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Hello. More governments will need to step in to ease tensions in Europe’s electricity market, officials and industry figures have warned, after Sweden and Finland launched emergency support packages for their power producers. energy and British electricity producers have called on the British government for help.
The Nordic states both announced emergency financial liquidity measures over the weekend for their energy producers, which are facing a rapid increase in collateral calls due to the extreme volatility of energy prices. .
Russia’s announcement on Friday evening that it would no longer supply gas via the Nord Stream 1 pipeline is expected to trigger a sharp rise in energy prices when markets open today, adding urgency to calls for government support.
Power producers in Britain were “really concerned about the situation this winter compared to [financial] liquidity,” warned Adam Berman, deputy director of Energy UK, a trade body that speaks on behalf of around 100 energy companies.
“Fundamentally, the energy market is not designed to cope with the scale of market volatility that we have seen in recent months,” Berman said as he urged the UK government to urgently investigate and “understand the magnitude of the challenge that generators” face. wholesale prices remain at historically high levels.
Thanks for reading FirstFT Asia. We hope you are having a good week. — Sophie
Five other stories in the news
1. The US “blockade” is about to accelerate the development of Chinese chips Washington last week imposed new restrictions on US chip technology exports to Chinese companies. Beijing is expected to trigger a new round of funding to boost domestic semiconductor production as an alternative.
2. Credit Suisse boss Ulrich Körner faces test in $800 million lawsuit Former Georgian Prime Minister Bidzina Ivanishvili is suing the Swiss lender for up to $800m in damages in a lawsuit in Singapore as new chief executive Ulrich Körner grapples with a major overhaul of the country’s investment bank lender.
3. Mikhail Khodorkovsky asks the West to supply Ukraine with more weapons Once Russia’s richest man, Khodorkovsky points to the enormous economic damage being done to Europe’s economy every day by soaring gas prices as the reason Ukraine’s allies are stepping up arms shipments.
4. US unveils billion-dollar arms package for Taiwan US plans to sell Taiwan $1.1 billion worth of weapons, including 60 Harpoon anti-ship missiles, in largest missile and radar sale to date, as China ramps up military pressure on Taiwan.
5. Bed Bath & Beyond CFO dies after falling from skyscraper Gustavo Arnal, chief financial officer of the home goods retailer, died from a high-rise building on Friday. The company is struggling with lackluster sales and mounting debt, recently announcing the closure of 150 stores and the loss of jobs.
The day ahead
British Prime Minister Liz Truss is expected to be elected today as the country’s new Prime Minister. Follow the FT’s full analysis of these events.
american labor day The United States observes a national holiday today commemorating the labors and contributions of working people to the development and achievements of the United States; the financial markets are closed.
Lebanese presidential election The country’s parliament votes today to appoint the next president for a six-year term.
Russian economy The country’s annual Eastern Economic Forum begins in Vladivostok.
Energy industry The Gastech conference starts today in Milan.
What else we read and listen to
Ukrainian hackers: an ex-ghost, a Starlink and “owner” of Russia Hours after Russia invaded Ukraine, an army of former hackers and IT professionals mobilized to unleash an unprecedented cyberwar to help resist Moscow. Six months after the start of the conflict, some of the pirates are telling their stories.
Inside Revival Brewing at Starbucks The grassroots effort to organize coffee chain workers has spread to more than 200 stores. The momentum of the labor movement among Starbucks employees is emblematic of the more widespread resurgence of support for unions in the United States.
Summer is finished. Will everyone now go back to the office? From Tesla to Apple and Peloton, some of the biggest companies are making concerted efforts to get people back to work in person. Some executives grow impatient and take a harder line – only to face rejection and resentment from their employees.
Why the United States is reconnecting with Africa China has built much of Africa’s infrastructure, while Russia has sent mercenaries to support dictatorships and shady businesses. Today, after being relatively discreet in its strategy towards Africa in recent years, the United States is stepping up its engagement with the continent.
Prudential pivots to Asia as regional storm clouds gather Over the past three years, the £24bn life insurer has exited its European business, separated its US operations and reduced its UK headquarters, moving all senior management to Hong Kong. But an economic slowdown, geopolitical instability and pandemic restrictions are weighing on the outlook for its major markets.
Many of us try hard to avoid tourist traps when traveling abroad, but after an amazing meal at a Mediterranean honeypot, restaurant critic Tim Hayward decided to stop listening. food snobs.
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