Reviving nuclear power; 2023 outlook for US financials; PE funds fuel EV sector

Reviving nuclear power; 2023 outlook for US financials; PE funds fuel EV sector

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.

Nuclear Power In Focus

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

In-depth features looking at the impact of major news developments in key industries.

Financials

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

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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

Insurance

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

Fintech

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

Real Estate

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

Private Equity

Electric vehicle industry continues to attract private equity

Global private equity and venture capital investments in the electric vehicle industry for the first 10 months of 2022 stood at $9.45 billion, according to S&P Global Market Intelligence data.

—Read the full article from S&P Global Market Intelligence

Credit and Markets

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

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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

Energy and Utilities

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

Technology, Media and Telecommunications

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

Metals and Mining

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

ESG

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

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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

The Week in M&A

Pennsylvania bank M&A rebounds amid deal doldrums

Read full article

ASR Nederland's €4.94B deal with Aegon tops European financials M&A in October

Read full article

Kroger's Albertsons acquisition was October's only $10B+ global M&A deal

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Kentucky bank M&A wakes up with largest deal since 2018

Read full article

The Big Number

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Trending

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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

John Thomas

Here to connect brands with customers | Demand Generation

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Denise, 100 percent!

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