latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/45217519 content
BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
PRIVACY & COOKIE NOTICE

Login to Market Intelligence Platform

New User / Forgot Password


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In this list

Trump lifted coal's spirits, but turning that into market success is a challenge

Can ComScore Break Nielsen's Near-Monopoly On Ratings?

Most TV Everywhere Viewing Is Live TV In The Home

Consumer Insights Online Video User Overview

Public Companies Going Private


Trump lifted coal's spirits, but turning that into market success is a challenge

President Donald Trump and the coal industry’s mutual affinity may have improved investor sentiment toward the sector, but whether companies can parlay that into real market results is far from clear.

The dispositions of coal miners and coal executives alike have vastly improved since Trump won the election. Industry conferences and events once punctuated with dark humor, pessimism and war-like rhetoric are now filled with optimism about the future despite susceptibility to a secular decline in consumption, partially masked by recent success in moving coal to the booming seaborne market.

SNL Image

"A return to more rational environmental and energy policies should provide clarity and stability to the coal markets and potentially set the stage for growing coal demand in the future," Alliance Resource Partners LP President and CEO Joseph Craft said on an earnings call days after Trump's inauguration.

Coal sector sees Trump improving its public perception

Despite the optimism, domestic U.S. coal consumption has continued to decline, and overall production has hardly budged under Trump as he continues to praise the country's "beautiful, clean coal." Supporters of the president in the coal industry, however, say greater certainty and improved sentiment toward their industry have helped.

"There are a lot of hardworking Americans in the coal industry — and in related industries that support coal mining — who take great pride in their role in delivering affordable, reliable energy to the American people," National Mining Association spokeswoman Ashley Burke said. "To see an administration that values and respects that work is extremely important."

Support for coal coming from the administration is important to how the rest of the country perceives the coal industry, said Betsy Monseu, CEO of the American Coal Council. A financially healthier coal industry supercharged by positive sentiment from the White House is again attracting investors to the sector, she added.

"It is far easier to do that when the markets are improving and the government-induced pressures are subsiding," Monseu said. "[The president's show of support for coal] has opened up dialogues and created new opportunities for the industry."

At the same time, she said, marketplace and policy issues that have "tilted the playing field away from coal" remain.

Companies that sell coal to the domestic power market have yet to see a new coal-fired power plant built in the U.S., and plant retirements have continued despite Trump's efforts to support coal. The sector is enjoying a boost from exports as international pricing remains supportive, but an escalating trade war being waged by Trump and the country's global trade partners may put recent gains at risk.

Ultimately, supply and demand is the real price driver in the market, said Joe Aldina, director of U.S. coal at PIRA Energy Group, an analytics and forecasting unit of S&P Global Platts.

"I do hear more positive sentiment," Aldina said. "I think it doesn't do much for the price of coal. If anything, coal producers have gotten into trouble in the past when their sentiment doesn't meet up with fundamentals and they make decisions that don't position them well for the reality of what's happening in the market."

Policy initiatives by the Trump administration, Aldina said, have had limited impacts "at the margins" but have done little to affect the supply-and-demand dynamic facing U.S. coal.

Moving markets from the White House

However, the president's power is not limited to policymaking. Trump's Twitter habits, specifically his willingness to single out a company or an industry in his messaging, have provided fodder for studying the influence a president's words alone can have on the economy.

"We found on average the comments really do move the price," said Marketa Wolfe, an assistant professor in economics at Skidmore College who studied stock market reactions to the president's company-specific tweets with co-authors Qi Ge, also of Skidmore, and Alexander Kurov of West Virginia University.

The effect was strongest before Trump's inauguration, possibly because the market has since realized not every Trump tweet would become policy, Wolfe said. While the relatively small sample warrants further study, she said the effect may extend sector-wide when Trump praises an industry. Notably, though, in the company-specific examples Wolfe and her colleagues examined, the positive or negative effects often quickly wore off.

"These findings raise the question of whether it is optimal for high-ranking government officials to communicate industrial policy pertaining to specific companies via Twitter where unexpected statements can potentially instantly create or wipe out millions of dollars in shareholder value," the study concluded.

