Insights Weekly: mid-sector earnings; loan growth dynamics; Insurance mergers and acquisitions are on the rise

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In this edition, we take a close look at the upcoming third quarter mid-market results, which are expected to post strong gains supported by rising commodity prices. According to analyst consensus, year-over-year growth in Adjusted EBITDA and revenues should prevail for most of the 11 large North American mid-market companies analyzed by S&P Global Market Intelligence. Soaring commodity prices are also making fundraising easier for listed exploration companies in Australia, helping the industry to ramp up spending to record levels.

Third-quarter profits for America’s largest banks were supported by continued strength in credit performance and robust capital market earnings, but many analysts focused on loan growth, and JPMorgan Chase & Co. and Bank of America Corp. both gave optimistic prospects.

The number of M&A deals in the insurance industry rose to 317 in the third quarter, up from 255 a year earlier, with asset managers and private equity firms involved in some of the most important operations.

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Focus on the middle sector

Rising commodity prices pave way for mid-sector gains

Industry experts said 2022 investment decisions and environmental, social and governance opportunities could also be in the spotlight during the mid-sector’s third quarter results.

Read the full article from S&P Global Market Intelligence

Commodity boom helps Australian explorers increase cash flow amid record spending

ASX-listed explorers’ spending levels and cash stocks are at their highest level since 2013, according to data from S&P Global Market Intelligence.

Read the full article from S&P Global Market Intelligence

Deep dives

In-depth articles on the impact of major news developments in key sectors.

Finance

Delayed deal between First Citizens and CIT has been the subject of antitrust claims in unsigned letter to the Fed

An unsigned letter sent to the Federal Reserve earlier this year alleges that First Citizens claimed control of CIT’s day-to-day operations, violating antitrust law.

Read the full article from S&P Global Market Intelligence

De novo banks thrive, some even making profits during the pandemic

The entire de novo class of 2018 recorded a profit in the past 12 months ended June 30.

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U.S. banks close 180 branches, open 69 in September

JPMorgan Chase resisted the trend, creating four new branches for the month.

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Large U.S. Bank Profits Show Lending Growth Dynamics

BofA and JPMorgan Chase gave an optimistic outlook for income growth, although bank profits are still fueled by releases of credit reserves that shrink over time.

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Assurance

Cat Losses and Inflation Among Focal Points During P&C Insurer Third Quarter Earnings Season

All but one of the top 20 P&C and multi-line insurers, for which estimates are available, are expected to record a decline in EPS sequentially in the third quarter, although a large majority are expected to show growth in EPS on a year-over-year basis.

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Insurance M&A activity increases in third quarter as asset managers close large deals

According to an analysis by S&P Global Market Intelligence, 317 insurance contracts were announced during the period, compared to 255 in the third quarter of 2020.

Read the full article from S&P Global Market Intelligence

Credit and Markets

Retail market: Supply issues could haunt holidays after sales surge in September

The monthly increase in sales surprised economists, who expected a slight drop in September as rising inflation and shortages of goods weigh on consumer spending.

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The weak earnings season could force the Fed to take a conciliatory turn

Worse-than-expected results could cause the central bank to tone down the tone surrounding its plans to cut monthly bond purchases during the pandemic.

Read the full article from S&P Global Market Intelligence

Energy and utilities

NextEra and Xcel Report Largest CEO-to-Median Compensation Ratio in 2020

NextEra recorded a 176-to-1 ratio, with CEO James Robo retaining the top spot among highest-paid U.S. utility executives.

Read the full article from S&P Global Market Intelligence

Clean energy groups ask FERC to abandon long-standing transportation funding model

The Federal Energy Regulatory Commission has heard opposing arguments from clean energy groups and regional grid operators over whether the agency should abandon a long-standing approach to financing transport as part of a radical regulation.

Read the full article from S&P Global Market Intelligence

Carl Icahn puts his activist record to the test in the battle for Southwest Gas

Carl Icahn has a reputation for getting what he wants in campaigns in the energy sector. However, in its takeover bid for Southwest Gas, it opposes an interim deal that has already garnered some support, and it must now convince investors to share its concerns.

Read the full article from S&P Global Market Intelligence

Private equity and real estate

PE’s ESG program progresses in US, but obstacles remain

The U.S. private equity industry is making progress in implementing environmental, social and governance strategies, but reporting on these factors is still in its infancy, experts told S&P Global Market Intelligence.

Read the full article from S&P Global Market Intelligence

Morgan Stanley to Receive M&A Fees from REIT on VICI Properties Agreement

The company’s work on the roughly $ 17.20 billion transaction comes as the volume of real estate investment trust mergers and acquisitions rebounds from the COVID-19 pandemic at its highest level in years.

Read the full article from S&P Global Market Intelligence

Technology, media and telecommunications

Netflix Seeks Next Growth Opportunity In A Mature Streaming Market

Analysts say competition will make it harder for Netflix to add new subscribers. But they still see opportunities ahead, such as Netflix’s foray into games and efforts to end password sharing.

Read the full article from S&P Global Market Intelligence

Metals and mines

$ 22.6 billion Mexican lithium mine gets stuck in drug and tech-risk cartel

Tesla searched for lithium carbonate in northern Mexico, but the task turned out to be more complicated than it initially seemed.

Read the full article from S&P Global Market Intelligence

Mergers and Acquisitions Week

Bank M&A 2021 Deal Tracker: Transaction Value Peaks After Financial Crisis
Read the full article

First Horizon expects to see significant merger benefits from the first quarter of 22
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Fulton interested in mergers and acquisitions, targeting banks with assets of $ 1-9 billion
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Media and Telecom M&A Activity Declines 11.3% YoY in September
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Mega Mergers, HCA’s Utah Expansion Leads US Hospital Merger and Acquisition in Q3 of 21
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The great number

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Tendency

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Additional information from S&P Global Market Intelligence

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