Blog — 17 May, 2022
Insight Weekly: Ukraine war impact on mining; US bank growth slowdown; cloud computing headwinds
By Sarah Cottle
Today is Tuesday, May 17, 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 examine the impact of the Russia-Ukraine war on the metals and mining industry. Supply and trade risks arising from the conflict have triggered a short squeeze in the nickel market and are stoking demand for cobalt as an alternative to nickel in battery applications for electric vehicles. In Ukraine, the war has brought existing and prospective graphite mining operations to a halt, derailing the country's ambition to become a major global supplier of the mineral. Meanwhile, Russian miners' stocks have plummeted, pushing some companies to consider spinning off certain assets outside of Russia in a bid to appeal to more risk-averse investors.
U.S. banks posted slower growth on both sides of the balance sheet in the first quarter, according to S&P Global Market Intelligence data. Total deposits across the industry were up 1.2% quarter over quarter, which was the weakest growth since the third quarter of 2020. Total loans and leases increased 1.0% in the first quarter, down from the 3.0% growth rate in the previous quarter. Also notable was growth in total securities falling to a three-year low of 0.2%.
Inflation and supply chain disruptions have affected cloud computing providers worldwide over the past year. Tech companies — including hyperscale cloud providers Amazon Web Services, Microsoft and Google — have enough market power and margin to absorb some cost increases, but they are not immune to wider and longer-lasting economic trends. Those with infrastructure in Europe are especially vulnerable to the impact of the war in Ukraine and efforts to reduce dependence on Russian energy supplies.
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