2021's top-performing US stocks; bank lending recovery; fintech M&A
Sarah Cottle
Growth-Focused Executive | GM | Driving Profitability & Operational Excellence in B2B Data, Research, Advisory | M&A Integration | Governance | Digital Transformation | Trusted C-Suite Advisor | Board Member
Today is Tuesday, January 18, 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, we take a close look at the best-performing U.S. stocks in certain sectors in 2021. A blank-check firm merging with former President Donald Trump's media company led all financial stocks. Several cryptocurrency-friendly banks were among the bank stocks with the highest total returns as the sector outpaced the broader market. Shares of shale oil and gas producers also outperformed the S&P 500, a first in eight years. Some meme stocks continued to rally, with shares of a cannabis company among those most heavily traded throughout the year.
Commercial bank loan growth rebounded sharply in the fourth quarter of 2021, jumping well ahead of the pre-COVID-19 run rate, according to data from the Federal Reserve. The figures support the optimistic guidance banks have offered in recent months that full pipelines would convert into actual borrowing and set the stage for a recovery toward pre-pandemic levels of net interest income.
Consumer fintech companies are becoming strategic buyers of their industry peers. The moves are driven by demand to tackle broader financial needs instead of focusing on single products to retain customers, with many touting a "super app" approach and aiming to be portals of various digital financial services.
US Stock Performance in Focus
Trump-linked SPAC leads US financial stocks with highest total returns in 2021
Digital World Acquisition, which started trading on the Nasdaq in September 2021, had a total return for the year of 416.9%.
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Some crypto-friendly US bank stocks generated outsized total returns in 2021
Customers Bancorp topped the list of U.S. bank stocks with the highest total returns in 2021.
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Huge gains in oil and gas stocks to continue into 2022, analysts say
The S&P Oil & Gas Exploration & Production Index beat the S&P 500 in 2021 for the first time in eight years, and analysts expect another good year.
Read the full article from S&P Global Market Intelligence
Deep Dives
In-depth features looking at the impact of major news developments in key industries.
Credit and Markets
US companies in good shape despite rise in borrowing costs
U.S. companies are well positioned to repay their debt obligations, but the prospect of rising borrowing costs and persistent inflation eating into earnings could threaten that position in 2022.
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Federal Reserve committee shift signals more aggressive stance on inflation
Even proponents of accommodative monetary policy on the Fed's rate-setting committee are arguing for interest rate hikes, one economist said.
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Financials
US bank lending snaps back in Q4
Banks put liquidity to work during the period, accelerating securities purchases as cash holdings dropped for the first time since the third quarter of 2020, according to Fed data.
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Big US banks poised for guidance reset in Q4'21 reports after rates increase
Analysts expect that cash-heavy balance sheets will keep net interest margins under pressure in the 2021 fourth quarter, but that they might be bottoming out.
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Australian banks face tricky outlook with margin pressure, housing risks
Net interest margins may be pressured in 2022 as interest rates are likely to stay at a record low until 2023 even after a government program to cushion banks' funding costs ended.
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LatAm banks get stable 2022 outlook; risks abound
Latin American banks look solid moving into 2022 as economies return to pre-pandemic "normality," with rating agencies giving the sector a stable outlook despite a forecast of slower growth and higher interest rates.
—???Read the full article from S&P Global Market Intelligence
Insurance
Several APAC insurers log market cap declines in Q4'21 amid uneven recovery
Ping An Insurance regained its position as the region's largest insurer after logging a 5.6% increase in market cap to $138.42 billion, according to data compiled by S&P Global Market Intelligence.
—???Read the full article from S&P Global Market Intelligence
Real Estate
US REIT M&A activity soared in 2021
2021 was a strong year for M&A activity in the U.S. real estate investment trust sector, with total transaction value reaching $99.28 billion across 13 deals. The forecast remains positive.
—???Read the full article from S&P Global Market Intelligence
Metals and Mining
Uranium heavyweights flirt with reopening mothballed mines amid Kazakh unrest
North American uranium producers are toying with restarting mines as volatility in Kazakhstan drives up yellowcake prices and increases the value of supply from politically stable countries.
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Biden's infrastructure act spurs US electrical steel imports, production
The massive U.S. infrastructure package signed into law in November has already started to stimulate demand for electrical steel, according to the sole U.S. producer of electrical steel, Cleveland-Cliffs.
领英推荐
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Energy and Utilities
NY governor unveils plan to electrify homes, achieve zero-emissions construction
The plan targets zero on-site greenhouse gas emissions for new buildings by 2027 and sets a target of electrifying at least 1 million buildings by 2030.
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California reins in renewables waste as curtailments drop 5% in 2021
California made more use of its plentiful solar and wind energy resources in 2021, reversing a multiyear trend of aggressively expanding renewable energy cuts when supplies exceed demand for electricity.
—???Read the full article from S&P Global Market Intelligence
Fintech
Fintech M&A deal tracker: Push to bundle, create 'super app' drives transactions
Fintech firms racing to expand and bundle consumer financial technology offerings spurred M&A in 2021, and the momentum will continue into 2022.
—???Read the full article from S&P Global Market Intelligence
Technology, Media and Telecom
How Apple gets to $4 trillion; how Microsoft gets to $3 trillion
Ongoing demand for Apple's existing devices and services and potential revenue from lucrative new markets will allow the company to continue growing its market cap past the $3 trillion mark.
—???Read the full article from S&P Global Market Intelligence
At CES 2022, metaverse is built by small players, but Meta's influence looms
Upstart companies at Consumer Electronics Show 2022 are actualizing the next version of the internet, and their thoughts on the heavyweight influencers, notably Meta, are mixed.
—???Read the full article from S&P Global Market Intelligence
The Week in M&A
SocGen's €4.9B LeasePlan buy accelerates European banks' auto-leasing drive
Deutsche Kreditbank sale would slash BayernLB's profits, deposits
Take-Two sets sights on lucrative mobile gaming market with record deal
T-Mobile's Octopus buy complicated by pandemic
The Big Number
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Written and compiled by Louis Bacani