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In our Market Monday insights, Prosperity Investment Management examines the latest developments across the globe's biggest financial markets - providing you with all the latest information you need to know.
UK electricity companies warn of cash crunch risk.
Electricity companies are urging the UK government to boost access to a £40bn state-backed liquidity support scheme, as continued price volatility in wholesale power markets reignites fears that some suppliers and generators might run out of cash.
The Treasury and Bank of England in October set up an emergency liquidity facility to tackle the margin requirements faced by power generators and suppliers that hedge their sales or energy purchases in the futures market.
The UK has followed a string of other European governments in offering liquidity support to the sector.
Trade body Energy UK told the Financial Times it remained “very concerned” about financial liquidity across the UK power industry “over the coming months”.
Any company that makes use of the scheme will be blocked from paying dividends or bonuses to executives.
Energy UK and individual suppliers have raised the matter in meetings with the government since the scheme’s launch, according to people familiar with the situation.
Singapore's crypto ambitions shaken
Authorities had signalled an early interest in harnessing blockchain technology.
In 2021, investment in the industry in Singapore increased tenfold compared to the previous year to $1.48bn (£1.2bn).
Making up nearly half the Asia Pacific total for the year.
Crypto assets and companies - many with links to Singapore - have imploded, causing reverberations and sparking losses around the world.
For Singapore, the FTX collapse was particularly shocking. Its state investment fund Temasek had invested in the exchange, pumping in $275m over several months.
A few months later, Singapore-based crypto hedge fund Three Arrows filed for bankruptcy, taking down crypto exchange Voyager Digital with it.
It is thought that the closures of key market players this year has wiped out $1.5 trillion in crypto market capitalisation.
Tail investors were hurt too, and many believe the Singaporean authorities should have done more.
Covid outbreak throws Chinese factories and supply chains into chaos
The coronavirus sweeping across China is causing widespread business disruption as staffing shortages threaten to close down factory production lines, bringing chaos to supply chains.
The Omicron variant of the virus has begun to run rampant through several big cities since the sudden U-turn on president Xi Jinping’s former zero-Covid policy of containment earlier this month.
Many office workers have begun to work from home but some factories are becoming thinly staffed as workers call in sick.
Business owners and executives said this was causing increasing disruption to production and supply chains.
Companies have been left with no direction on how to handle the sudden surge in cases, after previously operating under strict guidelines handed down by local governments.
Factory bosses are now either loosening all controls or isolating workforces to keep production lines functioning.
There are early signs of a rebound in domestic and international travel but not yet strong enough to make an impact.
