Omicron's economic impact; US yield curve inversion; healthcare SPAC outlook
Today is Tuesday, February 8, 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 U.S. macroeconomic impact of the surging omicron variant of the coronavirus. The number of Americans who could not work due to having or caring for someone with COVID-19 significantly increased in January, according to Census Bureau data. The staff shortages have caused temporary closures of restaurants and retail businesses, which also are grappling with a pause in consumer spending that is likely to last until the second half of the year.
U.S. Treasury yields are closing in on a so-called curve inversion, where long-term borrowing costs fall below those for shorter tenors. This market flip, which has preceded every recession in the last 50 years, is traditionally driven by investor pessimism about short-term growth prospects and expectations for an eventual economic recovery. The question for policy makers is whether this traditionally reliable recession indicator might be broken following a barrage of stimulus measures.
SPACs targeting the healthcare sector face challenging prospects in 2022. A total of 107 blank-check companies listed in 2021 with designs on the healthcare industry, according to S&P Global Market Intelligence data. The crowded space means more competition for companies that are mature enough to go public. SPACs also may attract more attention from regulators for failing to provide investors with the same protections as traditional IPOs.
US Economy in Focus
US consumers pause spending as omicron curbs appetite for food services, retail
Consumers are less likely to spend their savings in coming months as they wait for omicron to subside and wages to grow.
— Read the full article from S&P Global Market Intelligence
Omicron hinders US workforce; effects will linger for months
The spread of the COVID-19's omicron variant has forced many businesses to shut down amid staff illnesses and a decline in customers.
— 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
Yield curve inversion could be false alarm for US economy amid COVID upheavals
The gap between short- and long-duration Treasury bonds is closing fast on expectations of rate hikes from the Federal Reserve, but the indicator of recession may be broken.
— Read the full article from S&P Global Market Intelligence
Deleveraging US corporates to ignore debt, spend in 2022
U.S. nonfinancial corporations racked up debt during the coronavirus pandemic but have reduced leverage, allowing them to spend on M&A and shareholder returns even as borrowing costs rise.
— Read the full article from S&P Global Market Intelligence
Financials
Most US regional banks post YOY higher earnings in Q4'21
Twenty-two out of the 34 banks with $10 billion to $100 billion in total assets that have reported fourth-quarter 2021 earnings posted improved results year over year.
— Read the full article from S&P Global Market Intelligence
Ukraine-Russia standoff raises concerns around digital financial infrastructure
A potential military conflict between Russia and Ukraine could pose a threat to digital systems used by banks and other financial institutions in Europe.
— Read the full article from S&P Global Market Intelligence
US credit unions grow branch count while banks slash locations
Credit unions added branches in 2021, a year that represented a record high for branch closures in the banking industry.
— Read the full article from S&P Global Market Intelligence
Insurance
Tesla's Musk, others take aim at Calif. law restricting telematics
Limiting telematics in California is significant for insurance operations nationwide since it is the largest private auto insurance market in the U.S. by a wide margin.
— Read the full article from S&P Global Market Intelligence
Real Estate
Thriving tech sector drives one-fifth of large U.S. office leases in 2021
The activity is a significant rebound from 2020, when the tech sector leased 25.7 million square feet, equaling 16.9% of all U.S. office leasing, CBRE found.
— Read the full article from S&P Global Market Intelligence
Healthcare
Healthcare SPACs face hurdles in 2022 as competition, regulation increases
Competition for targets, a tougher stance from regulators and uneven performance are likely to create an uneasy environment for healthcare special purpose acquisition companies in 2022.
— Read the full article from S&P Global Market Intelligence
Healthcare IPOs break record in 2021 as Chinese companies lead Q4
Healthcare companies raised $11.08 billion across 96 public offerings in the fourth quarter, which brought the full-year total to a record-breaking $56.36 billion, according to data from S&P Global Market Intelligence.
— Read the full article from S&P Global Market Intelligence
领英推荐
Technology, Media and Telecommunications
Apple all in on iPhone 13, services amid global supply challenges
Analysts predict accelerating sales for Apple in 2022 as demand for its products and services remains strong.
— Read the full article from S&P Global Market Intelligence
AT&T's fiber deployment vs. Verizon's fixed wireless bet
AT&T is investing heavily on deploying fiber to more homes in a bid to win fixed broadband customers. Verizon, meanwhile, is betting on its fixed-wireless home internet service.
— Read the full article from S&P Global Market Intelligence
Energy and Utilities
California sells millionth EV as transport transitions to the grid
Electric vehicles accounted for 12% of the Golden State's light-duty sales in 2021. Seven million more EVs and a vast expansion of charging points might be necessary by 2030.
— Read the full article from S&P Global Market Intelligence
Metals and Mining
Rising Canadian carbon costs may divert mining sector investment, industry says
A coming clean fuel standard without industry protections is set to increase Canadian energy costs and could hurt the mining sector's global competitiveness.
— Read the full article from S&P Global Market Intelligence
The Week in M&A
Wisconsin bank M&A starts with a bang in 2022
Tech deal advisers, executives expect 2022 M&A to match or exceed 2021 glut
Corporate renewable energy deals soared in 2021, smashing previous record
Asia-Pacific financial institutions M&A interest tracker
The Big Number
— Read the full article from S&P Global Market Intelligence
Trending
— Read more on S&P Global Market Intelligence and follow @thesagaofzoe on Twitter
Zero In On Your Net Zero
Turn your net zero commitments into action with essential sustainability data and analytics. We’ll show you the numbers that add up to your net zero – and the steps you need to get there.
Powered by You – Virtual Challenge
For the month of February, we are encouraging you to zero in on your next steps by joining our Powered by You Virtual Challenge – to complete 28 miles in 28 days, your way. No matter what your movement, for every mile logged via the Charity Miles app we’ll donate to Direct Relief, a humanitarian aid organization, with the goal of raising up to US $50,000.
Additional Insights from S&P Global Market Intelligence
Check out other weekly newsletters highlighting our exclusive features and analysis:
ESG Insider: News and insights into environmental, social and governance developments driving change in business and investment decisions. Click here to subscribe.
Policy Intel: Explore exclusive news and research on policy and regulatory developments in the U.S. and around the globe. Click here ?to subscribe.
Essential Healthcare: Our guide to the week's top headlines in pharmaceuticals, biotech, hospitals, medtech and more. Click here to subscribe.
Private Equity Pulse: Need-to-know investments. Sharp insight. Private Equity Pulse offers our top picks of global private equity news stories. Click here to subscribe.
NEXT: Stay up to date on how technology is reshaping the future of industries across global markets. Click here to subscribe.?
Written and compiled by Louis Bacani