While the media often focuses on high-profile events, investors are far more likely to pay attention to the effects of gradual, fundamental shifts in technology trends and societal preferences, wrote Samson Mukanjari and Thomas Sterner of the University of Gothenburg's economics department, in a study analyzing the market impacts of the last U.S. presidential election and the Paris Agreement on climate change. The lack of a sizable global reaction to the election of Trump — with his desire to promote coal and threats to pull out of international climate agreements — surprised the researchers, Mukanjari said.

"This perhaps signifies the U.S.'s limited power to influence global climate policy," Mukanjari said. He said investors are more likely to pay attention to underlying factors influencing markets or announcements from countries that can more directly influence companies in their economy.

For example, political statements from China, where the government has a stronger hold on markets than in the U.S., seemed to carry more weight than other political events, according to the analysis. Investments in the sector are often made for the long term, and underlying trends outside of politics mean few companies are constructing new mines or coal-fired power plants, Mukanjari said.

"Everyone recognizes that Trump has four [or] maybe eight years in office, and that makes it harder to make long-term investments in the sector," Mukanjari said. "The major challenges facing coal may have little to do with global climate policy but technological developments that have made alternatives to coal much cheaper and changes in consumer preferences among other things. To this end, attempts to promote coal will face similar challenges."

S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.


Technology, Media & Telecom
Can ComScore Break Nielsen's Near-Monopoly On Ratings?

Highlights

The following post comes from Kagan, a research group within S&P Global Market Intelligence.

To learn more about our TMT (Technology, Media & Telecommunications) products and/or research, please request a demo.

Sep. 17 2018 — Advertising agencies are becoming increasingly frustrated with the inability of Nielsen Holdings PLC's Nielsen Media Research to convince the major media companies to embrace its new cross-platform measurement system, called Total Audience Measurement. This creates a huge opportunity for comScore Inc., formerly Rentrak.

ComScore is trying to reinvent itself following its delisting in 2017 — it was relisted June 1 — following an accounting scandal. The company's stock has fallen from $65 per share intraday on Aug. 17, 2015, to close at just $18.06 per share on Sept. 6. It currently has a total enterprise value of less than $1.2 billion, paltry in comparison to Nielsen Holdings' $12.9 billion.

In April, comScore named Bryan Wiener, previously executive chairman of Dentsu's digital media agency 360i LLC, as its CEO. On Sept. 5, the company announced that it hired Sarah Hofstetter to serve as president and head up commercial strategy, including sales and marketing.

Wiener and Hofstetter have worked together for two decades, most recently at 360i, where Hofstetter was CEO and chairwoman. The two executives' deep ties to the advertising community may be just what is needed to bring a competing cross-platform measurement system to the broadcast and cable network industries.

Cable network ad revenue grew for decades before stumbling, albeit modestly, during the last recession. More recently, despite a booming economy the cable network ad industry has faltered, in part due to cord cutting and cord shaving but also because current ratings do not include all of online viewing and out-of-home viewing.

Currently, the ratings only include online viewing within a three-day period, which includes the exact same commercial load as linear. Many media companies do not believe that online viewers will tolerate the huge ad load that exists on linear TV and do not include the same commercial pods that appear on linear TV when serving up the shows online.

Although negotiations between Nielsen Media Research and the major media companies have been going on for some time, many in the industry are tired of the delays in adopting a new system and are looking at alternate ways to measure viewing.

Learn more about Market Intelligence
Request Demo

Technology, Media & Telecom
Most TV Everywhere Viewing Is Live TV In The Home

Highlights

The following post comes from Kagan, a research group within S&P Global Market Intelligence. To learn more about our TMT (Technology, Media & Telecommunications) products and/or research, please request a demo.

Summary: subscribers to telco operators were more likely to indicate they streamed TV Everywhere content compared to cable and DBS subscribers.

Sep. 17 2018 — Streaming live TV Everywhere to a mobile device inside the home is the TV Everywhere activity most often performed at 52% of multichannel TV respondents, according to data from Kagan’s MediaCensus online consumer survey.

While 58% of respondents surveyed in multichannel homes viewed TV Everywhere in the last three months, just 46% did so out of their home. Click here for the full Kagan report.

Viewing live TV inside the home was not only the TV Everywhere activity performed by the most respondents; it was also the most frequently performed.

