20 May, 2022
Consumer discretionary sector tumbles; Fla. lawmakers tackle insurance crisis
Welcome to The Daily Intel, a roundup of exclusive news and analysis from S&P Global Market Intelligence, curated by our journalists.
Editor's Pick
Consumer discretionary stocks tumble, hit by inflation, supply chain disruptions
Consumer discretionary stocks are the worst-performing sector of the S&P 500 index this year, amid soaring inflation, strained global supply chains and plummeting consumer sentiment.
The sector declined 6.6% on May 18, the largest decline since mid-March 2020, when fears of COVID-19 fears created a sell-off.
Consumer discretionary comprises companies that manufacture goods or provide services that consumers want but do not necessarily need. The sector has been a growing target for short sellers, who bet climbing inflation will eat into demand.
Financials
Community banks try to defend market share now to avoid paying later
One Illinois-based community bank is using buy now, pay later to defend its market share from larger competitors, while a Tennessee-based bank is trying to incentivize profitable growth, not just growth.
Bank regulator nominee says Fed authority on climate change is limited
Michael Barr, President Joe Biden's nominee to lead bank supervision at the Federal Reserve, said in his nomination hearing that the central bank's authority on climate change is limited and related to assessing risks.
New bank charter applications of 2022: Michigan-based Sovereign Bank files
Michigan-based Sovereign Bank applied for deposit insurance May 10 to operate as a community bank in Grand Traverse, Benzie and Leelanau counties.
Fate of Fla. property insurance market at stake as special session of state legislature looms
Reinsurance programs and excessive litigation are among the issues lawmakers will address when they meet May 23-27 to tackle the state's property insurance crisis.
UK brokers warn on underinsurance as policyholders pinched, asset values rise
Ongoing global inflation means some policyholders' commercial property coverage will fall short of asset values against a backdrop of continuing price rises.
Real Estate
Land & Buildings adds Rexford Industrial Realty to its portfolio in Q1
The activist investor also added office real estate investment trust Alexandria Real Estate and hotel REIT Ryman Hospitality to its investment portfolio.
Energy and Utilities
Siemens Energy's potential takeover bid for Siemens Gamesa ends a year of rumors
Deutsche Bank analysts said the Germany-based energy giant will have to pay a premium big enough to convince minority shareholders in the beleaguered wind subsidiary to tender their shares.
Elliott exits $1.47B worth of holdings in 5 companies in Q1'22
The hedge fund's exits for the quarter included its $104.9 million stake in Duke Energy and its $532.7 million stake in Dell Technologies, according to 13F filings analyzed by S&P Global Market Intelligence.
Cobalt prices cool off amid China lockdowns, hiccups at LME
The London Metal Exchange three-month cobalt price plunged 8.6% week over week to $74,662 per tonne as of May 18, marking the first price drop since March 31.
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