from S&P Global Market Intelligence
Kagan Research: Netflix global pricing strategy, 2022
With its international expansion largely complete by 2016, Netflix has turned to a wide array of pricing strategies across markets in subsequent years as it looks to balance subscriber growth and profits.
—Read the full article from S&P Global Market Intelligence
451 Research: Data monetization on the rise, driven by the most digitally mature enterprises
Data marketplaces have seen several false dawns and failed projects. Yet as enterprise interest and readiness for data marketplaces and monetization technology evolves, the sector’s surviving vendors could be poised to benefit.
—Read the full article from S&P Global Market Intelligence
Deal Profile: Newburyport Five Cents Bancorp MHC to merge with Pentucket Bank Holdings MHC
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Seller’s market: A busy year for gas utility M&A continues to evolve
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Insurance M&A 2022 review: Deal activity slows from prior-year highs
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The Big Number: 
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The Big Picture
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Written and compiled by Alex Virtucio
