S&P Global Stock Price, News & Analysis

S&P Global (NYSE: SPGI) has completed the sale of its Fincentric business to Stellex Capital Management, a global private equity firm. The transaction, which does not have a material impact on S&P Global, follows the company's announced intent in February 2024 to explore strategic options for the business. Fincentric, formerly known as Markit Digital, became part of S&P Global following the merger with IHS Markit in 2022.

While financial terms were not disclosed, the transaction will include local closings in certain jurisdictions, expected to occur during the remainder of 2024 and into the first half of 2025. Jefferies acted as financial advisor and Davis Polk as legal advisor for S&P Global in this transaction.

The GEP Global Supply Chain Volatility Index for July 2024 indicates a significant weakening in demand for raw materials and semi-manufactured goods, signaling slowing economic growth. Key findings include:

- Global factory purchasing activity fell at the fastest rate since late 2023
- Asian factory demand weakened, with Chinese purchasing decreasing for the first time in nine months
- North American suppliers reported underutilized capacity, with Mexican manufacturers seeing lower input demand
- European manufacturing recession persisted, especially in Germany
- Global transportation costs reached a 21-month high, driven by Asia

The index suggests increasing spare capacity in worldwide supply chains, potentially supporting calls for the Federal Reserve to lower interest rates soon.

S&P Dow Jones Indices (S&P DJI), the world's leading index provider, has completed its eleventh annual review of adherence to the IOSCO Principles for Financial Benchmarks. The 2024 review, conducted by an independent global accounting firm, covered key aspects of S&P DJI's index governance regime, control framework, and operations. It focused on the separation of index governance and commercial activities, as well as the management and oversight of policies and procedures.

CEO Dan Draper emphasized the importance of this annual review in maintaining a robust control framework that protects the independence of S&P DJI's index governance process and market-leading benchmarks. The company's Management Statement of Adherence and the independent review results are available on S&P DJI's Governance website.

S&P Global Market Intelligence's Q2 2024 Global M&A and Equity Offerings Report reveals a 11.7% increase in the total value of global M&A transactions to $1.221 trillion in H1 2024 compared to H1 2023. However, the number of deals decreased by 12.9% to 19,415. The report highlights that while M&A activity hasn't fully recovered from the 2022 slowdown, dealmakers are pursuing large transactions. Europe saw a significant boost in M&A announcements, with values up 65.4% quarter-over-quarter and 25.4% year-over-year to $182.87 billion in Q2. Global IPOs also declined, with 616 transactions in H1 2024 compared to 674 in H1 2023.

SolarWinds Corp. (NYSE: SWI) is set to replace SunPower Corp. (NASD: SPWR) in the S&P SmallCap 600 index, effective prior to the opening of trading on Friday, August 9, 2024. This change comes as a result of SunPower filing for Chapter 11 bankruptcy, making it ineligible for continued inclusion in the index.

The transition will see SolarWinds, classified under the Information Technology sector, added to the S&P SmallCap 600, while SunPower, previously listed under the Industrials sector, will be removed. This adjustment reflects the dynamic nature of the financial markets and the ongoing evaluation of companies' eligibility for inclusion in major indices.

S&P Global (NYSE: SPGI) and Accenture (NYSE: ACN) have formed a strategic collaboration to fuel generative AI innovation in the financial services industry. Key initiatives include:

1. A comprehensive gen AI learning program for S&P Global's 35,000 employees, launching in August, leveraging Accenture LearnVantage services.

2. Enhancing AI development and benchmarking solutions by combining Accenture's Foundation Model Services with S&P AI Benchmarks by Kensho.

3. Providing customers access to Accenture's gen AI 'switchboard' for model selection and customization, along with S&P AI Benchmarks for performance evaluation.

This collaboration aims to empower employees and customers to adopt, build, and innovate with gen AI, transforming daily work and customer interactions in the financial services sector.

S&P Global (NYSE: SPGI) has released its second quarter 2024 financial results. The company's earnings release and supplemental materials are now available on their investor relations website. S&P Global's senior management will be hosting a conference call on July 30, 2024, at 8:30 a.m. EDT to review the Q2 2024 earnings results. Investors and interested parties can access additional information presented during the call on the company's Investor Relations Website. A live webcast of the conference call will be available, with a replay option accessible afterwards at the same URL.

S&P Global Mobility projects new light vehicle sales in July 2024 to reach 1.32 million units, up 1% year-over-year. This translates to an estimated sales pace of 16.4 million units (SAAR), the highest since May 2021. The boost is attributed to delayed purchases from June's dealer management software cyberattack.

Despite one less selling day, July sales are expected to match June's. The two-month average SAAR for June-July aligns with April-May levels, indicating mild progression as rising inventory and incentives alleviate affordability concerns. However, mixed signals persist for H2 2024.

Inventory continues to rise, up 1.8% from May and 57% from last June. Battery-electric vehicle (BEV) share is expected to reach 7.8% in July, with further growth anticipated due to new model releases.

S&P Global's new report reveals that the United States ranks second-to-last globally in development time for new critical mineral mines, taking an average of 29 years from discovery to production. This lengthy process is surpassed only by Zambia at 34 years. The report highlights a significant challenge for the energy transition, as the U.S. has substantial resources of critical minerals like copper and lithium, yet receives less mining exploration investment compared to peers like Australia and Canada.

Key findings include:

• U.S. copper reserves and resources (275+ million metric tons) rival those of Canada and Australia combined
• U.S. lithium endowment (43+ million tons) is more than double Australia's, the current global leader in production
• Mining exploration budgets in the U.S. are 57% lower than Australia and 81% lower than Canada over the past 15 years
• Only three new mines have started production in the U.S. since 2002, while 10 projects remain in development, some for decades