Ukraine crisis fallout; corporate borrowing costs; digital therapeutic investing
Today is Wednesday, March 2, 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 continue to examine the economic and financial fallout from the ongoing conflict between Russia and Ukraine. News of Russia's military operations have brought uncertainty and volatility to markets around the world. The future of the Russian-owned Nord Stream 2 gas pipeline is looking increasingly bleak. Renewed fighting in Europe is looming over the metals sector as well. The situation is driving the price of gold and palladium higher and sparking concerns over supply disruptions.
Corporate borrowing costs are rising ahead of the U.S. Federal Reserve's highly anticipated interest rate hikes, a potential sign of pain for companies looking to raise cash in 2022. Healthy corporate balance sheets and projected earnings growth, however, will minimize any credit risk to companies from more expensive debt.
Investments in U.S. digital therapeutic products — evidence-based tools that use software to prevent or treat diseases — grew 2.6 times between 2020 and 2021, according to digital health venture firm Rock Health. Adoption of digital therapeutics may take some time to catch up with investors' enthusiasm, even as the pandemic spurs demand for virtual products. Short-term risks include an oversaturated mobile health market and physicians' uncertainty around integrating these new tools into their workflow.
Ukraine Crisis in Focus
Russia-Ukraine conflict clouds commodity markets; threat of more sanctions looms
Metal markets face increased uncertainty in the wake of Russia's incursion into Ukraine.
— Read the full article from S&P Global Market Intelligence
?European bank stocks sink amid Russia-Ukraine conflict
Société Générale and Raiffeisen Bank International said their Russian units continue to function as usual, while the U.K. announced a full and immediate freeze of assets for all major Russian banks.
— Read the full article from S&P Global Market Intelligence
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US stock free-fall far from over as Russia, inflation, Fed weigh on markets
The S&P 500's "fear gauge" also spiked to the highest point in more than a year as stocks tumbled.
— 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.
Financials
New 'goodwill' accounting method could cause earnings hit for US banks
The Financial Accounting Standards Board is considering standards for banks to treat hundreds of millions of dollars in goodwill created by mergers and acquisitions.
— Read the full article from S&P Global Market Intelligence
US banks with highest forward P/E ratios in February
Silvergate Capital returns as the most expensive stock by price-to-estimated 2022 earnings as of Feb. 15.
— Read the full article from S&P Global Market Intelligence
To sell whole or in parts: that is the regulatory question for Citibanamex
Citi may prefer to sell its Mexican retail operations in one fell swoop. However, a breakup of the assets might lead to a smoother regulatory process, analysts told S&P Global Market Intelligence.
— Read the full article from S&P Global Market Intelligence
Asian banks' debt issuance slides in January as Chinese lenders stay away
The pace of the return of Chinese banks to the bond market will be crucial to overall Asia-Pacific debt issuance in the coming months, especially with lukewarm interest from investors for many other Asian economies, analysts said.
— Read the full article from S&P Global Market Intelligence
Credit and Markets
Corporate borrowing costs push higher as Fed readies rate hikes
Credit spreads are widening, though a healthy U.S. corporate sector seems well placed to absorb higher costs.
— Read the full article from S&P Global Market Intelligence
Treasury market volatility spikes as Fed policy uncertainty peaks
Questions about the size of an upcoming rate hike and timing of the balance sheet runoff have lifted volatility in the government bond market to the highest levels since March 2020.
— Read the full article from S&P Global Market Intelligence
Private Equity
Blackstone-backed Invenergy Renewables drives January VC funding rounds
Venture capital firms invested $51.27 billion in global venture investment across 1,638 transactions in January.
— Read the full article from S&P Global Market Intelligence
Healthcare
Investors back digital therapeutics while patients, physicians need convincing
An oversaturated health app market and uncertainty around integrating these new tools into healthcare workflows risks hindering patient and clinician adoption.
— Read the full article from S&P Global Market Intelligence
领英推荐
Roche was most active drug deal-maker of 2021; Pfizer biggest one-off spender
Roche and its subsidiaries signed 12 drug license deals last year, while Pfizer's $1 billion for a breast cancer therapy was the biggest single spend.
— Read the full article from S&P Global Market Intelligence
Energy and Utilities
SoCalGas proposes largest US green hydrogen infrastructure system
The proposed Angeles Link would facilitate hydrogen transportation around the Los Angeles Basin, where Southern California Gas and its partners are seeking to build a green hydrogen hub.
— Read the full article from S&P Global Market Intelligence
Pipeline constraints to keep US natural gas prices high even if oil hits $100/b
When oil drilling in the Permian Basin took off six years ago, the free gas associated with oil drilling swamped U.S. gas markets. Now, with LNG exports and pipeline constraints, a replay is unlikely.
— Read the full article from S&P Global Market Intelligence
US solar industry divided on circumvention provisions of China competition bill
U.S. solar energy manufacturers and installers are split on their support for language in the America COMPETES Act designed to crack down on imports from countries circumventing antidumping and countervailing duties.
— Read the full article from S&P Global Market Intelligence
Metals and Mining
Cobalt miners seeking to expand in Congo face human rights accusations
With cobalt demand rising, major miners are expanding operations, saying they have improved labor conditions and they treat workers fairly. But a pair of watchdogs say problems are still rife even at the largest mining companies.
— Read the full article from S&P Global Market Intelligence
Miners fear Biden administration's revamp of US law could slow development
The U.S. Department of the Interior has launched an interagency working group to oversee potential revisions to the country's Mining Law of 1872, saying it plans to offer recommendations to Congress by November.
— Read the full article from S&P Global Market Intelligence
The Week in M&A
Deal Profile: Hedge fund ends Tegna buyout saga with $8.6B transaction
Deal Profile: SoFi aims to build core banking solutions for community banks in Technisys deal
Heartland Financial eyes bigger M&A as it consolidates charters
NiSource will consider asset sales, purchases as part of strategic review
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Written and compiled by Louis Bacani