Subscribers to telco operators were more likely to indicate they streamed TV Everywhere content compared to cable and DBS subscribers. Subscribers to some operators are more likely to stream TV Everywhere content, with AT&T U-verse (64%) being the highest and WOW! (42%) the lowest among operator subscribers surveyed.

Younger subscribers, especially Millennials, were more likely to stream TV Everywhere content compared to older subscribers.

For more information about the terms of access to the raw data underlying this survey, please contact support@snl.com.

Data presented in this article is from the MediaCensus survey conducted in February 2018. The online survey included 20,035 U.S. internet adults matched by age and gender to the U.S. Census, with additional respondents subscribing to the top multichannel video operators in the U.S. The survey results have a margin of error of +/-0.7 ppts at the 95% confidence level. Generational segments are as follows: Gen Z: 18-20, Millennials: 21-37, Gen X: 38-52, Boomers/Seniors: 53+.

Consumer Insights is a regular feature from Kagan, a group within S&P Global Market Intelligence's TMT offering, providing exclusive research and commentary.

Learn more about Market Intelligence
Request Demo

Technology, Media & Telecom
Consumer Insights Online Video User Overview

Highlights

49% of survey respondents use more than one SVOD service.

Sep. 14 2018 — Data from Kagan’s U.S. online consumer surveys shows that 23% of respondents exclusively use one service, while almost half (49%) use more than one SVOD service. The service which is most commonly used exclusively is Netflix, while users of smaller services almost always use at least one other service.

Netflix is so universally used that it is both the most exclusively used service and the service most often used in conjunction with another service. In terms of demographics, Netflix users are very similar to the general population compared to smaller services that tend to have a younger user base.

With the exception of Netflix, most respondents indicated they have never subscribed to the top four services, including Netflix, Hulu, Amazon Prime Video and HBO NOW. Among those who indicated they dropped one of the top services, price was a principal reason for dropping, although content-specific reasons differed by service. Content is one of the most defining characteristics of online streaming services, which can be seen in the content viewed and most enjoyed on each service. In large part users of Netflix, Hulu and Amazon Prime Video most enjoy the content each service is known for.

A broader overview of this data was presented in a recent webcast.

Data presented in this blog is from U.S. Consumer Insights surveys conducted in September 2017 and March 2018. The online survey included 2,526 (2017) and 2,523 (2018) U.S. internet adults matched by age and gender to the U.S. Census. The survey results have a margin of error of +/-1.9 ppts at the 95% confidence level.

Learn more about Market Intelligence
Request Demo

Capital Markets
Public Companies Going Private

Sep. 14 2018 — The recent tweet from Elon Musk has understandably made big news, but it is worth pointing out that the appetite for taking public companies private has been a key area of activity this year. S&P Global Market Intelligence’s data shows that 2018YTD is already at 39% of 2017 numbers, standing at €17.8bn of deal value across 32 completed deals, globally. Going-private closed deal count is at a healthy 49% compared to full 2017 numbers.

In terms of most popular sectors for going-private deals, since 2013 - Information Technology has been leading the pack with €108.9bn of aggregate deal value recorded across 104 deals, while Consumer Discretionary* is trending as a distant second with €49.7bn of total deal value.

The top target location for going private deals is the US, and interestingly – China comes in at second place, with UK following. The three regions have seen total deal size of €218.8 during the period of 2013 through 2018YTD. The popularity of these locations is further supported by the fact that after going private, average target’s EBITDA values have increased compared to when those companies were public. The US-based going private targets grew their EBITDA by average of 56% since leaving the public market, while Chinese and the UK-located companies grew EBITDA by 10% and 38%, respectively. Overall, the going private moves proved to be successful for ex-public companies globally within the 2013 – 2018YTD deals’ time frame, where their average Net Income values grew by 58% while EBITDA values grew by a smaller but yet attractive 29%.

In terms of the deal pipeline, 18 going-private deals were announced globally since 1st January 2018 and would add €25.8bn of aggregate deal value to already closed €17.8bn.

The following was originally published on Angel News on August 16, 2018: Public companies going private, S&P Global comment

Learn more about Market Intelligence
Request Demo